the7deadlysins...

The 7 Deadly Sins

of Running a Ministry

(and how not to let your human nature throw your call from God down the toilet…)

presented by: Debra Thompson, President & CEO

www.getstrategy.com

Strategy Solutions

exists to create healthy

communities.

Healthy Communities Wealth Creating

Companies

Government

Workforce Development (including Education)

Economic Development Community and

Faith Based Nonprofits Healthcare

Healthy Organizations

Product Development Manufacturing or Service

Delivery

Product Development

Manufacturing or Service Delivery

Financial Management Access to Capital

Fundraising

Marketing IT / HR

Back Office Operations

We catalyze potential for sustainable growth

We help our clients “unlock their potential” by providing three things:

•  Strategic Planning •  Market Research

•  Project management to support implementation of key initiatives

The Objec:ves of the Workshop:

Objec:ves for this Session: •  Understand the elements of the strategic development process for the

nonprofit, the steps in the process and how to evaluate the need for a “transformaBonal” vision and plan for their organizaBon

•  Learn the elements of creaBng a “sustainable business model” and how to

idenBfy and implement the best combinaBon of programs, services, staffing and funding strategies to ensure success

•  IdenBfy the “7 Deadly Sins” that plague nonprofits and create barriers to

success and oGen “thwart” the best intenBoned efforts to achieve your mission

•  Provide some “Bps & tricks” to make your organizaBon’s capacity

building and development efforts more effecBve •  Receive “take home” tools for use in your organizaBon.

The 7 Deadly Sins 1.  Fear of the cash flow 2.  Asking “What can we afford?” versus “What do we

need?” 3.  Viewing the board members as volunteer staff 4.  Staffing the management (and governance)

funcBons of the organizaBon with (who shows up) volunteers

5.  Underpaying staff and resources 6.  Failure to “align” the “right” resources to the job 7.  Failure to “let go” and “trust”

1. Fear of the Cash Flow •  The organizaBon does not have adequate cash flow to

manage/sustain growth. •  Leaders are “worried” about where the money is going

to come from and oGen make “penny wise and pound foolish” decisions as a result.

•  Leaders do not take intenBonal steps to do something about their need for resources (fundraising).

Solu:ons/Best Prac:ce •  Develop a fundraising plan and EXECUTE it; •  ArBculate the “cause” of the organizaBon and market it

to potenBal donors; •  Build a “case for support” for the “cause”; •  Build “programs” that are fundable from some source.

2. Asking “What can we afford?”

Versus “What do we need?” •  Good planning in an organizaBon is oGen “tanked” because people are limited by what they perceive to be

the resources at hand.

Solu:ons/Best Prac:ce •  Brainstorm all of your ideas and EVALUATE them for the

acBon steps that will REALLY help you accomplish your goal.

•  IdenBfy the human, capital and operaBng resources that you REALLY need to make it happen.

•  Add up the costs and ask the quesBon “where can we get the resources we need to make this happen?”

•  ArBculate a “case for support” for your program/organizaBon and take acBon (be intenBonal about seeking resources).

3. Viewing the “board members” as volunteer staff

•  This is a common problem in nonprofits (especially the small ones) and many never get bigger because the board members don’t have the Bme and (more importantly) the experBse that the organizaBon needs to grow and be successful.

Solu:ons/Best Prac:ce

•  Board members should GOVERN the organizaBon. •  Be acBve in fundraising to help the organizaBon get the resources it needs to achieve its mission.

Board Development •  Evaluate board leadership capacity and structure

(and compliance with emerging nonprofit standards) •  Educate board members regarding their “appropriate” roles in planning, leadership

•  Create commitment, alignment and support for strategic plan implementaBon

•  Recruit new board members who can assist with the “next phase” of development

Governance Stages •  Stage 1 Organizing Board: Board is either “follow the

leader” (friends of the founder, cheerleader, rubber stamper) or strong volunteers who share board/ management funcBons

•  Stage 2 Volunteer Governing Board: Power and authority is shared between board and staff

•  Stage 3 InsHtuHonal and Fundraising Board: Board roles are disBnct from management; board sets policy and supports fundraising

What governance stage are we in?

•  OpBonFinder quesBon

Ten Basic Responsibili:es of a Non-‐Profit Board

1.  Determine the organization’s mission & purpose 2.  Select the chief executive 3.  Support the chief executive and assess his or her performance 4.  Ensure effective organizational planning 5.  Ensure adequate resources 6.  Exercise fiduciary responsibility & oversight 7.  Determine, monitor and strengthen the organization’s programs & services 8.  Enhance the organization’s public standing 9.  Ensure legal and ethical integrity and maintain accountability 10. Recruit and orient new board members & assess board performance

Adapted from Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram. Published by BoardSource, formerly the National Center for Nonprofit Boards, used with permission

What is the board’s role? •  Create clear expectaBons for the board (annual work plan and

commicee expectaBons) •  Create clear expectaBons for the CEO •  Structure meeBngs to direct the board’s acenBon to macers

of policy and strategy •  Collect feedback on the board’s performance

Adapted from How to Help Your Board Govern More and Manage Less by Richard P. Chait Published by BoardSource

The Execu:ve’s Role •  ArBculate an insBtuBonal strategy for careful, periodic review

by the board •  Structure board materials to direct trustees’ careful acenBon

to issues of policy and strategy •  Structure board meeBngs to direct trustees’ acenBon to

issues of policy and strategy •  Equip trustees with the capacity to monitor organizaBonal

performance and progress Adapted from How to Help Your Board Govern More and Manage Less by Richard P. Chait.

Published by BoardSource

ED/CEO Performance Evalua:on •  Should be Bed to strategic plan accomplishment •  Should include key ‘metrics’ that indicate organizaBonal and strategic plan performance

•  Performance targets should be set in ADVANCE (along with the budget)

General Expecta:ons: Board Member’s Individual Responsibili:es

•  Know the organizaBon’s mission, purposes, goals, policies, programs, services, strengths and needs

•  Perform duBes of board membership responsibility and follow the “duBes”

•  Suggest possible nominees to the board who are clearly men and women of disBncBon who can make significant contribuBons to the work of the board

Adapted from Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram.


•  Serve in leadership posiBons and undertake special assignments willingly and enthusiasBcally

•  Avoid prejudiced judgments on the basis of informaBon received from individuals and urge those with grievances to follow policies and procedures

•  Follow trends in the field/industry •  Bring good will and a sense of humor to board work

Adapted from Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram.


General Expecta:ons: Board Member’s Individual Responsibili:es

Board Roles •  Governance •  Fundraising •  Management Volunteer •  Direct Service Volunteer

Source: BoardSource

Board Role -‐ Governance •  CollecBve role: control and direct the formaHon and administraHon of policy maMers such as budgeHng and strategic planning, board/staff relaHonships, approving the annual budget or the board’s own processes

•  Individual role: With the excepHon of individual commiMee assignments, there is not one

Adapted from Creeating Strong Board-Staff Partnerships by Karen Simmons and Gary J. Stern.

Published by BoardSource, formerly the National Center for Nonprofit Boards

Board Role -‐ Fundraising •  CollecBve role: Determine policies on goals, fundraising mix, commiMee responsibiliHes and restricHons related to fundraising.

•  Individual role: Implement plans as part of board-‐staff-‐volunteer commiMees; assist management in carrying out fundraising strategies such as donor raHng, culHvaHon, and solicitaHons; donor research, individual prospecHng and soliciHng board contribuHons



Board Role – Management Volunteer •  CollecBve role: Determine policies about board assistance in

operaHonal acHviHes, especially those relaHng to conflicts of interest

•  Individual role: work with staff on specifically defined management issues and acHviHes; reporHng to staff as designated staff members as individuals who just happen to be board members (note and cauHon: this is something that you need to be asked by management to do and is usually related to specific areas of experHse; usually done in small organizaHons only)



Board Role – Direct Service Volunteer •  CollecBve role: Determine policies about board assistance in operaHonal acHviHes, especially those related to conflict of interest

•  Individual role: Assist in direct service projects under the direcHon of the volunteer coordinator and other staff as individuals who just happen to be board members



4. Staffing the management (and governance) funcHons of the organizaHon with (who shows up) volunteers

•  Running a business (or a nonprofit) requires very specific management and technical competencies that only (rare) volunteers have. In many cases, the skill sets of the volunteers are “adequate” but not “excellent.”

•  A vision for excellence has it’s own demands; invariably it will not be born of the exisBng mediocre “take what I can get” volunteer paradigm that plagues many nonprofits today.

Staffing the management (and governance) func:ons of the organiza:on with (who shows up) volunteers

•  Running a business (or a nonprofit) requires very specific management and technical competencies that only (rare) volunteers have. In many cases, the skill sets of the volunteers are “adequate” but not “excellent.”

•  A vision for excellence has it’s own demands; invariably it will not be born of the exisBng mediocre “take what I can get” volunteer paradigm that plagues many nonprofits today.

Technical Capaci:es •  Program Development Planning (Fast, EffecBve and AdapBve) •  Program OperaBons (standardizaBon) •  Outcomes Measurement, Management AND Program

EvaluaBon •  InformaBon Technology •  Finance (including access to capital) •  Fundraising •  MarkeBng •  Human Resources •  Other(s)…..

Which of these DON’T you have?

Solu:ons/Best Prac:ce •  Leaders need to “let go of the past” regarding how nonprofits

are led and embrace a paradigm of excellence… and in fact invite all those around them to embrace this paradigm.

•  Leaders must be very clear about the work to be done and the skill sets required to do it and find those skill sets through a combinaBon of staff, consultants and volunteers.

•  Recognize that there are experts that do what they do excellently, and provide for the necessary structures and personnel to make that happen.

•  Recognize that governance is difference than management and recruit board members that can govern.

5. Underpaying Staff and Resources •  The market knows the cost of excellence; but few people in

today’s society have the ability to work for free or the “next to nothing” salaries that nonprofits (oGen) pay.

•  The nonprofit sector is recognizing that this is not sustainable,

that organizaBons will grow, reach a certain level and die quickly due to lack of sustainable structure and funcBons.

Solu:ons/Best Prac:ce •  OrganizaBons that are truly outstanding, that are

making a mark on the world, pay the market price when they need to—because they’re focused on the vision/value because the return on investment will drive ever-‐expanding mission programs and cash flow.

•  IdenBfy the cost of “market rate” salaries and build it into the financial model.

•  Leaders/directors invest in fundraising to ensure the adequate resources to appropriately pay staff market rate salaries for their efforts.

6. Failure to align the “right” resources to the job •  Leadership of today’s organizaBons require a

complex combinaBon of skills, talents and execuBon that one person or a small group of people cannot possibly have them all or be able to do them all.

•  Leaders oGen have a “vision” in their mind of what needs to be done, but the “how” takes them so outside their personal skill set that they lack the confidence and the ability to even allow those acBviBes to happen because “they can’t do them”.

•  It is a challenge for leaders to change their thinking regarding how to lead/manage AND for board members to support fundraising to ask for the (real) resources that an organizaBon needs to get off the ground.

Solu:ons/Best Prac:ce •  Excellence hinges on discrimina8ng selecBon,

investment and empowerment of people as part of a vision, especially people who have experBse that a leader may not understand.

•  Be intenBonal in planning for the human, capital and operaBng resource needs of the organizaBon and in fundraising.

•  Find people and resources who have the relevant technical skills to implement “best pracBces” to meet the specific need (and don’t hire people that can “learn it” when there is no one to teach them).

7. Failure to “let go” and “trust” •  Some people simply refuse to give up

control.

Solu:ons/Best Prac:ce •  Let go and Trust. •  Empower the people and resources that you have to

achieve results. ~Communicate expectaBons and HOLD PEOPLE ACCOUNTABLE for results. ~“Hire slow, but fire fast”.

•  Recognize that the resources will oGen be like the “loaves and the fishes”. ~The “power of posiBve thinking”. ~Recognize that the basic principles of quantum physics do apply.

How Do We Get There From Here? •  Recognize the dynamics of what is “really going on” (the model).

•  Facilitate a strategic organizaBonal development process that is based on the life cycle stage and “real” capacity needs of the organizaBon.

Key Strategic Ques:ons: •  Where are we now?

–  “State of the OrganizaBon” •  Where do we want to be?

–  What is the vision of our organizaBon? –  What is the mission and our community needs?

•  How will we get there? –  How do we “transform” our thinking, our systems and our

structures? •  Who will do what?

–  What are the resources we need and what will it cost? •  How are we doing?

–  How do we ensure that we don’t let the “7 deadly sins” get in our way?

Two Types of Planning 1. Quick & Effec:ve: •  Conduct “self assessment” using internal informaBon a

month or so before starBng your budget process. •  Set goals & objecBves for the next couple of years. •  Make sure the key strategic investments are in your

budget. •  Make assignments and keep doing what you are doing.

Two Types of Planning 2.   Transforma:onal: •  Begin the process at the beginning of the fiscal year •  Collect external market needs and stakeholder needs data to

inform your ‘case for support’ (and be able to show hard data to funders)

•  ArBculate your new vision & build consensus around it •  IdenBfy new (or exisBng) program development requirements

to meet new (and/or growing) community needs •  IdenBfy your “capacity building” needs (leadership, adapBve,

technical and management)

Two Types of Planning Transforma:onal Con:nued: • IdenBfy the human, capital and operaBng resources required • IdenBfy the “ideal” operaBng model and the resources required to implement the model • IdenBfy the necessary “strategic investment budget” required to implement the model AND accomplish the organizaBon’s programmaBc goals • PrioriBze and SEQUENCE necessary investments • ArBculate a “case for support” for the funding • Commit to raising the money & capacity investments required • Hold board staff accountable for implemenBng plan

Common Failures (that contribute to the sins)

•  Lack of awareness o  Some “process” step is missing and we have no idea “what

is going on” o  If any element of the model is “missing” you may end up

with one of the sins •  Lack of process “altogether”

o  We keep doing what we have been doing and expect a different result

•  We use the “wrong” process for the need o  A quick and effecBve process when transformaBon is

required o  Inappropriate “assessment” of the life cycle stage and

capacity requirements will result in the “wrong” plan

How Do We Ensure Success? •  Understand current needs, product and life cycle stage BEFORE

starBng your strategic planning process. •  Design your strategic planning process to meet your life-‐cycle

stage needs. •  Really “vision” for your organizaBon what a successful future is

and what it means and inspire passion & commitment for the vision.

•  Have an “ugly honest” discussion with yourself and your board regarding the long term sustainability of your organizaBon (and your fiduciary responsibility) if you think “we can’t do this”.

•  Don’t be afraid to make the “tough” decisions. •  Monitor & evaluate your results!

BOARD OF DIRECTORS

BOARD PRESIDENT

EXECUTIVE COMMITTEE

FINANCE COMMITTEE

PROGRAM COMMITTEE

DEVELOPMENT COMMITTEE

GOVERNANCE COMMITTEE

Recommended Board Organizational Chart

BUILDING AND GROUNDS

COMMITTEE

Vision

•  Self-‐sustaining •  ConBnue the lines of business we have now in a self-‐sustaining compeBBve manner

•  Leader / role model

Commicee Job DescripBons

•  ExecuBve •  Governance •  Finance •  Development •  Program •  Building and Grounds

ExecuBve Commicee 1. Perform policy work

2. Act as liaison to the chief execuBve

3. Help develop a strategic plan

4. Conduct execuBve searches

5. Handle urgent issues

6. Ensure an annual agenda of board work is completed in line with the organizaBon’s strategic objecBves.

Governance Commicee

1. Help create board roles and responsibiliBes 2. Pay acenBon to board composiBon 3. Encourage board development 4. Assess board effecBveness 5. Prepare board leadership 6. Review and Revise bylaws as necessary

Finance Commicee 1.  Ensure that accurate and complete financial records are maintained

2.  Ensure that accurate, Bmely, and meaningful financial statements

are prepared and presented to the board

3.  Oversee budget preparaBon and financial planning

4.  Safeguard the organizaBon’s assets

5.  Help the full board understand the organizaBon’s financial affairs

6.  Ensure compliance with federal, state, and other requirements related to the organizaBon’s finances

Development Commicee 1.  Involve and moBvate other board members and volunteers in culBvaBon

and solicitaBon of giGs 2.  Help to develop policies for board and staff acBon related to giG

solicitaBon and recogniBon 3.  Ensure that the case for support is strong, current and based on the

organizaBon’s mission and goals 4.  Help to develop strategies to idenBfy and culBvate major giG prospects 5.  Provide informaBon on environmental factors affecBng fundraising

among the organizaBons’ consBtuencies 6.  Help to evaluate potenBal prospects for increased contribuBons 7.  Help to develop expectaBons for financial contribuBons from the board,

and providing leadership by making their own giGs 8.  Solicit giGs at levels required for annual, special and planned giving

programs including sending personal thank you lecers 9.  ParBcipate acBvely in special events and providing leadership for capital

campaigns 10.  Work with special event & project subcommicees

Program Commicee 1.  Advise the board on industry trends and strategic challenges

relaBng to the mission of the organizaBon, and assess community need for programs and services.

2.  Ensure that programs are developed and implemented that meet the needs of the community and achieve desired outcomes

3.  IdenBfy key indicators for measuring the quality and success of programs

4.  Track program indicators

5.  Plan and implement strategies to increase awareness and parBcipaBon in programs

Building and Grounds Commicee 1.  Evaluate strategic locaBons for buildings, programs and services

based on community need and ensure that a long range facility master plan for the interpreBve focus of buildings/grounds is created and periodically updated.

2.  Ensure that a preventaBve maintenance program is developed and implemented to ensure that faciliBes and equipment are adequate and appropriately maintained.

3.  Provide input and direcBon regarding capital budget expenditures for major building and maintenance requirements for the organizaBon.

4.  Monitor the capital and operaBng expenditures related to building projects and outcomes.

And remember…

“Never doubt that a small group of commi>ed ci8zens can change the world, because, indeed, it is the only thing that ever has.”

~Margaret Mead

Ques:ons/Discussion

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