Miranda R. Dalton – Fall 2011 – PSC 540

http://247wallst.com/2010/11/19/the-most-mismanaged-non-profits/2/

StructureBoard of Directors

Assumes the legal

responsibility for an

organization’s existence

Executive Director

Manages the daily

operations of the

organization

Effective or Ineffective?

Contributing Factors

Ineffectiveness

• Conflict of Interest

• Founder’s Syndrome

• Program Monitoring

• Board Size

• Pluralistic Ignorance

Conflict of Interest

Interpretation of Mission and Vision Differ

How Can Organizations Overcome Conflicts of Interest?

• Training

• Clarity of Roles and Responsibilities of Board & Executive Director

Gibelman Research

Founder’s Syndrome

Emotional Investment of Founder Can Paralyze an Organization

Personalized Leaders vs Socialized Leaders

Discussion Question

How can the emotional investment of the founder influence the board and impede the progress of the organization?

Block and Rosenberg Research

Program Monitoring

“evaluations tends to be on processes and inputs rather than outcomes” (Ott, 2001)

“ideal methods of evaluation are rarely followed because goals are unclear and measurement instruments yield ambiguous results”

(Ott, 2001).

Discussion Question

How has the Sarbanes-Oxley Act impacted the nonprofit sector and do you believe that further government regulation is needed in nonprofit

governance matters? Why or Why Not?

Herman Research

Board Size

Research reveals that smaller boards govern more effectively

Discussion Question:Do you agree or disagree with this statement and why?

Klausner & Small Research

Best practice for large boards - Bifurcated Board This type of board would allow some members to govern while and others are considered non-governing members

Discussion QuestionWhat would be the advantages of a Bifurcated Board?

Pluralistic Ignorance

Everyone presumes that the initiative is supported because of board member silence.

Silence = Acceptance = Bad Strategy

Discussion Question

Have you been guilty of not speaking up at work when you knew the organization was not engaging in best practices? What kept you from

voicing your opinion?

Holloway Research

Literature Review

Both Worth and Ott believe that there is no magic formula to board effectiveness

Worth states that organizations should be skeptical of “the one right way” prescription to board effectiveness

Worth and Ott recognizes that there is limited empirical studies on board effectiveness

Each research article had its own unique approach to board effectiveness

All cited research had a common theme: Success is dependent on proper strategic planning.

Final Discussion Question

What would be your recommendations to nonprofits to ensure board effectiveness?