What’s Research Got to Do with It?
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Transcript of What’s Research Got to Do with It?
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What’s Research Got to Do with It?
Katherine Mandusic Finley, CAE, CFRE
ISAE Annual ConventionJuly 16, 2003
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Types of Research Applied or internal – done by
association or done for a specific association
Academic – done by professional researcher examining issues related to all associations or nonprofits
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Benefits of Applied Research Provides an association with
information about its members’ needs and wants
Helps an association design effective programs and services
Helps an association provide assessment of marketplace trends
Provides an assessment of image Limited use beyond one association
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Benefits of Academic Research Many academic centers, universities,
and students studying this area Not all of this research is useful, but… Some research can give credence to
various theories of leadership and governance
Can provide insight into various problems so we can better manage our association
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Benefits of Academic Research Contributes to better
understanding of a particular topic Can help an association institute a
program or form of governance Gives the entire field credence
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What is Being Studied? In one word – EVERYTHING! 460 papers at one conference alone Over 245 programs in nonprofit
management (either degree or certificate)
Numerous “think tanks” devoted exclusively to this
Doctoral program in association mgt.
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Sampling of Research
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Effectiveness of Board Training or Development Programs Study by Thomas P. Holland and
Douglas K. Jackson of University of Ga. Study of 10 boards that had three-year
developmental programs Identified these board competencies:
contextual, interpersonal, analytical and strategic
Boards that employed developmental training improved effectiveness significantly
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Effectiveness of Board Training or Development Programs, cont.
Competencies that improved most were ones specifically targeted for attention
Boards will not change if change is imposed; must want to develop
Board development has to be considered a long-term investment
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Why Do Nonprofits Fail? Study by Mark Hager, Urban Institute:
Wolfgang Bielefeld, IU; and Joe Galaskiewicz, University of Arizona
Studied Minneapolis area from 1984-94 to see why nonprofits failed
Found that size and age related to organizational survival. The older, larger and more established organizations were more likely to survive
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Why Do Nonprofits Fail, cont. Reasons for closure were:
organization too small; too young; instability (personnel loss or goal changes); lack of managerial acumen (financial difficulties, personnel capabilities, conflict among staff, power struggles on board, unclear mission); and success (mission completed)
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Why Do Nonprofits Fail, cont. Under managerial acumen,
financial difficulties and personnel loss were major reasons for closing
Some closed because executive director died or left; founder left or died
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Effectiveness of the Carver Governance Model Study by Patricia Dautel Nobbie,
University of Georgia Carver model – board drives
organization through policies related to ends, executive limitations, and governance policies
CEO allowed to advance ends without violating means
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Effectiveness of the Carver Governance Model, cont. Data collected from 234 board members
of 32 organizations using model; control groups of those not using any model and those using another model
Those studied were those that totally implemented and understood model
Study found that perception by board was that they did operate more effectively
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Effectiveness of the Carver Governance Model However, there was no evidence to
support that performance is actually higher under this model as compared to other models
The effectiveness really depends on training of board members and length of using the model
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How Well Do Boards Approach Executive Transitions?
1998 a study conducted by CompassPointe in San Francisco Bay area.
Looked at 28 organizations Executive directors in 501-c-3
stayed three years; most first-timers (Leadership Lost study)
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How Well Do Boards Approach Executive Transitions, cont. Study found that boards
underestimate risk of bad hires Also, boards are woefully
unprepared for task Moreover, board does not use
transition as an opportunity
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“Weird Management” Techniques that Work Robert Sutton of Stanford University,
School of Business and Engineering Research on what techniques spark
innovation within organizations and companies
Wrote book outlining 11 ½ techniques that work in companies; found three work in nonprofit setting
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“Weird Management” Techniques that Work, cont. Hire people who make you uncomfortable.
Seek competent people with different beliefs and skills. This tends to spark innovation
Find happy people and get them to fight. Conflict over ideas is good, especially in creative organizations. Study showed that when fighting over conflicting ideas, employees provoked to weave ideas together to come up with best idea
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“Weird Management” Techniques that Work, cont.
Reward success and failure, punish inaction. Study found that you cannot generate good ideas without bad ones. Reward smart failures not dumb ones.
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Is a Merit Pay System Always Good? Study by John R. Deckop, Temple
University and Carol C. Cirka, Urisinus College
Study of a private northeastern college that is religiously affiliated
126 responses to questionnaire Implemented a merit pay system
in mission-based organization
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Is a Merit Pay System Always Good?, cont. Study found that implementing a merit
pay system in a mission-based organization can cause a decline in intrinsic motivation
Plan to implement this must be communicated
If organization cannot continue merit pay increases, this poses a danger to organization
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Are Nonprofit Organizations Ready for Downsizing? Study by Russ Cargo and Deborah
Barfield of Nonprofit Enterprise Institute at Virginia Commonwealth University
Study found nonprofits unprepared for downsizing
Nonprofits need strategy to address structure (staffing), communications and to assist affected employees
Nonprofits particularly lack legal knowledge to make right decisions
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Is There a Tie Between Strategy and Financial Performance?
Study by William Crittendon of Northeastern University; study done over three-year time period of 31 organizations
There is a definite correlation between success of organizations and degree to which they engage in strategic planning
There is a definite correlation between success of organization and those that have financial orientation
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Is There a Tie Between Strategy and Financial Performance?, cont.
There is a correlation between success of organization and degree to which organization has a marketing orientation
Unsuccessful organizations are basically unfocused
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Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?
Study by Julie I. Siciliano of Western New England College in Springfield, MA
Based on 240 questionnaires from YMCAs and 66 telephone interviews
Factors identified with more formal strategic planning – strategic planning committee of board takes responsibility, use of consultants and financial performance
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Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?, cont.
Findings: The more formal the strategic planning process, the higher the organization’s performance
In particular, activity of setting goals, objectives, action plans and monitoring linked to better performance
Formalizing analysis of environmental trends associated with better social performance
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Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?, cont.
Formalizing competitive analysis was associated with better financial performance
Development of a unique mission statement was not associated with any performance measure
Less formal strategic planning done when an executive committee involved rather than a strategic planning committee
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Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?, cont.
No evidence that use of outside consultant resulted in more formal planning process
More financially stable organizations are more likely to engage in formal process, rather than those in financial crisis who need planning the most
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Philanthropy - 2002 American Association of Fund Raising
Counsel (AAFRC) prepares Giving USA each year
Giving is at record $240.9 billion, an increase of 1 percent. Adjusted for inflation, this represents a decrease of .5 percent
Giving by individuals increased slightly Bequests increased to $18.1 billion Giving by foundations decreased Giving by corporations increased
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Philanthropy – 2002, cont. Most giving comes from individuals
(76.3%), foundations (11.2%), and corporations (5.1%)
Most giving goes to religion (35%), followed by education (13.1%), foundations (9.1%), health (7.8%) and human services (7.7%)
Environmental/animal rights, arts & culture and public-society-benefit get least
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New Studies Executive transitions in associations (Union
Institute Doctoral Program) Diversity in associations (Union Institute Doctoral
Program) Best practices for small associations (Union
Institute Doctoral Program) Volunteers – the cost of hiring – UPS Foundation
and Urban Institute Indiana nonprofit database study (all nonprofits,
economic impact – mapping the sector; IU study) MORE
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Journals and Magazines with Latest Research
Social Science Innovation Review (Stanford University)
The Nonprofit Quarterly (Third Sector New England)
ARNOVA News, E-News and abstract database
Snapshots, Aspen Institute
Nonprofit Management & Leadership
Center for Association Leadership – launching a new journal
Chronicle of Philanthropy NonProfit Times Philanthropy (AFP) Nonprofit World Board Member
(BoardSource) Voluntas Nonprofit and Voluntary
Sector Quarterly
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New Books William B. Werther, Jr
and Evan M. Berman, Third Sector Management: The Art of Managing Nonprofit Organizations (Georgetown Univ. Press, 2001)
Robert B. Denhardt, Janet Vinzant Denhardt, and Maria P. Aristigueta, Managing Human Behavior in Nonprofit Organizations (Sage Publications, 2002)
Ronald A. Landskroner, The Nonprofit Manager’s Resource Directory, 2nd ed. (John Wiley & Sons, 2002)
Paul C. Light, Pathways to Nonprofit Excellence (Brookings Institution, 2002)
Byron L. Tweeten, Transformational Boards (Jossey Bass, 2002)
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New Books, cont. Lester M. Salamon,
The Resilient Sector: The State of Nonprofit America (Brookings Institution, 2002)
Bruce R. Hopkins, The Law of Intermediate Sanctions (John Wiley & Sons, 2003)
Michael O’Nell, Nonprofit Nation: A New Look at the Third America (Jossey Bass, 2002)
John Carver, John Carver on Board Leadership (Jossey-Bass, 2002)
Robert I. Sutton, Weird Ideas That Work (Free Press, 2002)
Peter Frumkin, On Being Nonprofit: A Conceptual and Policy Primer (Harvard, 2002)
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Research-Related Organizations AFP Research Council Center on
Philanthropy at IU Aspen Institute Urban Institute Brookings Institution BoardSource Institute for Nonprofit
Organization Management, San Francisco
Center for Association Leadership
ASAE Independent Sector Amherst Wilder
Foundation Mandel Center Hauser Center for
Nonprofit Organizations, Harvard
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Research-Related Organizations, Cont. Mandel Center for
Nonprofit Organizations
ARNOVA International
Society for Third-Sector Research
National Alliance for Nonprofit Management
National Center on Nonprofit Management
Academy of Management
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THANK YOU!
Any questions?