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Transcript of The management model book 6 10-11 rev
Management Model – Associations, Chambers and NonProfits
2
Contents
Preface ............................................................................................................................................ 4
Core Competencies ......................................................................................................................... 4
Definitions ........................................................................................................................................ 4
Management – Professional Staff ........................................................................................................ 5
Franchise Model............................................................................................................................... 5
Six Manuals ..................................................................................................................................... 6
• Leadership Notebook ............................................................................................................ 6
• Procedures Manual ............................................................................................................... 6
• Policy Manual ........................................................................................................................ 7
• Emergency Preparedness ..................................................................................................... 7
• Style – Communications Manual ........................................................................................... 8
• Personnel Manual.................................................................................................................. 8 Risk Management ............................................................................................................................ 8
Volunteer Immunity .......................................................................................................................... 8
Risks in Nonprofits ........................................................................................................................... 9
Inventory, Assess and Improve ........................................................................................................ 9
Performance Measures .................................................................................................................... 9
Governance – The Board of Directors ............................................................................................... 10
Tapping Volunteer Leaders - Nominations ..................................................................................... 10
Nominating Committee ................................................................................................................... 11
Board Orientation ........................................................................................................................... 11
Governing Documents.................................................................................................................... 11
• Mission Statement ............................................................................................................... 11
• Articles of Incorporation ....................................................................................................... 12
• Bylaws ................................................................................................................................. 12
• Strategic Plan ...................................................................................................................... 12
• Budget ................................................................................................................................. 12
• Business or Action Plan ....................................................................................................... 12 Board Meetings .............................................................................................................................. 12
Agendas ......................................................................................................................................... 12
Rules of Order ................................................................................................................................ 13
Minutes .......................................................................................................................................... 13
Apparent Authority ......................................................................................................................... 13
Committees .................................................................................................................................... 13
Organizational Chart ...................................................................................................................... 13
Strategic Direction ............................................................................................................................. 14 Purpose of a Plan ........................................................................................................................... 14
Planning Retreat ............................................................................................................................ 14
Planning Terminology .................................................................................................................... 15
• Mission ................................................................................................................................ 15
• Vision .................................................................................................................................. 15
• Goals ................................................................................................................................... 15
• Strategies ............................................................................................................................ 15
• Tactics ................................................................................................................................. 15
• Performance Measures ....................................................................................................... 15
About Bob Harris, CAE ...................................................................................................................... 15
Management Model
*About the $20 Contribution
The Management Model document is not copyrighted and is intended for an executive to save and
share with colleagues. The $20 contribution benefits Alexey’s Dream Foundation
I am mentoring a young Executive Director from the Republic of
Belarus near Russia – Alexey Talai.
recently attended the Great Ideas Conference
SAE and CCE meetings.
His foundation serves orphans and children with disabilites.
1IRS determination pending.
Management Model – Associations, Chambers and NonProfits
3
document is not copyrighted and is intended for an executive to save and
share with colleagues. The $20 contribution benefits Alexey’s Dream Foundation1.
Executive Director from the Republic of
Alexey Talai. He is an ASAE member and
Great Ideas Conference as well as many state
foundation serves orphans and children with disabilites. He has
built the organization – including
the physical headquarters – on
his own in a country that has few
nonprofit models. He is
passionate about helping others
and organizational excellence.
His website is
www.AlexeysDream.com. He
does not let the challenge of
having lost his arms and legs to
an abandoned World War II
landmine slow him down.
His website includes Paypal.
Any funds sent by mail are forwarded by Western Union.
(Payable to “Bob Harris” 335 Beard St., Tallahassee,
FL 32303 with the subject line: Alexey’s Dream
document is not copyrighted and is intended for an executive to save and
.
are forwarded by Western Union.
35 Beard St., Tallahassee,
FL 32303 with the subject line: Alexey’s Dream.)
Management Model
The For Associations, Chambers and NonProfits
Preface
There are nearly 2 million nonprofit organizations in the USA.
business, innovation, consensus and compromise are bolstered by nonprofits. Much of the greatness
of America can be traced to nonprofit
All nonprofits have common elements
board of directors governs while advancing and protecting interests. And a
manages.
The Management Model is written from the
excellence.
Core Competencies
Staff members are often motivated
management requires a resolute business approach.
In a tough economy nonprofits try to
often at the risk of sabotaging2 their efforts.
cannot see the forest for the trees, or it feels like every day is
“putting out fires,” it’s hard to focus on
The Management Model identifies three
for excellence in any nonprofit.
I. Staff Management
II. Board Governance
III. Strategic Direction
Each of the components requires understanding,
development and implementation by
free at www.nonprofitcenter.com.
Definitions
In the USA, the Internal Revenue Service (IRS)
revoked the tax exempt status of 275,000 nonprofits. Clearly there is a new scrutiny on nonprofit
purposes, boards and operations.
The Agency defines the concepts of
2 An organization recently closed their professional office space, reduced the staff to one person and reduced the size of the
money; and then wondered why they had insufficient workforce to carry out their programs.
Management Model – Associations, Chambers and NonProfits
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The Management Model Associations, Chambers and NonProfits
million nonprofit organizations in the USA. The principles of free enterprise, small
business, innovation, consensus and compromise are bolstered by nonprofits. Much of the greatness
nonprofit organizations and their boards.
common elements. The mission statement defines the purpose for existence
while advancing and protecting interests. And a professional staff
written from the perspective of staff who are focused on
motivated by passion for the organization’s mission and its cause
usiness approach.
nonprofits try to “do more with less” -
their efforts. When staff
the trees, or it feels like every day is
it’s hard to focus on excellence.
three major components
requires understanding,
by the staff – board partnership. Additional resources are available
nternal Revenue Service (IRS) regulates exempt organizations. In 2011, the IRS
revoked the tax exempt status of 275,000 nonprofits. Clearly there is a new scrutiny on nonprofit
of governance and management.
An organization recently closed their professional office space, reduced the staff to one person and reduced the size of the
money; and then wondered why they had insufficient workforce to carry out their programs.
The principles of free enterprise, small
business, innovation, consensus and compromise are bolstered by nonprofits. Much of the greatness
the purpose for existence. A
professional staff
on organizational
and its causes. Yet
Additional resources are available
In 2011, the IRS
revoked the tax exempt status of 275,000 nonprofits. Clearly there is a new scrutiny on nonprofit
An organization recently closed their professional office space, reduced the staff to one person and reduced the size of the board to save
Management Model – Associations, Chambers and NonProfits
5
“Board of Directors3 is the governing body serving as the group of persons authorized
under state law to make governance decisions on behalf of the organization and its members
or stakeholders.”
“Executive Director4 is the chief management official who has ultimate responsibility for
implementing the decisions of the governing body or for supervising the management,
administration, or operation of the organization.”
MANAGEMENT
Professional Staff
Management – Professional Staff
The first component of The Management Model is an effective and efficient staff.
Franchise Model5
While the organization may be designated as not-for-profit6 and exempt from federal income tax,
these characteristics should not be the model for management.
Consider the franchise model as described in The E-Myth Revised.
Franchises are known for their brand awareness, sustainability, consistent
customer service and profitability --- especially when contrasted to independent
businesses. Statistics indicate that 75% of franchises prosper while 80% of
independent businesses fail within five years.
Franchises identify each step in a process, create best practices, and document
the process in a manual. A nonprofit can be organized similar to a franchise by following these four
steps.
1. Identify the recurring responsibilities, for example quarterly board meetings, monthly newsletters,
yearly nominations and conferences.
2. Document the steps that fulfill the processes most efficiently and effectively. Eliminate steps that
take short-cuts, waste time or create risks.
3Board of Directors may also be identified as board of trustees among other names.
4 Other tiles for the chief paid staff person may include administrator, president, executive vice president or executive
director. It is important to note that in the management model, the staff work under the chief paid person, not for the
board of directors. 5E-Myth Revised by Michael Gerber.
6Not for profit is a legal or formal reference to nonprofit.
Management Model
3. Enumerate or bullet the steps
to publish the newsletter in a timely manner it may require 12 steps over 45 days.
deposit may require just 2 or 3 steps
4. Store the best practices in one of six manuals recommended for nonprofit organizations.
Six Manuals
Organizations need an efficient method for ar
purpose and can be used for board and staff training. They promote sustainability in the transition of
volunteers and staff.
• Leadership Notebook
Also known as the board book, it is a guide for
distributed at board orientation or upon
may include history, bylaws, strategic plan, committees, org
budget, responsibilities, rosters and calendars, for example.
Some organizations maintain a leadership manual as a virtual document
on their website, protected by password. Others distribute it as a CD or
memory stick. Staff members should be familiar with the contents of the
leadership manual.
• Procedures Manual
The procedures manual describes what the organization believes is the
best way of conducting every project, responsibility and
It documents activities and processes through bulleted or enumerated lists. It is staff driven
interest of the board. The manual e
procedures, while reducing risk. It may also be known as the
procedures (SOP) or best-practices manual.
Create a procedures manual by drafting
the annual calendar of events. Have staff document the steps as they complete projects.
Documenting processes can range from the smallest (how to back up the computer data each day) to
the largest (how to plan the annual conference.)
The executive director should create a format or template for staff to use in documenting tasks.
Within months the procedures manual will be assembled and serve as
7 Often the biggest fear is a bookkeeper’s unexpected departure, leaving the executive director without notes on
passwords, accounts and processes.
Management Model – Associations, Chambers and NonProfits
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associated with successfully carrying out every task.
a timely manner it may require 12 steps over 45 days.
deposit may require just 2 or 3 steps7.
the best practices in one of six manuals recommended for nonprofit organizations.
method for archiving and retrieving information. Manuals
board and staff training. They promote sustainability in the transition of
, it is a guide for volunteers. It is
distributed at board orientation or upon election or installation. Sections
may include history, bylaws, strategic plan, committees, org chart,
and calendars, for example.
n a leadership manual as a virtual document
on their website, protected by password. Others distribute it as a CD or
memory stick. Staff members should be familiar with the contents of the
ribes what the organization believes is the
project, responsibility and process.
It documents activities and processes through bulleted or enumerated lists. It is staff driven
ensures consistent operations, quality controls and standardized
It may also be known as the operating manual, standard operating
practices manual.
reate a procedures manual by drafting a table of contents. Then use the staff job descriptions and
events. Have staff document the steps as they complete projects.
Documenting processes can range from the smallest (how to back up the computer data each day) to
t (how to plan the annual conference.)
The executive director should create a format or template for staff to use in documenting tasks.
manual will be assembled and serve as one of the most valued
s a bookkeeper’s unexpected departure, leaving the executive director without notes on
uccessfully carrying out every task. For example,
a timely manner it may require 12 steps over 45 days. Make a bank
the best practices in one of six manuals recommended for nonprofit organizations.
chiving and retrieving information. Manuals serve the
board and staff training. They promote sustainability in the transition of
It documents activities and processes through bulleted or enumerated lists. It is staff driven --- not an
nsures consistent operations, quality controls and standardized
manual, standard operating
Then use the staff job descriptions and
events. Have staff document the steps as they complete projects.
Documenting processes can range from the smallest (how to back up the computer data each day) to
The executive director should create a format or template for staff to use in documenting tasks.
the most valued guides.
s a bookkeeper’s unexpected departure, leaving the executive director without notes on
Management Model
• Policy Manual
Policies represent the wisdom of the board for current and future governance needs. The manual
archives the board-approved policies.
tend to exist only as motions in the
bylaws, (which should remain broad in scope; not littered with policies.)
Policies may arise spontaneously in a board discussion, “We need to adopt
a policy on that....” or be directed to a committee or staff to research and
recommend a policy. All policies are
minutes.
If no policy manual exists, take the last five years of
the motions that read as policies, add the policies
a table of contents. Policy manuals that are cumbers
sunset review8.
If the bylaws have become cluttered with policies, review them with the intent of
into the policy manual. When entering new policie
minutes can be referenced. Since 2008,
in these areas:
• Compensation
• Public Records
• Financial Audit
• Conflicts of
Interest
• Whistleblower
• Record Retention
Note: It is best not to combine a “Policies and Procedures” manual.
of staff, focusing on operations. Policies
• Emergency Preparedness
The emergency notebook protects the
safeguards documents and supports
It contains the essential documents that would take months to replace. It may take
virtual document; a CD-ROM, external memory o
key persons know of its location in an emergency (i.e. lawyer or CPAs office, safety deposit box.)
8 A process where policies are cleaned up and will expire unless reaffirmed by the committee or board.
Management Model – Associations, Chambers and NonProfits
7
Policies represent the wisdom of the board for current and future governance needs. The manual
approved policies. Without the manual, the policies
the prior minutes --- or get buried in the
(which should remain broad in scope; not littered with policies.)
Policies may arise spontaneously in a board discussion, “We need to adopt
a policy on that....” or be directed to a committee or staff to research and
policies are recorded as motions in the board
If no policy manual exists, take the last five years of board minutes, highlight
the motions that read as policies, add the policies to the manual and create
a table of contents. Policy manuals that are cumbersome can undergo a
cluttered with policies, review them with the intent of transferring
into the policy manual. When entering new policies, note the date of adoption so that board meeting
Since 2008, IRS Form 9909 has queried nonprofits about having policies
to combine a “Policies and Procedures” manual. Procedures are
Policies are the domain of the board.
the organization, provides a crisis communications plan
supports business continuity, if the office is damaged or destroyed.
It contains the essential documents that would take months to replace. It may take
ROM, external memory or notebook, so long as it is stored off
key persons know of its location in an emergency (i.e. lawyer or CPAs office, safety deposit box.)
A process where policies are cleaned up and will expire unless reaffirmed by the committee or board.
Policies represent the wisdom of the board for current and future governance needs. The manual
transferring policies
date of adoption so that board meeting
has queried nonprofits about having policies
are the responsibility
ications plan,
if the office is damaged or destroyed.
It contains the essential documents that would take months to replace. It may take the form of a
r notebook, so long as it is stored off-site. Be sure
key persons know of its location in an emergency (i.e. lawyer or CPAs office, safety deposit box.)
Management Model
• Style – Communications Manual
The style manual or communications guide is used to describe the appro
uses of the organization’s logos, key words,
to maintain a consistent image and brand.
It may include information on lines of authority and who speaks for the organiza
as a guide for staff, chapters, webmaster and printers.
• Personnel Manual
Also known as the HR manual, it details, formalizes and communicates
employee expectations and regulations. For example, it details items such
as sick leave, vacation time, issuance of office keys, overtime, dress code,
sexual harassment, credit cards, and filing complaints.
Personnel manuals are based on state and federal laws and should be
prepared by a labor-law specialist and/or attorney. Avoid “bo
personnel manual from another state, as the labor laws
from state to state.
Do not combine the personnel manual with any other manual
stand on its own in case of a lawsuit or subpoena.
Risk Management
“We are volunteers --- what risks could there be?
Yet nonprofits find themselves in lawsuits f
harassment, defamation, copyright infringement and antitrust
violations, for instance. Staff and board
through continual awareness, mitigation, insurance and
evaluation.
Volunteer Immunity
State and federal law provides limited
doctrine of volunteer immunity. The concept applies to the
duties of the board and would not cover the cost of defense if
the organization were sued. (This is another reason
critical to provide the governing documents to volunteer
leaders.)
Insurance Coverage
Insurance is one form of risk management. Though the board may have
prudent to rely on insurance coverages
• General Liability • Directors and Officers Liability
10
Be sure to rely on insurance professionals.
Management Model – Associations, Chambers and NonProfits
8
Communications Manual
The style manual or communications guide is used to describe the appropriate (and inappropriate)
uses of the organization’s logos, key words, styles, PMS color, preferred typeface, etc. Its purpose is
to maintain a consistent image and brand.
on lines of authority and who speaks for the organization. It should serve
as a guide for staff, chapters, webmaster and printers.
Also known as the HR manual, it details, formalizes and communicates
employee expectations and regulations. For example, it details items such
leave, vacation time, issuance of office keys, overtime, dress code,
sexual harassment, credit cards, and filing complaints.
Personnel manuals are based on state and federal laws and should be
law specialist and/or attorney. Avoid “borrowing” a
personnel manual from another state, as the labor laws and definitions vary
combine the personnel manual with any other manual – it should
stand on its own in case of a lawsuit or subpoena.
what risks could there be?” The statement is often heard at
Yet nonprofits find themselves in lawsuits for issues such as
copyright infringement and antitrust
and board must manage risks
through continual awareness, mitigation, insurance and
limited protection through the
. The concept applies to the
d not cover the cost of defense if
(This is another reason that it is
critical to provide the governing documents to volunteer
Insurance is one form of risk management. Though the board may have volunteer immunity, it is
prudent to rely on insurance coverages10:
Directors and Officers Liability • Surety Bond • Meeting Cancellation
Be sure to rely on insurance professionals.
priate (and inappropriate)
PMS color, preferred typeface, etc. Its purpose is
tion. It should serve
t board tables.
volunteer immunity, it is
Management Model
Risks in Nonprofits
Be familiar with these risks and the mechanisms to reduce or eliminate liability.
• Antitrust Violations • Copyright Infringement • Financial Audits • Conflict of Interest • Public Records Requests
Inventory, Assess and Improve
A technique to improve the organization
management processes. By conducting
an internal evaluation, staff can identify
the key documents and processes,
evaluate gaps and waste, and take steps
to improve.
Outcomes include development and
enhancement of systems, identification
of omissions, and training of staff. A
question evaluation tool (PDF) is available
www.nonprofitcenter.com.
Performance Measures
Successful organizations “keep their
staff agree on KPIs11, they may be reported
and programs perform.
Performance measures might include:
• Member Market Share
• Savings to Budget Ratio
• Retention Rate
• Event Attendance
• Dues to Non-Dues Ratio
• Member Satisfaction
• Website Visitors
• Strategic Goal Achievements
11
KPI = Key Performance Indicator.
Management Model – Associations, Chambers and NonProfits
9
Be familiar with these risks and the mechanisms to reduce or eliminate liability.
• Apparent Authority-Communications• Discrimination • Harassment • Intellectual Property • Embezzlement
Inventory, Assess and Improve
technique to improve the organization (and manage risk) is to periodically conduct an
management processes. By conducting
evaluation, staff can identify
the key documents and processes,
take steps
and
of systems, identification
taff. A 50-
is available free at
their eye on the ball” by monitoring performance. When board and
reported visually as a dashboard to assess how the organization
include:
Strategic Goal Achievements
Communications
conduct an audit of
. When board and
to assess how the organization
Management Model
Board of Directors
Governance – The Board of Directors
The second element of The Management
The board is responsible (and accountable)
verb meaning, “to steer.” The board has four
I. Set Strategic Direction – Positioning the organization for the future in serving its members.
II. Develop Policy and Positions
today and into the future.
III. Fiduciary Duties12 – Acting in the best interest
IV. Governance – Acting upon and
Because volunteers are often more
slip into inappropriate management tasks
maintain a board that understands governance
and keeps a 50,000 foot perspective
the more detailed decisions to committees and
staff.
Tapping Volunteer Leaders - Nominations
Some boards are weak because they have no
succession plan or depth on their bench
recycle directors or select unmotivated
volunteers to fill empty seats at the table
One way to build a more competent
identify the traits needed to strengthen the b
For example, seeking persons respected in the community, financial experts, good communicators,
prior board service and motivated individuals. Create a
and weakness --- using the analysis to identify future leaders.
12
Fiduciary - Refers to a relationship in which one person has a responsibility of care for the assets or rights of another
person. A fiduciary is an individual who has this res
"faith" or "trust." 13 The bench represents the strengths and skills of the governing body.
Management Model – Associations, Chambers and NonProfits
10
GOVERNANCE
Board of Directors
The Board of Directors
Management Model is highly effective board of directors
(and accountable) for governance. The term governance is derived from a
The board has four fundamental purposes:
Positioning the organization for the future in serving its members.
Develop Policy and Positions – Establishment of policy and positions to guide decisions
Acting in the best interests and care of the organization.
upon and within the authority of the governing documents and laws.
more confident in their management skills than governance
into inappropriate management tasks (A.K.A. micromanagement.) The aim is to
board that understands governance
keeps a 50,000 foot perspective --- leaving
to committees and
Nominations
Some boards are weak because they have no
depth on their bench13. They
motivated
at the table.
competent board is to
needed to strengthen the board.
persons respected in the community, financial experts, good communicators,
individuals. Create a matrix to identify the current board’s
the analysis to identify future leaders.
Refers to a relationship in which one person has a responsibility of care for the assets or rights of another
person. A fiduciary is an individual who has this responsibility. The term "fiduciary" is derived from the Latin term for
represents the strengths and skills of the governing body.
of directors.
for governance. The term governance is derived from a
Positioning the organization for the future in serving its members.
Establishment of policy and positions to guide decisions
s and care of the organization.
within the authority of the governing documents and laws.
governance they may
The aim is to develop and
persons respected in the community, financial experts, good communicators,
to identify the current board’s strengths
Refers to a relationship in which one person has a responsibility of care for the assets or rights of another
ponsibility. The term "fiduciary" is derived from the Latin term for
Management Model
Nominating Committee
The nominating committee has long term impact. T
seriously or is composed solely of past presidents.
the membership and combine emerging
Arm the committee with the knowledge
leadership manual and conflict of interest statement.
Some organizations have transform
Development Committee. The BDC takes responsibility for carrying out the nom
well as conducting board self-evaluation,
director orientation.
Finally, “don’t forget to ask.” Nearly every volunteer leader remembers the day when they were
honored because a leader from the organization reached out and suggested they consider a
as a committee member or director.
Board Orientation
Training improves understanding, confi
Plan an annual comprehensive orientation. By including the
whole board (not just new directors) a healthy discussion of
expectations, changes in the environment, and priorities can
be had.
Orientation typically requires two hours to
four areas:
I. About the Organization
II. Duties of the Board
III. Strategic Direction
IV. Risk Management
Information should be presented by
chief staff positions, supported by staff reports. Invite legal,
accounting and insurance counsel to expand on topics
Governing Documents
It is said, one must “read to lead.” An understanding of the governing documents is critical.
Documents should be included in the Leadership Notebook or on a board portal.
• Mission Statement – Relationship to the IRS,
14 The “Board Responsibilities” laminated guide, two
[email protected] with quantity and address. It is
Management Model – Associations, Chambers and NonProfits
11
has long term impact. Too often the committee doesn’t take its work
composed solely of past presidents. Its composition should represent of the
erging and experienced leaders.
knowledge to inform candidates of their duties, including the bylaws,
leadership manual and conflict of interest statement. Nominees should be well aware of expectations.
transformed their nominating committee to have broader duties as a
. The BDC takes responsibility for carrying out the nomination process,
evaluation, developing the leadership notebook and planning
Nearly every volunteer leader remembers the day when they were
honored because a leader from the organization reached out and suggested they consider a
as a committee member or director.
improves understanding, confidence and outcomes.
comprehensive orientation. By including the
whole board (not just new directors) a healthy discussion of
expectations, changes in the environment, and priorities can
hours to a full-day to cover
presented by the chief elected and
chief staff positions, supported by staff reports. Invite legal,
insurance counsel to expand on topics14.
It is said, one must “read to lead.” An understanding of the governing documents is critical.
uded in the Leadership Notebook or on a board portal.
Relationship to the IRS, federal government; the purpose of existence.
” laminated guide, two-sided, color, is available for $9 each plus S/H by emailing
with quantity and address. It is © 2011
the committee doesn’t take its work
ion should represent of the diversity of
to inform candidates of their duties, including the bylaws,
Nominees should be well aware of expectations.
nominating committee to have broader duties as a Board
ination process, as
planning the
Nearly every volunteer leader remembers the day when they were
honored because a leader from the organization reached out and suggested they consider a position
It is said, one must “read to lead.” An understanding of the governing documents is critical.
government; the purpose of existence.
S/H by emailing
Management Model
• Articles of Incorporation
• Bylaws – Relationship to membership
• Policies and Positions –
organization.
• Strategic Plan – Roadmap
• Budget – Yearly financial plan for the year.
• Business or Action Plan
accountability often in the form of a table or spread
Board Meetings
The official work of the governing body is conducted in board meetings
place for deliberation, consensus and compromise.
Consensus - Participants reach as much agreement as possible
Compromise - One person gives up part
Directors are discouraged from rehashing board decisions in the parking lot or by email
meeting. When the meeting adjourns, directors should be committed to support the decisions of the
board. Dissent should be noted in the minutes, not in public forums.
Room set up is a key to successful meetings. Communication is improved
when leaders can see each other and talk without havi
voices. Preferred seating and table
open-U.
Technology is facilitating meeting reports and agendas to be
wall at the meeting, keeping all directo
While laptops and tablets allows directors to view reports on
understanding or policy on digital interruptions is suggested.
Agendas
The agenda is crafted through collaboration of the
mission-drift, print the mission statement at the bottom of the agenda
conference room. A best practice would be to integrate the organization’s
align committee reports accordingly.
Consent agenda15 is a technique to reduce
board to focus on more substantive issues.
15 A consent agenda is a bundle of items that is voted on, without discussion, as a package. It differentiates between
routine matters not needing explanation and more complex issues needing examination.
Management Model – Associations, Chambers and NonProfits
12
Articles of Incorporation – Relationship to the state government.
membership or stakeholders.
– Wisdom of the board in guiding the
Roadmap for 3 to 5 years.
financial plan for the year.
Business or Action Plan – Annual short-term plan of action and
accountability often in the form of a table or spreadsheet.
The official work of the governing body is conducted in board meetings – the safe
, consensus and compromise.
articipants reach as much agreement as possible.
ne person gives up part of his or her desired outcome.
Directors are discouraged from rehashing board decisions in the parking lot or by email
When the meeting adjourns, directors should be committed to support the decisions of the
be noted in the minutes, not in public forums.
key to successful meetings. Communication is improved
when leaders can see each other and talk without having to raise their
table arrangements are hollow-square or
Technology is facilitating meeting reports and agendas to be projected on a
directors engaged and on the same page.
While laptops and tablets allows directors to view reports on-line. An
or policy on digital interruptions is suggested.
through collaboration of the chief elected and chief staff positions
print the mission statement at the bottom of the agenda or post it on the wall
conference room. A best practice would be to integrate the organization’s goals into the agenda and
accordingly.
is a technique to reduce reports that require no action or discussion; allowing the
ocus on more substantive issues.
is a bundle of items that is voted on, without discussion, as a package. It differentiates between
routine matters not needing explanation and more complex issues needing examination.
Directors are discouraged from rehashing board decisions in the parking lot or by emails after the
When the meeting adjourns, directors should be committed to support the decisions of the
staff positions. To avoid
or post it on the wall of the
into the agenda and
reports that require no action or discussion; allowing the
is a bundle of items that is voted on, without discussion, as a package. It differentiates between
Management Model
Rules of Order
Rules of order guide discussions.
are supplemented by a published parliamentary
Some boards create a “code of conduct” or “rules of engagement” for
meetings.
Minutes
Board actions are documented in meeting minutes. Minutes are
record ---- not a place to record discussio
newsletter to report the board’s work.
in the minutes you would be embarrass
IRS suggests that “committees with authority”
Apparent Authority
Be certain it is clear who has authority to speak for the organization. The concept of
authority established by case law17
organization, the organization may be held liable.
officer is the official spokesperson and he or she may periodically delegate that authority to staff or
volunteers.
Committees
Standing committees are those identified in the bylaws.
those appointed for a specific purpose and then disband upon completion of their work.
to reduce the number of committees and
Committees advance the strategic plan
not the place for committee work and debate.
“Committees recommend
Each committee should have an enduring statement of purpose. Current year assignments made by
the chief elected officer, including performance measures, are critical. Many organizations use
committee liaisons from the board and staff. The liaisons
serve as resources and advocates18
Organizational Chart
An organizational chart depicts lines of authority
communications and elements, including the
committee, board of directors, staff, consultants, committees
and subsidiaries.
16
Indicated on IRS Form 990, effective 2008. 17 Hydrolevel Case 18 Refer to the descriptions of committee liaisons at
Management Model – Associations, Chambers and NonProfits
13
Rules of order consist of the bylaws and
parliamentary guide adopted by the body.
conduct” or “rules of engagement” for
actions are documented in meeting minutes. Minutes are the official
not a place to record discussions, keep to-do lists or create a
o report the board’s work. It is often heard, “do not put anything
in the minutes you would be embarrassed to read in the newspaper.” The
IRS suggests that “committees with authority” also keep minutes.16
thority to speak for the organization. The concept of
indicates that when a volunteer leader appears to speak for the
organization, the organization may be held liable. Generally it is understood that the chief
officer is the official spokesperson and he or she may periodically delegate that authority to staff or
are those identified in the bylaws. Task forces and ad hoc committees
those appointed for a specific purpose and then disband upon completion of their work.
the number of committees and rely on task forces.
vance the strategic plan and do work for the board of directors. (Board
the place for committee work and debate.) The adage holds true:
Committees recommend > board approves > staff/volunteers implement.
Each committee should have an enduring statement of purpose. Current year assignments made by
ef elected officer, including performance measures, are critical. Many organizations use
from the board and staff. The liaisons 18.
An organizational chart depicts lines of authority, supervision,
, including the executive
committee, board of directors, staff, consultants, committees
, effective 2008.
to the descriptions of committee liaisons at www.nonprofitcenter.com
thority to speak for the organization. The concept of apparent
indicates that when a volunteer leader appears to speak for the
that the chief elected
officer is the official spokesperson and he or she may periodically delegate that authority to staff or
ad hoc committees are
those appointed for a specific purpose and then disband upon completion of their work. The trend is
Board meetings are
staff/volunteers implement.”
Each committee should have an enduring statement of purpose. Current year assignments made by
ef elected officer, including performance measures, are critical. Many organizations use
Management Model
Strategic Direction
Purpose of a Plan
The third component of The Management
the road map to guide directors, officers, committees, staff and the budget.
especially important in nonprofit organizations where the leadership continually transitions.
Most plans span 3 to 5 years. The plan keeps
the chief elected officer may feel it is his or her
The responsibility for creating a strategic plan belongs to t
committee or the staff.
The plan serves many purposes:
• Awareness and assessment of programs and direction.
• Motivation of board and staff.
• Disciplined allocation of resources.
• Member and stakeholder awarene
• Guide for committees and staff
Planning Retreat
President Eisenhower said, “Plans are worthless but planning is
everything.”
While the author does not agree that plans are worthless, he does agree
that the process of planning is invaluable as a forum where leaders can review programs, allocate
resources and design the future.
The planning process culminates with a 1 or 2 day
should affirm the organization’s purpose
and suggest fresh strategies.
It is monitored, reviewed and updated at least annually.
business plan in template or spreadsheet format to delegate projects to commit
deadlines.
Management Model – Associations, Chambers and NonProfits
14
STRATEGIC
DIRECTION
Management Model is a definitive, inspiring strategic plan. The plan is
officers, committees, staff and the budget. Written plans are
especially important in nonprofit organizations where the leadership continually transitions.
Most plans span 3 to 5 years. The plan keeps the organization focused on the future.
elected officer may feel it is his or her prerogative to leave a personal legacy
The responsibility for creating a strategic plan belongs to the board --- not a
wareness and assessment of programs and direction.
Motivation of board and staff.
Disciplined allocation of resources.
Member and stakeholder awareness of the organization’s priorities.
Guide for committees and staff-departments.
Plans are worthless but planning is
While the author does not agree that plans are worthless, he does agree
is invaluable as a forum where leaders can review programs, allocate
ning process culminates with a 1 or 2 day retreat held about every 3 years. The
purpose (mission, vision and values), set goals (core competencies)
reviewed and updated at least annually. Often the staff creates a plan of action
in template or spreadsheet format to delegate projects to committees and set
plan. The plan is
Written plans are
especially important in nonprofit organizations where the leadership continually transitions.
future. Without a plan
legacy.
is invaluable as a forum where leaders can review programs, allocate
retreat held about every 3 years. The retreat
(core competencies)
plan of action or
tees and set
Management Model
Planning Terminology
The elements of a plan include:
• Mission – The mission statement is the purpose for existence; identifying the
organization, who it serves and what it offers. Usually a sentence or two easily
understood and articulated by leadership.
• Vision – Aspiring statement describing how the organization
desired outcomes.
• Values – The guiding principles of board and staff.
• Goals – Broad areas of achievement or core
competencies.
• Strategies – Programs and initiatives for advancing
the goals.
• Tactics – Actions steps and accountability to
advance the strategies.
• Performance Measures
Appoint a plan champion on the board to monitor and report on progress.
awareness, transform the plan into a
About Bob Harris, CAE Bob Harris, CAE19 has studied nonprofit organizations around the world.
To promote excellence and effectiveness he has created systems and
templates available at www.nonprofitcenter.com
is part of training programs and consulting
maintain excellent organizations. He can be contacted
[email protected] and USA 850/570
Frequent seminar topics include:
• Board Roles and Responsibilities
• Flawless Strategic Planning Process
• Policy Development
• Organizational Excellence
• Three Proficiencies of Professional
• Transforming a Strategic Plan into Action
19
Certified Association Executive designated by the American Society of Association Executives.
Management Model – Associations, Chambers and NonProfits
15
The mission statement is the purpose for existence; identifying the
organization, who it serves and what it offers. Usually a sentence or two easily
understood and articulated by leadership.
Aspiring statement describing how the organization will be perceived or
The guiding principles of board and staff.
Broad areas of achievement or core
Programs and initiatives for advancing
Actions steps and accountability to
– Assignments, deadlines and metrics.
on the board to monitor and report on progress. To improve stakeholder
into a membership brochure or the front and back of a business card
About Bob Harris
has studied nonprofit organizations around the world.
effectiveness he has created systems and
www.nonprofitcenter.com.The information herein
and consulting to help boards and staffs
ns. He can be contacted at
USA 850/570-6000.
Board Roles and Responsibilities
Strategic Planning Process
Professional Staff
Transforming a Strategic Plan into Action
designated by the American Society of Association Executives.
The mission statement is the purpose for existence; identifying the
organization, who it serves and what it offers. Usually a sentence or two easily
will be perceived or
To improve stakeholder
front and back of a business card.