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NONPROFIT
LEADERSHIP
Raising the red flags on the state of leadership in
the nonprofit sector.

Lisa Clarke
FUND523 – Tren...
“Leadership is not a
special trait that only
exists in some of us”
(Molinaro, 2009)
Agenda

• Definitions:
• Leader & Follower
• Contrast:
• Leadership vs. Management
• Reflection:
• Leadership gaps
• Snaps...
Leadership:

“An influence relationship among leaders and
followers who intend real changes and
outcomes that reflect thei...
Leadership Key Words
Influence

Shared
Purpose

Intention

Change

Personal
Responsibility

Integrity

Followers
Followership:
Alienated
Effective followers who have
experienced setbacks. They are
capable, but cynical and focused
on sh...
Test! Spot the difference …
Effective Leaders

Effective Followers
Definitive Differences:
Management

Leadership

• Create plans and budgets

• Create vision and strategy

• Direct and con...
They are all interdependent …
Effective Leaders

Leadership

Management

Effective Followers
RESEARCH METHODS &
REPORT ON FINDINGS
An effective yet backwards approach …
• Interviews were conducted before secondary research to

gain an understanding of t...
Nonprofit Leadership Gap – 2002
“Although there are organizations attempting to
„resolve the most pressing problems of thi...
Nonprofit Leadership Solutions - 2002
• Believe in people’s innate creativity and

caring
• Practice consistent innovation...
Nonprofit Leadership Gap – 2005
Leadership Crisis Looms in Canada’s Nonprofit
Sector
“Without effective leadership, nonpro...
Nonprofit Leadership Gap – 2007
• Human Capital the most frequently identified

strength and the most frequently identifie...
Nonprofit Leadership Solutions - 2007
• Use collaboration with for profits as an

approach to dealing with resource constr...
Nonprofit Leadership Gap – 2009
Nonprofit Sector’s Survival Heavily Reliant on
Bridging Leadership Gap
“Sector faces chall...
Nonprofit Leadership Gap – 2011
“… the perception is that there‟s no time for it
… engaging in development is perceived to...
INTERVIEW ANALYSIS
Do you believe there are any gaps in the leadership models
used within the nonprofit sector. If so what are they?

“Huge g...
Do you believe charities are reluctant or willing to move
towards more formalized business practices?
“…[charities] feel a...
What do you think are the repercussions for charities who
are experiencing a leadership lag?
“No growth”

“Poor Recruitmen...
Do you think there is a difference between what it takes to
be a leader in for profit vs. nonprofit organizations?

Differ...
What do you think having a business mindset can bring to the
nonprofit sector?
“The ability to understand and implement KP...
RECOMMENDATIONS FOR
FURTHER STUDY
Collect more data to create change
• Include staff members not holding ‘leadership’ positions in

interviews
• Case studie...
CALL TO ACTION
“The scarcest resource in
the sector is leadership,
not donations”
(Hall & Zarinpoush, 2007)
1. Realize your potential
1. Read the following studies:
• Shaping the Future – Leadership in Ontario’s
Nonprofit Labour F...
RESEARCH SOURCES
Primary Sources
Interviews
• Hill, G. (2013, November 13). Interview by L. Clarke.
• McGovern, R. (2013, November 15). Int...
Secondary Sources
• Crawford, J. (2010) Profiling the Nonprofit Leader of Tomorrow. Ivey

Business Journal.
• Daft, R. (20...
Secondary Sources Continued
• Hamlin, R., Sage, L., Sawyer, J. (2011). Perceived Managerial and

Leadership Effectiveness ...
ADDITIONAL CONTENT
Profiling the Non-Profit Leader of
Tomorrow (Crawford, 2010)
Competencies

Personality Traits

Knowledge/Expertise

Strate...
Connection to Question Five
What are the top three characteristics you believe a leader
in the charitable sector should ha...
Perceived Managerial and Leadership Effectiveness in a
Nonprofit Organization (Hamlin, Sage & Sawyer, 2011)
Perceived mana...
“Leadership development must
be customized to meet
organizational needs and leave
people „being‟ leaders, not
merely knowi...
Leadership Gaps in the Nonprofit Sector
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Leadership Gaps in the Nonprofit Sector

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Leadership Gaps in the Nonprofit Sector

  1. 1. NONPROFIT LEADERSHIP Raising the red flags on the state of leadership in the nonprofit sector. Lisa Clarke FUND523 – Trends, Research & Advocacy Research Presentation
  2. 2. “Leadership is not a special trait that only exists in some of us” (Molinaro, 2009)
  3. 3. Agenda • Definitions: • Leader & Follower • Contrast: • Leadership vs. Management • Reflection: • Leadership gaps • Snapshot: • Nonprofit Leadership 2013
  4. 4. Leadership: “An influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes” (Daft, 2011)
  5. 5. Leadership Key Words Influence Shared Purpose Intention Change Personal Responsibility Integrity Followers
  6. 6. Followership: Alienated Effective followers who have experienced setbacks. They are capable, but cynical and focused on shortcomings. Conformist Participates actively in the organization but does not utilize critical thinking skills in task behaviour. Passive Display neither initiative nor a sense of responsibility. Effective Behaves the same towards people in all levels of the organization. Does not avoid risk or conflict. Is mindful, willing to act, capable of self management, committed to something greater than themselves, competent and focused. (Daft, 2011)
  7. 7. Test! Spot the difference … Effective Leaders Effective Followers
  8. 8. Definitive Differences: Management Leadership • Create plans and budgets • Create vision and strategy • Direct and control • Shared culture and values • Create boundaries • Reduce boundaries • Act as boss • Act as coach • Maintains stability and • Creates change and culture of efficiency culture of integrity … a function … a relationship
  9. 9. They are all interdependent … Effective Leaders Leadership Management Effective Followers
  10. 10. RESEARCH METHODS & REPORT ON FINDINGS
  11. 11. An effective yet backwards approach … • Interviews were conducted before secondary research to gain an understanding of the current state of nonprofit leadership • Secondary research was done to find articles and studies over the past 10 years to understand what has led to the current state of nonprofit leadership • A timeline was created to analyze both sides of the story (problems and proposed solutions over time) to assess the effectiveness of the sector in creating leadership change
  12. 12. Nonprofit Leadership Gap – 2002 “Although there are organizations attempting to „resolve the most pressing problems of this time‟ … „far too many of these well intentioned efforts are subverted by the lack of talented leadership‟” Major barrier: difficulty in breaking habit (Wheatley, 2002)
  13. 13. Nonprofit Leadership Solutions - 2002 • Believe in people’s innate creativity and caring • Practice consistent innovation and courage • See problems as possibilities • Address multiple problems versus single symptoms • Must invent the future while dealing with the past (Wheatley, 2002)
  14. 14. Nonprofit Leadership Gap – 2005 Leadership Crisis Looms in Canada’s Nonprofit Sector “Without effective leadership, nonprofit organizations flounder, they operate in survival mode trying to keep the organization afloat instead of effectively providing services” Major barrier: leaderless organizations (Sankey, 2005)
  15. 15. Nonprofit Leadership Gap – 2007 • Human Capital the most frequently identified strength and the most frequently identified challenge • Transitions in leadership not adequately planned • Younger leaders ill-equipped to assume leadership roles (Hall & Zarinpoush, 2007)
  16. 16. Nonprofit Leadership Solutions - 2007 • Use collaboration with for profits as an approach to dealing with resource constraints and limitations • Develop training opportunities for incoming leaders (Hall & Zarinpoush, 2007)
  17. 17. Nonprofit Leadership Gap – 2009 Nonprofit Sector’s Survival Heavily Reliant on Bridging Leadership Gap “Sector faces challenges recruiting and retaining employees and qualified board members” Major barrier: no funds for training (Burlington Post, 2009)
  18. 18. Nonprofit Leadership Gap – 2011 “… the perception is that there‟s no time for it … engaging in development is perceived to be time away from working on the mission.” (Hannum et al, 2011) Major barrier: themselves …
  19. 19. INTERVIEW ANALYSIS
  20. 20. Do you believe there are any gaps in the leadership models used within the nonprofit sector. If so what are they? “Huge gaps … individuals run organizations with parked business principles at the door … people join boards and then lose their business mindset” “Passion for the cause can cloud common sense of whether an action makes sound business sense” “Passion is not a qualification – but those are the people who get interviewed and hired”
  21. 21. Do you believe charities are reluctant or willing to move towards more formalized business practices? “…[charities] feel as though they aren‟t supposed to make money so they become closed minded in their practices” “I don‟t think they are reluctant. Perhaps they are unsure of how to do it” “[they‟re] oblivious that that is their problem”
  22. 22. What do you think are the repercussions for charities who are experiencing a leadership lag? “No growth” “Poor Recruitment and Retention” “Mission Drift” “Systemic Failure”
  23. 23. Do you think there is a difference between what it takes to be a leader in for profit vs. nonprofit organizations? Difference • Volunteer management Similarity • All skills should be transferable “… at the end of the day, they’re both running a business”
  24. 24. What do you think having a business mindset can bring to the nonprofit sector? “The ability to understand and implement KPI’s while balancing passion with proactivity” “True opportunities for growth, the application of best practice models, priority to training and development” “Can remove some of the subjectivity in decision making and hones focus on the bottom line” “Can fulfill the charity’s mission better”
  25. 25. RECOMMENDATIONS FOR FURTHER STUDY
  26. 26. Collect more data to create change • Include staff members not holding ‘leadership’ positions in interviews • Case studies to assess the effectiveness of implementing leadership training and development programs • Determine industry best practices and ‘affordable’ ways to introduce training and development programs at all levels of the sector • Make this information available to all nonprofits and strengthen the sector one organization at a time
  27. 27. CALL TO ACTION
  28. 28. “The scarcest resource in the sector is leadership, not donations” (Hall & Zarinpoush, 2007)
  29. 29. 1. Realize your potential 1. Read the following studies: • Shaping the Future – Leadership in Ontario’s Nonprofit Labour Force • Emerging Leaders in Nonprofit Organizations: Myths, Meaning & Motivations 2. Be the change – turn problems into opportunities by turning ideas into actions • Ask for training – make it a priority • Rely on data – supplement it with passion (not the other way around)
  30. 30. RESEARCH SOURCES
  31. 31. Primary Sources Interviews • Hill, G. (2013, November 13). Interview by L. Clarke. • McGovern, R. (2013, November 15). Interview by L. Clarke. • Murin, N. (2013, November 8). Interview by L. Clarke. • Swinton, A. (2013, November 15). Interview by L. Clarke.
  32. 32. Secondary Sources • Crawford, J. (2010) Profiling the Nonprofit Leader of Tomorrow. Ivey Business Journal. • Daft, R. (2011). The Leadership Experience. (5 ed., Vol. E). Ohio: South-Western Cengage Learning. • Deal, J., Hannum, K., Livingston Howard, L., Lu, L., Ruderman, M., Stawiski, S., Zane, N. (2011). Emerging Leadership in Nonprofit Organizations: Myths, Meaning and Motivations. (Greensboro, NC: Centre for Creative Leadership). • Fiksel, B. (2013). Leadership Development [Brochure]. Toronto, ON: Coaching for Action. • Hall, M., Zarinpoush, F. (2007). Leadership Perspectives: Interviews with leaders of Canada’s charities and nonprofit organizations. Imagine Canada.
  33. 33. Secondary Sources Continued • Hamlin, R., Sage, L., Sawyer, J. (2011). Perceived Managerial and Leadership Effectiveness in a Nonprofit Organization: An Exploratory and Cross Sector Comparative Study. HR Development International, 14(2), 217-234. • McIssac, E., Park, S., & Toupin, L. (2013). Shaping the future - leadership in ontario's nonprofit labour force. (University of Toronto). • Wheatley, M. (2002). Supporting pioneering leaders as communities of practice: How to rapidly develop new leaders in great numbers. Retrieved from http://www.margaretwheatley.com/articles/supportingpioneerleaders.html • Sankey, D. (2005, August 13). Leadership crisis looms in canada's nonprofit sector. Sudbury Star. • Nonprofit sector's survival heavily reliant on bridging leadership gap. (2009, February 27). Burlington Post. Retrieved from http://www.insidehalton.com/news-story/2934966-non-profit-sector-ssurvival-heavily-reliant-on-bridging-leadership-ga/
  34. 34. ADDITIONAL CONTENT
  35. 35. Profiling the Non-Profit Leader of Tomorrow (Crawford, 2010) Competencies Personality Traits Knowledge/Expertise Strategic Thinker High Integrity Financial Acumen Relationship Builder Adaptable/Agile Deep Sector Specific Knowledge Collaborative Decision Maker Perseverant/Patient Interpersonal Sensitivity Understanding/Valuing Diversity Entrepreneurial Achiever Effective Communicator Change Leader Inspiring Motivator Passionate about the Mission 15 Must Have Attributes
  36. 36. Connection to Question Five What are the top three characteristics you believe a leader in the charitable sector should have? Business Sense Integrity Ability to Network Accountability Drive for Excellence Ability to Motivate Authenticity Compassion Trust Relationship Building Business Mindset Common Sense
  37. 37. Perceived Managerial and Leadership Effectiveness in a Nonprofit Organization (Hamlin, Sage & Sawyer, 2011) Perceived managerially effective when … Perceived ineffective when the preceding are missing and … • Plan ahead, organize efficiently and proactively control performance • Actively support staff • Recognize and acknowledge achievement • Delegate well and empower staff • Show care and concern for other people • Fight for the interests of and address the training and development needs of staff • Adopt an open and personal approach • Involve employees in decision making • Communicate and consult with staff • Keep staff informed of matters that effect them • Autocratically dismiss other people’s ideas • Exhibit unfair, inconsiderate, irrational, self-serving, undermining or intimidating behaviour • Adopt poor quality/low standards of managing and tolerate poor performance of others • Engage in ignoring and avoidance behaviour • Abdicate from their managerial responsibilities • Exhibit closed mindedness and a negative approach
  38. 38. “Leadership development must be customized to meet organizational needs and leave people „being‟ leaders, not merely knowing about leadership theories and practices.” (Betty Fiksel – Coaching for Action, 2013)

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