Organizational Culture – Good or Bad, You Choose.
I have been doing a lot of reading lately about organizational culture. The topic is certainly not new to me, but I’ve been fascinated by it for many years, dating back to my banking career and subsequent transition to the nonprofit sector. Like just about everyone I know, I have worked in companies with strong, healthy cultures as well as some with toxic, unhealthy ones. I have experienced work settings where management was mostly unavailable, staff was fearful, and everyone was suspicious of everyone else’s intentions. I have even survived organizations where leadership purposefully fostered cut-throat competitive cultures because they mistakenly assumed it was good for productivity. As I type this, it feels like I’ve experienced more unhealthy organizational cultures than healthy. Could this be true? Maybe. But more likely, it’s that our negative experiences tend to linger in the memory longer than the positive. Organizational culture is defined as the values, beliefs, practices, expectations, and methods of interacting that create the professional, social, and psychological environment of an organization. Company culture has been researched by many, and we have all seen examples in the news about what can happen when organizational culture goes wrong. I truly believe that nonprofit sector leaders understand the importance of organizational culture just as well as leaders in the for-profit world. Unfortunately, knowledge doesn’t always translate into deliberate actions…particularly in under-resourced nonprofits that are simply trying to survive and serve their client base each day. Whatever the reasons, organizational culture is one of those issues that we understand in theory but don’t always have the wherewithal to pay attention to in practice. Is organizational culture overlooked because culture is difficult to causally connect to performance metrics? Could it be because culture is not a topic that is easily pointed out in a policy manual? Perhaps it’s because this “culture” thing is really a confluence of behaviors that, taken individually, wouldn’t necessarily be identified as impacting the overall atmosphere of an organization. Despite its ambiguous nature, organizational culture is created, fostered, and passed on. Negative culture may be easier to identify because its symptoms are easy to see in the form of miserable faces, high turnover, and lack of transparent communication between leadership and staff. The other unfortunate reality about negative organizational cultures is that they’re difficult to change because they become entrenched in every aspect of the organization. So, what are some of the things a nonprofit leader can do to foster a healthy organizational culture? Here’s a few of my favorite suggestions: Model mission alignment. As the chief leader, a nonprofit executive director plays a huge role in establishing and nurturing organizational culture. It is this person’s job to ensure that everyone on the team, and everyone on the board of directors, understands the organization’s mission and aligns their day-to-day work, advocacy, and decision making with this mission. If the head is not modeling mission-aligned behavior, he/she can’t expect anyone else in the organization to. Democratize your decision-making process. While it is certainly true that the buck stops with the head of the organization, a nonprofit executive director should never make decisions in a vacuum. First, he/she must know when a decision needs board approval, which is typically in relation to major policy changes, major financial decisions outside of the normal budget process, etc. But in the arena of day-to-day decision making, an executive director has a huge opportunity to nurture a culture of transparency and trust among their team. Sure, the E.D. makes the final decisions, but by encouraging team members to ask questions and offer feedback, the head is modeling that they value their team’s experiences and that their perspectives actually matter. Communicate with everyone, all the time. A good nonprofit leader talks with their team regularly. They talk to their board members, even outside of scheduled board meetings. They are transparent about what is happening within the organization – good and bad – and how what’s happening will impact the work. A leader who knows how to lay their cards on the table earns peoples’ respect and trust far more quickly than a leader who keeps their cards close to the chest. Also, communication with external constituents is just as important to building an organization’s brand and culture as its programs or events. Transparency breeds trust. Trust breeds investment. Investment breeds success. And on and on. Overall, executive directors must encourage and model transparency both internally, among staff and between staff and leadership, and externally, between the organization and its clients, donors and other constituents. Foster an atmosphere of support & respect. This sounds obvious, but if you’ve ever experienced a workplace where this is missing, you know it isn’t obvious at all: a leader who is attentive to nurturing a positive culture treats their team members like human beings. They assume that their staff members have goals that may eventually take them from your organization – and they do what they can to support them. They remember that their team’s personal identities are not defined by their jobs. They set professional boundaries for their own work/life balance and encourage their team members to do the same. And, they remember that their board members are volunteers and respect the time and commitment they give to the organization. The moral of this story is that organizational culture exists whether it is deliberately created or not. My advice – be deliberate about creating a positive, healthy, supportive culture in your nonprofit. Your staff, board, clients, donors and overall productivity will be better for it.
This is (supposed to be) Serious Business
I can’t tell you how many times I’ve been subjected to this type of nonprofit board recruitment conversation: “Hey, L. I’m on the board of XYZ Organization and I’d really love it if you’d consider joining. There’s no real work to do, just show up at a few meetings. No, really, you don’t have to do anything…oh, but their events are really fun! Shall I tell them you’re interested?” Umm….how about NO. Sounds like a total waste of time to me. And if this is how your organization approaches board member recruitment, please step into my office because we need to talk. Don’t Sell Your Organization Short….The Board is There to Work A nonprofit board of directors is the most important group of volunteers an organization has. The board of directors is the governing body. The board is ethically, fiscally, and legally responsible for everything the organization does. Equally importantly, this group plays an integral role in creating and nurturing organizational culture – and this can be either positive or negative. While board members are not typically involved in running the day-to-day operations, they are responsible for setting policy, hiring & managing paid executive staff, and overseeing the organization’s finances. Board members should also be the most vocal advocates for the nonprofit they represent, working to bring increased visibility to the organization’s programs and services and expanded funding opportunities to sustain the work. How is it possible that all of this responsibility can be condensed into “just showing up at a few meetings”?? How can these important duties be dismissed as “not having to do anything”?? I don’t know…but it happens all the time. A functional and cohesive board can be the lifeblood of a successful organization. But a board that is not fully aligned and committed to the very real work that comes with running a nonprofit business can cause significant issues for the organization’s health. These issues can include negative community reputations, reduced funding opportunities, and even a loss of the nonprofit status in the most egregious of cases. So, what are some best practices when it comes to building a strong board of directors? Here’s a few of my tried and true strategies: Always remember, a nonprofit is a business. Every nonprofit is born out of a passion to do good. But, if everyone is busy building and expanding services and programs, who is keeping an eye on the business? A nonprofit board should be recruited based, at least in part, on the business expertise that is required to run a successful nonprofit organization. Sure, we all want our board members to participate in our events and help implement our programs, but their first and most important duty is ensuring a healthy business. Let your bylaws be your guide. Every nonprofit should be governed according to its bylaws, and this includes the recruitment and service of its board. When recruiting board members, it is important to have a clear understanding of what your bylaws say in terms of the board’s size and composition, board members’ terms of service, and any other rules governing how the board manages itself and the organization. Following your bylaws is not only a good business practice, it can also help lead the organization through tricky governance issues that arise from time to time. This is not a place for all your friends. Too many nonprofit organizations rely on the personal networks of existing board members to recruit new board members. What tends to happen in these cases is that the board becomes homogeneous, both in terms of representation and culture, and this is never good for the longevity of an organization. While it is perfectly fine to recruit from board members’ personal networks, this should not be the primary mode of identifying the people who will govern the organization. More important is identifying the right people, which should be done in accordance with the mission, goals, and business needs of the organization. Always remember your mission. In addition to recruiting according to the business needs of the organization, it is also imperative to have board members who wholeheartedly support and believe in the mission. It is not enough to identify people with great connections or deep pockets, it is much more important to recruit board members who believe in what the organization is working to accomplish. It is only through this mission connectivity that you will get the most out of your board members in terms of commitment, participation and advocacy. Clear expectations should lead the way. If you do not have a board member job description, get one in a hurry. Board members should come to your organization with a clear understanding of their role, duties, and what is expected of them. Does your organization have a board member giving requirement? Do you want board members to perform volunteer work in addition to attending board meetings? Be clear and up front with expectations so your board members join the organization with a full picture of what they will be responsible for. The worst thing you can do as a nonprofit leader is diminish the important role of your board of directors. And the next worst thing is having existing board members who fail to understand or embrace their fiduciary and legal responsibilities to the organization. Remember: This is (supposed to be) serious business. Treat it accordingly.
You Think You’re Making a Difference…But Are You?
Nonprofit leaders and volunteers are passionate, busy people. There is so much to be done and in many understaffed and under-resourced organizations, not enough time or money with which to do it. Clients need to be seen, grants need to be written, board members need to be informed, staff needs to be managed…and the list goes on. But while everyone is busy with the day-to-day work of running the organization and its programs, who is paying attention to how these programs are being managed & implemented? Who is looking at the impact of these programs on the intended client base or the broader community? How does the nonprofit leader know if the services being provided are reaching the intended clientele? How does the board of directors know if the organization’s outputs are translating into the desired outcomes in the strategic plan? You probably know where this conversation is heading. So, before you give me the side-eye and tell me there’s no time left in your day to think about nonprofit program evaluation, just hear me out. I swear, it’s one of the best things you can do for your organization. Everyone in leadership and management should know and understand the importance of conducting regular nonprofit program evaluations. These are periodic reviews that nonprofits use to determine the efficacy of specific programs, the efficiency of fiscal strategies, and/or to answer critical questions about the organization and its work. Nonprofit evaluations are key to understanding how well programs are being run and, equally importantly, what impact an organization’s programs have in relation to their goals and objectives. A lot can be learned from regular program evaluations, and this is why I recommend them for looking at everything from individual fundraising efforts to year-end outcomes. And while there is no single model for conducting a nonprofit program evaluation, there are two main types to keep in mind: Process-Based Evaluations – This type of evaluation is used to measure and analyze program implementation. Process evaluations allow nonprofit leaders to understand and assess program outputs, costs, and efficiency of service delivery. These evaluations look at what and how much is being done, what the program/service costs to deliver, how many clients are being served, and what problems have been encountered during service delivery. Process evaluations allow nonprofit leaders to understand the how and how much of their work so they can make improvements in process and efficiency as needed. Outcomes-Based Evaluations – This type of evaluation is used to measure and analyze program results and effectiveness. Outcome evaluations allow nonprofit leaders to understand the impact of their services or programs on their intended client base or the broader community. If done consistently over time, outcomes-based evaluations can be extremely valuable in the evolution and growth of a nonprofit organization, particularly as it relates to attracting and retaining larger sources of funding. While process evaluations are valuable tools for internal use – particularly for helping organizations become more efficient and effective in their program implementation – outcome evaluations enable organizations to understand their impact and demonstrate their value to the broader community. Regardless of your organization’s size or age, every nonprofit leader should conduct process and outcomes evaluations at least annually as an exercise in good nonprofit management. To do this effectively, evaluation should be built into your strategic and annual plans from the very beginning. Creating your organizational plans with evaluation in mind enables you to identify what data you will need to track to successfully evaluate when the time comes. For example, if your strategic plan calls for expansion of your services into a new geographic market, an evaluation-proactive approach might dictate the collection of zip code data in your client intake process so that the expansion’s success can be analyzed. Nonprofit program evaluation may seem like a daunting task, especially for under-resourced and understaffed nonprofits already operating on shoe-string budgets. But at the end of the day, program evaluation is key to ensuring your organization is functioning efficiently, effectively, and in alignment with its mission, goals, and objectives. Treating program evaluation as part of your overall program creation and implementation cycle is one of the best ways to set your organization up for long-term success, attract more of your target population, and make your nonprofit more attractive to donors and grant funders.
On Gardens & Donors: Great Relationships Take Work!
I spent last weekend outside in my back yard, toiling in my garden and getting it ready for spring and summer planting. The front of my home is completely xeriscaped and filled with beautiful yet intimidating agave, cacti and succulents. From this vantage point you’d never know that there’s a small but productive vegetable and herb garden out back that helps nourish my family year-round. Nothing brings me more joy than the seasonal cycle of cultivating and harvesting the fruits of my own labor. Unlike many home gardeners I know, I plant from seed instead of transplants because I want to be part of every stage of the growing process. I love the way the soil feels in my hands which is why I stubbornly refuse to wear gloves despite owning more pair than I can count. I prefer hand watering because it allows me to conserve by giving the thirstier plants what they need without overwatering the rest. It also gives me time to think, which is the other part of gardening that brings me so much pleasure. I consider my garden an important part of my personal ecosystem, one that I must work to nurture in order to be rewarded with the food that graces my table. Just because I put seeds in the ground and water them doesn’t mean that the vegetables will magically appear. If I haven’t done my part to prepare the soil and make sure I’m planting my seeds at the appropriate time of year, my results will be spotty at best. If I fail to be attentive to pests and other issues that can arise during the growing process, I could end up with an aphid or beetle infestation that could ruin the whole plot. But when I amend my soil between seasons, rotate crops, and stay attentive to pests, the results amaze me each and every year. When I think of all the work that goes into keeping my garden healthy and productive, it’s an easy comparison to the fundraising and donor relations work I’ve done for the past twenty years. Those of us who focus on the philanthropy part of nonprofit businesses understand that more than anything, we are in the relationship business. And, just like the relationship I have with my garden, donor relationships are only as good as the time and effort we put into them. If we don’t do the work to build relationships of care, trust and accountability with our donors, we cannot expect them to reward our organizations with their generosity. If we do a poor job nurturing and managing these relationships, the fundamental missions of our organizations and the client bases we serve will suffer. But when we do our jobs well, the results and impacts are fantastic. Cultivating strong donor relationships takes creativity and flexibility. There is no exact formula for doing it right, but a general rule of thumb is that good donor cultivation arises naturally from good nonprofit management. Here are a few fundamentals to illustrate what I mean: Engagement. Engaging donors can take a variety of forms, including but not limited to regular communication, special events, face-to-face meetings, etc. Telling your organization’s story is important for its overall brand recognition and visibility, so regular and consistent communication to your surrounding community is just one component of good nonprofit management. This outward-facing communication can take the form of digital newsletters, social media outreach, email campaigns and even special events. Broad community engagement, along with strategic communication and outreach focused on current and potential donors not only builds overall awareness but also helps establish reputation and trust with existing and potential donors. And as I’ve written before, trust is key to creating lasting donor relationships. So, find creative ways to communicate and engage your donors. I know you’re busy with other things, but trust me…this is worth your time. Transparency. Another important way to build awareness and trust in your organization is through openness and transparency. Most nonprofit leaders already understand that the IRS mandates at least some level of fiscal transparency to the public. What often gets neglected, however, is the personal touch that nonprofits can offer donors through deeper transparency and focused reporting. Donors give to nonprofits because they believe in the mission and want to make an impact. But if we don’t show and tell our donors how their gifts were used and the impact they have made with their philanthropy, we can’t expect them to continue giving. Transparency is really an offshoot of engagement, as it’s a deeper method for nonprofits to share their stories. Some nonprofits choose to take a formal approach to transparency through the creation of glossy annual reports or impact reports. Other nonprofit leaders take a more informal approach by carving time out each month to call donors and share information with them. I advocate for a solid hybrid of these two approaches, because I’ve found that most donors appreciate both formal and informal communications about their impact. Flexibility. Always remember that every donor is different and should be treated as such. Building strong relationships is impossible with a cookie-cutter approach. Not all donors are interested in attending your events. Not every donor wants to read your monthly newsletter. Some donors only want to see your annual audited financial statements. Other donors only want to hear about how their funding helped the organization. I have closed some of the largest gifts of my career by taking the time to truly get to know the donors I work with. By paying attention and getting to know my constituents as human beings, I can be agile in my approach and develop more impactful cultivation plans. And, impactful cultivation leads to impactful gifts. The moral of the story…. Don’t get me wrong. Donors are not plants. But just like the relationship I’ve cultivated over the years with my veggie garden, good donor relationships can be so fulfilling and rewarding, year after year. And, like the vegetables that I so
Yep…That’s Your Job, Too.
What did your road to executive directorship look like? Where did it begin? Did you start as a staffer and work your way up? Were you recruited from a different sector, and what made you decide to make the jump to nonprofits? Do you feel like you started the E.D. role with all the skills you needed, or did you figure it out along the way? I am an inquisitive soul and I tend to ask a LOT of questions. These are just a few that I’ve asked nonprofit leaders in my network over the years. The answers are always different, the stories entertaining, and there are always lessons learned and shared. The truth is, there is no single path to becoming the leader of a nonprofit organization. Whatever the path, there is also single “right way” to be an executive director. But there are some very real responsibilities that every nonprofit leader must be equipped to handle. In my professional experience, the executive director (or CEO, or whatever the head honcho is called in your organization) is not just the person with the largest office in the building…the executive director is the person with a neck strong enough to wear all of these hats simultaneously: 1. Chief Leader — the executive director is the person with whom the buck stops. While the Board of Directors role is to establish the organization’s vision, priorities and policies, the Executive Director is the person whose job is to lead the organization in implementing the Board’s vision. This person is the face of the nonprofit and therefore must be able to communicate the mission, goals, and programs to staff, clients, donors and the general public. There is a very real difference between leading and managing, but we’ll talk about that another time. Suffice to say that I believe the most effective E.D.’s lead their organizations as opposed to simply managing. 2. Principal Staff Developer — as the chief leader of the organization, the Executive Director plays a huge role in the success (or failure) of his/her team. The E.D. that doesn’t take this responsibility seriously is likely to suffer problems with staff retention, turnover, productivity and organizational outcomes. The E.D. that understands this role does his/her best to ensure that staff are onboarded effectively and that they receive the tools and professional development opportunities they need to be successful. My favorite thing about managing staff is helping them grow and celebrating their success. Also, if you are an E.D. who is not thinking about who will take your place when you leave the organization, please step into my office because we really need to talk… 3. Primary Board Partner — one of the most important (and often overlooked) roles that an executive director plays is nurturing a strong partnership with the organization’s board of directors. I’ve previously written about the nonprofit board as ethically, fiscally, and legally responsible for everything the organization does. A strong E.D. never loses sight of the board’s role and takes steps to ensure that the board remains confident in the E.D.’s commitment and ability to effectively carry out their vision. 4. Overseer of Operational & Fiscal Compliance — have I mentioned that a nonprofit is a business? Surely I’ve said it before. The executive director must work to ensure that the organization is operating in compliance with all applicable federal and state laws and regulations. Doing this requires knowledge and understanding of the operational systems needed to keep the organization running above-board. The E.D. also typically submits an annual operating budget to the board for approval, which requires a keen understanding of the organization’s financial standing, including knowing how to read financial statements and prioritize organizational needs in relation to how much money is in the bank. 5. Head Fundraiser — the executive director is the organization’s primary fundraiser. I have seen some E.D.’s try to pawn this duty off to board members or other staff because they are uncomfortable asking for money. I will only say, please get over it….immediately. Part of this is leading by example. How can an E.D. expect their board members to support the organization with their own money and by bringing other funding opportunities to the table if they are not out doing the same thing. And, if you are a nonprofit E.D. who doesn’t donate to your own organization, please step into my office… 6. Top Constituent Relations Representative — Oh, so you want to hire a marketing professional to do this part for you? Not so fast. That’s your job, too. The executive director should build and maintain relationships with a wide variety of parties in order to help their own organizations succeed. You can’t be “the face” of an organization and then run and hide behind your marketing team. The E.D. should be everywhere — figuratively, not literally — by communicating regularly and in a variety of ways with constituents (email, newsletters, social media, website, public events, etc.) Depending on the size of your nonprofit organization, there may be components of some of these responsibilities that you delegate to a trusted member of your management team. However, in many small and mid-sized nonprofit organizations, the executive director must be ready to handle all these things, and also be ready to roll his/her sleeves up at any given moment to help out with programs if needed. This is what you signed up for, right? Right! The job of an executive director is large, complicated, and hugely important to the overall success of a nonprofit organization. Doing it well is difficult, stressful, but can also be extremely rewarding. Whether you are a new or experienced executive director, I encourage you embrace the challenges, weather the difficult times, nurture your board, support your staff, and remember to stop and celebrate your organization’s successes.
When Grant Funding is Problematic
Grant funding is often the primary source of operational and/or programmatic revenue for a nonprofit organization. Whether from government or non-governmental sources, grants are integral to a nonprofit’s survival. Executive directors and grant writing professionals can spend many hours researching and writing grants with varying degrees of success. For organizations that are just starting out in the grant writing arena, it can be a daunting and sometimes frustrating cycle of applications and denials with limited positive results. However, the time and energy it takes to pursue grant opportunities is well worth the effort when a major grant is finally won. The best positioned nonprofits are those with well-seasoned grant writing professionals who dedicate their time to researching and pursuing opportunities. Unfortunately, most organizations can’t afford full-time grant professionals, so grant seeking becomes one of the many responsibilities of the organization’s director. Regardless of who is responsible for grant seeking in a nonprofit, the pursuit of grants should follow the overall strategic plan and priorities of the organization. As time consuming as the grants process is, it is imperative that this time is spent pursuing funding that will help the organization and support its mission and programs. This sounds easy, right? Well, sometimes it’s not easy at all. I’ve written before about “mission creep” because it’s a real danger, especially to the under-resourced nonprofit. In relation to grants and other funding, mission creep happens when the stated purposes and priorities of a grant funder are misaligned with the mission and priorities of the nonprofit grant seeker. When mission creep sets in, funding sources dictate the organization’s direction instead of the organization’s direction informing the types and sources of funding being sought. A minor programmatic shift to align with a funding opportunity may not seem like a bad thing at first – particularly when the shift is rewarded with funding. However, any modifications that are guided by the pursuit of funding, as opposed to the organization’s strategic plan, can (and often do) have lasting detrimental results. The truth is, all money is not good money for an organization. And, any strong nonprofit leader will share stories of times when they have said “no” to a funding opportunity because the costs to the organization outweighed the benefits of the grant or gift. }It’s true….it can certainly feel counterintuitive to walk away from a grant opportunity, especially as funding for many nonprofit industries (the arts, for example) continues to dry up. However, by keeping the organization’s mission and strategic priorities front of mind, the pursuit of grant funding will become less daunting and more impactful in the long run. So, before you sit down and start writing that next grant, take a moment to consider it in relation to your strategic plan. If it is well aligned, the grant will help you expand something you’ve already planned to expand, grow something you’ve already planned to grow, or create something you’ve already planned to create. That is what grants are supposed to do!
On Trust…
I recently read an article in the Chronicle of Philanthropy entitled “To Keep People Giving in the Pandemic, Trust in Nonprofits is Essential” (Segar, B., 2020). I won’t go into detail about the article’s arguments because the title sums up my thoughts perfectly: a nonprofit’s fundraising success is built upon a foundation of trust, and without that trust, the organization’s long-term financial sustainability will suffer. Each day, nonprofit leaders work hard to attract and retain funding. If they’re savvy fundraisers, these leaders seek a broad range of support — from individual donors, from corporate partners, and from private foundations as well. They tell heartfelt stories about their missions, the people they serve and the differences they make in their communities. With a good mix of skill and luck, the funding arrives and the organization is able to sustain its work for another year. But, regardless of a nonprofit leader’s story telling abilities, and regardless of a donors’ affinity, wealth, or interest, donors must have a measure of trust in the organization and the people leading it in order for gifts to become reality. Trust is the reason a nonprofit board delegates authority to its executive director to oversee the organization’s daily operations. It is the reason that I’m always preaching about the importance of nonprofits being open and transparent in communicating with their donors. And trust is the reason nonprofits should value every gift they receive, as the people or entities making these gifts do so because they trust our organizations to be good stewards of their contributions. It is a responsibility that I have taken very seriously in each role I’ve held in my twenty year nonprofit career. In the coming year, my greatest wish for my friends in the nonprofit sector is that we continue nurturing relationships of trust with our existing donor bases and make positive strides to establish relationships with new donors. I use the word “relationship” intentionally, as good philanthropy is not a transactional business. Transactions are fickle; we should aim to sustain. Be open, be honest, build trust, and the gifts will come.