Archive - Uncategorized RSS Feed

Another view of Governance in nonprofit organizations?

Is governance a board of directors activity or is it an operating system that includes the entire organization?

Yes,  this question was the title of my January 20th post.

I posed this question on a LinkedIn discussion group called the Nonprofit Board Forum to see what they thought.  You can check out the discussion by clicking here50% of the respondents agreed that governance was the role and responsibility of the board and the other 50%  regarded governance as an organizational system that involved shared leadership.

I find that to be a remarkable shift in governance thinking.  Does governance responsibilities extend beyond the board of directors into the organization? Does the CEO and the leadership team have a responsibility to take the baton from the board and do governance in the organization?Is this a shift in thinking about governance and organizations? Perhaps we are seeing a shift in how we think about organizations.

Margaret Wheatley in her book  Leadership and the New Science points to a new way to think about organizations — shifting from a view that organizations are seen as machines to organizations as networks. A shift that structure and control are needed to operate effective organizations to organizations as being seen as a network of relationships that order rather than control the organization.

Viewing governance as an operating system maybe part of that shift. If it is, we, as governance thinkers will need new ideas, new ways of thinking and talking about governance.

What do you think? Are we on the right track?

Enhanced by Zemanta

Nonprofit Organization Starvation

Organizations need to be fed to be healthy and sustainable. If organizations are not fed, they will starve.  Authors Ann Gregory and Don Howard,  in their article The Nonprofit Starvation Cycle, state that organizations must have proper care and feeding if they are to be successful in making their mission come alive in the community.

While Gregory and Howard point out that funding restrictions and/or reductions can lead to organizational starvation, they rightfully point out that there is a shared responsibility that goes beyond funders. Organizational leaders often do not make the appropriate investments in infrastructure. Governance leaders often unaware of these lack of investments. They focus instead on the bottom-line.  Funders often times are not aware of the organizational challenges until the organization performance begins to diminish. A lack of transparency and accurate reporting leads to the downward spiral called the Nonprofit Starvation Cycle.

The authors suggest that one of the most important solutions avoiding or getting out of this  downward spiral begins with the question: What does this organization really need to succeed?

When governance and organizational leaders as well as funders begin to answer that question with a shared voice they will breath new life into the organization. The organization will avoid its public  obituary.

The governance partnership model offers two fundamental suggestions to those leaders that are seeking an answer to that important question:

1. Develop a shared commitment about mission. Define that shared commitment in the form of mission outcomes.

2. Develop a shared commitment about organizational performance. Define what organizational success means in the form of organizational results.

Organizations with good leadership need not starve to death.