5 Ways To Get Your Organization Moving At The Speed Of Change

Trouble with most discussions about ‘flattening’ and ‘empowering’ organizations is that the case studies are often high-tech histories:  Fairchild Semiconductor, Intel, Google,  W.H. Gore.  This makes it easy to dismiss as irrelevant to the leadership issues of today’s nonprofit….”this doesn’t apply to me”.  The sense is that innovation is taking place in some far off locale with little relevance to the day-to-day challenges of a nonprofit endeavoring to do the pedestrian such as feeding the hungry as opposed to the glamorous work of developing the next killer app.

A nonprofit is an affair of the heart.  Ninety-nine percent of the time when we inquire of an individual why they work for their specific organization, the explanation involves some passion connected to the mission. We want to make a difference and have an impact. 

Today's nonprofit leaders face a difficult and unprecedented challenge. The world is changing much faster than our organizations.  Thus examining our organizational design is imperative.  For our success is now more dependent upon the quality of the organization than in the effectiveness of our program.   A “B”-level organization with an ‘A’-level program will produce ‘D’ level results.

Here are a few thoughts about what sharp executives need to concentrate upon in redesigning the organization structure of our nonprofits.

1)      Laser focus on What Does Our Customer Value?  These are the people that we serve relevant to our mission.  What will make their life better?    Nothing more demoralizing than an organization which serves its staff, funders and donors well, but its customers poorly.  Create value and then trust that the money will follow.

2)      Establish What Does Success Look Like? Develop a narrow set of metrics which measure if we’re delivering customer value.  These outcomes provide guidance to every board member, staff, volunteer in prioritizing their activities and guiding their choices.   Accept nothing less than value added activities.

3)      Unleash our native collective intelligence.  Most innovations in organizations come from mid-level and entry level staff, NOT from elaborate strategic planning processes at the executive level.  Great ideas die because of laborious approval processes.   No one should have the authority to kill a good idea.  Lack of ready resources to exploit opportunities is also a problem.  We also need to be establish an off-budget pool of ‘risk capital’, so that when a promising innovation arises we can move fast to take advantage.

4)      Make accountability a collective responsibility.  In a hierarchy, a staff member is generally accountable to their immediate supervisor.   Thus an employee need only satisfy one person.  Evidence shows performance improves when a staff member is accountable to a team rather than to a single individual.   When we remove ourselves from the need to supervise, teams develop their own norms…if you have good people, they develop good accountability norms.

5)      Create a culture which values Speed, Innovation and Collaboration.   As Peter Drucker quipped, ‘Culture eats strategy for breakfast”.    The leader sets the culture.  Be quick, be creative and be in partnership.

 With all the buzz about social entrepreneurship and the emerging economy, it’s imperative we move at the pace of change.  It’s vital to understand that we already have what we need and that our success requires us to redesign our enterprises for this new environment.  By doing so, we let loose the talent which surrounds us to create new ways of doing business which ensure that we continue to add value to the lives of the people we serve.

The Four Critical Rights Of Board Members

In the past decade I've witnessed at least a dozen nonprofits where the Chairperson or a small cabal are running roughshod over the rest of the Board.  What's more puzzling is that the rest of the Board sits passively and lets this abuse continue.  Not only is that legally problematic, but it wastes the talents of the smart people sitting in the Board room.

Oftentimes I encounter Board members who do not understand they have legal rights and do not have to accept bad behavior.  Among the four critical rights are:

• You have a right to all relevant information needed to perform your duties.  This includes access to all staff and all documents necessary required to make sound judgments  in pursuit of the organization’s mission.

• You have a right to call special meetings.  If need be, file the request in writing.  The Board then has 60 days to hold the special meeting.

• You have the right to bring court action to challenge any behavior which affects your rights.

• You have the right to dissent.  You have the right to have your dissent officially registered in the meeting minutes.  Furthermore, you have the right to submit a written dissent to be attached to the regular meeting minutes or otherwise registered with the Secretary of the Board. (NOTE: You cannot vote in favor of an action then register a dissent.  Also, if you fail to register dissent you may be judged to have concurred in the decision of the Board)  

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You're known by the company you keep....

“Always try to associate yourself with and learn as much as you can from those who know more than you do, who do better than you, who see more clearly than you.”

- Dwight D. Eisenhower

I've often said if you want to change, you'll hang around people who are changing.  Also true is the corollary if you want to win, you'll hang around winners.

At lunch earlier this week a prominent business owner in the area commented how few nonprofit staff he sees at business social affairs in the area.  He wasn't speaking of the larger charities, but the mid-sized and smaller ones, the ones who "do so much and need to scale their operations".  They stay small because they hang around small people. 

Look, we all know what's coming down he pike in terms of austerity, and it won't be pretty.  There is no more hoping to hold on until the economy turns around.  Grow or die.  It means you have to take stock of who you surround yourself with in your business affairs.  Do yourself a favor and invest more time hanging around the people who are successful.  This means being part of the Chamber of Commerce.  This means joining Kiwanis or Rotary.  This means membership in various business associations.

Eisenhower was guided in leadership by men like Connor, Pershing, Marshall and MacArthur.  His tutelage in planning and logistics came under Mosely.  He sought out forward thinkers in the emerging field of tank warfare like Patton and Brett.  All of those influences came together at the moment of supreme crisis and propelled Ike to forefront of history.

Pause and consider the company that you keep.

One Tip For Fostering Change In Organizations

Today I received an inquiry from one working inside a large government human service agency.   As is frequently the case, they were feeling frustrated by a work environment which is more concerned with maintaining the system rather than bringing about real change in the lives of the people they're suppose to serve.   They asked what they could do to get supervisors and fellow employees to focus more upon successful outcomes for clients rather than just going thru the motions.

My response:

Dear XXXXX,

Thanks for your question.  It's one I get a lot. Especially from those in the public sector.

In public bureaucracies, people get rewarded for 'checking boxes' and punished for rocking the boat (I interact a lot with public schools and see this all the time). The incentives are wrong. Employees rise up thru the system by 'follwing the rules' and thus senior leaders are the ones who've mastered the art of living 'inside the box'.

I find for the most part that the staff in public organizations aren't bad nor indifferent, mostly just beaten down by the system. Morale is poor. I bet if you asked a dozen of your fellow staff to describe a time when they tried to do something different in order to help a client, they'll report the result was getting their hands slapped. Wanting to keep their job, they won't do that again. Or they decide there's more to life than this and move to another organization.

Yours is not an uncommon concern.

One of the strategies you might want to try is asking 'Why?" 'Why' is a powerful question, for it gets people thinking about Business As Usual. So much of what goes on in organizations happens because that's the way it's always been done. We operate with policies and procedures crafted in 1995 or 1975 because no one stopped to ask 'Why are we doing it this way?'

Another positive to asking 'Why?" is that it's not threatening nor demanding. It's not 'We should do it this way" or "You don't care about results". It simply prompts people to think about their work and can get a great conversation rolling.

Give it a shot.

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.

Learn To Delegate Please

The Next Generation of Executive Director will have to be serious about delegation.  Success comes from focusing one’s energy upon high value activities and then delegating down everything else.  It is the failure to delegate properly which kills most EDs….they get burned once or twice and then begin to pull back everything under their control…adopting the attitude “If you want something done right, do it yourself”.    That’s a career killer.

If you have to delegate a task or project,  understand these key principles in delegation

• Can they do the job?  Be sure to select someone capable of performing the task under typical circumstances and the period involved.
• Do they need any additional training to do the job?  What support do you have to put in place to ensure they “have what it takes”.
• Do they have the authority to do the job?  Make sure they understand the freedom they have to make decisions as well as the boundaries.  This includes budget authority.
• Do they want to do the job?  Not every task has to be joyous, but if you’re delegating the unpleasant jobs to the same person time after time you may encounter morale problems.
• Do they understand the desired outcome? Everyone should agree upon the specific results to be achieved.
• Is there enough time to  achieve the goals?  Nothing kills morale like being challenged with a goal but not given enough time to be successful.
• If they have to supervise or coordinate others, do they have the people skills to lead?  Note that the Executive Director was hired to lead people…so you better be sure those you delegate to can lead too.

What Good Bosses Believe

I have a lot of respect for Bob Sutton's perspective on what makes good leaders and managers. Just reread this piece on 12 Things Good Bosses Believe in the Harvard Business Review. Key statement "I have a flawed and incomplete understanding of what it feels like to work for me."