Center for Community Partnerships 2009 Board Development Conference Presented by Frank Martinelli The Center for Public Skills Training Presented by Frank.

Center for Community Partnerships Center for Community Partnerships 2009 Board Development Conference2009 Board Development ConferenceCenter for Community Partnerships Center for Community Partnerships 2009 Board Development Conference2009 Board Development Conference

Presented byPresented byFrank Martinelli Frank Martinelli

The Center for Public Skills Training The Center for Public Skills Training

Presented byPresented byFrank Martinelli Frank Martinelli

The Center for Public Skills Training The Center for Public Skills Training

Here Today, Here Tomorrow: Here Today, Here Tomorrow: Sustaining and Growing a Sustaining and Growing a

Mission- Focused Organization Mission- Focused Organization

Here Today, Here Tomorrow: Here Today, Here Tomorrow: Sustaining and Growing a Sustaining and Growing a

Mission- Focused Organization Mission- Focused Organization

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One-third of San Francisco-area One-third of San Francisco-area nonprofit groups are worried they may nonprofit groups are worried they may have to shut down in the next year, and have to shut down in the next year, and 34 percent say they have no more than 34 percent say they have no more than two months’ worth of operating funds in two months’ worth of operating funds in reserve, according to a survey by the reserve, according to a survey by the regional United Way.regional United Way.

Wall Street Journal May 29, 2009Wall Street Journal May 29, 2009

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Session PurposeSession Purpose

Provide a fast paced overview of …Provide a fast paced overview of …• High leverage practices and strategies High leverage practices and strategies

for growing and sustaining your for growing and sustaining your nonprofit over the next few yearsnonprofit over the next few years

• Resources to support this workResources to support this work

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Key Strategies Key Strategies

1.1. Embed capacity building into the fabric of Embed capacity building into the fabric of your nonprofityour nonprofit

2.2. Build an exceptional boardBuild an exceptional board

3.3. Engage in accelerated strategic thinking Engage in accelerated strategic thinking and planningand planning

4.4. Forge partnerships, alliances and mergers Forge partnerships, alliances and mergers to increase mission impact and to increase mission impact and sustainabilitysustainability

5.5. Develop board and staff succession plansDevelop board and staff succession plans

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Key StrategiesKey Strategies

6.6. Build capacity for effective public policy Build capacity for effective public policy and advocacyand advocacy

7.7. Master use of social mediaMaster use of social media8.8. Deploy targeted volunteer engagement Deploy targeted volunteer engagement

strategies strategies 9.9. Review and revise your theory of change Review and revise your theory of change 10.10. Adopt regional thinking and problem Adopt regional thinking and problem

solving approachessolving approaches

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#1 Embed Capacity #1 Embed Capacity Building into the Fabric of Building into the Fabric of

Your NonprofitYour Nonprofit

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Capacity building well done in the Capacity building well done in the nonprofit sector I believe is a critical nonprofit sector I believe is a critical answer to the extraordinary uncertainty answer to the extraordinary uncertainty we face and also to the tremendous we face and also to the tremendous political pressure under which most political pressure under which most nonprofits are operating.nonprofits are operating.

Capacity building right now is arguably Capacity building right now is arguably the most important investment the the most important investment the nonprofit sector can make.nonprofit sector can make.

Paul LightPaul Light

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Capacity Building: Core ActivitiesCapacity Building: Core Activities

Assessment (or Reassessment) &

Benchmarking

Action Planning

CB Activity Implementation

CONTINUOUS:

•Team Involvement

•Education and Learning

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Capacity Building Capacity Building Element InterrelationshipsElement Interrelationships

Governance & Leadership

Mission, Vision & Strategy

Service Delivery & Impact

Resource Development

Strategic Relationships

Internal Management &

Operations

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Capacity Building ToolkitCapacity Building Toolkit

Tool #1 – Assessment and BenchmarkingTool #1 – Assessment and Benchmarking Tool #2 – Capacity Building Action PlanningTool #2 – Capacity Building Action Planning Tool #3 – Capacity Building Resource Tool #3 – Capacity Building Resource

InventoryInventory Tool #4 – ReassessmentTool #4 – Reassessment

Go to: Go to: www.createthefuture.com/CBtoolkit

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#2 Build An #2 Build An Exceptional BoardExceptional Board

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The Dynamic BoardThe Dynamic Board

McKinsey & CompanyMcKinsey & Company

Page 3Page 3

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McKinsey Dynamic Board ModelMcKinsey Dynamic Board Model

Core Roles and ResponsibilitiesCore Roles and Responsibilities Quality of Board Effectiveness Quality of Board Effectiveness

EnablersEnablers Key environmental factors impacting Key environmental factors impacting

the focus of the boardthe focus of the board Managing the Life Stage Transition Managing the Life Stage Transition

the Boardthe Board Valuing Individual Board MembersValuing Individual Board Members

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3 Key Roles Encompassing 3 Key Roles Encompassing Nine Detailed ResponsibilitiesNine Detailed Responsibilities

• Shape the mission and vision

• Engage actively in strategic decision making and policy decisions

• Select, evaluate, and develop the CEO

• Ensure adequate financial resources

• Provide expertise and access for organizational needs

• Enhance reputation of organization

• Oversee financial management and ensure appropriate risk management

• Monitor performance and ensure accountability

• Improve board performance

Shape m

issi

on a

nd

Shape m

issi

on a

nd

stra

tegic

dir

ect

ion

stra

tegic

dir

ect

ion

Monitor and improve Monitor and improve performanceperformance

Ensure leadership and resources

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Quality of Board Effectiveness Quality of Board Effectiveness EnablersEnablers

Careful decisions on board size and Careful decisions on board size and structurestructure

Actively managedActively managed board board compositioncomposition

Inspired board and committee Inspired board and committee leadershipleadership

Simple administrative practices and Simple administrative practices and processes made routineprocesses made routine

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Key Environmental Factors Key Environmental Factors Impacting Focus of the BoardImpacting Focus of the Board

Life stage of an organization.Life stage of an organization. Skills of CEO and staff.Skills of CEO and staff. Stability and adequacy of income.Stability and adequacy of income. Changes in underlying social issue.Changes in underlying social issue. Changes in competitive or Changes in competitive or

philanthropic landscape.philanthropic landscape.

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Twelve Governance Twelve Governance Principles that Power Principles that Power Exceptional Boards Exceptional Boards

BoardSourceBoardSource

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The Difference Between The Difference Between “Responsible” Boards And “Responsible” Boards And

“Exceptional” Boards “Exceptional” Boards

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““Responsible” BoardsResponsible” Boards

Capable and dutiful in carrying out its Capable and dutiful in carrying out its responsibilities. responsibilities.

Understands its fiduciary obligations.Understands its fiduciary obligations. Approves strategic plans and budgets.Approves strategic plans and budgets. Regularly reviews financial statements.Regularly reviews financial statements. Evaluates the chief executive annually.Evaluates the chief executive annually. Participates in fundraising.Participates in fundraising.

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““Exceptional” BoardsExceptional” Boards Operates on a higher level -- “more” Operates on a higher level -- “more”

and “different.”and “different.” Members give more and differently:Members give more and differently:

• Time spent more wisely, skills and Time spent more wisely, skills and social networks better leveraged, and social networks better leveraged, and treasure more strategically deployed.treasure more strategically deployed.

• Measure organizational impact and Measure organizational impact and evaluate their own performance, evaluate their own performance, discuss and debate issues, and open discuss and debate issues, and open doors and make connections. doors and make connections.

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Exceptional BoardsExceptional Boards

Twelve common traits and actions Twelve common traits and actions that distinguish “exceptional” boards that distinguish “exceptional” boards from “responsible” boards from “responsible” boards

Image of an empowered board that is Image of an empowered board that is a strategic asset to be leverageda strategic asset to be leveraged

Page 4Page 4

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Twelve Governance PrinciplesTwelve Governance Principles

1.1. Constructive Partnership Constructive Partnership

2.2. Mission DrivenMission Driven

3.3. Strategic ThinkingStrategic Thinking

4.4. Culture of InquiryCulture of Inquiry

5.5. Independent-mindedIndependent-minded

6.6. Ethos of TransparencyEthos of Transparency

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Twelve Governance PrinciplesTwelve Governance Principles

7.7. Compliance with IntegrityCompliance with Integrity

8.8. Sustaining ResourcesSustaining Resources

9.9. Results OrientedResults Oriented

10.10. Intentional Board PracticesIntentional Board Practices

11.11. Continuous LearningContinuous Learning

12.12. RevitalizationRevitalization

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Governance as Governance as LeadershipLeadership

Richard Chait, William Ryan Richard Chait, William Ryan

& Barbara Taylor& Barbara Taylor

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Three Modes of GovernanceThree Modes of Governance

Fiduciary mode: key question -- "How Fiduciary mode: key question -- "How are we doing?" are we doing?"

Strategic mode: key questions -- Strategic mode: key questions -- "What are we doing?" "Where are we "What are we doing?" "Where are we going?" andgoing?" and

Generative mode: key questions -- Generative mode: key questions -- "Why are we doing this?" "What are "Why are we doing this?" "What are the possibilities?"the possibilities?"

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#3 Engage in Accelerated #3 Engage in Accelerated Strategic Thinking and Strategic Thinking and

PlanningPlanning

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Faster!Faster!

Responding to new opportunities fastResponding to new opportunities fast Models: La Piana; Question-Based Models: La Piana; Question-Based

Planning; One Page Strategic PlanPlanning; One Page Strategic Plan Not a substitute for mission and Not a substitute for mission and

vision workvision work ““Faster is slower”Faster is slower” Collaborative strategic planningCollaborative strategic planning Create opportunities for strategic Create opportunities for strategic

thinkingthinking

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Create Opportunities For Create Opportunities For Strategic ThinkingStrategic Thinking

Create Opportunities For Create Opportunities For Strategic ThinkingStrategic Thinking

Incorporate strategic thinking Incorporate strategic thinking activities in board, staff and activities in board, staff and community meetingscommunity meetings

Use vision as a framework for board Use vision as a framework for board and staff decision-makingand staff decision-making

Read, listen and look for future trends Read, listen and look for future trends Share trend and market information Share trend and market information

at board and staff meetingsat board and staff meetings

Incorporate strategic thinking Incorporate strategic thinking activities in board, staff and activities in board, staff and community meetingscommunity meetings

Use vision as a framework for board Use vision as a framework for board and staff decision-makingand staff decision-making

Read, listen and look for future trends Read, listen and look for future trends Share trend and market information Share trend and market information

at board and staff meetingsat board and staff meetings

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#4 Forge Partnerships, Alliances #4 Forge Partnerships, Alliances and Mergers to Increase Mission and Mergers to Increase Mission

Impact and SustainabilityImpact and Sustainability

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““Compete”Compete”

From the Latin, From the Latin, competerecompetere, , meaning “to strive together”meaning “to strive together”

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Strategic PartnershipsStrategic Partnerships

Sector trends encourage Sector trends encourage partnershipspartnerships

Alignment with mission and strategic Alignment with mission and strategic plan - partnerships as strategy to plan - partnerships as strategy to increase mission impactincrease mission impact

Many strategic restructuring optionsMany strategic restructuring options ““Portfolio” of partnerships and Portfolio” of partnerships and

alliancesalliances

Strategic PartnershipsStrategic PartnershipsStrategic PartnershipsStrategic Partnerships

Prioritize trust building and Prioritize trust building and communication communication

If you don’t build it, someone else If you don’t build it, someone else willwill

Basis for future organizational Basis for future organizational sustainability sustainability

Building capacity for partnership Building capacity for partnership effectivenesseffectiveness

Prioritize trust building and Prioritize trust building and communication communication

If you don’t build it, someone else If you don’t build it, someone else willwill

Basis for future organizational Basis for future organizational sustainability sustainability

Building capacity for partnership Building capacity for partnership effectivenesseffectiveness

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#5 Develop Board and #5 Develop Board and Staff Succession PlansStaff Succession Plans

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Major Types of Leadership Major Types of Leadership Succession PlanningSuccession Planning

Emergency succession planningEmergency succession planning Strategic leadership development Strategic leadership development

succession planningsuccession planning Departure defined succession Departure defined succession

planningplanning

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#6 Build Capacity for #6 Build Capacity for Effective Public Policy Effective Public Policy

and Advocacyand Advocacy

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Capacity for Advocacy Capacity for Advocacy and Public Policy Workand Public Policy Work

Building capacity for effective Building capacity for effective advocacy is more than acquiring advocacy is more than acquiring advocacy skillsadvocacy skills

““Pressure resistant” revenue basePressure resistant” revenue base

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Effective Advocacy Requires:Effective Advocacy Requires: Board-level commitmentBoard-level commitment An established issue agendaAn established issue agenda Someone designated to move the Someone designated to move the

work alongwork along Advocacy linked to strategic plan vs. Advocacy linked to strategic plan vs.

add on elementadd on element Board recruitment linked to mission-Board recruitment linked to mission-

driven advocacy and public policy driven advocacy and public policy workwork

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#7 Master Use of #7 Master Use of Social MediaSocial Media

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In February 12, 2009, 202 cities In February 12, 2009, 202 cities around the world held Twestivals, around the world held Twestivals, bringing together the Twitter bringing together the Twitter community for an evening of fun community for an evening of fun and to raise money and and to raise money and awareness for charity: water.awareness for charity: water.

http://twestival.com

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Deploy Targeted Deploy Targeted Volunteer Engagement Volunteer Engagement

Strategies Strategies

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Key PointsKey Points

Paid staff + volunteer staff = Paid staff + volunteer staff = nonprofit workforcenonprofit workforce

A defined strategy linked to overall A defined strategy linked to overall strategic planstrategic plan

No free volunteer programNo free volunteer program Building capacity to manage Building capacity to manage

volunteersvolunteers ““Intergenerationalism”Intergenerationalism”

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#9 Review and Revise Your #9 Review and Revise Your Theory of ChangeTheory of Change

Using theory of change, logic models Using theory of change, logic models and systems thinking tools to and systems thinking tools to

dramatically increase mission impact dramatically increase mission impact build culture of impactbuild culture of impact

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Systems ThinkingSystems Thinking

Problems exist as “systems”Problems exist as “systems” Parts of a system don't exist in Parts of a system don't exist in

isolationisolation Each part affects, and is affected Each part affects, and is affected

by, other parts of the system by, other parts of the system (feedback)(feedback)

Look for leverage pointsLook for leverage points

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High LeverageHigh Leverage

What are root causes?What are root causes? What are the driving forces?What are the driving forces? Where are points of highest Where are points of highest

leverage?leverage? What do we start, modify, stop?What do we start, modify, stop? The Law of Unintended The Law of Unintended

ConsequencesConsequences

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Theory Of ChangeTheory Of Change

"At its most basic, a theory of change "At its most basic, a theory of change explains how a group of early and explains how a group of early and intermediate accomplishments sets intermediate accomplishments sets the stage for producing long-range the stage for producing long-range results." results." Aspen InstituteAspen Institute

TOC as a pre-requisite for strategic TOC as a pre-requisite for strategic planning, not a planning toolplanning, not a planning tool

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#10 Adopt Regional #10 Adopt Regional Thinking And Problem Thinking And Problem Solving ApproachesSolving Approaches

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Regional ThinkingRegional Thinking

Problems manifest themselves locally but Problems manifest themselves locally but the root causes are usually regional and the root causes are usually regional and national in naturenational in nature

Increased interest in regional problem Increased interest in regional problem solving approaches by business and civic solving approaches by business and civic leadersleaders• Economic developmentEconomic development• TransportationTransportation• MarketingMarketing

Collaborative strategic planningCollaborative strategic planning

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ReflectReflect

What key strategies are you most What key strategies are you most drawn to pursue? drawn to pursue?

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ReflectReflect

What two things that you are What two things that you are currently doing are you going to stop currently doing are you going to stop so that you can focus on selected so that you can focus on selected key strategies?key strategies?

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It’s About ChangeIt’s About Change

"You never change "You never change something by something by fighting the fighting the existing reality. To existing reality. To change something, change something, build a new model build a new model that makes the that makes the existing model existing model obsolete." obsolete." Buckminster Fuller Buckminster Fuller

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For More Information:For More Information:

Frank MartinelliFrank Martinelli

The Center for Public Skills TrainingThe Center for Public Skills Training

www.createthefuture.com [email protected]

414-961-2536414-961-2536

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