Designed for EDD executive directors—seasoned, new, or those on course to assume a leadership role—this interactive
session will focus on three key factors for assuring a strong EDD: an active and engaged board, a strong and committed
team of professionals, and a state association that advocates for EDDs at the state level and provides resources to EDDs
directly.
• Steve Etcher, Manager, MarksNelson, Kansas City, MO
2. About the Presenter
Steve Etcher
Manager, Location Strategies
setcher@marksnelsoncpa.com
Career Highlights
20+ years RDO Director
NADO Board of Directors
10 years Economic Development
and Site Selection
Specialties
Community & Economic
Development
Organization Management and
Consulting
About MarksNelson
5. Reflection
1. Why does your organization exist?
2. What is your organization known for?
3. What are some of the organization’s recent
accomplishments?
4. How do you define success for your organization?
5. Describe the culture/organizational environment of your
organization?
7. Group Discussion
Many states, communities, RDOs, and RPOs have been involved in the distribution of CARES Funding and ARPA
Funding and are well positioned to be provide critical support for the Bipartisan Infrastructure Law (BIL)
1. What has been your organization’s role in the delivery of CARES & ARPA funding opportunities?
(Individual RDOs or Statewide Association?)
2. Have you been involved in the development of priorities, policies and procedures? (State, Regional or
Local)
3. How have you been able to creatively leverage resources to help implement projects, provide matching
funds, and maximize project impacts?
4. Who are some new (or existing) partners that you engaged with to provide support to your communities
or state? What new partners and partnership opportunities have presented during this time?
5. In anticipation of the Bipartisan Infrastructure Law (BIL) what are some of the challenges and
shortcomings in the delivery of CARES & ARPA funds? How can the approach be improved to address
these challenges?
6. What are some best practices for successful investment and regional involvement?
8. Preparing for the Unknown
1. Have a long-term financial plan for the organization
2. Create a reserve fund and be disciplined to maintain and replenish it
3. Keep your overall mission and purpose forefront—especially with the board
4. Develop a strategic action plan for yearly focus, and an overall organizational plan that
provides a long-term perspective
5. Be nimble, so you can adjust as conditions change (nimbleness is restricted if carrying
debt)
6. Be flexible—work at doing things differently and more efficiently or be prepared to ramp
up quickly
7. Be entrepreneurial
10. Leadership Challenge #1
Telling your story, highlighting your successes and
accomplishments is vital to creating awareness,
loyalty and credibility.
What are you doing to tell your story?
TellingYour
Story
11. Value Hierarchy
Relevancy Pyramid
Perspective
Role
• Trusted Advisor
• Foresight
$$$
• Planner
• Insight
$$
• Vendor
• Hindsight
$
Are You Relevant?
Every day you should ask yourself… how is our organization adding value to our local governments, communities,
funders, partners, and federal and state local officials?
12. Leadership Challenge #2
Innovation is a key element to creating growth,
producing value and financial diversification.
What innovative strategies have you pursued?
Innovation
14. Leadership Challenge #3
Many state agencies are looking for assistance in
delivering CARES, ARPA, and BIL funding.
How do you organize as a state association or
enhance your state association to become a critical
delivery vehicle for state agencies?
How are you using your State Association to
support your RPC?
State
Associations
15. Leadership Challenge #4
Preventing burnout and fatigue should be a
priority for RDO leadership.
How do you maintain a work/life balance for
yourself and your staff?
Life Balance
18. Niche Identification/Initiative
Life Cycle
Core Service #1 Core Service #2 Core Service #3
Needs Assessment & Information Gathering
Planning
Policy Development
Project Development
Project Execution & Implementation
Project Reporting & Information Sharing
Project Evaluation
19. Niche Identification
Core Service Role Business Climate Resume Other Entities
Needs Assessment
& Information
Gathering
Planning
Policy Development
Project
Development
Project Execution &
Implementation
Project Reporting &
Information Sharing
Project Evaluation
Roles
• Lead
• Support
• Participate
• Monitor
• None
Business Climate:
• Trusted Advisor
• Competitive
• Overlooked
Resume
• Specialized
• Experienced
• Novice
• Undeveloped
22. Strategic Planning for Regional
Development Organizations
Many RDOs mistakenly use the CEDS as their
organizational strategic plan
Many RDOs have too many “priorities” and are
unable to advance any of them in a meaningful
way. Jack of all trades, master of none.
Best to focus on a limited number of key
initiatives and achieve those, then add more
23. Creating Organization Focus
Strategic Action Plan
Luck=Opportunity + Preparedness
Vision
• Where do
we want to
be in the
next 10 -20
years?
SWOT
Analysis
• Where are
we now?
Goals
• Broadly
stated, where
do we want to
go?
Objective
s
• Specifically,
what will we
do?
Strategies
• How do we
get there?
Measures
• How are we
doing?
• What can
we do
better?
Too many organizations fail to maximize their impacts because
they apply finite resources to infinite needs. They become a
“jack of all trades” and a master of none.
24. >MarksNelson Strategic Action Plan
STRATEGIC OBJECTIVE 2018STRATEGY/INITIATIVE
Enhance the
success of the
firm through
talent
development.
1. Plan and execute Phase 2 of MarksNelson University implementation; incorporate
technical topics and build technical curriculum.
2. Plan and implement Phase 1 of the Emerging Leaders Program.
3. Leverage internal technology expertise to expand the Firm’s tool set.
4. Integrate technology team into prioritization of gap analysis to drive
recruiting/training process.
Provide our clients
with a strategic
advantage.
1. Strategically build niches through thought leadership, business development,
training and revenue goal setting.
2. Continue development and implementation of an efficient and effective business
development process.
3. Continue implementation of the Love Your Client Program to include Strategic Account
Plans (SAPs); tie to 2018 individual goals.
4. Enhance client engagement through utilization of the Net Promoter survey; add
servicing professionals.
5. Conduct internal training on firm service offerings.
Improve business
processes by
leveraging
technology and
training
1. Integrationwith BOC
1. Review existing infrastructure-understand overlap between BOC & MN (for
consolidation) and unique areas to each line of business.
2. Review existing processes and systems-identify processes with biggest
possible gains/most pain
3. Document outcomes of A and B, set priorities for implementation and add
initiatives for 2018 as necessary
2. Conduct security and firm training needs assessment.
3. Update the IT Roadmap annually and communicate to the partner group.
Enhance the one-
firm (Shared
Vision) concept
and develop a firm
culture based upon
teamwork and
trust
1. Refine firm policies and procedures relating to client acceptance and filtering.
2. Formalize written plans to designate and foster transfer of client relationships-
address a leverage model, client succession, partner retirement, & emergency plan.
3. Devise a systematic process for the communication of the 2018 Strategic Plan progress
throughout the year to engage and educate staff on how their contribution connects to
the Strategic Plan.
4. Develop two new programs to enhance employee engagement, e.g. Advisory Board,
Special Interest Group etc.
5. Integrate new strategic hires into culture.
6. Development of a firm growth strategy that is agreed upon by all leadership.
25. BRPC Regional Strategic
Action Plan
Strategic Goals Strategic Objectives Strategies & Tactics
Economic Development: Increase regional
prosperity through sustainable economic
growth
-New business creation
-Existing business growth
-New business attraction
Community Development: Enhance the
attractiveness and livability of our region
-Community comprehensive planning
-Infrastructure needs assessment and planning
-Investment in community infrastructure &
amenities
-work with local communities to plan for future
growth
-work with local communities to identify and
plan for infrastructure projects
-work with local members to secure funding for
priority projects
Workforce Development: Equip our residents
with in-demand skills to secure stable
employment
-Training for unemployed and underemployed
-Training for skill enhancement
-Increase access to vocational training
-Support skill needs of area employers
26. BRPC Organization Strategic
Action Plan
Strategic Goals Strategic Objectives
Talent Development: Strengthen the capacity of our organization
through talent development
-Identify professional development opportunities for existing staff
-Staff develop a personal growth plan
-Pursue strategic hires to enhance organizational capacity
-Increase employee retention
-Develop employee recruitment program
Regional Leadership: Enhance our role as a problem solver and
innovator to chronic challenges
-Host regional roundtable to discuss challenges & opportunities
-Develop and launch new programs to respond to priority needs
-Be the initial facilitator/convener during disasters and disruptions
-Become a trusted advisor for our constituents
Organization Culture: Create a positive work environment that
expresses appreciation to staff, rewards staff for exemplary service,
and challenges staff to grow professionally.
-Cross-train staff in related practice areas
-Convene regular(effective) staff meetings to timely address needs
-Update HR manual to reflect current changes
-Develop staff rewards and incentives program to recognize effort
-Formalize the “onboarding” process for new hires
Organization Financial Sustainability: Grow financial resources to
ensure sustainability, encourages new program exploration, and
provides opportunities for the next generation
-Diversify financial resources through new program implementation
-Amplify financial resources through value billing
-Develop long-range financial strategy to establish financial resources for program
sustainability and expansion
-Asset management through affiliated organization
-Provide board training related to financial management
29. 7 Habits of Highly Effective
People
29
1. Be Proactive
2. Begin with the End in Mind
3. Put First Things First
4. Think Win-Win
5. Seek First to Understand, Then to be Understood
6. Synergize
7. Sharpen the Saw
30. Director Performance Evaluation
1. Function of the Board
2. Should be done at least annually
3. Identify assessment criteria
4. Have the Director complete a self assessment
5. Have the Board (or Committee) complete an assessment
6. Review assessment with Board (or Committee) and Director
7. Inform full board at the conclusion if using a committee
8. Create goals for future-make the review forward looking
30
31. Director Evaluation System
Competencies for Performance Evaluation
1. Organizational management- running the day-to day operations of the organization
2. Leadership-region, state, nation—recognized as a leader
3. Financial management-developing a budget, developing and maintaining a system of checks
and balances, creating financial plan, and generating revenues to fulfill the plan
4. Program management—overseeing programs, particularly related to compliance and
schedules—review monitoring reports and audits
5. Personnel management—finding, training, motivating, and supervising staff
6. External Relationships—developing relationships with key state and federal partners
7. Internal Relationships—developing relationships with communities, community leaders,
partner organizations, etc
8. Visioning and Planning—casting the vision for what the organization pursuing, and developing
and implementing strategies to realize the vision
9. Pursuit of Mission and Purpose—maintaining focus on the core issues the organization is
pursuing while encouraging innovation
31
32. Attributes Evaluated
Demonstrates integrity
Demonstrates ability to
understand complex
situations and instructions
Demonstrates ability to
lead a team
Demonstrates ability to
make good judgments
Demonstrates a willingness
to accept responsibility
Demonstrates initiative
and self motivation
Demonstrates the ability to
perform under pressure
Demonstrates the ability to
prioritize and make the
best use of time
Demonstrates punctuality
Demonstrates a proper
attitude and a good frame
of mind
Demonstrates the ability to
be an innovator and
thought leader
Demonstrates maturity (in
relation to age and
experience)
Maintains a positive
attitude
Is conscientious about the
way customers are dealt
with
Is well respected in the
region, state, and nation
Is conscientious about
appearance-Dresses
appropriately for the job
Possesses good oral
communication skills
Possesses good written
communication skills
32
33. Attributes of an Effective Regional
Leader
High octane, high energy, self starter
Great communicator
Creative entrepreneur
Visionary
Consensus builder and motivator
Open minded
Results oriented
Decision maker
Knowledgeable
Politically Savvy
Trustworthy
35. Organization Performance Evaluation
“What gets
measured gets
done. What
gets measured
and fed back
gets done well.
What gets
rewarded gets
repeated.”
Measure RESULTS not activity
Identify the key ELEMENTS to measure
Establish BASELINE for historical
comparison
Identify COMPETITION to measure against
Evaluate and REPORT progress, impact, and
value
RAISE the bar once the goals have been
met.
35
36. Keys to Organization Sustainability
Cultivate and engage leadership
Take care of the basics first
Pay attention to details
Know your customers and their needs
Anticipate trends and plan accordingly
Advocate for your organization
Mobilize your marketing team
Evaluate, benchmark and report performance
37. Observations of Highly Effective
Organizations
Attitude
Poise and Professionalism
Focus
Aspiring Leaders
Positive Habits
Efficient
Effective
“A leader takes people where they
want to go. A great leader takes
people where they don't
necessarily want to go, but ought
to be."
--Rosalynn Carter
38. Keys To Effective Organizational
Leadership
Need to think outside the box-offer fresh perspectives to chronic challenges,
Allow innovation to fuel the organization
Delegate to trusted and qualified staff
Lead Projects-Avoid getting drug into the mire
Surround yourself with people that are smarter than yourself, that
complement your style of leadership, and offset your limitations
Find a mentor
Lead with humility
Running and growing an agency requires high levels of energy and ambition—
understand your need to re-energize
Don’t forget to plan for your own organization
Don’t forget to set goals for yourself
You are paid to make recommendations and to lead, do not avoid this
responsibility
“The problem
is not the
problem. The
problem is how
you think
about the
problem. We
can not solve
our problems
with the same
level of
thinking that
created them”
39. Principals of Leadership
Know yourself and seek self-improvement
Be technically proficient
Seek responsibility and take responsibility for
your actions
Make sound and timely decisions
Set the example
Know your people and look out for their well
being
Keep your workers informed
Develop a sense of responsibility in your
workers
Ensure that tasks are understood,
supervised, and accomplished
Train as a team
Use the full capabilities of your organization
“Nobody cares how much you know
until they know how much you care.”
-Theodore Roosevelt
COMMON LEADERSHIP
SHORTCOMINGS
Lack of “big picture” focus
Too detailed and process oriented
Failure to recognize key product is
intellect
Complacency
40. Organizational Leadership
Know your strengths as Leader
Utilize these strengths to improve the organization
Recognize your shortcomings/weaknesses
• Staff to compliment your strengths and strengthen your shortcomings
Develop a personal improvement plan
Create an organization plan and implement it
• Include short and long term goals, measurements and timelines
Prioritize and maintain board member engagement
• EDDs are experiencing high turnover in elected officials
• Develop a process for orientation to the organization and create a sense of
ownership
Share information, not data
• Know and understand the board preferences on the “right amount” of information
Performance evaluation is vital
• Create a process for fair evaluation of you, your organization and your staff
• Benchmark and evaluate results related to your strategic action plan
Leading an organization
is like riding a bike… you
need to keep moving
forward to keep your
balance
41. Keys to Success
RELATIONSHIPS--constantly build new and reaffirm existing
RESPONSIBILITY--do what you say, when you say, with a high quality product
RESULTS—Achievements, not intentions pave the road to success
RESPECT--you must rise above differences to work together. You must give it to get it
REPUTATION--Aggressively work to manage public perception.
REALITY--is term limits, turnover, and elections.
RUN--to clients, agencies and legislators—Don’t wait for them to come to you.
RESOURCE-Become an indispensable resource for local, state and federal partners,--
especially during an era of tight budgets and limited resources.
43. Leadership Challenge #5
You recognize the increase level of funding that will
be available in the coming months resulting from the
Bipartisan Infrastructure Law (BIL) and you see an
opportunity to help attract some of these dollars to
your community. In order to pursue this, you need to
add professional staff members to your organization,
but your Board of Directors is hesitant to hire new
staff without a guaranteed revenue stream.
How do you advance this issue with your Board?
>Risk Tolerance
Talent
Attraction
44. Leadership Challenge #6
In the post-pandemic era, it has become
increasingly difficult to recruit, retain, and afford
professional staff for your organization.
How do you address the current employment
dynamics to ensure you have adequate and
qualified staff to carry out the organization’s
programs and strategies?
How do you show staff appreciation?
Staffing
45. Staffing for Regional Organizations
Staffing for a regional development organization is best described as “talent
management”
Talent management is the practice of attracting, retaining, developing and promoting
outstanding talent to serve the organization.
Talent management should be formed from the organization's mission, values, and goals.
An effective talent management system helps employees feel as if they are part of something
bigger than their current job
Without the right talent in key areas, you run the risk of missing out on emerging
opportunities.
You need to constantly be planning ahead –identifying and nurturing future
leaders.
You need to understand how to attract today’s emerging talent
You need to be able to offer the necessary challenges and career development to
motivate/retain top performers
You need to weed out poor performers, poor performers undermine productivity
and erode morale
What
happens if
we in invest
in
developing
our people
and they
decide to
leave? What
happens if
we don’t and
they stay?
46. Board Engagement &
Interactions
Successful, impactful organizations share a common feature—they have
a board of directors that is engaged, understands their role, and
contributes their talents and expertise to the success of the organization
47. Leadership Challenge #7
Having an informed and engaged Board of Directors
is critical to organization success.
What strategies have you utilized to increase
board member awareness and engagement?
Board
Engagement
48. Creating a Dynamic Board of
Directors
Practical Tips for Creating a Dynamic Board
Ask them their opinion
Allow others to take ownership in ideas
Provide value to them through
information, and project results
Filter and interpret data to provide
meaningful information
Board education is critical and must be
constant
Immediate education and inclusion of
newly elected officials and appointed
board members
48
Have regularly scheduled meetings that
encourage participation
Have a structured meeting format to make
the most use of their time and provide value
to the members
Have an agenda and stick to it. Stay within
the time constraints set up for the meeting
Utilize committees as appropriate to
streamline the policy debate, make
recommendations, and broaden board
member engagement
Create Ownership by the Board. Constantly
reinforce their ownership versus ownership
by the Executive Director
49. Roles and Responsibilities
Board Members Director (CEO)
Sets policies and develops priorities Recommends and Carries Out Board Policies and Priorities
Provide general guidance and counsel to the director Manages day to day operations
Ensure financial integrity of the organization Maintains organizational relationships
Nurture a vision for the organization Oversees the staff
Overseeing the Executive Director Assess the performance of the staff
Assess Performance of the director and organization Communicates with the Board of Directors
Participate responsibly, ethically & knowledgably Reports performance and impact of organization
Out of Bounds
Board members should not involve themselves in operational matters or personnel issues
Directors should not engage in politics
50. Board of Directors Dos and Don’ts
Do Don’t
Learn all you can about your members—spouse’s
name, children, occupation, etc.
Avoid personal relationships with members.
Remember important events such as election cycles
and years in office.
Do not address board members only by their first name in a meeting.
Communicate with your members between meetings
using email, handwritten letters, phone calls, or visits.
Do not ignore phone calls or emails from board members.
Invest time in your members because you are asking
them to invest time in you and your organization.
Do not get involved with politics and elections.
Be consistent in all your communication—tell all board
members the same thing. Don’t gossip.
Don’t PRETEND to have all the answers
Address board members by their title and last name—
it’s a sign of reverence and respect. To get respect you
need to give respect.
Don’t give lengthy technical or detailed responses to a question—be
concise and informative
Encourage diversity and youth on your board as
appropriate
Don’t be defensive—accept constructive criticism
Don’t only talk to your members about activities—reinforce the
mission, purpose and strategic objectives the organization is pursuing
51. Tips for Running Board
Meetings
Understand the most convenient date and time for your
members to meet
Meet with your chairman in advance to set the agenda and
discuss agenda items
Develop an agenda and stick to it.
Respect members time—keep meeting on schedule
Provide ample notice for the meeting date, time and
location
Send board packets out a week in advance of the
meeting—agenda, minutes, financials, policies, action
items, and reports.
Have at a minimum coffee, water, and a light refreshment
Arrange the room so members are facing one another to
promote good dialog
Make sure if necessary you have a PA system
Use A/V as needed—don’t overdo the PowerPoint
presentations
Control the room temperature—anticipate impact of
a large crowd
Allow your chairman to run the meetings and let
him defer to you for additional information
Provide the chairman with annotated agenda with
key information—make the chairman look good
(competent)
Know where you and the staff should sit during the
meeting.
Don’t allow staff to blurt out during the
meeting/discussion
Personally greet your board members when they
arrive
If large board with unfamiliar members-prepare
name tents or name badges
Introductions can be appropriate-manage the time
element
If assigning seats for your board members—know
any personality conflicts that may exist between
board members
52. Tips for Running Board
Meetings
Don’t overdress for board meetings
Be prepared to accommodate the press and the public
Be prepared to offer your recommendation—that is what they are paying your for.
Provide content of value to the members
Address board members by their title, not their first name
Correctly pronounce board members names
Turn off your cell phone during the meeting—You are not that important
Avoid passing out papers during the meeting-have it at their table or send in the packet.
Use color paper to manage handouts
Avoid the use of acronyms with the board
Know your by-laws and Roberts Rules of Order
Use committees as appropriate and beneficial
Always be prepared for the meeting—anticipate questions, prepare for the unexpected.
> Source: Various RPC Directors
54. Leadership Challenge #8
The organization has been barely able to break even
in recent years and has very little reserves in the
bank and is deeply concerned about inflation and
its impact on the financial performance of the
organization.
How would you approach this issue and what
strategic actions would you explore to shore up
the organization’s financial condition?
Financial
Management
55. Revenue Strategies
Sell More
Existing
Services to
Existing Clients
Sell Existing
Services to
New Clients
Sell New
Products to
Existing Clients
Sell New
Products to
New Clients
Increase Value
of Services
56. Keys to Financial Management
Have a financial management procedures manual—serves as an agreement, a list of responsibilities
between you and the staff assigned to handle the finances of the organization
Hire trustworthy, competent, experienced staff
Oversee the financial staff directly—they report to you!
Maintain fidelity insurance on all staff and board members that are involved with the financial process
Separate duties as much as possible
Educate yourself if are not 110% confident in your financial aptitude
Have an audit done every year by an independent accounting firm
Meet with the auditor to get his opinion on the financial practices of the organization
Sit in on the exit conference with the auditor and your staff
Don’t just think of financial management as statements of historical activity-you need to project the
financial condition of the organization-to lead the organization
57. Financial Management
What the Director Needs to Know &
Understand
Cash inflows and outflows are different
from revenues and expenses.
Budgets are blueprints for the
future…plans.
Financial statements are historical; they
report what happened in the past.
Financial projections are critical to
addressing current and future needs
What the Board Needs to Know &
Understand
What resources the organization has.
Sources of fund to acquire resources
and provide services (Assets)
How the organization has performed
financially
58. Financial Statements
Balance Sheet
Financial status report.
Shows financial position at
a position in time.
Usually prepared last date
of accounting period.
Income Statement
Financial performance
report.
Covers the duration of the
reporting period.
Cash Flows
Explains the reason for change
in CASH during the accounting
period.
What were the sources of
cash inflows?
What were the uses of cash
outflows?
Can help you anticipate a
need for cash
59. Financial Practices
Adopt an annual operating budget
Present the budget to the Board of Directors for adoption
Prioritize accumulating sufficient financial reserves
Prioritize eliminating any indebtedness (exception=building)
Know how your organization’s operating budget is trending
Develop a financial procedures manual
Contract for an annual independent financial audit
Maintain bonding/fidelity insurance on key employees
Develop an indirect cost plan or rate
Provide monthly financial statements to the Board of Directors
Require multiple signatures on all checks
60. Financial Reporting—Communicating
with the Board of Directors
Be transparent at all times.
Be direct at all times.
Be truthful, don’t use numbers to paint the wrong picture.
Don’t use jargon or technical language the board may not understand
Use dashboards, graphs and summary reports to present the data in meaningful way
Be consistent with financial reporting, use the same(effective) format each meeting to create familiarity
Tie the budget and financial activity to how that helps achieve the organization’s purpose and focus
Remembers a financial statement is only a snapshot of a specified period of time. It may be necessary
to provide trend data for you and the board to understand long term implications.
Distribute financial reports in advance of the meeting to allow members to review, understand and ask
questions
Offer training to your board members to enhance their understanding of the organization’s financial
structure and performance
62. Intentional Improvement
In the next 30 days I will:
to improve my ability as a
leader
to improve how my
organization performs
to encourage and enable
staff/team members
In the next 90 days I will:
to improve my ability as a
leader
to improve how my
organization performs
to encourage and enable
staff/team members
In the coming year I will:
to improve my ability as a
leader
to improve how my
organization performs
to encourage and enable
staff/team members
63. What I Wish I Knew When I
Started
1. Burnout is real
2. Arrogance achieves little, humility achieves much
3. It’s never wrong to do the right thing
4. Be open and transparent in all that you do.
5. Communication is critical
6. Don’t pursue self interests
7. Surround yourself with people smarter than yourself
8. Learn as much as you can from others
9. It’s OK to be lucky. Luck = Opportunity x Preparedness
Don’t write so that
you can be
understood, write so
that you can’t be
misunderstood
-President William Taft
66. MARKSNELSON, LLC
Approach to Grant Funding
Receive
Grant
Award
Assessment
Prioritization
Strategic
Action Plan
Financing
Strategy
Inventory
Funding
Opportunities
Align Program
Objectives
Editor's Notes
The only constant in this business is change.
Some changes you can anticipate and prepare for and others you can not
So how do you anticipate and prepare for the unexpected changes
A few suggestions for preparing for the expected and unexpected
To help you evaluate your relevance here are a few questions for your to ponder:
Are our respected?
Do your peers, staff, board and customers respect your thoughts, ideas and opinions
Are you invited to be part of the problem solving team?
If not—I would question if you and your organization are relevant
If not—you need to change the respect level—this can only be done through hard work, delivering results, exceeding expectations, and adding value
Are you reputable?
What do people say about your and your organization—what is your reputation in the region, the state, the nation?
Are you a change agent
Do you deliver what you promise
Do you add value
Are you trusted, honest, transparent
Or are you viewed as:
Complacent
Bureaucratic
Unnecessary
If your reputation is not solid—you will struggle to maintain relevance
Changing your reputation and perception takes time, hard work, and results
Are you resilient?
Are you steadfast—in it for the long haul (you may say you are—but what is the perception)
Do you convey a sense of commitment to the region, the organization, the customers
Indications you may not be resilient (reliable in the long term)
high turnover rate in the staff—particularly your highly valued, competent, professional staff. The marketplace observes turnover and questions why it is happening
not seeing ideas through. Getting things started but never actually finishing. Don’t be that contractor that is always just 95% done.
only doing things that produce revenue versus build value. If you are only chasing dollars the perspective is that when the dollars are gone so will you.
What has been the history of the organization and is the past tainting your present and your future.
If so, maybe you need to rebrand your organization,
Invest in a public information campaign
Polish your image.
Every day you should ask yourself… how is our organization adding value to our local governments, communities, funders, partners, and federal and state local officials?
Years ago I put together a list of the top traits of an effective Executive Director. I would like to share them with you today, and I would challenge you to reflect on these traits to see if you really have what it takes to lead a regional organization.
And if not, if you identify shortcomings, I would encourage you to identify ways to address these shortcoming and develop the skill necessary to become an effective and impactful director.
You need to be a High octane, high energy, self starter—it takes a lot of energy to successfully lead a regional organization
You need to be a Great communicator—one on one and in group settings
You need to be Creative entrepreneur—thinks outside the box, YET is a calculated risk taker. Entrepreneurial spirit to benefit region and constituents—not self.
Visionary You need the ability to see and understand micro and macro perspective of issues—and what is possible and then manage and direct resources accordingly.
You need to be a Consensus builder and motivator—It is one thing to get people to agree, it is another to get them to act in concert.
You need to be Open minded—considers and values others opinions, willing to accept constructive criticism, willing to transfer ownership, credit, praise to collective effort versus self.
You need to be Results oriented—delivers, does what says will be done, follows through on large and small issues, and sees things through to completion.
Decision Maker
Knowledgeable-need to have a basic understanding of complex issues facing communities—infrastructure, housing, economy, etc.
Politically savvy—need to understand how government works and how to engage without being political.. Apolitical organizations
And you must have wrap all these qualifiers with Personal integrity and trustworthiness
So how do you measure up?
I would encourage you to look at those qualifications that you may be lacking and work fervently to improve your leadership skills.
The good news is that Leadership skills can be developed and improved. And I would encourage you as the director of EDD’s to constantly work on improving your leadership skills. Skills that will help your organization succeed now and in the future
Two most important keys to effective leadership
You must be trustworthy
You must be able to communicate a vision of where the organization needs to go.
Before we leave the topic of relevance I would like to leave you with a few keys that will hopefully enable you to create a relevant organization
Cultivate and engage leadership—you can’t achieve what you need as a one man band
Take care of the basics first, then grow your organization
Pay attention to details-errors and slip ups will erode customer confidence don’t ignore the details and only focus on the big picture.
Know your customers and their needs
Explore services that make sense for your region
Develop products to meet the market
Anticipate trends and plan accordingly
Advocate for your organization
Education and promotion (different than lobbying)—take your simple message and share it with everyone
Be the champion for your organization—your confidence and enthusiasm will be contagious.
Mobilize your marketing team—this team is your board of directors, the members you serve with excellent services, the businesses and communities that benefit from tackling the difficult challenges. Encourage them to share your success. Word of mouth advertising is still the cheapest and best form of advertising possible
Evaluate, benchmark and report performance—if you want people to view you as a change agent, as a winner, as a player, then you need to not only tell them, you need to show them. When you accomplish something, quantify the impact and report it.
Remember people love a winner, but don’t want to associate with a loser. Make sure you show that your organization is a winner.
7 observations of highly effective organizations (not to be confused with Stephen Covey’s 7 habits).
Attitude
Poise
Focus
Leadership
Habits
Efficiency
Effectiveness
Lets look at each one of these observations
So as we look at how to help you lead your organization for the future I would like to share a few more keys to leadership that I believe will help you hit your mark:
Allow innovation to fuel the organization. Innovation is the counterbalance to the mundane and bureaucracy that can engulf you and your organization
think outside the box and offer fresh perspectives to chronic challenges
Delegate to trusted and qualified staff—you can’t and shouldn’t do it all yourself. Leading can mean delegating and holding others accountable for action
Avoid getting drug into the mire of projects and politics--lead projects and stay neutral
Surround yourself with people that are smarter than yourself—for me that is not too difficult, and complement your leadership style and offset your limitations
Find a mentor –someone that understands what you do, what you are dealing with, and can provide you with wise counsel. Someone you respect
Lead with humility—recognize the difference between humility and meekness
Meekness is being submissive
Humility is taking a modest view of ones own importance—(even though you may have every right and qualification to be arrogant)
Remember: Nobody likes a headline grabber--People love being part of an effort that is more about WE than ME
Running and growing an agency requires high levels of energy and ambition—find it, understand your need to re-energize
Don’t forget to plan for your own organization--set goals
Don’t forget to set goals for yourself
You are paid to make recommendations and to lead, do not avoid this responsibility by focusing only on the administrative elements of the position
Know yourself and seek self-improvement
Be technically proficient
Seek responsibility and take responsibility for your actions
Make sound and timely decisions
Set the example
Know your people and look out for their well being
Keep your workers informed
Develop a sense of responsibility in your workers
Ensure that tasks are understood, supervised, and accomplished
Train as a team
Use the full capabilities of your organization
KEYS TO SUCCESS
Relationships--constantly building new and reaffirming existing
Responsibility--do what you say, when you say, with a high quality product
Respect--Network of EDDs don’t all have to agree all the time, but you must rise above indifferences to work together.
Reputation--“Bad apples” may exist in your state—work to prevent that from spoiling the entire “bushel”. Aggressively work to manage public perception.
Reality--Constant education with agency leadership and legislators. The reality is term limits impact us all, turnover in officials, and election changes make your environment very fluid therefore you must constantly educate agency leadership and legislators on who you are, what you do, and why you do it.
RUN--GO to agencies and legislators—Don’t wait for them to come to you. Because the reality is they won’t
Resource-Become an extension or delivery agent for State agencies—especially during an era of tight budgets and limited resources. Many of your states are facing financial challenges. State agencies are struggling with tight budgets and limited resources. Use this as an opportunity to become an extension or delivery agent for State agencies.
Staffing for a regional development organization is best described as “talent management”—You are not hiring “production workers that are told what to do and how to do it—you are hiring intellect. You are hiring more than workers, you are looking for staff that can join your team and add value to your efforts.
Talent management is the practice of attracting, retaining, developing and promoting outstanding talent to serve the organization. The job of talent management doesn’t end when you make a hire—managing talent is an ongoing, constant responsibility of the leadership of EDDs
Talent management should be formed from the organization's mission, values, and goals.—As you recruit and develop talent make sure the talent you are adding aligns with your organization’s mission and values. Remember you are hiring talent to help you achieve your purpose/mission in a way that creates an opportunity for future success. Don’t settle for mediocre talent.
An effective talent management system helps employees feel as if they are part of something bigger than their current job. You all have heard the tagline for the military—its not just a job its an adventure. Well, working for an EDD should not be just a job—if your employees feel like that then they don’t have the passion to provide the positive results you need. To keep your talent’s passion alive make your staff feel like they are really part of something amazing, that they are really making a difference in the region, and that they really belong on your team.
This will produce long term benefits for the future.
What happens if we in invest in developing our people and they decide to leave? What happens if we don’t and they stay?
As you meet with new board members to orient them on the roles and responsibilities here are a few parameters that you need to make sure are clear. It will save you endless stress later on.
Again, remember this is best if it can be presented by the Chairman or other board members
Board of Directors should focus on:
Setting policy, develop priorities
Providing general guidance and counsel to the director.
Ensure financial integrity of the organization—which means they need to educate themselves, understand finances, ask questions, complete due diligence
Nurture a vision for the organization—especially when orienting new board members and when times get tough
They are also charged with overseeing the Executive Director which means conducting an evaluation of the director’s performance
Participate in the leadership of the organization responsibly, ethically, and knowledgeably. (This doesn’t mean opening up the advance board packet and materials at the meeting)
Executive Director
Functions as the CEO
Recommends and carries out board policies.
Manages day-to-day operations
Maintains organizational relationships
Oversees the staff
Communicates with the board
Reports performance and impact
Out of Bounds
Board Members should not involve themselves in operational matters or personnel issues
Directors should not engage in politics
Regional councils are political entities that must function politically to be highly effective, yet they must also act in a non-partisan manner
SHALL
Learn all you can about your members—spouse’s name, children, occupation, etc.
Remember important events such as election cycles and years in office.
Communicate with your members between meetings using email, handwritten letters, phone calls, or visits.
Invest time in your members because you are asking them to invest time in you and your organization.
Be consistent in all your communication—tell all board members the same thing. Don’t gossip.
Address board members by their title and last name—it’s a sign of reverence and respect. To get respect you need to give respect.
Encourage diversity and youth on your board as appropriate
SHALL NOT
Avoid personal relationships with members.
Do not address board members only by their first name in a meeting.
Do not ignore phone calls or emails from board members.
Do not get involved with politics and elections.
Don’t PRETEND to have all the answers
Don’t give lengthy technical or detailed responses to a question—be concise and informative
Don’t be defensive—accept constructive criticism
Don’t only talk to your members about activities—reinforce the mission, purpose and strategic objectives the organization is pursuing
Tips for running a board meeting:
Understand the most convenient date and time for your members to meet—make it convenient for your members-not just what works best for you or what has always been done
Meet with your chairman in advance to set the agenda and discuss agenda items
Develop an agenda and stick to it.
Respect members time—keep meeting on schedule
Provide ample notice for the meeting date, time and location
Send board packets out a week in advance of the meeting—agenda, minutes, financials, policies, action items, and reports.
Have at a minimum coffee, water, and a light refreshment
Arrange the room so members are facing one another to promote good dialog
Make sure if necessary you have a PA system
Tips for running a board meeting:
Don’t overdress for board meetings
Be prepared to accommodate the press and the public
Be prepared to offer your recommendation—that is what they are paying your for.
Provide content of value to the members
Address board members by their title, not their first name
Correctly pronounce board members names
Turn off your cell phone during the meeting—You are not that important
Avoid passing out papers during the meeting-have it at their table or send in the packet.
Use color paper to manage handouts
Avoid the use of acronyms with the board
Know your by-laws and Roberts Rules of order
Use committees as appropriate and beneficial
Always be prepared for the meeting—anticipate questions, prepare for the unexpected.
Creating revenue to support your regional organization is an element that likely consumes an inordinate amount of your time and attention.
Often times I see regional organizations approaching their organizational revenue from an “entitlement” perspective. Relying on historic revenue sources (which unfortunately are diminishing or at best not keeping pace with costs)
Such as being reliant on:
Same level of membership dues or taxes from the communities in the region
Funding from the state legislature
Funding from EDA for Development Districts
Funding from State planning and development agencies
I would encourage you to rethink your revenue strategy. I would invite you to think a bit more entrepreneurial about your services and revenue.
Four strategies for increasing revenues:
Sell more existing services/products to your existing clients
Sell your existing services/products to new clients
Sell new products/services to your existing clients
Sell new products/services to new clients
I see 3 broad areas of revenue enhancement strategies for regional development organizations to consider (Amplify—Diversify—Unify) (PP)
KEYS TO FINANICAL MANAGEMENT
Have a financial management procedures manual—serves as an agreement, a list of responsibilities between you and the staff assigned to handle the finances of the organization
Hire trustworthy, competent, experienced staff
Oversee the financial staff directly—they report to you!
Maintain fidelity insurance on all staff and board members that are involved with the financial process
Separate duties as much as possible
Educate yourself if are not 110% confident in your financial aptitude
Have an audit done every year by an independent accounting firm
Meet with the auditor to get his opinion on the financial practices of the organization
Sit in on the exit conference with the auditor and your staff
Don’t just think of financial management as statements of historical activity-you need to project the financial history of the organization-to lead the organization
For those new to financial management or need a refresher on the basics of financial management for your organization allow me to point out a few things that can help with your organizational management.
To begin, lets begin by separating the issues. There are things that you need to know and understand as the director and there are things that your board members need to know and understand.
Lets start with what you need to grasp—first,
cash inflows and outflows are different than revenues and expenses. For instance providing a “financial report” that shows what cash you received during the month is not an accurate representation of your financial position or activity. A statement of cash flow is used differently than an income statement or operating statement. You need to know and understand both and use them for them for their intended purposes
A budget is a planning tool It is a blueprint a plan for your future. The budget will change as your plans change and it is okay to make adjustments to your budget.
A free piece of advice---no charge—when developing your budget conservatively estimate your revenue and aggressively estimate your expenses. This will help you have end the year in the black versus the red.
Financial statements are historical. They only report what happened in the past. They can show trends for the future and can help project your financial future, but don’t just study history—look ahead and see where you are going and target where you want to be.
What your board needs to know:
They need to understand the organizations financial condition, financial position and financial performance.
The board also needs to understand the source of the organization’s funds so they know what they can be used for. There are some unique and seemingly complicated restriction on how you can use your funds and your board needs to know that—and it is your job to communicate this.
There are unrestricted funds that can be used for any purpose.
There are temporarily restricted funds, which are common with grants—where they have to be used for the grant purpose for the grant period.
And there are permanently restricted funds that can ONLY and FOREVER be used for their original purpose—such as the RLF.
Lets look at a few key financial statements.
Remember as the director you need to Know and understand your financial position and condition and you need to be able to communicate this fluently and effectively with your board members
A balance sheet is a financial STATUS report that show the organizations financial positon at a set point in time. This report is usually generated on the last day of an accounting period.
An operating or income statement is a financial PERFORMANCE report it shows the organizations financial performance for the reporting period.
A statement of cash flows explains the reason there was a change in the cash position during the reporting period. It shows the sources of cash inflows and it shows the uses of cash outflows. This report will enable you to anticipate your need for cash—this becomes very helpful as you approach PAYROLL day.
When communicating financial information with your board of directors here are a few principals I recommend…
Be transparent at all times,
be direct at all times.
Don’t use numbers to paint the wrong picture.
Remember the adage “Liars figure and figures lie”—that is for economists not directors and accountants
ESSENTIAL FINANCIAL MANAGEMENT PRACTICES
Adopt an annual operating budget
Present the budget to the Board of Directors for adoption
Prioritize accumulating sufficient financial reserves
Prioritize eliminating any indebtedness (exception=building)
Know how your organization’s operating budget is trending
Develop a financial procedures manual
Contract for an annual independent financial audit
Maintain bonding/fidelity insurance on key employees
Develop an indirect cost plan or rate
Provide monthly financial statements to the Board of Directors
Require multiple signatures on all checks
Be transparent at all times.
Be direct at all times.
Be truthful, don’t use numbers to paint the wrong picture.
Don’t use jargon or technical language the board may not understand
Use dashboards, graphs and summary reports to present the data in meaningful way
Be consistent with financial reporting, use the same(effective) format each meeting to create familiarity
Tie the budget and financial activity to how that helps achieve the organization’s purpose and focus
Remembers a financial statement is only a snapshot of a specified period of time. It may be necessary to provide trend data for you and the board to understand long term implications.
Distribute financial reports in advance of the meeting to allow members to review, understand and ask questions
Offer training to your board members to enhance their understanding of the organization’s financial structure and performance