Dr. Earl R. Smith II

Dr. Earl R. Smith II
Managing Partner, The Federal Circle
DrSmith@Dr-Smith.com
Dr-Smith.com

Nonprofit boards of directors provide leadership, strategies and community service vehicles addressing many issues of importance across America. Nonprofits are dependent upon corporate donors and government support to carry out their missions. For-profit corporations are dependent upon their services and products meeting the needs of customers at a profit for their continued relevance in the market place. Nonprofits must deliver programs and services efficiently and effectively that meet the needs of the communities in which they operate if they are to remain viable. Corporations must perceive value in continuing to donate to the mission of the nonprofit, and boards are finding it increasingly important to promote program results as a means to continue meeting fundraising goals.

Boards committed to achieving mission outcomes find it necessary to conduct regular organizational assessments. They assess and adjust policies, programs and services for the upcoming year approved as population demographics change the mission. The Executive Director, the board, and other leadership should annually evaluate missions and compare the results to the strategic plan. Solid leadership keeps detailed reports throughout the year on fundraising efforts and other issues. Based on these assessments, corrections made quickly and in a focused manner. They maintain detailed service and program records for review to identify necessary changes in strategy.

Following the annual assessment, the Executive Director, Board and other stakeholders engage in strategic planning for the upcoming year. The established advisory committees review portions of the assessment and make recommendations to the board for alterations of fundraisers and programs and services. Advisory boards should be composed of experts on delivery mechanisms or clients of the nonprofits willing to offer advice on issues to improve the Nonprofits strategy.

Boards striving for specific outcomes must develop measures of performance to track and quantify outcomes. The Executive Director, the Board and the Nonprofit’s stakeholders must agree on the method of tracking performance and reporting requirements. Performance measures measure progress and evaluate specific strategies. The Board must approve tracking measures and ensure compliance with corporate ethics and regulations.

Once the Board approves the tracking measures, the Executive Director and staff must maintain detailed reports. Publicly reporting results will allow the nonprofit board to describe results to donors and other stakeholders thereby improving fundraising efforts. The mission of for-profit corporate managements is to enhance the value of the shareholders or owners of the company. Directors and corporate managers donating to nonprofit corporations are coming under intense pressure to earn maximum returns on donations by giving to causes addressing issues in the communities where the company has operations

The Board should establish an Audit Committee to review and certify the results of the tracking efforts. The Audit Committee should report to the Board its review of the tracking measures for the Board’s approval. The Board should approve the reports and direct the Executive Director to post the results on the Nonprofit’s website and promote the results in any other appropriate manner.

Tracking activities and outcomes should be part of the overall strategic plan. They should promote the strategic plan internally – and assure that all staff and board members understand it. This leadership development will focus staff on the outcomes important to the success of the organization. Professional governance practices dictates the Board hold the Executive Director accountable for executing strategy and leading staff and volunteers in efficiently delivering programs and services.

This governance for results implements strategies is aimed at promoting the Nonprofits mission to staff and outside stakeholders and directing all organizational activities toward achieving desired outcomes. Establishing items easy to track and report focuses staff and volunteers efforts on activities designed to achieve maximum results. Reporting on outcomes and the effects the Nonprofit Board is having on the community it serves will make fundraising efforts Succession committee planning and strategic planning efforts easier and more effective.

Good governance is more important now than it has ever been. This is particularly true for nonprofit boards and their organizations. If you sit on a nonprofit board and want to learn more about good governance, send me an e-mail and we will arrange to talk.

© Dr. Earl R. Smith II

Related Articles:

• Visionary Boards of Directors
• Board Ethical Standards
• Non-profit Leadership – Good Board Characteristics
• Good Corporate Governance
• Non-Profit Boards – A Different Kind of Animal

Dr. Smith is Managing Partner of The Federal Circle. The Federal Circle partners with teams and existing companies. We help them up their game and win big in the Federal space. We also arrange funding for acquisitions and expansion by acquisition. Our model is based on the belief that, if you select the very best and work with them in a highly professional and focused manner, the results will be truly amazing. He is the author of Amazing Pace: Turbo-charged Business Development – a book that shows how Advisory Boards can dramatically increase revenue. Dr. Smith is also the author of Dream Walk: Parables for the Living – a book of Raven Tales and exploration.

This entry was posted on Wednesday, October 22nd, 2008 at 9:17 AM and is filed under Governance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.