Leadership Development in the Nonprofit Sector
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A case for solving the "leadership crisis" in the nonprofit sector by using NPOs as leadership incubators.
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Leadership Development in the Nonprofit Sector
- 1. A view of nonprofit leadership futures
- 2. A Cinemascopic Perspective Long Range Mid Range Short Range Mid Range Long Range Our Agency Our Causes Our Society
- 3. Cindy’s Vision for 2025 The management field will be led by advances from the non-profit sector Non-profit leadership will bridge the divide between government and private market Thought-leadership on optimizing private opportunity and public good will come from the nonprofit sector.
- 4. The Plan Use NPOs as leadership farms Separate “leadership” from “management” Invest in human capital as infrastructure Take a dispersed approach to leadership
- 5. “Leadership Crisis” or “Opportunity”? MANAGEMENT LEADERSHIP Aging-out CEOs Direction setting Manage to Handling turbulence outcomes Esprit de corps Fiscal management Inspires confidence Business planning
- 6. Cost of Sub-Optimal Leadership… Costs 7% of annual sales 9 – 32% voluntary turnover 5 – 10% productivity drag Source: http://www.kenblanchard.com/img/pub/pdf_Making_the_Business_Case.pdf
- 7. Cost of Doing Nothing • $10MM Budget • 35% revenue earned • 100 employees • $55K ave. salary • 80% desired productivity rate • 95% customer satisfaction goal NONPROF Sub-optimal leadership costs IT $611,923.00 yikes Source: http://www.kenblanchard.com/Management_Training_Programs/Cost_of_Doing_Nothing_Calculator/
- 8. The Arithmetic of Leadership Inspiration+ Credibility+ Thinking Skills A State of Leadership
- 9. How people think decision making happens
- 10. How decision making really happens
- 11. Why Dispersed Leadership? Builds organizational resilience Increases competitive edge Improves morale Improves products and outcomes Solves “leadership crisis”
- 12. ONE: Cultivate a leadership culture Build leadership culture Arrange the physical space Create group thinking opportunities Incentivize innovation
- 13. TWO: Invest in leadership development Budget money for teaching thinking skills Budget time for group development Invest in people with leadership aptitude
- 14. THREE: Align Mission, Mgmt & Leadership Flatten hierarchy Optimize transparency Clear management structure & mgmt. plan Clear metrics Incentivize managers to encourage staff leadership
- 15. Because why again? Long term solution to the non profit “leadership crisis” Improved success for nonprofit organizations Increased influence from the nonprofit sector for a more just, civilized society.
- 16. Keep your camera angle wide
Editor's Notes
- When Annie E. Casey talks about “leadership crisis”, they actually describe functions of “management”.I am saying that if we seize the leadership opportunity the leadership crisis will solve itself.
- Nonprofits are already spending money on leadership, they just don’t know how much.
- Ken Blanchard makes a case for investing in leadership development by calculating the cost of doing nothing.Let’s look at a typical nonprofit – ACME Nonprofit.It has a (read the list)According to Blanchard, not-great leadership is costing ACME $611,923.00Even if this number is inflated by 100%, it’s still stunning how much hard cash is lost in these ways and opportunity costs.
- Developing leadership isn’t the same as training leaders.It’s about creating a state of leadership that is always there and always onWhat does “leadership” look like when it’s present and operating?
- Boards and managers like to think of leadership as a sequence of decisions that are made methodically and move along a predictable path.
- In an organization’s daily reality, decisions are being made all over the place, concurrently, by different groups and people. Small decisions, large decisions, some consciously, many not, some leading to something specific, many going in a loop.It is not possible to tether leadership to a designated person or people following a linear path, one decision at a time.This makes many organizations afraid of decision making and overwhelmed by figuring out who has authority to do what and when.Here’s an example of my favorite group of decision makers:
- This brings us to a key pillar in my plan: leading the field in embracing dispersed leadership.Why?
- There are three key steps to diversifying leadership in an organization.Cultivate a leadership culture. This is where the “state of leadership” is prized most highly.First make your physical space support collaboration. Seat people in open spaces or cross-functional groupings and put in water cooler places where they will naturally gather.Create as many events as possible where workers come together and work creatively together andIncentivize innovation. Praise and support people thinking out loud, taking chances, and even failing.
- The second thing is to invest in leadership development.Treat leadership development as a part of the infrastructure.Treat it as analogous to your operating reserve.Keep a healthy reserve of leadershipNo matter what the mission, the organization is more likely to succeed if it tricks itself out as a leadership farm.Budget dollars to train people in leadership thinking skills and good group process.Budget time in peoples’ work schedules to be together thinking on bigger picture issues.Scan constantly for people with leadership aptitude and invest in them, no matter where they are in the organization
- Lastly Align the mission, the management and the leadership.Flatten the hierarchy as much as possible. Follow Daniel Pink’s advice on motivating employees.Make information and decision making processes as accessible and transparent as possible.Make your management structure simple and clear.Know your key performance indicators and manage to those.Reward and incentivize managers to nurture leaders. Recognize and promote managers who are good at facilitating their workers to think like leaders and solve problems.
- This will take a number of years to catch fire; it’s a long range response to an immediate opportunity.If done, it will deepen the bench of internal leaders in the nonprofit sector.It will yield greater results on all measures for individual agencies.It will drive the nonprofit sector to fully fill that space between the state and the market to keep our capitalist democracy alive.