2010 07 The Challenges of the Nonprofit Boards

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2010 07 The Challenges of the Nonprofit Boards

  1. 1. The Challenges of the Nonprofit es or.org.e Boards cersecto Pau Vidal P Vid l ww.terc 9th July 2010 ISTR – 9th International Conferenceww
  2. 2. Index of contents 1. About the research Origin Aim and Methodology gy Universe and sample 2. The challenges of the nonprofit boards in NPOs The organizational commitment. The functional strategy. The relationship with the directive team team. The diversity of the profiles. The renewal of the board. The Th management of information. t fi f ti The culture of transparency and accountability. The culture of evaluation. 2
  3. 3. Observatorio del Tercer Sector Observatorio del Tercer Sector is an independent and nonprofit research center specialized in the third sector. Its aim i to deepen and i i is d d increase the knowledge on the sector h k l d h and to work for the improvement of the nonprofit organizations’ management. Web: http://www observatoritercersector org http://www.observatoritercersector.org E-mail: observatori@observatoriotercersector.org 3
  4. 4. Observatorio del Tercer Sector (II) The Values of the organization Social Transformation. We work for the strengthen of the sector, as we believe it is an active agent for social change. Engagement. We work together with the third sector, within the sector, with the participation and conformity of its organizations. Independence. Independent in order to guarantee quality and opinion. Quality. We work hard to achieve the maximum professional competence, offering useful results with quality. Learning. We are an organization that learns from its own experience. Trust. We assume a commitment with collaboration and knowledge sharing. Transparency. We are open with regard to information and communication about the organization. 4
  5. 5. 1. About the research Research Aim and Universe and Origin Methodology sample 5
  6. 6. Origin of the research The proper operation of the boards is a key aspect for the development of the NPOs’ missions and values, the p p proper functioning and the accountability g y Still, in many organizations, the management of the board has not been prioritized due to the pressure of the management of activities It is not sufficient only to show that things are progressing accurately and at a high quality level, but rather it is necessary that the activities are carried out in accordance with the values and mission of the entity 6
  7. 7. Aim and Methodology The main objective of the investigation is to understand the situation of the boards and promote solutions to improve their operation. Analysis of with the purpose of identifying the different typologies of NPOsthe universe and the key informants to interview, the research used secondary data sources and direct information from entities Research of an international search was performed of current publicationsinternational related to experiences of the operation of the boards in different referents countries 18 key informants who are part of a total of 31 NPOs were interviewed. The interviewees are people who participate in the Interviews board of NPOs with different roles. Some of the interviewees are directors and leaders in different institutions simultaneously Analysis and from the interviews and a group of people related to the worldelaboration of of the non profit organizations, solutions for improving the non-profit organizationsimprovement management of the boards have been created proposals 7
  8. 8. Universe and Sample p CharacteristicsTypology of NPOs of the NPOs of Excluded NPOs the analysis-Passive patrimonial p -NPOs that have their -Religious gorganizations origin as an association -Patrimonial familial(donors) -Entrepreneurial NPOs -Singular entities-Active patrimonial -NPOs that are welfare -Instrumental juridicalorganizations projects by savings formula(mixed) banks -State NPOs-Operative -Diversity in the dimension of NPOs -Origin of the funds -Composition of the boards -Territorial area Territorial -Sectorial area 8
  9. 9. 2. The challenges of the boards in NPOs g Interviews Identification of Challenges 1. 1 The organizational commitment. commitment Promotion of 2. The functional strategy. 3. The relationship with the directive team. 4. The diversity of the profiles. h d f h fl 5. The renewal of the board. Reflection 6. The management of information. 7. The culture of transparency and accountability. Proposals of 8. The culture of evaluation. improvement 9
  10. 10. The organizational commitment g-Clarify and specify the responsibilities of the boards, such as governance-Distinguish the roles of the governance board and the advising board-Make decisions based on a broad organizational knowledge M k d i i b d b d i i lk l d-Extend the linking of the boards beyond the attendance to one or twomeetings a year-Find spaces for the members of the boards for knowing the task of the entity Findand the social base as well as to participate within the organization Proposals-Creating a document clarifying the expectations and responsibilities of therole of the members of the board. l f th b f th b d-Making personalised meetings to clarify the expectations of each member.-Identifying the agenda of the organisation so to know when it is necessary toinvite the board.-Facilitating the knowledge amongst the board, the remunerated staff, thevoluntary workers and the beneficiary persons.-Creating the figure of a person in the board dedicated to the other membersand to manage the dynamic within them. dt th d i ithi th-Creating commissions for subjects: economic, strategic, financial... 10
  11. 11. The functional strategy gy-Differentiate between the functional strategy and the functional operation-Define the issues in which the board has to intervene Define-Make sure the board is in the most strategic subjects of the entity to drawup the general policies-Develop mechanisms to evaluate and monitor most of the operating tasks-Focus on both the everyday life and the future of the organization throughprocesses of reflection and strategic planning Proposals-Making the strategic planning of the entity and its periodic revision Making revision.-Establishing strategic indicators.-Clarifying which subjects ought to be discussed amongst the board andwhich ones are competence of the directive team. 11
  12. 12. The relationship with the directive team p -Establish good relationships between the board and the directive team -Constitute relationships between the board and the directive team based on Constitute trust -Exert a certain degree of taxation of the work of the directive team -Clarify who exerts the leadership of the organization to head together to the entity’s goals -Institute a strong linkage between the president and the director -Understand the expectations that rely on the president and the director -Use tools of transparency and efficiency toguarantee the continuity of the Use bond of trust between the two Proposals -Establishing an open, fluent and transparent relationship. Establishing open relationship -Making possible the participation in the board of members of the directive team depending on the subjects. -Making evaluations of the directive team, the board alone. -Making joint evaluations of the board and the relationship with the directive team. 12
  13. 13. The diversity of profiles y p-Increase the diversity of profiles within the boards-Increase the presence of women immigrants, youngsters, etc. within the Increase women, immigrants youngsters etcboards-Facilitate the representation of the diversity of the social base, specially thebeneficiary people-Enrich the visions of the board and the governance by diversifying theprofiles-Be aware of the moment of the organization and the type of profiles that thesituation requires-Understand and reflect the plurality of society Proposals-Thinking of the beneficiary collectives of the organisation to incorporaterelated persons persons.-Making a conscious effort to balance the issue of gender.-Thinking to incorporate different profiles regarding age, vital trajectories,origin... that can be complementary of the current composition of the board.-Analysing the knowledge and skills of the current members to see whichprofiles are needed to incorporate. 13
  14. 14. The renewal of the board-Establish mechanisms to guarantee non-traumatic relays-Understand the necessity of generational renewals Understand-Create criteria of renewal besides the low degree of attendance to themeetings-Avoid perpetuation in the boards, specially in leadership positions, where itbecomes more difficult to find relay Proposals-Creating a commission of the board to think strategies and to attract new Creatingmembers.-Establishing closed periods of participation in the board.-Thinking which profiles are needed for a renewal of the board. 14
  15. 15. The management of information g-Achieve the equilibrium between briefing and quality-Avoid confusion with far too much information Avoid-Select the information that ought to be generated and distributed withinspecific members of the board-Use of new technologies for information and communication-Understand that the right information is crucial to make right decisions Proposals-Making more than 2 meetings per year Making year.-Creating commissions for concrete subjects.-Sharing information before to the meetings.-Using the new technologies.-Thinking specific products of communication for the board. 15
  16. 16. The culture of transparency & accountability -Generate public trust through explaining the activities realized -Be transparent in front of society -Render accounts in front of society -Make an organizational value out of the culture of transparency -Understand the added value that constitute transparency and accountability -Include the culture of transparency and accountability in all the processes Proposals -Identifying the different collectives involved in the organization for rendering Identifying accounts. -Involving the board and the team in everything regarding the matter of transparency. -Describing the different channels in order to create public awareness of the organization and how to improve the information and its transparency. 16
  17. 17. The culture of evaluation-Include the culture of evaluation within all the processes, specially withinthose related to the operation of the boards-Develop tools to evaluate the boards-Take into account the evaluation of all of the social base involved in thefunctioning of the entity, including technical teams, members of the directiveteam, etc.-Introduce the idea of self-evaluation within the boards Proposals-Making meetings of evaluation of the board on a periodical basis Making basis.-Establishing functional indicators of the board.-Picking up the vision of the ones involved on the organization in relation withthe board. 17
  18. 18. The Challenges of the Nonprofit es or.org.e Boards cersecto Pau Vidal au da ww.terc 9th July 2010 ISTR – 9th International Conferenceww

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