“A single, toxic team member may be the catalyst for group-level dysfunction,” is one perspective noted in the paper.Another refers to “team destroyers.” Bad apples are described by three categories: withholding of effort, being affectively negative, and violating important interpersonal norms.
Caution: distinguish bad apples from people who simply have an opinion that deviates from the group.
The authors note several solutions: invest in selecting, placing, and training the right candidates for the team in the first place; train and empower groups to address destructive behaviors; provide team leaders with the structural authority to “intervene to motivate or expel a negative member;” and mobilize a response quickly before there is a vicious downward spiral.
What does this have to do with CSR and saving the world?If businesses use some of their corporate social responsibility funds to promote and support the engagement of their executives and professionals on nonprofit boards of directors in a purposeful and professional matching process, and also train them for boards, then companies will accomplish several benefits with this one investment:
Provide experiential leadership development for their executives, many of whom might even rise further into board leadership roles.
Make invaluable contributions to nonprofits in education, healthcare, the environment, the arts, etc., by providing talented people for boards and board leadership.
Train and coach the next generation of leaders for boards, businesses, and the world.
It's time to provide training and experiential learning for leaders to weed out bad apples, improve team experiences and productivity, and drive for success.
Last week, I wrote a post here about exploding the nonprofit business model.Well, one nonprofit – Reach the World - is doing just that by marrying gaming, social enterprise, volunteerism, travel, and global education.
Round-the-world sailor and social entrepreneur Heather Halstead helps kids in low-income urban communities see the world and share international cultures by accompanying global travelers through internet communications, in addition to having classroom visits from the travelers, and conducting creative classroom projects. Halstead explains that "geography is the vehicle to bring many subjects to life, including math, reading, environmental sciences, and languages." Board Chair Bob Altman adds that "Reach the World also involves college and graduate interns to assist teachers to advance technology literacy."
Jeffrey Wiener, Director of Dangerous Media, lent his assistance to RTW by developing GeoGames, an online game for kids to build the world.National Geographic invested in the first iteration, and Reach the World will seek additional investors for its next iterations at the upcoming Games for Change conference.
So you travel for business, huh? Test yourself to see how many minutes it will take you to build the globe, and compete with your friends. (Stephanie Cuskley, CEO, NPower wins the prize among the adults I’ve seen so far!)
“They should want me for my expertise, not my checkbook,” is the perspective I hear from some people interested in serving on nonprofit boards.So what’s the real story here?What exactly do nonprofits need and want from you?Are they just after your money?
The truth about nonprofits and their funding:
Nonprofit revenue models are complicated.In business, the revenue model tends to be pretty straightforward: there’s a product or service and a price.For each nonprofit, however, there are usually multiple revenue sources (federal, state, and local government; corporate, foundation, and private philanthropy; and fees for services) that each have different requirements and expectations, often with onerous reporting demands and regulations, all timed differently, and most varying from year-to-year based on new and often unpredictable funding trends and interests.Often the payers are third-party, so they are not receiving the services directly.
Most nonprofit services require significant subsidies through philanthropy.(If a homeless shelter could be profitable, it would be a hotel.)
Most of the time, if a nonprofit asks people outside of the board for funding, the “outsider” will expect the nonprofit to demonstrate that the board members themselves and their companies and foundations are highly generous; outsiders are reluctant to invest in a nonprofit where its own board members do not believe enough in the organization to support it.
The nonprofit business model is changing; some might say it’s exploding, given trends that are not dissimilar from changes in the for-profit sector.For example, in both for-profits and nonprofits, it is sometimes becoming less important to invest in a “place” (Amazon as a bookseller for example), and more important to build audiences through electronic communication, or distribute services through hub and spoke models. In the current economy, nonprofits are also increasingly collaborating with each other (Atlas Perfoming Arts) and with businesses (Partners in Preservation) in order to expand their impact and increase efficiencies. And nonprofits are pursuing more enterprising approaches (DC Central Kitchen).
Philanthropy models are also changing, in many cases becoming more business-like (Ford Foundation), engaging the public in grant decision-making (American Express), and involving business executives and professionals on nonprofit boards to increase impact through service and also foster leadership development as a complement to corporate philanthropy (Clifford Chance).
What the board and organization really need from you as a board member:
Expertise from business people who will help the organization strengthen its business model to be more successful in today’s marketplace.For example, expertise in branding and messaging, customer service, public relations, pricing, business strategy, and advocacy (for government and philanthropic funding).
Pro-bono services from your company or firm.
Expertise from people in the “industry” of the nonprofit, who understand nonprofits and the work of the particular organization, whether that’s in conservation, urban development, arts, or education.(So, indeed, I believe there is a highly valuable role for nonprofit experts on nonprofit boards.)
Diverse perspectives from people from a broad variety of cultures and backgrounds. Such diversity helps the board enrich its vision of the nonprofit’s potential, ensure that the organization benefits multitudes of people well, and expands its networks of support to maximize revenues.
A financial contribution from each and every board member at some level in order to experience the pleasure of supporting the organization and demonstrate your support to others. A highly generous financial contribution from those of you who have the means to do so, and meaningful contributions from your companies where such funding is available; this is particularly important to set the pace for fellow board members, new recruits, and prospective funders.
Your active participation in asking for financial support for the organization from a variety of sources.If you believe in the compelling work of the organization – whether it’s preserving the environment, fighting poverty, protecting human rights, educating children, or providing healthcare – it’s easy to do. You are asking for support on behalf of the community and the people you serve...not for yourself.Your role as a board member is to work with the nonprofit’s CEO, staff, and fellow board members to see where and how you can be most helpful in making the case – whether that’s in meetings with government liaisons, foundation or company representatives, or individuals whom you or the nonprofit knows.And you should be talking about your board whenever you can to help build support.
There are many great reasons to join a nonprofit board, including your own personal and professional development. But, ultimately, you will only succeed and have a good experience if you choose a cause you care about.And if you do care about it, it will be easy to do everything you can to help the organization to achieve success.Do that and you will have an amazing experience and make the world a better place.
“We got it that cities that rely on old-line manufacturing have to change or die.That for-profit business models have to change or collapse.Now, it’s time to explode the business models of nonprofits in order to adapt to changing markets and the interests of new generations,” according to Clara Miller, Founder and CEO of the Nonprofit Finance Fund.
Miller founded NFF 25 years ago to help nonprofits establish strong financial health in order to fulfill their missions.In the current economic climate, NFF is gaining popularity and momentum among funders as well as nonprofits seeking more viable financial solutions.
NFF is facilitating financial innovation. For some organizations, that can mean more virtual operations.“The idea that every symphony orchestra or theater or school should have the same business model is obsolete,” explains Miller.To help invent and promote new financial models, NFF partnered with the Doris Duke Charitable Foundation on Leading for the Future.An example of a new model is Misnomer Dance Theater that builds robust audiences through web media, and then brings their performances wherever audiences have formed.Result: full houses, broader reach to more diverse audiences, lower fixed costs.
NFF is also helping to influence funders and nonprofit boards by showing the importance of investing in strong and effective organizational infrastructures, including for fundraising and program development and implementation.
The good news from this bad economy is that we no longer have to suffer the fools who say, “if it ain’t broke…”It’s finally time to blow up models that don’t work, build sleek, effective new business models to get us through these hard times, and position ourselves for a new era of prosperity.
In January, I wrote here about American Express’s unique approach to address the funders’ dilemma of having too few dollars to divide up among a plethora of good causes: invite the public to participate in the grant-making process.
Today is the day. People from across the country are invited to vote online once a day from now until May 17 at Partners in Preservation to help American Express and the National Trust for Historic Preservation choose which out of a highly diverse group of 25 Boston historic sites will receive restoration grants totaling $1 million. You can also post your personal stories, and share photos.
The winner of the popular vote is guaranteed funding.Additional grants will be awarded on June 16 to a number of the other sites after review by an Advisory Committee comprised of Greater Boston civic and preservation leaders, AmEx and the National Trust.
Research shows that the rehabilitation of historic buildings generates as much if not more employment than new construction.Preservation also infuses money into the economy by purchasing materials needed to complete projects.And historic preservation promotes travel, tourism, and local pride, while protecting a community’s heritage.
The good news is that some funders are finally using their selectivity to drive nonprofit boards to become more effective.In fact, only nonprofit boards can truly elevate the performance of nonprofit organizations.Nonprofits that provide our nation’s and our world’s communities with healthcare, education, social services, arts and culture, and nonprofits that fight poverty, injustice, and environmental waste.
Even the best nonprofit CEO cannot maximize an organization’s potential without a highly effective board chair and board of directors.Here’s a Seven Point Checklist for funders and nonprofit boards who seek to invest in and build a high performing nonprofit:
Create and agree to a board member “statement of expectations,” with board members agreeing to attend meetings, “give/get” (contribute and raise money) at certain levels suitable to the particular organization (which is related to the revenue model, not necessarily the budget size), and provide additional (and clearly specified) organizational support.
Install a qualified and committed slate of officers – board chair, vice chair, treasurer (with financial expertise), and secretary (an attorney) – who are role models in their commitment to the mission, their good judgment, strategic acumen, their giving/getting, and their diverse backgrounds and perspectives.
Build a board comprised of people with a mix of business experience and “industry expertise” (in the nonprofit’s area of work), from a variety of backgrounds, all fully committed to the mission and expectations of board members.
Focus board meeting agendas on the vision of the organization’s greater potential, the revenue model, achieving strategic and financial results, demonstrating and articulating success for funders and the public, and specifying the roles that board members will play in advancing success.
Engage an outstanding CEO, provide a fair and competitive compensation package, and work productively in partnership with the CEO.
Explore, pursue, and establish organizational partnerships that will best serve the community’s interests.
Provide legal, ethical, and financial oversight, transparency, and accountability.(Beyond the legal test, I always recommend that boards consider “The New York Times test”: what will your donors think if they read about what you do or say in the media?)
Resources are dear.A lesson learned in these times is that funding must be leveraged more purposefully by boards of directors and funders that invest in and steward our nation’s and our world’s nonprofit organizations. Less waste. Higher impact.
“I am not going to let him die,” Kenneth C. Frazier insisted to Bryan Stevenson, Founder and Executive Director, Equal Justice Initiative (EJI) when he met James “Bo” Cochran in an Alabama state penitentiary. Cochran had been sentenced to death for a murder he didn’t commit. At that time, Frazier was an attorney with a Philadelphia law firm; he volunteered his time for EJI, as many other attorneys do. After 19 years and 4 months, Cochran walked away a free man. That was ten years ago.
Today, Frazier is Executive Vice President and President, Global Human Health, Merck & Co., Inc. Still head of EJI, Bryan Stevenson also teaches the Capital Defense Clinic at New York University School of Law. Together with Bo Cochran, they bear witness to injustice, tell the story, and show us how we can take action to support the important work that needs to be done to help create a more fair, rational, and just nation.
EJI, based in Montgomery, Alabama, has provided relief to scores of people who were wrongly convicted or unfairly sentenced. Today, EJI provides legal services to more than 200 people on death row.
EJI also helps the children. EJI has documented 73 cases of 13 and 14 year old children who have been sentenced to life in prison without parole, condemned to die in prison. Some of the children were charged with crimes that do not involve homicide or even injury. Nearly two-thirds are children of color. EJI is now representing many of these children and has recently won the release of Phillip Shaw, who at 28, had spent half of his life in an adult prison.
EJI is expanding its work with plans for major new efforts to challenge poverty in the Deep South. New initiatives include legal training for law students and lawyers, and projects to educate policymakers, community groups, activists, and organizations about problems facing the poor and imprisoned.Stevenson explains that “the opposite of poverty is justice.”
In this week’s post, James Kristie, editor and associate publisher of Directors & Boards, resurrected a quote by Irving S. Olds, the Chairman of U.S. Steel, 1940 – 1952, describing for-profit boards as “parsley on fish – decorative but useless.”Kristie continues on in his post, as he did recently with a class at Wharton, to explore the implications of corporate board governance in today’s current market crisis. Kristie’s publication is dedicated to “thought leadership in governance,” helping corporate boards to become highly effective.
The “Olds school of governance” in the for-profit sector is destructive to shareholder value and the broader economy.Similarly, old school governance in the nonprofit sector is destructive to communities – in the U.S. and around the world.
Nonprofits play a vital role in providing education and healthcare, addressing poverty, creating a more sustainable environment, and helping us achieve a more peaceful and just world.Boards of directors, comprised of people with a variety of expertise and backgrounds, have the governing responsibility to ensure that nonprofits are ambitious, effective, ethical, and successful – strategically and financially. Vibrant boards hire and work in partnership with great CEOs, who build and lead great teams.
If you are interested in more about nonprofit boards,
A new survey by the Nonprofit Finance Fund (NFF), led by CEO Clara Miller, adds to the data showing that nonprofits are in financial distress.
According to the 986 nonprofits surveyed around the country, 73% indicate they have experienced an increase in demand for services.At the same time, 62% of nonprofits anticipate decreases in funding from foundations, 49% anticipate decreases from individuals, 43% anticipate decreases from government sources, and 33% anticipate decreases from earned revenues. 28% of the organizations have budgets of only $500,000 and under. The majority of nonprofits surveyed (62%) did not have enough cash readily available to cover 0 – 3 months as they started 2009, and 38% are concerned about meeting expenses for 2009.
In order to be vital and strong, a nonprofit requires a highly committed board of directors who are all fully engaged, including a mix of generous supporters and experts in the fieldfrom diverse backgrounds and perspectives. Nonprofits also require foundation funders who provide meaningful multi-year funding for operating expenses (even if the nonprofit can also create earned revenue streams to supplement its income…you see, if a homeless shelter could generate a profit, it would be a hotel).
If you are on a board, be sure that this is the cause and nonprofit you care about, invest generously, raise money, help ensure the board has effective and generous leadership, and help the organization to become strategically and financially vital – including possibly through organizational partnerships.
If you are a foundation funder, invest in multi-year funding for operating expenses at a level that is meaningful.If you are a corporate funder, also consider involving talented professionals and executives from your firm to help the organization with public relations, strategy, information technology, strategic alliances, and other business functions.
Boards, together with the CEOs they hire, and those who fund nonprofits are best positioned to help nonprofits build strong and robust revenue structures. Together, they can ensure that nonprofits provide the most valuable services that are needed for a healthy, educated, environmentally sustainable, socially just, economically vibrant, safer, and more peaceful world.
A smart, dynamic woman, with a law degree and professional experience, 45 years old and raising a family, newly arrived First Lady Michelle Obama has an opportunity to make her mark on any number of important domestic and global issues.In her dauntingly demanding itinerary, she has visited classrooms and welcomed school children to the White House, addressed challenges facing women in balancing family, work, and life, served food in homeless shelters, met with American military families, and raised awareness on environmental issues, especially the organic food and local farming movement.
Engaging herself in a multitude of vital matters, the First Lady has helped spotlight a variety of topics for the world to see and learn.She is bearing witness, telling the story, and taking action.
In our fashion-window, Madison Avenue world, some critics complain that Michelle Obama has not branded herself with a cause.Let’s learn from our new heroine in the White House to explore and learn through service, and find ways to make valuable contributions without being obsessed with image.
