Is your Board Sustainable?

Over the past two weeks, I’ve spoken to several NPO leaders and during each conversation, the topic of sustainability came up. By “sustainability” I don't mean earth-friendly, “green” practices. The sustainability I am referring to is about an organization's ability to remain viabile and relevant over time. Organizational sustainability is a huge topic, so for this post, I will just focus on board sustainability.

While an organization’s mission doesn’t change over time, the function of the organization does. As an organization grows, its board of directors needs to diversify and change in order to meet the organization’s expanding needs. An effective board reflects the current organization, yet is also structured to support the organization’s future goals.

NPOs can usually trace their beginning to a small group of likeminded individuals who came together with the purpose of achieving a specific mission. Many times, founding boards consist of spouses, family members, or friends – people who are directly connected to the mission and are passionate about seeing it achieved. For some, this may be the first time they’ve served on a board or worked in the nonprofit sector. Founding boards are usually small and board members are charged with the responsibility of carrying out the day-to-day operations of the organization.

As an organization moves from its grassroots structure to a more professional composition, the board’s make-up must change to reflect the organization’s growth. It isn’t enough to only have board members with a direct connection to the mission. A healthy board needs to include members with differing viewpoints, diverse expertise, and varied experience. In addition, board members should be able to help the organization develop a broad network of prospective donors and community partners. As staff members are hired to manage the organization, the board’s focus needs to shift from carrying out the day-to-day activities to providing governance and oversight.

Remember, sustainability doesn’t mean preserving the current state throughout time. A sustainable board is one that changes over time to ensure an organization’s longevity and viability in the future. At any point in time, a board should simultaneously reflect the organizations past, present and desired future state.

Your board can be sustainable at any phase of its existence, as long as it remains open to change.

So , is your board structured to endure?

Conflict – it isn’t always a bad thing.

When talking with NPO leaders and board members, one topic that always comes up is conflict and how it interferes with the productivity of an organization. While certain conflict can paralyze an organization, some conflict is a good thing. Conflict can spur creativity, help to perfect an idea, and prevent groupthink.

The main types of conflict are: relationship conflict, task conflict and process conflict. Relationship conflict is emotional and occurs on a personal level – it does not belong at work and is not beneficial. Task conflict is disagreement about the work being done, and process conflict is disagreement about the strategy being taken to achieve a specific task.

Although there are different types of conflict, people tend to think all conflict is bad and avoid it at all costs. So, how can you ensure your board or team experiences good conflict?

1. Monitor the size of your board or the number of people you have on a team. You need enough people to meet the needs of your organization, but not so many that you over represent a particular group, or allow members to feel like they can become inactive.

2. Invite different perspectives – literally. If everyone is in agreement, then ask people to come up with alternative conclusions or solutions.

3. Appoint a Devil’s Advocate at each meeting. This person will encourage people to look for problems and offer alternative viewpoints to the group.

4. Structure discussion guidelines to prevent board members from arriving at a solution prematurely.

5. Establish a procedure for protecting differing viewpoints. You want people to know they can offer a novel idea or perspective without fear of rejection or ridicule from the group.

6. Develop a 2nd solution for each project or initiative. This forces people to discuss alternatives in a constructive way.

7. Be aware of the clock! Discussions shouldn’t drag on forever, but the group shouldn’t attempt to arrive at a conclusion because of time pressure. Take the time to be thorough and plan ahead to avoid making hasty decisions.

Turnover – Part 2 of 2

So, how do you fix it?

1. Establish that you have a problem with turnover. Employees will leave from time to time, so make sure you actually have a problem before you make plans to fix anything. Look for patterns and determine if what you are experiencing is cause for alarm.

2. Identify the problem. Conduct exit interviews when employees leave – no matter what their role, or how long they were employed. Current staff might not feel they can be speak frankly, but remember, these employees are leaving, so they should be able to be honest about their reasons. Most importantly, listen to what people are saying! Whether in an exit interview, annual review, or just around the office – listen to what your employees say. Are they asking for more opportunities? Do they feel valued? Are there complaints? Each piece of information is a clue to help you identify what is causing people to leave.

3. Do something about it! Since this blog contains general advice, I can’t advise you on how to fix your organization’s turnover problem without knowing details. The best general advice I can give you is to take action. Acknowledge the problem, formalize a plan and take steps to correct the problem. Employees will notice. This is the first step to boosting morale and helping your organization heal after a bout with turnover.

Turnover - Part 1 of 2

Out with the old, in with the new?

Turnover is a huge problem for NPOs. For some, turnover has become so commonplace that it is considered normal. Some turnover is good for an organization. A change in staff can mean an addition of new ideas, talents and experiences. However, when an organization has a continuously changing pool of talent, the organization gets hurt – sometimes in ways we don’t always consider.

Productivity

I want you to think of how a train starts. The whistle blows, the engine fires, the wheels start to turn, and the train begins to crawl along the tracks. As more power is generated, the wheels turn faster and faster until, finally, the train reaches cruising speed. If the train were able to continue at this speed, it would reach its destination in no time! That is the ideal scenario, but that isn’t how train travel works. Trains change pace throughout the journey. Maintaining a consistent speed isn’t possible. Passenger trains must stop when people exit and can only restart once new passengers are seated. And remember that the train doesn’t start back at full speed. It must build momentum again before cruising at top speed. Now, imagine if each time the train got to full speed, it stopped. What if the train never got to full speed because it stopped all of the time? It would take forever to get to its destination. Sound familiar? If you have ever experienced turnover, it should. Starting and stopping is exactly what happens at organizations when turnover runs rampant. An organization can’t run at full speed and reach its goals if it always stops to let people exit.

Cost

Turnover doesn’t just impact productivity. It also costs the organization money (and time, which equals money). In addition to the easily identifiable costs associated with turnover, you need to consider what else is lost when an employee departs: time, knowledge and opportunity. What does this cost the organization? These are just three of many hidden costs associated with turnover that we don’t always consider – think about how much your organization may be losing.

Morale & Company Culture

Turnover is hard on employees. The repeated loss of coworkers can be difficult for employees in a number of ways. First, employees must pick up the slack. A constant change in workload can be taxing, both physically and mentally. This, among other things, can lead to employees feeling burnt out. Secondly, the departure of a colleague means the loss of a friend, mentor, or confidant. This, too, can be emotionally exhausting for employees. Lastly, when employees witness rampant turnover, they start to question why. What is wrong with the organization that makes people leave? Are there better opportunities elsewhere? Employees see the organization not being valued by others and begin to question its value as well.

The Big Picture:

Turnover isn’t just about what goes on at the office. How does an organization with a turnover problem look to the outside world? It looks unstable. An organization that is constantly changing leadership or can’t hold on to staff doesn’t instill confidence in its stakeholders, board members, constituents, or prospective donors.

Therapy…for an organization? Yes!

What exactly is organization therapy?

In the field of medicine, therapy refers to the act of caring for, or treating someone who is sick or injured. We all know that organizations themselves cannot literally become sick or injured; however, we might use the terms as a metaphor to describe the state of an organization or board. A chaotic structure or poor practices might make us feel as though our organization is injured, in pain, or ill. NPO Therapy is designed to “treat” your organization’s issues.

I am a specialized consultant who utilizes a holistic approach when solving the issues of nonprofit organizations. Much like a therapist, I listen to the challenge my client faces and help them find the right solution to their unique problem, while providing them with the tools to address future challenges.

How do you know if your organization needs therapy?

Just as you know when something troubles you personally, you know when something isn’t right with your organization. To be sure, ask yourself the following questions:

• Are you working harder, but not getting better results?
• Do your current conditions support your vision for growth?
• Are you employees burnt out?
• Is there resistance to change?
• Do you struggle to engage volunteers or board members?
• Are employees out of sync with the organization's mission?

If you answered yes to any of these questions, NPO Therapy can help.

Visit www.NPOtherapy.com to find out about how I can help your organization.