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Governance
What distinguishes exemplary
boards is they are robust,effective, social systems.
Questus Strategies | 7331 Monica Lane, Evergreen, CO 80439 | 303-881-6786 | www.questusstrategies.com | www.rsolosky.com | @rsolosky
Three Sectors
Private Enterprise
Nonprofit
Government(Public)
Regulatory Agencies
Schools & Human Services
• Transportation• Hospitals • Day Care
• Neighborhoods• Communities• Families
Nonprofit Reality“Nonprofit” is an IRS
classification….
it is NOT a Business Strategy!
Change Agent
Impact
Action
Need
Nonprofit Community Engagement
Leadership
ChangeAgent
Fundraising
Values
Vision
Strategy
Positioning
CollaborationCommunications
Empowerment
Coaching
Measurement
Outcomes
Nonprofits as a Community Change Agent
Governance Axioms
1. The operational leader and the board must work as equal members of a team rather than one subordinate to the other.
2. The work of the two does not divide neatly into policy-making versus execution of policy; each need to be involved with both functions and must coordinate their work accordingly. often
3. In a well-functioning nonprofit organization, the operational leader will take responsibility for assuring that the governance function is properly organized and maintained.
- Peter F. Drucker (Paraphrased from Nonprofit Management & Leadership: Lessons for Successful Nonprofit Governance - 2006)
Governance Model
BoardFunding
Legal
Regulatory
StaffOperations
Program
Administration
Shared Responsibility
Implementation
Policy Decisions
Board
Foundations
Staff
Committees
Constituencies
General PublicDonors
Volunteers
Media
Government
Board Relationships
LegalityCorporate Directors are held accountable under the law for the following:
• Making sure the organization is run in such a way that it returns profit to its shareholders.
• Ensuring the organization complies with the law.
• Safeguarding the financial health and physical assets of the organization.
Governance• The board is comprised of individuals. • However, a director – or even a group of
directors – can not set policy, give directions to staff and volunteers, or make commitments on behalf of the organization.
• Only the full board, acting as a unit, can do these things.
Fundraising
1. Make a Financial Contribution2. Recruitment of New Members 3. Solicit Contributions4. Oversee Fundraising Efforts
Board members and the board as a whole, must exercise due diligence and the kind of judgment that ordinary, prudent people would in similar circumstances.
Duty of Care
Discuss ways to fulfill…
Board members and the board as a whole, must put the best interests of the organization first.
Discuss ways to fulfill…
Duty of Loyalty
Each board member and the board as a whole, must comply with the organization’s policies and with all applicable local, state, and federal laws and regulations.
Duty of Obedience
Discuss ways to fulfill…
Creating Progress
“Don’t Push Growth, Remove the Factors Limiting Growth”
Peter Senge, The Fifth Discipline -The Art & Practice of the Learning Organization
Board Development
"What are the three most important things for the board to accomplish this year, and what kind of board members do we need in order to do so?"
Executive Transition
1. Develop Strong Board with a Public Role2. Conduct Organizational Assessment• Define Organizational Vision• Evaluate Financial Stability• Assess Business Model• Understand Organizational Challenges• Identify Executive Skills
3. Develop Transitional Plan4. Communicate with Stakeholders
Systemic Thinking
Service
Satisfied Consumers
Increased Funding
Balancing Loop Example
Systemic Planning Process
Who Are We?
Where Are We?
How Did We Get Here?
Where Do We Go Next?
How Do We Get There?
Adapted from “The Nonprofit Strategy Revolution”
Step One
Step Two
Step Three
Strategy Pyramid
Lifecycle Analysis
Grass Roots-Invention | Startup – Incubation | Adolescent-Growing | Mature-Sustainability | Stagnant & Renewal | Decline & Shutdown
Lifecycle Analysis
Stage Key QuestionGrass Roots - Invention Is the Dream Feasible?Startup - Incubation How Do we get started?Adolescent - Growing How can we build this to be viable?Mature – Sustainability How can we ensure sustainability?Stagnation & Renewal How, if any can we renew?Decline & Shutdown Should we close?
Lifecycle Analysis
with respect to functionality…
• Administration & Systems• Staffing• Governance• Finances• Marketing• Programming
7331 Monica Lane, Evergreen CO 80439 | 303-881-6786 | www.questusstrategies.com | www.rsolosky.com |
@rsolosky