Board Engagement: The Biggest Challenge In the years I have been a nonprofit consultant, I have partnered with hundreds of organizations in the area of board governance. I like to start workshops by asking participants to describe their board in ONE word. I hear a variety of words like: passionate, committed. I also hear.. disengaged, checked out, under-utilized, unfocused. When I probe those less-than-optimal descriptors, what often comes to light is that the structures and supports to engage board members effectively are not well developed. What are effective strategies for board engagement? As the Governance Chair for the YWCA Madison board, I promote the use of best practices in board engagement. 1. Develop a board composition matrix: As an organization, discuss the desired attributes, skills and experience that will strengthen the oversight of the organization. With a comprehensive matrix, invite board members to complete the matrix to create an accurate scan of the existing expertise and areas for recruitment. It is important to understand what talents board members possess and how they can contribute to the mission impact of the organization. A board member may have been recruited as an accountant, yet in previous chapters of their career, they worked in monitoring and evaluation. Without a board composition matrix, that talent may go untapped. There are various designs of a board composition matrix. Here is one template to support your thought process. 2. Establish appropriate board committees: Involving board members through committees is an excellent way of taking advantage of everyone’s talents and expertise. Committees are most effective when the board clearly defines their work. Annually, the board should review the committee structure to determine which committees should be constituted to accomplish the work. There are generally several standing committees named in the bylaws (Executive, Governance, Finance), and the flexibility of the board to appoint committees as necessary. BoardSource, the leader in nonprofit governance, has some excellent resources on Structuring Board Committees. 3. Qualities of effective committees: An effective committee has the following qualities: A clear charter and work plan A chair that can facilitate meetings well and involve all members in the work Members who are committed and accountable to accomplish their tasks An understanding that committees do not make decisions; rather they advise, recommend, or carry out a task If I asked you to describe the nonprofit board you serve on in one word, what would it be? If it isn’t engaged…impactful…effective.. let’s connect to explore how to move your organization to greatness by having a great board! For more information on nonprofit governance, check out one of these blog posts: What Sombrero are You Wearing? Every great nonprofit begins with a great board What’s Governance Got to Do With It? Next Level Board Leadership: What does it take?
Leveraging Your Strengths to Lead Successfully Several years ago, I wrote a blog post about being a solopreneur and how understanding my strengths led to my success. Shortly after writing that post, I took the CliftonStrengths 34 assessment again. It had been eleven years. I was a member of a new global team and was curious to learn if anything had shifted in those eleven years. The CliftonStrengths assessment has been used by more than 34 million people globally to identify natural talents. It provides a deep understanding of 34 themes of your natural patterns of thinking, feeling and behaving in four domains: Executing: Help you make things happen Influencing: Help you take charge, speak up and make sure others are heard Relationship Building: Help you build strong relationships that hold teams together Strategic Thinking: Help you absorb and analyze information that informs better decisions In 2012, when I started my business, five of my top ten themes were in the Executing domain. That helped me launch my business and get things done. When I completed the assessment again in 2023, the top ten themes shifted slightly to include four themes in the Influencing domain and four themes in the Executing domain. As I reflect on this minor shift, I see how my business has evolved. Although I am still “Making Things Happen” as a solopreneur, I am leveraging more of my Influencing themes of Woo (Winning Others Over), Communication and Activator to lead more successfully. Woo helps leaders bring people together, make them feel welcome. These leaders are great at connecting people within their networks. Leaders with Communication theme are talented in helping others gain clarity on issues by asking questions to bring their thoughts out in the open. An Activator is someone who can make things happen by turning thoughts into action. They have comfort with trying and failing until they get it right. They allow other people to have that comfort too. I am still a solopreneur, however, I work within teams all the time. Whether I am leading a project with several associate consultants or managing a team of coaches, I leverage my Executing and Influencing themes to deliver high-quality results. Gallup has created a new report called CliftonStrengths for Leaders, which provides insights and advice based on your results to help you become a better leader. Individuals who use their strengths regularly and intentionally are more likely to be engaged in their job and report an excellent quality of life. The most effective leaders are always investing in their strengths. Are you leveraging your strengths to lead successfully? If not, let’s connect to get you on the path of investing in your strengths and living a more fulfilling life.
Welcoming the Next WeTheChange Leadership Circle Leadership and our roles in the movements we care about are always evolving. After serving four years on the WeTheChange Leadership Circle, it is time to transition and pass the baton to a new group of leaders to carry the work forward. One of my final duties as Governance Lead is to welcome the next class of Leadership Circle members. It’s an honor to introduce these incredible women – Danielle Lee, Cindy Curtis-Rivera, and Judy Schenk, who bring their wisdom, vision, and talent to WeTheChange. I’m excited to see their contributions to shaping the next chapter of WeTheChange. It’s been an incredible journey. I’ve had the privilege of helping build the governance structure of this growing community, from developing organizational processes to guiding our shift from a volunteer-led effort to a resourced organization with meaningful momentum. One milestone during my tenure with WeTheChange was the 2022 Activator Campaign, which raised $50,000 to support our evolution and launch a formal membership program in 2023. That was more than just fundraising, it was a turning point that showed how powerful our collective vision truly is. If you’re curious to learn more about how this community of purpose-driven women is shaping the future of business, I invite you to read our recent interview with B The Change. It captures the spirit and impact we’re making together. As I transition out of my Leadership Circle role, I’ll continue to support changemakers through my work with Vista Global and my new board position with YWCA Madison. I look forward to working alongside another group of strong women leaders committed to creating a more just, inclusive, and values-driven world.
Next Level Board Leadership: What does it take? I was recently contacted by a local organization to explore supporting them with an executive transition. The leader had given the board more than 9 months notice of retirement and the board was ready to get going on the hiring process. As I chatted with the board leaders, it became clear there were other challenges that the board was avoiding because they wanted to focus on something that was less contentious and forward-looking. I have a few standard questions that I ask to gauge the health of the organization, the health of the board and the relationship between the board chair and executive director. How large is the board? Are there term limits? How would you describe the relationship between the board chair and executive director? How often do they meet? What have the revenue/expense trends been over the last 3 years? How large of a reserve does the organization have? When was the last strategic planning process? The answers to these questions determine how healthy an organization is and I strongly believe this: Your organization is only as healthy as your board and that STARTS with the relationship between your Board Chair and Executive Director. Joan Garry has written many great blog posts related to board health and this post on board chair-executive director relationship came to mind as I sat through this meeting. The answers to the above questions were the following: 1. How large is the board? Are there term limits? We have a handful of board members but we are recruiting more. We don’t have term limits. WARNING: Without a robust process for board recruitment and transition, the organization is at risk of a governance crisis with the board shrinking and stalling out. 2. How would you describe the relationship between the board chair and executive director? How often do they meet? Well, we really respect the executive director, they do a great job. The board chair doesn’t have regular meetings with the executive director. If they need the chair, they call her. WARNING: As I stated above, the most important relationship in a nonprofit is that of the chief executive and board chair. They share leadership of the organization. If there isn’t regular communication, the organization is at risk of going adrift. 3. What have the revenue/expense trends been over the last 3 years? Well, we have a very large reserve so the board has approved a deficit budget the last few years but we have told the executive director they really need to develop a balanced budget for the next year. WARNING: There are times when it is strategic to approve a deficit budget. In this situation, there was no strategic investment being funded, it was just an unwillingness of the executive director to cut expenses, or increase revenue to compensate for programs that were not fully funded. This was coupled with an unwillingness of the board to fulfill their fiduciary obligation of being stewards of the organization assets and require a balanced budget. As we all know from our own personal financial stewardship… this strategy doesn’t end well. 4. How large of a reserve does the organization have? Related to the answer to the previous question,…we still have a pretty decent reserve but if we continue our deficit budgets as we have, we won’t have any reserves in three years. WARNING: I think the concern about this is pretty clear. 5. When was the last strategic planning process? Hmmm, let’s see.. I can’t recall the last time we did strategy development. We have an operational plan every year that explains the calendar of activities for all the programs. WARNING: The board is on auto-pilot. One of the primary functions of a nonprofit board is to establish the organizational identity (mission, vision, purpose) and the strategic direction in response to the community needs it is supporting. After this very enlightening conversation, I suggested the board might consider focusing on a few other things before conducting a search for a new executive director. They were not interested in focusing on anything but hiring a new executive director. I wished them well in the transition. If you are interested in how to build a high impact board, please consider attending the upcoming training on Next Level Board Leadership on October 25, 2023. For more information on nonprofit governance, check out one of these blog posts: What Sombrero are You Wearing? Every great nonprofit begins with a great board What’s Governance Got to Do With It?
The Leadership in Leaving…. In the month of January, I hosted a 3-part webinar series on succession planning and leadership transition for nonprofit organizations. This quote from the Building Movement Project puts in perspective why being intentional about leadership transition is critical for the greater community. “The decision to leave a long-term job is not simply a personal or private choice. For social sector leaders, it also is an act of leadership…How and when a leader exits reverberates throughout the organization and often reaches deep into the community and the field.” In the first 20 years of my career, I held five different executive director positions and none of the organizations had a formal succession plan. One organization hired a new executive director before my departure, so I was able to train my successor for two weeks. Another organization hired an interim executive director that was familiar with the organization. The other organizations leaned on current staff and board members to keep the organization going during the transition process. None of these scenarios set the organizations on a course for a smooth transition. As I continued in my career, I served as a board member for two different organizations that transitioned long-term leaders. As a consultant, I facilitated the search and transition process for an organization led by a founder. In addition, Vista Global partnered with another national consulting firm to write an eBook, Proactively Plan for the Inevitable: A Guide to Leadership Transition and Succession. Through all these experiences, I learned a lot about what contributes to successful leadership transitions. Six tips to build a strong organization that can thrive through leadership transition: Assess the organization’s readiness: Do you have a current strategic plan? Are you doing annual evaluations of the executive director and staff? Are you investing in staff development? Are your financial systems up to date and are there financial reserves? Do you have an emergency succession plan? Creating stability in the organization’s infrastructure is essential to navigate transitions successfully. Assess your personal readiness to leave: What level of excitement do you have for your work? Are you more interested in initiatives other than running the organization? Are tensions increasing with the board? Can you conceive a career move? These all may be signs it is time to depart. Determine what type of transition you are preparing for: Is this transition following a founder, or maintaining sustained success, or an underperforming organization or a turnaround? All require different focuses by the board. Build the leadership capacity within the organization: Organizations that have staff with professional development plans, strengthening their skills and competencies have greater success in navigating transition. How much are you investing in staff development financially and through mentorship and development planning? Provide ample time for the process and a roadmap: Transitions always take more time than you think. In addition, the board (as volunteers) has to manage many different aspects of the transition. The more time you can allow, the smoother the process will be for the incoming leader, outgoing leader, staff and board. Develop a strong board chair-incoming leader relationship: A strong board is a critical component to a successful transition. An incoming leader will rely on the board to understand their role and expectations in the first 90 days of tenure. Establishing a strong relationship between the board chair and incoming leader accelerates the incoming leader’s ability to come up to speed quickly to move the organization forward. Transitions of long-term leaders can include additional aspects of disruption related to the organizational identity and practices associated with the outgoing leader. Coaching for the outgoing leader, incoming leader and or board chair can offer important support to navigate the transition between what was and what will be. As an executive director, it can be a lonely place, particularly if you are contemplating departure. I know, I have been there. If you need a compassionate ear or a few tools to get going, I am here from you. The greatest gift you can give yourself, your organization and your mission is to strengthen your organization before leaving.
Is it Time to Explore a Strategic Alliance or Merger? Over the last 12 years, Vista Global has supported nonprofits across the country to examine whether a strategic alliance or merger was a strategy for increased impact. When the pandemic began, most nonprofits looked at current reserves to evaluate whether they could weather a 3-6 month downturn in revenue. We are now passing the 6 month mark and all indicators are suggesting that we will be in this stage for at least another 6 months, if not longer. Can your organization continue to weather this economic situation on its own? In the 2016 study called the Chicago Nonprofit Merger Project, 25 nonprofit mergers were analyzed from 2004-2014 to identify how trends have shifted over the last 20 years. The study identified that strategic partnerships and mergers are seen as a competitive strategy to support organizations in increasing growth and services. The study saw organizations using strategic partnerships and mergers as a response to market and policy trends to improve their competitive advantage. In addition, many of the organizations in the Chicago study had previous merger experience. In 85% of the cases, the board chair or board members emerged as chief merger advocates. The Chicago study, maps out the key stages and key questions for evaluation for a strategic alliance and through this process, your organization can make a strategic decision as to how an alliance or merger can advance a shared goal, respond to community need, improve program outcomes, reach more clients and maximize financial resources. From July 2019 to March 2020, Vista Global guided Big Brothers Big Sisters of the Fox Valley Region and Best Friends of Neenah-Menasha, now known as Big Brothers Big Sisters of East Central Wisconsin (BBBS-ECW), as they explored each stage of a strategic alliance. When the pandemic took hold, BBBS-ECW was prepared, having already pivoted their organization efficiently and sustainably in several ways. Recently, BBBS-ECW CEO, Lindsay Fenlon shared with community partners how the recent merger prepared them to navigate COVID-19: Through the help of community partners, we invested roughly $250,000 into the merger negotiation and integration process. This financial support enabled us to “do it right,” creating a new organization with the ability to pivot efficiently and sustainably in the following ways: Operational Systems: We chose to integrate and transition all critical operational systems to cloud-based options, including financial management (Quickbooks Online and online banking), telecommunications (VoIP phone system with virtual meeting, texting, scanning, and information sharing and storage (Office 365, Sharepoint and Onedrive file systems), program database (Salesforce platform), donor database (eTapestry) and board communications (Microsoft Teams). As such, we were able to transition to 100% work remote within 24 hours. Technology: In anticipation of the need to work remotely, all staff laptops and technology devices were replaced with camera and microphone enabled laptops with Bluetooth capability. We were able to stay connected to our cloud-based operational systems with no need to wait for additional supplies or materials to facilitate “business as usual.” Leadership Capacity: The merger required an organization restructure and we elected to maintain all personnel, focusing on adding more management positions to expand the leadership team. While this initially carried a higher salary impact on our operational budget, we gained additional capacity of leadership-thinkers, poised to strategically tackle the diverse crisis that COVID-19 brought while simultaneously achieving the following two weeks after the Safer at Home order was announced: Pivoted 100% of programming to virtual mentoring; Transitioned all program processes to virtual, including new enrollments and make-match meetings. The first virtual match was made 10 days after the Safer at Home order went into effect; Postponed and restructured fundraising events for optimal revenue retention; Designed and implemented a multi-audience communication plan, successfully communicated small wins and big breakthroughs with PR, social media and direct communication to stakeholders Developed financial forecasts that allow for 100% retention of employees Board Cohesion: The negotiation process required that each board of director associated with the original agencies come together to listen, learn and dream big about the future. Ten days into January, the newly combined board of BBBS met to define a cohesive way of moving the mission forward. Clear board member responsibilities, committees and goals, and communication expectations were defined and refined throughout the first quarter of 2020. When COVID-19 hit, board members were among the first to reach out to BBBS leadership to offer support and empower myself to take drastic action as needed to ensure the organization’s sustainability. As such, I was able to mobilize swiftly to take advantage of federal legislature and operational modifications necessary to best protect the mission of the organization and the safety of the BBBS team. Culture of Adaptability and Resiliency: As part of the merger, our team faced the need to embrace change in order to move forward under the umbrella of one unified agency. Policies, procedures, practices, and organizational structure throughout the entire agency were modified as we got use to the adage that “the only thing consistent in life is change.” When the life-altering changes that came with COVID-19 were first coming to light, our team embraced it as just another situation to adapt to. In the weeks since, the staff and board of directors have acknowledged having full confidence in agency leadership and in each other, identifying that the cultural challenges inherent within any merger actually led us to coming together as a dynamic and diverse group of mission-committed individuals with the tools to keep kids connected during a crisis. In Fall 2020, Vista Global in collaboration with BBBS-ECW, will release a white paper that shares the learnings and key success factors contributing to BBBS-ECW’s merger and how that prepared the organization to navigate COVID-19. Other Vista Global blogs on nonprofit mergers: Five Lessons Learned from Nonprofit Partnerships & Mergers Nonprofits on the Move with Mergers Tips on Nonprofit Merger Success Through Organizational Cultural Integration If you are wondering if a strategic alliance or merger might be your organization’s strategy for success, let’s explore the options together.
