Nonprofit Executive Onboarding: How to Ensure an Executive Director’s Success in the First Year5/13/2024 Congrats, you have a new Executive Director! Now it’s time to set them up for success! Successfully navigating an executive leadership transition is one of the board’s most important jobs. It’s a big lift to find the organization’s next inspiring leader, and it’s important to celebrate the hiring milestone. But, as much as we may wish the job was finished when the offer letter is signed, one of the most critical phases of the leadership transition has just begun.
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Previously, our colleague Deniz Satir put together a resource to help organizations understand an Executive Director's role in fundraising and allowed us to share it with our readers. In it she explained that the best nonprofit leaders will take steps such as developing a fundraising strategy, cultivating donor relationships, engaging with the board, practicing financial stewardship, and aligning the team around fundraising efforts. Those responsibilities are critical components to developing and executing a successful fundraising strategy, and they beg the next question: “What should a Board’s role be in fundraising?” Should a Board just allow the ED to own the organization’s fundraising strategy unilaterally, rubber stamping plans and loosely reviewing results? Or should they take a more active role? And how does the Board’s responsibility change when the organization is undergoing significant change like a mission shift or leadership transition? Serving on the board of directors for a nonprofit organization offers opportunities to support the community through focused, mission-driven work. It also brings the opportunity to help guide the organization in how it does that both now and in the future. While the staff is charged with delivering on the plans and goals previously set, the board of directors is responsible for looking to the future. That responsibility includes the question of whether the organization’s mission will be delivered in the future to be of the most benefit to the community and, if so, what form that will take operationally. The prevailing wisdom in the nonprofit sector is that there are way more nonprofit organizations than there are resources to go around to support their missions. Many of us have had the experience of tripping over each other as our mission delivery strategies overlap. But who wants to be the one to suggest consolidation, merging, or simply closing a struggling organization? On the other side of the coin, who wants to raise the idea of a thriving organization taking on an aligned organization’s “baggage”? Merging and aligning are touchy subjects!
In a worst-case scenario, this dissonance results in the Board marginalizing the ED as just a passionate campaigner for the cause and writing off their opinion altogether, and the ED developing resentment and distrust towards their Board Members. The power struggle that ensues becomes a battle over dominance and recognition for the ways in which each can contribute to the success of the organization. Obviously, a situation like this never ends well! The toxic culture that develops as a result typically leads to turnover on the Board or the ED role (or both!). So, who’s right?
Whose opinion counts the most – the Board or the Executive Director?
One of the hardest decisions that a board can make is deciding what the future of the organization will look like if there’s a problem that’s big enough to consider sunsetting the organization instead. If one of the questions on the table is whether you can continue to deliver on your mission, it’s important to evaluate whether investing more is actually going to fix the underlying problem.
The ultimate question is really, “Is the organization worth saving?”
These are all statements I have made throughout my career, and that I have heard echoed from my peers in nonprofit leadership. And that’s a problem! Each of these statements point to an unspoken issue that should concern a board of directors. Ignoring those unspoken issues now might be setting you up for problems down the road.
Unfortunately, too often these kinds of statements are welcomed and even encouraged by board members. Boards often find reassurance in knowing that they have someone at the helm that’s dedicated to their mission. Additionally, they like the idea of saving money while doing great work. But they are, in fact, red flags that board members should be concerned about.
So, how do you identify the optimal leadership model for your nonprofit?
Trying to determine where the board ends and the ED begins is one of the most common issues that organizations struggle with (and a main reason why they bring us in to help!) because every organization handles executive responsibilities differently, and some nonprofits have historically had an unhealthy division of duties that influences their perspective on this issue.
Broadly speaking, the Board is responsible for strategy and governance while the Executive Director is responsible for implementation and management. However, both should work in partnership to support each other’s roles, building respect and trust to leverage each other’s strengths effectively. There is no hard line where one ends and the other begins, but there are spheres where each tends to operate. |
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