Leadership for Success: The CEO’s Guide to Best Practices in Nonprofit Management (Part 1)
A Master Class with Mal Warwick
The CEOThe CEO’’s Guide to s Guide to NGO GovernanceNGO Governance
With many thanks toNoshir H. Dadrawala
Centre for Advancement of Philanthropy, Mumbai
Presented by Mal WarwickInternational Workshop on Resource Mobilisation
Kuala Lumpur22 May 2008
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Essential roles of the boardEssential roles of the board
1) Legal requirements2) Guard vision and mission3) Set strategy4) Assume financial responsibility5) Set policy6) Hire and fire chief executive7) What board members should not do
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Legal role of NGO boardsLegal role of NGO boards
Funds, properties, and assets of the organization vest in themMust be acquainted with and advance the vision and missionDirectors are jointly and severally responsible
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Other legal requirementsOther legal requirements
Directors should not derive financial benefit from the organizationMust oversee administration and accountsMust set policy through process of periodic meetings and resolutions
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Cornerstones of nonprofit successCornerstones of nonprofit successVision & mission
Programs
Staff & volunteers
Funding
1 2
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Your organisation
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People respond to vision and missionPeople respond to vision and mission
VisioVisionn:: How will the world be different ifyou receive all the resources you need tofulfill your vision?
MissioMissionn:: What is the essence of your workto advance toward your vision?
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WhatWhat’’s the difference?s the difference?
Mission controls while vision inspires. A mission statement is like a ‘road map’for the organization while the vision statement is the final destination the organization is attempting to arrive at.
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For For a soup kitchen .a soup kitchen . . .. .
Vision: “No child in our city will go to bed hungry at night.”Mission: “With support from fine restaurants, food producers, and generous donors, we provide food to hungry children through the public schools and our own outreach facilities.”
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For a literacy program . . .For a literacy program . . .
Vision: “In two decades our services will no longer be needed.”Mission: “By mobilizing university and secondary school students to provide weekend literacy classes, we seek to spread the habit of reading through all corners of our city.”
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For a family advocacy organization . . .For a family advocacy organization . . .
Vision: “Families will be strong; children will achieve personal excellence.”Mission: “We advocate for family-friendly legislation and efficient human services at all levels of government.”
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DiscussionDiscussion
Does your organization ever stray “off-mission?”What role does your board play when that happens?What role should it play?
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5 keys to nonprofit success5 keys to nonprofit success
Transparency
Accountability
Follow-throughEthics
Donor-centredness
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Strategic planningStrategic planning
An inclusive process: board, staff, others3-year plan, annual review and update3-year goals, 1-year objectives
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What strategy is What strategy is notnot
Not how to meet your funding targetNot just “a way to do things”Not techniques such as advertising, direct mail, special eventsTechniques are tactics
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What strategy What strategy isis
Strategy vs. tacticsStrategy = Strategy = ““win the warwin the war””
Tactics = Tactics = ““win the battlewin the battle””
No strategy = muddleNo strategy = muddle
The concern of the commander-in-chief, not captains and majorsHow to deploy all your resourcesThe Big Picture, not the small stuff
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Dimensions of responsibilityDimensions of responsibility
Legal: “the buck stops here”BudgetaryContacts Hands-on fundraisingAnnual gift
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Board fundraising rolesBoard fundraising roles
Open doors, make introductionsSupport grant applicationsHelp recruit major donorsHelp enlist volunteersSell tickets to special eventsMake annual giftsHelp lead legacy program
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Essential NGO policiesEssential NGO policies
Ethical guidelinesConflict of interestTransparency Gift acceptancePersonnel policy
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What is a conflict of interest?What is a conflict of interest?
Conflict of interest arises whenever the personal or professional interests of a board member are potentially at odds with the best interests of the nonprofit.
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Organizational structureOrganizational structure
Governing Board
CEO
Staff
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CEOCEO’’s and boards and board’’s roles differs roles differ
Governance does not mean managementBoard sets direction, CEO executesBoard sets policy, CEO implementsBoard oversees CEO, CEO manages staffVoting CEO on the Board?
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Keys to good governanceKeys to good governance
Consistency with vision and missionTransparencyAccountabilityEthicsOrganizational sustainabilityRotating membership
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What boards should NOT doWhat boards should NOT do
Manage staffSpeak for organisation without authorisationCriticize outside board meetings
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Time for questions now!Time for questions now!
For more information, contact:Mal Warwick Associates2550 Ninth Street, Suite 103Berkeley, CA 94710-2551Phone +1 (510) 843-8888Email [email protected] www.malwarwick.com