NONPROFIT BOARDS& TECHNOLOGY
Financial literacy                                      GOVERNANCE   MATRIX ON    BOARD                          70 people...
NONPROFIT BOARDS ARE COMPLEX
NONPROFIT         IN 21        BOARDS   st    CENTURYENVIRONMEN        Commercial crossover        Complex sector        L...
NONPROFIT BOARDS              st         IN 21 CENTURYRESPONSIBILITIES                   Strategy                   Financ...
ACTIVE   vPASSIVE
NONPROFIT BOARDSPURSUE ALIGNMENT
MAKE ADIFFERENCE
INFORMED        INPUTS DATA        ACTIVITIES        OUTPUTS        OUTCOMES        IMPACT
CONSIDERSMONITORS     DECIDES     IMPLEMENTS
MAKESDECISIONS
BOARD BUSINESSNEEDS TO SUPPORT
THE TECHNOLOGY          HARDWARE           SOFTWARE        SOCIAL MEDIA
THE HARDWARE
THE HARDWARE Percentage of professionals who ‘always’ use the                                              for these tasks...
THE SOFTWARE          Its all about the cloud                                    basecampDropbox
THE SOFTWARE• Store and organise policy documents, minutes, and more in the  "Resource Library"• Conduct "Committee" work•...
SOCIAL MEDIA
SOCIAL MEDIA
CONNECTION
FACEBOOK       750,000,000   active users   50,000,000,000    photos   30,000,000,000    status updatesonthly       135,00...
FACEBOOK     Connection       Events     Informing     Promotion“Go to” Organisation
FACEBOOK &NONPROFITS              89%        86%  74%  200   201   201
FACEBOOK &NONPROFITS                6376         5391  2440  200    201    201
TWITTER     106,000,000   active users         486,000   Visitors per day  1,000,000,000    tweets per week            14%...
TWITTER &NONPROFITS        60%              57%  47%  200   201   201
TWITTER &NONPROFITS               1922        1792  287  200   201    201
TWITTER
LINKEDIN  120,000,000   registered users   47,600,000   Visitors per month          200   countries    2,000,000   company...
LINKEDIN &NONPROFITS              1196        450  291  200   201   201
YOUTUBE     14,000,000,000   views per month                 60   hoursuploaded/minute        800,000,000   visitors per m...
SOCIAL MEDIA &     NONPROFITS 89%            57%                      47%                                33%              ...
SOCIAL MEDIA&  NONPROFITS 42%                                27%            18%                      14%                  ...
FUNDING
CROWDFUNDING
MANAGING BRAND
FOMO
THANK YOU MORRI.YOUNG@MOB.COM.AU     WWW.MOB.COM.AU
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
ConnectingUp 2012 slideshare upload
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ConnectingUp 2012 slideshare upload

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A deck for the 2012 ConnectingUp conference, used to discuss how Nonprofit Boards need to be aware of the value of technology, and specifically hardware, software and social media.
The deck is used mainly as discussion point triggers.

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  • I am Morri Young, and the company is Matrix on Board.# We have been going 15 years this June.#We only work in the nonprofit space.#We are 70 people in 6 offices around Australia.We provide infrastructure support to nonprofits, meaning we do #financial management, #management support and #training and development.So we are good at making sense of #financial information for people who need to know about it, and we work closely with # boards to develop their capability.#We don’t do technology.
  • I want to start with the premise that Nonprofit Boards are more complex than ever, and they need help.We bring a lot of smart people together, and some not so smart, and we ask them to work together as a group - on an irrregular basis, as volunteers, withdofferent backgrounds, locations and interests, and expect them to make complex decisions which will likely affect a lot of people.It is rarely a homogeneous group, in fact we seek diversity, and yet we ask them to align their values, raise money, work cohesively, take a helicopter view, butnot micromanage – and be responsible for everything that happens in the organisation.
  • There has been a radical shift in the way NFPs do business these days, and it will continue to change quickly.#There has been an increase in directors and managers with experience in the commercial sector. Wanting to do good, benefits to their own CV and to their commercial enterprises. They are also convinced that they have skills to contribute.#Nonprofits are more complex to run these days, with a strong ‘grow or die’ culture. More money, more risk, need more information. Increasing number of amalgamations means due diligence increases. Organisations have multiple funding streams, with associated contracts and relationships. Many NFPs now have – or are considering - social enterprises and businesses attached, and need to be much more aware of tax, conflict of interest, regulation, etc# Increasing compliance across tax, charity law, OHS, HR, means that as employers, boards need to be updated, and update themselves, about the obligations and duties of board members. Board responsibilities are growing and becoming more complex. Unlike the commercial sector, there is not an associated increase in Directors fees in the NFP sector. #The offer of being on a board needs to be attractive, as there are a growing number of nfps and therefore boards, and organisations compete with each other to attract high calbre board members.# Many boards are inviting service users to participate as a means of increasing skills, insights, and extending influence. These factors make Board work more challenging.
  • Board work iscorrespondinlgy complex.#Boards need to be across strategy is to pursue the objectives of the organisation, as set out in the Constitution, for the members. Strategy is based on mission, and is not a close up activity but rather about viewing ‘over the horizon’. They must leave the organisation in better shape than when they join.# Financial wellbeing means that boards must purposefully build reserves over time, which means raising funds, making surpluses, whilst ensure the organisation is solvent. Boards must engage in the budget process, and then monitor financial performance to ensure aspirations will be achieved# Boards are responsible for managing risks for the organisation means ensuring reputation is enhanced, assets are protected, values are clearly known in the community, and are subscribed to in the organisation’s actions. They must ensure measures are in place to prevent and detect fraud.# And the Board is responsible to ensure that ensure staff team is the best that the organisation can find, and to appoint a fantastic CEO who can manage the organisation..
  • To be an effective Board, it must be an active Board.My conversation with you is about Active Boards, because no amount of technology (save a lobotomy) is going to turn a passive board into an active one.Technology may be useful to the active board, because when I talk about technology, I mean the tools that are necessary to do the job.Technology is only the class of tools which are used by active people to do their jobs. Providing a treadmill to an overweight person who is not motivated to move, is not going to help that person very much.So we are talking about Active Boards.. And to know what an Active Board is, I will describe what it isn't.
  • A board that is not active # Is bored and distant at meetings# Is unresponsive when asked to do things# Brings little, if any, money in the door# Shows up only to benefit themselves or their career, Has no time for the organization, or is too busy to be helpful # Doesn’t ask questions or appear to understand what’s going on, usually the Board member who is opening the Board papers for the first time at the meeting.
  • So what does an active board seek to doI like the work of Nell Eddington, who write the Social Velocity blog.She talks about the the challenge for the effective NFP Board is to seek alignment and balance between the mission, the money and the competence of the organisation..If anyone were to be misaligned – not understood well, not pursued, etc then the organisation will suffer significantly and there will be chaos.For example, without well skilled people, the task of raising and spending the money becomes difficult, and without correction to the cause, can crash and burn the organisation.So the Board must clearly understand and convey its reason for existing, the things that it does better than anyone else in the world, and pursue the resources which sustain the organisation financially.This presentation isn't about how to attain a high achieving board, but how technology can support the effective board.The highly effective board can use technology to know what is going on, and to make decisions.The technology comprises the tools to assist, but it does not replace active, intelligent and effective governance…At the end of the day, the organisation’s Mission is to make a difference in the world.
  • An active Board wants to create an impact. It wants its programs to make a difference.How will it take resources from the community, perform activities, which changes peoples’ lives, and has impact on the wider community?Nell Edgington talks about the Theory of Change. Why does the NFP exist? How does it take resources from the community (inputs), performs activities to create change (outcomes) and makes changes to the larger systems and communities.
  • And to make decisions, it needs to be informed.#Informed about the Inputs… How much income is needed to deliver the activities planned, how many staff are needed, how many clients can be services.# Activities: How many programs are being delivered, where, what kind#Outputs: How many instances of service are being delivered# Outcomes; What is happening to our clients? Are their lives improving? # Impact: Does it make a difference? What does the world/community think of what we are doing? How are we making a difference?Technology can bring this information clearly and quickly to the Board.
  • So the organisation, once it is clear on its mission, commissions a strategic plan, and then implements and monitors it.As a result of the monitoring process, it reviews what its impact is, and will review the plan, make decisions about how its going, and implement these.This cycle is purposeful and not casual.The Strategic Planning process is a formal process, as are the processes of program planning, implementation and review.The Board, because of its crucial responsibility for mission, capability and resources, needs to be able to convince stakeholders how its particular organisation should be supported with funds and clearance of any obstacles to achieve the impacts.
  • At the end of the day, the most important responsibility that a board has is to make decisions.If its not making decisions, its ignoring its main responsibility in terms of governance.
  • The growth in complexity has led to a view by some Directors that in order to be effective, the organisation needs to provide as much support as possible to the Board.To attract high value board members, to ensure their information is first class, delivered quickly, that meetings are well organised in every detail, that Board members time is most efficiently taken up with only high level strategy and decision-making.On the other hand, there are compelling arguments that the Board is there to support the organisation, to bring in resources, and not to divert attention from management on the main game of delivering services for client groups. Resources used to meet Board members’ needs are resources not spent on programs for clients, staff amenities or support, training, etc.If the organisation is not going to be overwhelmed by responding to the needs of the Board, and at the same time deal with the complexities of NFP Boards, it is inevitable that technology will be play an increasing part in bridging the gap, and managing the squeeze on resources of the organisation, to bring quality data to the Board.
  • In respect of the technology, I want to look at three sets of tools which Boards can access.Hardware, software and social media.
  • Whist there is lots of hardware out there, in this brief session I am going to focus on the tablet, which I consider a game changer, with the most remarkable being the iPad.The iPad brings media to a single focal point, whether its reading, writing, viewing, gaming, communication, etc and because of its design (hardware and software) it is truly accessible.Trying to keep my focus on the value add which technology makes to Boards, the iPad enables Board members to have access to information wherever they are, whenever they want, and with a very short ‘time to competency’ factor.If Nonprofits are intending to recruit and retain Board members who put value onManaging timeAccessing informationBeing mobile and yet being connectedBeing gGreen’ in the sense that they prefer not to print and carry large quantities of documentsIt will not be too long before this technology is as accepted as the mobile phone.
  • Research shows that the IPad is now much more likely to be in the work place than at home. It is a true multi purpose device, with a strong emphasis on work functionality.It is less likely to be used connected, and more likely to be used to consume ‘time shifte’d content.Moving away from printed material (books, newspapers, reports) to digital alternatives. This transition is taking place at ‘striking speed’Hasn’t replaced the laptop computer completely (12%) but more than half have partly replaced their laptops. And it depends where you are working.. In emerging economies such as South America, the ipad is leapfrogging the desktop, and replaces laptops in 27% of cases..# Australian take-up is much lower than in the rest of the world, with South America leading the world in take-up in Businesses.(Reference ID Connect Connect iPad for Business Survey 2012
  • Software for Board is now really about the Cloud.Cloud computing helps to reduce costs, boost productivity and increase mobility.Boards need to use technology to communicate with each other, with key staff, and with stakeholders, and they also need the technology to provide them with the information they need to make decisions.Cloud based applications release users so they can make use of their applications anywhere, anytime. Because they are web-based, or an app, it means that users do not need to have a presumed knowledge about the hardware (PC or Mac) or the way particular applications are accessed through the hardware. The software looks and runs the same whether its in a browser on a tablet, or an internet café in a hotel in Alice Springs, or the desktop at work.There are some challenges (like the need for an internet connection) but the workarounds for this are being developed every day for offline and online access, and people are coming to terms with the fact that they don’t need to be connected ALL THE TIME.For Board members, relevant applications are #document storage#Communication#vFinancial reporting, and Board portals, such as BoardEffect… # BoardEffect is a complete Board portal for nonprofits.. See Grant at the booth outside!
  • # BoardEffect is a complete Board portal for nonprofits.. See Grant at the booth outside!
  • And thirdly I want to talk about Social Media and its relevance to Board business.Web 2.0 – the current state of the internet – means we move from 1-to-many communication, to a many-to-many relationship. Web 2.0 and the engagement of people is the monster which has been created. Now that we can connect to everyone, what is the value of that connection? And can it be levereged to assist Board members to – collectively and individually –engage with each other and stakeholders to achieve alignment of purpose, between mission, capability, resources?
  • What was Web 1.0 and the move to Web 2.0
  • Social Media is about connecting people many to many, and increasing the number of relationships people have..
  • 89% have a prescience on Fb, up from 74% in 2009, but only a 3% increase from 2010 to 2011
  • The Fb average member community size is up by 161% in 2011 to 6.376 members, from 2440 (2010) and 5391 (2011)
  • Online survey in Feb 2012 with 11,196 nonprofit professionals89% have a presence on Fb, up from 74% in 2009, but only a 3% increase from 2010 to 2011Twitter is at 57%, down from 60% in 2010.LinkedIn is used by 33% of NFPs.NFPs are attracting supporters through social networks.The Fb average member community size is up by 161% in 2011 to 6.376 members, from 2440 (2010) and 5391 (2011) LinkedIn 1196 (2011) 450 (2010) and 291 in 2009More than half (52%) have no budget for SocNet, however 84% commit some employee time to Soc Net, with 61% committing a quarter of an FTE, and 15% dedicating ¾ or more of FTE>97% will keep the same or increase.Marketing (I.e. promoting brand, programs, events, or services) is the primary role – engage supporters and grow membership.. Fundraising is secondary (65%) Low level fundraising has increased, the number raising a small amount $1 to $10k has increased fro38% 2009 to 46% in 2011.82% regard social networks as valuable, up from 79% (2009) and 81% (2010)Emergence of Master Social Fundraiser, raising over $100k.These MSFs have around 100,000 members, so you need a big community to raise big dollars.Some of these are quite small organisations, but they have dedicated staff to manage the Social Network.Social Networks are managed by program managers in the business and also by Marketing where it exists, not by IT.
  • TwitterIn a similar way Twitter is a way to communicate with clients and stakeholders in your organisation… It is a website where account holders can post short messages (tweets), to followers, and read tweets from account holders which they follow. It’s a constant stream of messages, making it temporary and ethereal… Account holders may follow thousands of people, and be followed by thousands. At the very basic level Twitter is a website which is a social platform that allows registered users to update what they are doing. Each “tweet” or posting is limited to 140 characters. 106m accountsAv number of accounts per day 486,000 1 billion tweets per week1.8% of site traffic is Australia14% are aged over 50.70,000 applications connect to twitter
  • Twitter follow base 1822 followers in 2011, 1792 in 2010 and 287 in 2009.
  • 47% of charities have a presence on YoutubeFirst clip was in 2005, Now has 14 billion vews a month.60 hours of video are uploaded every minute.800 million unuqie users a month.Three quarters of content is from outside USA.In 2007 Youtube consumed as much bandwidht as the entire internet in 2000.Third most visited website.The site was bought by Google in 2006 for $1.65bn, and in its financials does not consider Youtube revenue as material to its business.It is now live streaming, with 4 billion video streams a day.Its most famous clip.. Charlie Bit My Finger.. Has had 450m views.
  • Overall, communities are getting larger with the average community size on Facebook growing by 161% since last year to 6,376 in 2011, LinkedIn average size grew by 165% to 2011’s 1,196, and YouTube blasted up by 504% to 2,702. Twitter posted an anemic 2% growth from a 2010 average community size of 1,794 to 2011’s average of 1,822, and Flickr accounts remain small at 307.
  • Overall, communities are getting larger with the average community size on Facebook growing by 161% since last year to 6,376 in 2011, LinkedIn average size grew by 165% to 2011’s 1,196, and YouTube blasted up by 504% to 2,702. Twitter posted an anemic 2% growth from a 2010 average community size of 1,794 to 2011’s average of 1,822, and Flickr accounts remain small at 307.
  • Fund raising by boards relies on connections and leadership.The theory goes that Social Media raises brand awareness, and brand awareness leads to raising funds.Connecting with volunteers and the people most likely to support the organisation.. Easily and ‘personally’.Web 2.0 means that organisations very quicly find out what their audience wants and likes and can very quickly develop responses, if they have the capacity to do that.Facebook is a great example of the gap between the theory and the practice. Raising money through Fb is a challenge. Its easy to connect, raise awareness, but there are only a small number of converts to funding. Only a small number of organisations actually raise much money from people they don’t know. There are a lot of lurkers on Facebook and not that many lovers. Its easy to collect a Like, but not that easy to convert it to funding.The difficulty of fund raising and awareness can be seen by the Kony2012 campaign.89m views on Youtube so far, and the campaign to poster Sydney was was embraced, with 19,000 people indicating on Fb that they wete going to be in Martin Place on a Friday night in mid-April, and 25 people actually showed up.
  • Most famous was the 2008 Obama Presidential campaign where he raised half a billion of dollars… in $2 to $20 amounts, and far eclipsing his rivals fund-raising efforts.
  • StartSomeGood is a crowdfunding platform started by some Australians which gives social entrepreneurs the tools they need to transform their ideas for improving the world into action and impact. Projects are nominated, and people are invited to make a donation towards the project.
  • The most famous of the crowdfunding websites is Kickstarter.There are thousands of projects on Kickstarter, usually associated with a product that needs funds to move to the next stage, or an author, film-maker, crafter, with some great next big thing. Over $53m in two years.The general idea is that the fund raiser designates how much they need, and when they need it by… If the funding fails to reach the target by the date, then no money is collected. Its all or nothing funding.However there is no lending or investing. Project creators keep 100% ownership and control over their work. Instead, they offer products and experiences that are unique to each project.Ticktok
  • The organisation’s reputation and brand are its its most valuable asset. Reputation is about the organisation’s legitimacy in respect of a wide range of stakeholder groups, including but not limited to customers… Reputation is affected by a variety of factors including its management strength, financial performance, and innovation, plus how it treats employees, workplace diversity, complaint handling, etc Brand is about relevancy and differentiation with respect to consumers. In the past companies could keep distance between stakeholders, such as the financial viability of the company. Its brand may be strong, and yet its reputation may be diminished. Its hard to imagine these distinctions prior to the net.Chat rooms, blogs, and other web2,0 are merging perception of brand and reputation. For example, Apple and Foxconn, Wikileaks revelations about government behaviour.For nonprofits, these merge..Impression management is risk management, and being across what the organisation is doing online, and what others are doing is an important part of being aware, and for Boards to ensure good work is not lost through poor management or through malice.Opportunities like the PWC Transparent Reporting awards can help, but the underlying good business must be good.How does the organisation interact with stakeholders and how does it obtain, manage and deploy the resources necessary to execute its mission and vision. How clear and multi-channelled is that communication and how well are stakeholder relationships managed, how employees and volunteers are recruited, trained, rewarded, retained and recognised, and how the organisation is funded.Does the organisation clearly explain the strategy and structures that enable it to operate and look for clear communication of how those strategiesand structures enable the organisation to sustain and grow its activitiesReporting by not-for-profits should not just focus on the financial measures but on outputs, outcomes and impacts.Performance based information demonstrates how well the organisation understands the community need for their services, executed their strategy, and managed their resources and relationships.
  • This is the point..
  • For Boards we deal with, the value of Social Media is unknown. It is mostly promoted by people who sell social media services, and because as a means of communication, its really only 2 or 3 years old.The main driver is Fear of Missing Out.If we arent on Google Plus, Facebook, etc will we not have a brand, and not be able to raise funds.Should we invest in Pinterest rather than Facebook? Is Pinterest the next big thing? Who even reads out Tweets? If we make a Youtube clip, will it become the next Kony 2012?We didn’t have a wesbite 5 years ago and now we couldn’t possibly not have one..Is that the same for Facebook? We invested in MySpace, and look what a bomb that was!
  • ConnectingUp 2012 slideshare upload

    1. 1. NONPROFIT BOARDS& TECHNOLOGY
    2. 2. Financial literacy GOVERNANCE MATRIX ON BOARD 70 people Financial managementnonprofits Training and developmentManagement support technology
    3. 3. NONPROFIT BOARDS ARE COMPLEX
    4. 4. NONPROFIT IN 21 BOARDS st CENTURYENVIRONMEN Commercial crossover Complex sector Legal liabilities T Competitiveness Consumer participation
    5. 5. NONPROFIT BOARDS st IN 21 CENTURYRESPONSIBILITIES Strategy Financial Wellbeing Managing risks, especially brand CEO recruitment and supervision
    6. 6. ACTIVE vPASSIVE
    7. 7. NONPROFIT BOARDSPURSUE ALIGNMENT
    8. 8. MAKE ADIFFERENCE
    9. 9. INFORMED INPUTS DATA ACTIVITIES OUTPUTS OUTCOMES IMPACT
    10. 10. CONSIDERSMONITORS DECIDES IMPLEMENTS
    11. 11. MAKESDECISIONS
    12. 12. BOARD BUSINESSNEEDS TO SUPPORT
    13. 13. THE TECHNOLOGY HARDWARE SOFTWARE SOCIAL MEDIA
    14. 14. THE HARDWARE
    15. 15. THE HARDWARE Percentage of professionals who ‘always’ use the for these tasks iPad 53% 47% 37% 37% 27% 37% 27%
    16. 16. THE SOFTWARE Its all about the cloud basecampDropbox
    17. 17. THE SOFTWARE• Store and organise policy documents, minutes, and more in the "Resource Library"• Conduct "Committee" work• Access an online version of the "Board Manual"• Annotate, download or print Meeting Books for upcoming meetings• "RSVP" to meetings• Discuss issues between meetings using the "Discussion Forums"• View upcoming events in the Board "Calendar”• Access anywhere, anytime.. Browser and ipad app.
    18. 18. SOCIAL MEDIA
    19. 19. SOCIAL MEDIA
    20. 20. CONNECTION
    21. 21. FACEBOOK 750,000,000 active users 50,000,000,000 photos 30,000,000,000 status updatesonthly 135,000,000 visitors per month 8,000,000 Australian activeers 532,000 users aged over 55 20,000 deregistered users
    22. 22. FACEBOOK Connection Events Informing Promotion“Go to” Organisation
    23. 23. FACEBOOK &NONPROFITS 89% 86% 74% 200 201 201
    24. 24. FACEBOOK &NONPROFITS 6376 5391 2440 200 201 201
    25. 25. TWITTER 106,000,000 active users 486,000 Visitors per day 1,000,000,000 tweets per week 14% aged over 50ears 1,600,000,000 searches per day
    26. 26. TWITTER &NONPROFITS 60% 57% 47% 200 201 201
    27. 27. TWITTER &NONPROFITS 1922 1792 287 200 201 201
    28. 28. TWITTER
    29. 29. LINKEDIN 120,000,000 registered users 47,600,000 Visitors per month 200 countries 2,000,000 company pages2,000,000,000 searches per month
    30. 30. LINKEDIN &NONPROFITS 1196 450 291 200 201 201
    31. 31. YOUTUBE 14,000,000,000 views per month 60 hoursuploaded/minute 800,000,000 visitors per month $1,650,000,000 purchase by Google 4,000,000,000 video streams perday 450,000,000 Charlie bit my finger
    32. 32. SOCIAL MEDIA & NONPROFITS 89% 57% 47% 33% 19%FACEBOOK TWITTER YOUTUBE LINKEDIN FLICKR
    33. 33. SOCIAL MEDIA& NONPROFITS 42% 27% 18% 14% 13%FACEBOOK TWITTER YOUTUBE LINKEDIN OTHER
    34. 34. FUNDING
    35. 35. CROWDFUNDING
    36. 36. MANAGING BRAND
    37. 37. FOMO
    38. 38. THANK YOU MORRI.YOUNG@MOB.COM.AU WWW.MOB.COM.AU
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