The Problem Of Zombie Organizations

In my work with nonprofits it can feel like I’m in the Land Of The Living Dead.

In The Nonprofit Quarterly, Simon Joyaux points out the wheezing nature of nonprofits which lumber on with grossly underpaid employees and dysfunctional infrastructure. Our communities are chock full of organizations with caring but demoralized staff, outdated information systems, semi-functional Boards Of Directors.

All good points in Joyaux's piece and nothing to argue about. If a nonprofit cannot raise enough capital to pay employees adequately as well as maintain a functional infrastructure, then perhaps it is time for the Board to ask, ‘If we can’t be first class, is it time to get out of the business?”

In the Age Of Austerity nonprofits must continually surround themselves with different kinds of talent and ultimatley discuss if the community would be better served by either merging or else relocating programs and closing up shop. 

In the private sector, companies frequently reach the limits of growth in their current state and face the choice of either gradual decay or of selling the operation. They can’t, on their own, acquire the resources to take the enterprise to the next level of competitive excellence. Unless they find a partner or buyer, the company eventually employs round after round of cost cutting: gutting professional development, sticking with antiquated equipment, eliminating employee benefits, job consolidations, layoffs, etc. This continues until a fire sale or bankruptcy.

Yet in the nonprofit sector this continual decay never seems to reach the terminal stage. Organizations are able of secure just enough contracts or donations to barely limp along in a somnolent fashion. Not quite dead, but far from vibrant. These are our Zombie Nonprofits.

Organizations are people, yet the gross under-investment in human capital in Zombies is a continuing black mark on the entire sector. The sense that professional development is a frill is stunning after all we’ve learned about management, yet these investments are usually the first on the chopping block. The emotional desire to ‘put all resources into services’ is noble, but ultimately counter-productive. It’s better to have a first class staff manage a second class program than having a second class staff manage a first class program.

The second area which suffers is technology infrastructure. It is not uncommon to experience a nonprofit where the hardware is antiquated and software systems are disjointed: case management software can’t talk to fiscal, which can’t talk to evaluation teams which can’t talk to senior management. The result being a single client’s information may be entered 3 or 4 times resulting in huge inefficiencies. The point here is if a nonprofit cannot raise the resources to adequately invest in its people and technology, then it’s time to consider getting out of the business.   

To be clear, this is not a decision an Executive Director is likely to recommend, research indicates the self-interest is too great. This is a Board responsibility. They must honestly evaluate the organization and determine if its time to relocate programming to another organization which can provide the proper staff and technology support. In the end it’s the public which suffers from Zombie Nonprofits.

Some Tips For Building Energy On Your Nonprofit Board

As I've noticed repeatedly, Great Boards just don't happen....they're built with a little loving care and a lot of hard work. If we don't get the leadership question right, then the organization is at best mediocre.
Gail Perry has posted over on Guidestar a good set of tips for keeping your Board engaged. She notes that we all want enthusiastic, action-oriented board members who pay attention and get things done. But high-performing boards don't just happen. It takes time, clear focus, and careful strategies to get them there. Here are 10 tips for creating a board that can deliver.

1. Reawaken their passion.
   Board members often forget why they care—and even why they are serving. You'll get the most out of your board members if you can fan the flames of their passion for the cause. Asking them, "Why do you care?" creates amazingly powerful conversations that can open their hearts and evoke new energy.
2. Give them a great experience on the board.
   Look at it from the board members' perspective. They want something out of their own experience. They don't want a passive role. They want to have meaningful work and to see real results. And they want to have a good time doing it.
3. Have interesting, upbeat meetings dealing with big-picture issues.
   If all your board members are doing is attending boring meetings, then you are going to have a bored board. And a bored board is not going to be an action-oriented board. Don't give your high-level people low-level work. Don't waste their time.
4. Give them social time to meet other board members.
   Board members want to meet the other members. You can't create a sense of "team" without giving them time to get to know each other. Social time creates community and collegiality—and trust. Encouraging friendships among board members helps mold them into a team.
5. Focus board members on action items to accomplish, not on attending meetings.
   Do you want your board attending meetings or do you want them making things happen for you and your cause? Don't get me wrong—meetings can be important—but board members need to understand that their job includes more. They need to be in action as well.
6. Be clear about what you need them to do and when to do it.
   Board members tell me that they want clear direction from the staff. They want to know what to do and when to do it. If you can give them clear action items, then they can make it happen. Don't make them guess—give them a list and follow up cheerfully and often.
7. Focus them on friendmaking for the cause.
   Board members may be afraid of fundraising and "asking," but they are not nervous about making friends for the cause. Set them up to host tours, socials, coffees to learn about your cause. Show them how to spread the word about your great work in the world.
8. Encourage a positive attitude.
   Negativity will not change the world—it will drive people away. It's through positive, exciting vision that you can keep the flames of energy burning—and keep your group motivated. Great energy attracts people—and funding—to your cause.
9. Help them understand specifically what you are raising money for.
   Show your board members that you need $xx dollars to help xx kids after school (or xx students, or xx ballerinas—whatever your cause). You'll be amazed at their action when they have a clear target that will help a specific number of people.
10. Appreciate every effort they make.
    How often do you thank your board members? Please don't forget that they are just volunteers, trying to squeeze your cause into their already busy lives. Personal appreciation goes so very far—and helps keep them motivated and happy.