Leadership Gaps in the Nonprofit Sector

NONPROFIT LEADERSHIPRaising the red flags on the state of leadership in the nonprofit sector.

Lisa Clarke FUND523 – Trends, Research & Advocacy

Research Presentation

“Leadership is not a special trait that only exists in some of us”

(Molinaro, 2009)

Agenda• Definitions:

• Leader & Follower

• Contrast: • Leadership vs. Management

• Reflection: • Leadership gaps

• Snapshot: • Nonprofit Leadership 2013

Leadership:

“An influence relationship among leaders and followers who intend real changes and

outcomes that reflect their shared purposes” (Daft, 2011)

Leadership Key Words

Influence

Intention

Personal Responsibility Integrity

Change

Shared Purpose

Followers

Followership: Alienated

Effective followers who have experienced setbacks. They are capable, but cynical and focused on shortcomings.

ConformistParticipates actively in the organization but does not utilize critical thinking skills in task behaviour.

PassiveDisplay neither initiative nor a sense of responsibility.

EffectiveBehaves the same towards people in all levels of the organization. Does not avoid risk or conflict. Is mindful, willing to act, capable of self management, committed to something greater than themselves, competent and focused.

(Daft, 2011)

Test! Spot the difference …

Effective Leaders

Effective Followers

Definitive Differences:

Management

• Create plans and budgets• Direct and control• Create boundaries• Act as boss• Maintains stability and

culture of efficiency

Leadership

• Create vision and strategy• Shared culture and values• Reduce boundaries• Act as coach• Creates change and

culture of integrity

… a function … a relationship

They are all interdependent …

Effective Leaders

Effective Followers

Management

Leadership

RESEARCH METHODS & REPORT ON FINDINGS

An effective yet backwards approach …

• Interviews were conducted before secondary research to gain an understanding of the current state of nonprofit leadership

• Secondary research was done to find articles and studies over the past 10 years to understand what has led to the current state of nonprofit leadership

• A timeline was created to analyze both sides of the story (problems and proposed solutions over time) to assess the effectiveness of the sector in creating leadership change

Nonprofit Leadership Gap – 2002

“Although there are organizations attempting to ‘resolve the most pressing problems of this time’ … ‘far too many of these well intentioned efforts are subverted by the

lack of talented leadership’”

Major barrier: difficulty in breaking habit(Wheatley, 2002)

Nonprofit Leadership Solutions - 2002

• Believe in people’s innate creativity and caring

• Practice consistent innovation and courage• See problems as possibilities• Address multiple problems versus single symptoms

• Must invent the future while dealing with the past

(Wheatley, 2002)

Nonprofit Leadership Gap – 2005

Leadership Crisis Looms in Canada’s Nonprofit Sector

“Without effective leadership, nonprofit organizations flounder, they

operate in survival mode trying to keep the organization afloat instead of effectively providing services”

Major barrier: leaderless organizations(Sankey, 2005)

Nonprofit Leadership Gap – 2007

• Human Capital the most frequently identified strength and the most frequently identified challenge

• Transitions in leadership not adequately planned

• Younger leaders ill-equipped to assume leadership roles

(Hall & Zarinpoush, 2007)

Nonprofit Leadership Solutions - 2007

• Use collaboration with for profits as an approach to dealing with resource constraints and limitations

• Develop training opportunities for incoming leaders

(Hall & Zarinpoush, 2007)

Nonprofit Leadership Gap – 2009

Nonprofit Sector’s Survival Heavily Reliant on Bridging Leadership Gap

“Sector faces challenges recruiting and retaining employees and qualified board members”

Major barrier: no funds for training(Burlington Post, 2009)

Nonprofit Leadership Gap – 2011

“… the perception is that there’s no time for it … engaging in development is perceived to be time away from working on the mission.”

(Hannum et al, 2011)

Major barrier: themselves …

INTERVIEW ANALYSIS

Do you believe there are any gaps in the leadership models used within the nonprofit sector. If so what are they?

“Huge gaps … individuals run organizations with parked business principles at the door … people join boards and then lose their business mindset”

“Passion for the cause can cloud common sense of whether an action makes sound business sense”

“Passion is not a qualification – but those are the people who get interviewed and hired”

Do you believe charities are reluctant or willing to move towards more formalized business practices?

“…[charities] feel as though they aren’t supposed to make money so they become closed minded in their practices”

“I don’t think they are reluctant. Perhaps they are unsure of how to do it”

“[they’re] oblivious that that is their problem”

What do you think are the repercussions for charities who are experiencing a leadership lag?

“No growth”

“Poor Recruitment and Retention”

“Mission Drift”

“Systemic Failure”

Do you think there is a difference between what it takes to be a leader in for profit vs. nonprofit organizations?

Difference• Volunteer management

Similarity• All skills should be

transferable

“… at the end of the day,

they’re both running a business”

What do you think having a business mindset can bring to the nonprofit sector?

“The ability to understand and implement KPI’s while balancing passion with proactivity”

“True opportunities for growth, the application of best practice models, priority to training and development”

“Can remove some of the subjectivity in decision making and hones focus on the bottom line”

“Can fulfill the charity’s mission better”

RECOMMENDATIONS FOR FURTHER STUDY

Collect more data to create change

• Include staff members not holding ‘leadership’ positions in interviews

• Case studies to assess the effectiveness of implementing leadership training and development programs

• Determine industry best practices and ‘affordable’ ways to introduce training and development programs at all levels of the sector

• Make this information available to all nonprofits and strengthen the sector one organization at a time

CALL TO ACTION

“The scarcest resource in the sector is leadership, not donations”

(Hall & Zarinpoush, 2007)

1. Realize your potential

2. Read the following studies:• Shaping the Future – Leadership in Ontario’s

Nonprofit Labour Force• Emerging Leaders in Nonprofit Organizations: Myths,

Meaning & Motivations

3. Be the change – turn problems into opportunities by turning ideas into actions• Ask for training – make it a priority • Rely on data – supplement it with passion (not the

other way around)

RESEARCH SOURCES

Primary Sources

Interviews• Hill, G. (2013, November 13). Interview by L. Clarke.

• McGovern, R. (2013, November 15). Interview by L. Clarke.

• Murin, N. (2013, November 8). Interview by L. Clarke.

• Swinton, A. (2013, November 15). Interview by L. Clarke.

Secondary Sources• Crawford, J. (2010) Profiling the Nonprofit Leader of Tomorrow. Ivey

Business Journal.

• Daft, R. (2011). The Leadership Experience. (5 ed., Vol. E). Ohio: South-Western Cengage Learning.

• Deal, J., Hannum, K., Livingston Howard, L., Lu, L., Ruderman, M., Stawiski, S., Zane, N. (2011). Emerging Leadership in Nonprofit Organizations: Myths, Meaning and Motivations. (Greensboro, NC: Centre for Creative Leadership).

• Fiksel, B. (2013). Leadership Development [Brochure]. Toronto, ON: Coaching for Action.

• Hall, M., Zarinpoush, F. (2007). Leadership Perspectives: Interviews with leaders of Canada’s charities and nonprofit organizations. Imagine Canada.

Secondary Sources Continued• Hamlin, R., Sage, L., Sawyer, J. (2011). Perceived Managerial and Leadership

Effectiveness in a Nonprofit Organization: An Exploratory and Cross Sector Comparative Study. HR Development International, 14(2), 217-234.

• McIssac, E., Park, S., & Toupin, L. (2013). Shaping the future - leadership in ontario's nonprofit labour force. (University of Toronto).

• Wheatley, M. (2002). Supporting pioneering leaders as communities of practice: How to rapidly develop new leaders in great numbers. Retrieved from http://www.margaretwheatley.com/articles/supportingpioneerleaders.html

• Sankey, D. (2005, August 13). Leadership crisis looms in canada's nonprofit sector. Sudbury Star.

• Nonprofit sector's survival heavily reliant on bridging leadership gap. (2009, February 27). Burlington Post. Retrieved from http://www.insidehalton.com/news-story/2934966-non-profit-sector-s-survival-heavily-reliant-on-bridging-leadership-ga/

ADDITIONAL CONTENT

Profiling the Non-Profit Leader of Tomorrow (Crawford, 2010)Competencies Personality Traits Knowledge/Expertise

Strategic Thinker

Relationship Builder

Collaborative Decision Maker

Entrepreneurial Achiever

Effective Communicator

Change Leader

Inspiring Motivator

High Integrity

Adaptable/Agile

Perseverant/Patient

Interpersonal Sensitivity

Passionate about the Mission

Financial Acumen

Deep Sector Specific Knowledge

Understanding/Valuing Diversity

15 Must Have Attributes

Connection to Question FiveWhat are the top three characteristics you believe a leader in the charitable sector should have?

Authenticity

Compassion

Trust

Relationship Building

Business Mindset

Common Sense

Business Sense

Ability to Network

Ability to Motivate

Integrity

Accountability

Drive for Excellence

Perceived Managerial and Leadership Effectiveness in a Nonprofit Organization (Hamlin, Sage & Sawyer, 2011)

Perceived managerially effective when …

Perceived ineffective when the preceding are missing and …

• Plan ahead, organize efficiently and proactively control performance

• Actively support staff• Recognize and acknowledge

achievement• Delegate well and empower staff• Show care and concern for other

people• Fight for the interests of and address

the training and development needs of staff

• Adopt an open and personal approach• Involve employees in decision making• Communicate and consult with staff• Keep staff informed of matters that

effect them

• Autocratically dismiss other people’s ideas

• Exhibit unfair, inconsiderate, irrational, self-serving, undermining or intimidating behaviour

• Adopt poor quality/low standards of managing and tolerate poor performance of others

• Engage in ignoring and avoidance behaviour

• Abdicate from their managerial responsibilities

• Exhibit closed mindedness and a negative approach

“Leadership development must be customized to meet organizational needs and leave people ‘being’ leaders, not merely knowing about leadership theories and practices.”(Betty Fiksel – Coaching for Action, 2013)