Harnessing The Potential Of Nonprofit Leadership:

Meeting Expectations And Achieving High Levels Of

Performance

Yvonne D. Harrison, PhDJuly 27th, 2012

Session Topic and Purpose• Expectations for nonprofit leadership are very

high. Expectations extend beyond the CEO to the board, the board chair, and all those who serve as leadership volunteers.

• This session will explore nonprofit leadership in the governance context, what is nonprofit leadership and how it differs from for-profit, nonprofit leadership competencies, and how to help nonprofit leaders meet expectations and achieve greater levels of performance.

Session Overview• What is leadership?

– Org, nonprofit/for-profit, and governance • What do effective nonprofit leaders do?

– Leadership competencies• Why are some leaders more effective than

others?• How can nonprofit leadership be

managed?– Competing Values Approach

Warm-Up

• True or False– Once a leader always a leader.– Great leaders can lead in any situation.– The secret to being a great leader lies in

possessing a lot of personal charisma– If you want to succeed as a leader, “speak

softly and carry a big stick”

Emerging Area of Leadership

• http://www.ted.com/talks/lang/en/derek_sivers_how_to_start_a_movement.html

What is leadership?• “Leadership is the process (act) of

influencing the activities of an organized group in its efforts towards goal setting and its goal.

• There must be a group with a common task or objective, and at least one member must have responsibilities that are different from the other members.

• If all members perform the same role there is no leadership” (Stogdill, 1997, p. 114-115).

How is nonprofit leadership different from for-profit?

Not for Profit• CEO and Chair are

different people• Shared leadership• Paid Executive and

Unpaid Directors • Focused on top line• Inputs less predictable• Less certainty and

control organizationally

For Profit• CEO and Chair can be

the same person• Hierarchical leadership• Paid Chief Executive and

Directors• Focused on bottom line• Inputs more predictable• More certainty and

control organizationally

What about leadership in the context of governing?

• Different types of governance interactions and theories of leadership: – Interference Interactions

• Informal and collaborative (fluid, dynamic interactions to solve problems)• Leader more influential than interaction (entity perspective)

– Interplay Interactions• Horizontal and collective (balance, equity, loyalty to mobilize people)• Leaders establish a connection, provide incentives for rewards (process

perspective)

– Interventionist Interactions• Formalized and hierarchical (skill of leader in shaping dynamics and

complexity to advantage within system)• Leaders create opportunities to cope with complexity, use for advantage to

influence (political perspective) (Kooiman, 2003)

• Follower perceptions are shaped in governing interactions

What do effective nonprofit leaders do?

Leadership Competencies in the Governance Context

Effective Chief Executives• Facilitate Interaction in Board Relationships;• Show consideration and respect toward board

members;• Envision change and innovation for the

organization with the board;• Provide useful and helpful information for the

board; and• Promote board accomplishments and

productivity.

Herman and Heimovics, 1991; 2005

Effective Boards• Actively works to achieve role clarity (e.g. job

descriptions)• Ensures all members are oriented and trained for their

role (orientation, retreats, workshops etc);• Seeks to build team and motivates all members to work

toward team goals (e.g. team-trust building etc.); • Emphasizes full and clear communication on issues

brought to the board (e.g. general and specific issues); and

• Focuses on performance by asking tough questions and using evidence to support decisions (e.g. being strategic, organizing around what matters etc.)

Axelrod, 2005

Effective Board Chairs • Do not distract boards from their goals • Create a safe climate where issues can be discussed • Look for and acknowledge the contributions others make

to the board and organization • Confront and resolve inadequate performance in a

respectful way;• Are open to new ideas and information;• Are fair and impartial;• Provide the right amount of autonomy and independence

for the board and CEO• Make people feel like a valuable member of the team

Harrison and Murray, 2012

Effective Board Members(Leadership Volunteers)

• Motivated to Serve (e.g. Recruited for the right reasons, empowered for the service of mission/others)

• Create, Share Vision, and Align Strategically (e.g. Is informed, considers best practices, contributes to the development of and commitment to a shared vision that provides meaning and direction)

• Develop Effective Relationships (e.g. Nurtures a healthy organization and work environment, is socially aware and maintains effective relationships)

• Create Value (e.g. open to innovation, creativity, and change; translates theories into action; is responsive and accountable)

National Learning Initiative, 2003

Why are some leaders more effective in their role than others?

• Leaders lack competency for the role• Right competency but they exert too little

or too much influence in the role• Leaders lack experience of leadership in

nonprofit governance context • Leaders lack information and support• Leaders don’t know they are ineffective• Lack of performance evaluation and

development

How can nonprofit leadership be managed for higher performance?• Implement system of performance feedback• Performance assessment in context of governance

is complex– Diversity of leaders, leadership roles, and interactions– Different leaders contribute effectiveness in different

dimensions of governance and organizational effectiveness

– No one leader/actor contributes all that is required for effective nonprofit governance

• Method of aggregating the value of nonprofit leadership contributions

Competing Values Approach

Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition 16

Internal External

Control

Flexibility

LEADERSHIP EFFECTIVENESS

HUMAN RELATIONS

COLLABORATE to sustain commitment and effort

LEADERSHIP ROLES: • FACILITATOR• MENTOR

OPEN SYSTEMS

CREATE to produce higher quality goods and services at lower cost

LEADERSHIP ROLES• INNOVATOR• BROKER

INTERNAL PROCESS

CONTROL to increase coordination and control

LEADERSHIP ROLES:• MONITOR• COORDINATOR

RATIONAL GOAL

COMPETE to achieve mission and goals

LEADERSHIP ROLES:• DIRECTOR• PRODUCER

Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition

E

C

F

I

ASSESSMENT OF NONPROFIT LEADER ROLES AND COMPETENCY DIMENSIONS

COLLABORATE ROLES: FACILITATOR, MENTOR • CEO • CHAIR• BOARD• BOARD MEMBERS

CREATE ROLES: INNOVATOR, BROKER

• CEO • CHAIR• BOARD• BOARD MEMBERS

CONTROL ROLES: MONITOR, COORDINATOR

• CEO • CHAIR• BOARD• BOARD MEMBERS

COMPETE ROLES: PRODUCER, DIRECTOR

• CEO • CHAIR• BOARD• BOARD MEMBERS • Results (Competency 3-

Adapted from Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition

ASSESSMENT OF NONPROFIT LEADER EFFECTIVENESS

Decisive, Directive, Provides structure

Task oriented, Initiates action

Unaware

Unskilled

Unpolished

Dependable, Reliable, Maintains structure

Technical expert,Well prepared, Collects information

Politically astute, Acquires resources

Creative, Clever, Envisions change

Process oriented, Facilitates interaction

Caring, Sympathetic, Shows consideration

Skeptical, Cynical, Stifles progress

Unimaginative, Tedious, Neglects possibilities

Overly democratic, Too participative, Slows production

Soft hearted, Permissive, Abdicates authority

ApathyIndifference

BelligerenceHostility

Unrealistic, Impractical, Wastes energy

Opportunistic, Overly aspiring, Disrupts continuity

Overachieving,Individualistic,Destroys cohesion

Unreceptive, Unfeeling,Offends individuals

Rig

idity

Chaos

COLLABORATE

CONTROL

CREATE

COMPETE

NEGATIVE

POSITIVE

NEGATIVE

Adapted from Quinn et al., (2011). Becoming a Master Manager: A Competing

Values Approach, 5th edition

POSITIVE

NEGATIVE

COMPETENCIES TO MANAGE LEADERSHIPCOLLABORATE

• Understanding Self and Others • Communicating Honestly and

Effectively• Mentoring and Developing Others• Managing Groups and Leading• Managing and Creating Creative

Conflict

CREATE

• Fueling and Fostering Innovation Implementing/Sustaining Change

• Using Power Ethically/ Effectively • Championing and Selling Ideas • Negotiating

Agreement/Commitment

CONTROL

• Organizing Information Flows • Measuring and Monitoring

Performance and Quality• Encouraging and Enabling• Working and Managing Across

Functions• Planning and Coordinating

COMPETE

• Developing and Communicating a Vision

• Setting Goals and Objectives• Designing and Organizing • Motivating Self and Others • Managing Execution and Driving for

Results for Results (Competency 3-

Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition

BEST PRACTICES TO DEVELOP THEM

COLLABORATE

• ORIENTATION• SKILL BUILDING• TEAM-BUILDING• CONFLICT MANAGEMENT• PERFORMANCE FEEDBACK

CREATE

• STAKEHOLDER ANALYSES• FORMING ALLIANCES• DISCUSSION, CREATIVITY

EXERCISES• IDEA GENERATION• BARGAINING, NEGOTIATING

CONTROL

• DEVELOPING INFORMATION RESOURCES

• MANAGING MEETINGS RECORDS

• PROCESS FLOW DIAGRAMS• SUPPORT SYSTEMS• FOLLOW-UP ASSIGNMENTS

COMPETE

• PREPARING MEETING AGENDAS• STRATEGIC PLANNING• FISHBONE DIAGRAMS• PERFORMANCE ASSESSMENT • SWOT ANALYSES

: 1-5

Adapted from Rohrbaugh, J. (2010).

Summary

• Be clear on leadership roles, role relationships and competencies.

• Recruit and select the best leaders for the role.• Develop them and assess their effectiveness.• Recognize leadership strengths and

contributions. • Link assessment results to development efforts. • Choose strategies that reduce the challenges. • Manage leadership to achieve and grow.• Recognize leadership is one influence of many.

Influences Governance Process Effectiveness

Leadership

Structures& Processes

Composition and

Development

Culture

• Fiduciary • Planning • Performance Assessment• Fundraising

Governance Effectiveness

Organization Effectiveness

WHATWHO and HOW WHY

Influence of Leadership at the Governance Level

Meetings

Thank-You

Questions