Butterflies

Flying Manual
Management Tools for a new nonprofit
Before taking off in the wide world of nonprofits, it is wise to have a structure in place that prospective
staff, volunteers and supporters can look at and decide that this is an organisation that is going
somewhere and would be worthwhile being a part of.






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Flight Briefing

Drucker suggests five
questions for
engagement with key
stakeholders:
What is our mission?
Who are our customers
/ clients / members /
users?
What do our customers
value?
What are our results?
What is our plan?
(Drucker, 1989 )


Butterflies Flying
Manual
Management Tools for a new nonprofit
Table of Contents
Flight Briefing ................................................................................................................................... 1
Why we need a Flying Manual ......................................................................................................... 2
What the Flying Manual will do ....................................................................................................... 2
How the Flying Manual Works ......................................................................................................... 2
SWOT Analysis .............................................................................................................................. 2
Operations Manual ...................................................................................................................... 3
Organising Board .......................................................................................................................... 3
Dashboard .................................................................................................................................... 4
Background of the Flying Manual .................................................................................................... 4
Appendix 1 SWOT Analysis ............................................................................................................ 5
Appendix 2 Board Member Job Description ................................................................................. 8
Appendix 3 The Seven Division Organising Board ....................................................................... 11
Department Descriptions ........................................................................................................... 18
Bibliography ................................................................................................................................... 21
















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Why we need a Flying Manual

We face unique circumstances because of our reliance on government, foundation
and private donor funding and largely volunteer staffing. We are in a startup
situation as a new nonprofit in Australia and face additional challenges in getting our
structure correct; getting our message in front of the correct publics; getting funding
and attracting volunteers and staff who will forward our vision and mission.
What the Flying Manual will do

The Manual will give our governing board a track to run on that will automatically
keep governance compliance in place and management aligned to the mission and
vision.
How the Flying Manual Works

SWOT Analysis

We first of all conduct a SWOT Analysis to find our Strengths, Weakness, Opportunities and
Threats.
As with any business model, the reason a SWOT analysis is performed is to generate insights
about the organisation and to drive its planning efforts. There are five SWOT killers that we need
to be aware of to prevent our efforts from being an exercise in futility:
The Laundry List: A laundry list of 7-10 factors for each category is fine in the first draft.
However, only the elements with significant impact on the organisation should be kept in the
final analysis (approximately 3-5). Marshaling the mental discipline to create a tight SWOT
analysis enables one to move into planning mode with greater clarity and focus.
Generalities: There is a fine line between the factors in the SWOT analysis being brief and being
meaningless. The factors listed need to be specific enough so that someone reading the analysis
without the creator sitting next to them can understand to a reasonable degree what is meant
by the factor. Recording "job site non English communication" rather than "communication" as
a weakness is much more helpful because it alerts the reader to the specific cause of the issue.
Special "Effects": Another common mistake is listing the effect rather than the cause of a
strength or weakness. An example of a strength often listed is "#1 market share." What would
be much more helpful is to list the cause of that #1 market share-i.e., consultative design skills of
architectural staff. Listing the cause also plays another important role by allowing managers to
more easily identify and share best practices among the group. Knowing what's driving market
share leadership can be usefully applied to other groups within the organisation.





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Mistaking Influence for Control: Despite the clearly defined lines of strengths/weaknesses being
internal and controllable and opportunities/threats being external and influenced, factors are
often mistakenly placed in the model. The rule of thumb is if one can allocate resources to a
factor and control it, it is a strength/weakness. If resource allocation can influence but not
necessarily control the factor, it is an opportunity/threat.
Not Quantifying Opportunities & Threats: In physics, the mass of an object is a relative quantity.
In the world of SWOT analysis, the size of opportunities and threats are relative quantities as
well. Quantifying opportunities and threats allows one to more confidently allocate limited
resources to those that will provide the greatest return. While one doesnt always have all of the
necessary data to make an exact quantification of the opportunity/threat, give a rough
percentage or ratio.
Answering SWOT's "So What's?": Once one has completed the SWOT Analysis, the typical
response is "So what now? What do I actually do with it?" There are three steps to go from
SWOT Analysis to strategy. Step 1 is the SWOT Analysis. Step 2 is to use the Opportunity &
Threat Matrices to prioritise the opportunities and threats based on probability and impact. Step
3 consists of SWOT Alignment where strengths and weaknesses are aligned with opportunities
and threats to develop potential strategies. SWOT can be a powerful tool when used correctly
and can be a time sucking, snooze-fest when used incorrectly.

Operations Manual

The Operations Manual that sets out our policies and procedures is one that has been proven in
operation of the parent organisation since 2005 and 15 other overseas covenant partners since
2007. It has been adapted to Australian legal requirements.

Organising Board

The Organising Board is a resource allocation tool that was first used by Admiral Nimitz to
organise and man up the U.S. Navy during World War II. (Morton, 1989). L. Ron Hubbard who
had served in the navy under Nimitz adapted it to build the Church of Scientology and from
there it migrated into the business world. It has been adapted and adopted by the corporate
world. I personally used it while consulting in organisations such as Sony, Chick Corea/Mad
Hatter Studios, Stirling Software, Fitness Choice, Neaumann Engineering, et. al.
The Organising Board sets out every position and their relationship to each other in the
organisation. As well as management functions in Divisions 1 to 6, the function of a Board
member is also covered by a job description. See Appendix 2. Description of
The full functional description of the seven divisions and the 21 departments of an organisation
with some positions is set out in Appendix 3 The Seven Division Organising Board






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Dashboard

The Dashboard is a software program that according to Heyman is an incredibly effective
tool for monitoring progress against established metrics. They are an holistic, though
not comprehensive, visual representation of a nonprofits key success indicators in a
variety of important management departments, i.e., program, finance, development
and fundraising, human resources, and governance. Three to five indicators are
chosen in each department along with what results constitute - Green (Celebrate),
Yellow (Monitor), and Red (Act Now) flags. (Heyman, 2011)
Background of the Flying Manual

This Manual has come about as a result of our board wanting to have a clear path forward with
all policies, procedures, strategies and tactics spelt out. The starting point was the Operations
Manual sent from the parent organisation. This Operations Manual is an implementation of
Carvers Policy Governance Model (Carver, 1996). It needed Australianising, in that the tax
implications needed to be brought in line with the Australian Tax Office and the requirements of
The Australian Charities and Not-for-profit Commission.
The Board also wanted a visual representation of how the organisation would be set up when
fully operational, so that they could strategise a funding and growth plan. The Organising Board
has been adapted for this purpose.
As part of the operation of the Organising Board, Position Descriptions are set out with Key
Performance indicators for each position. This gives us the necessary data to feed into the
Dashboard software to give the board meaningful metrics





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Appendix 1 SWOT Analysis


QUESTIONS TO ASK WHEN DOING A SWOT ANALYSIS
STRENGTHS:
1) Do we have a deep, experienced, engaged Board of Directors?
2) What are our assets?
3) Which asset is strongest?
4) What differentiates us from others that provide similar services?
5) Do we have immensely talented people on our staff?
6) Are we debt free or have a debt structure that is manageable from cash flow?
7) What unique resources do we have?
8) Do we have specific expertise that others do not have?
9) What unique funding sources do we have?
10) Is our senior management team backed by a strong board?








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WEAKNESSES:
1) What areas do we need to improve on?
2) What necessary expertise/manpower do we currently lack?
3) In what areas do other non-profits have an edge?
4) Are we relying on one funding source too much?
5) Do we have adequate cash flow to sustain ourselves?
6) Are we balancing our budget and putting away for a rainy day?
7) Do we have a well of new ideas?
8) Are we over leveraged (too much debt)?
9) Is our mission overly broad?
10) Are our financials audited and monitored beyond the COO and CFO?

OPPORTUNITIES:
1) What external changes present interesting opportunities?
2) What trends might impact our services?
3) Is another non-profit providing services in an adjacent space that we can team up with to
increase our size and stability?
5) Is there an unmet need/want that we can fulfill?
6) Are there trends emerging that we can profitably service?
7) Can we convert from single year to multi-year funding?
8) Can we take advantage of any new government initiatives?
9) Can we geographically expand our footprint?
10) Can we identify new funding sources?











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THREATS:
1) What if our top funders dont continue funding in the future?
2) Is there an entity that may move into our space and offer the same or similar services?
3) Are our key staff satisfied in their work? Could they be poached by another non-profit or for
profit organisation?
4) What if we are sued?
5) Do we have to rely on third parties for critical steps in our process that could possibly derail
our delivery schedule?
6) What if our website is hacked?
7) What if there is a natural disaster?
8) What if the government regulations applying to us change?
9) What if we have a client turn rogue on us?
10) What if the media turn sour on us?







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Appendix 2 Board Member Job Description

Board Member Responsibilities and Obligations
Mission statement

The Fuller Center for Housing, Queensland, Australia, faith driven and Christ
centered, promotes collaborative and innovative partnerships with individuals and
organizations in an unrelenting quest to provide adequate shelter for all people in
need worldwide.

Overview
The Fuller Center for Housing (FCH) is a non-profit Christian organisation
incorporated under the Australian Charities and Not-For-Profit Commission. This
gives the FCHQA exemption from income taxes and makes it eligible to receive tax-
deductible contributions. The Boards responsibilities include the following:

Setting Policy

The Board maintains the mission and integrity of the organisation by establishing
policies and setting goals that advance its purposes in accordance with its established
philosophy, method of operation and foundational principles. The Board plans for the
future and is responsible for the policies that will carry the FCHQA into the future.

Overseeing Operations

The Board works with and through the FCHQA president to ensure that policies are
carried out in a financially, ethically and legally sound manner in representing the
FCHA to the world.

Giving to Support FCHQA Activities

Board members adhere to the give, get or get out rule of non-profit leadership. We
aspire to have 100 percent of board members give by personally contributing
generously on a monthly or annual basis. Board members get by introducing staff
to individuals, congregations, corporations, and foundations, and by raising funds
through their personal contacts. A board member who is unwilling to support
FCHQA activities should resign or be removed.










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Serving as FCHQA Ambassadors

Board members represent the organisation to the public by serving as FCHQA
ambassadors. They help build enthusiasm for our mission, motivate volunteers and
encourage contributions. They also recommend candidates who will contribute in a
meaningful way to the work of the FCHQA to serve on the Advisory Council.

Specific obligations:

Governance

Attend all regular meetings of the Board.
Prepare to make informed decisions by reviewing minutes, agendas, financial
statements, audits and other supporting materials prior to meetings Serve on
committees, sub committees and task forces and accept other assignments.
Provide counsel and support to the President about improvements that could
be made to existing programs.
Follow conflict of interest and confidentiality policies.
Suggest possible nominees to the Advisory Council and the Board who will
make significant contributions to the work of FCHQA.

Participation

Have or develop a passion for the FCHQA mission.
Maintain a positive and optimistic attitude about the ministry.
Participate in the special builds and other significant events, and encourage
friends and colleagues to attend as well.
Attend Board and other organisational functions, including special events.

Awareness Building

Become familiar with FCHQA programs.
Serve as an ambassador to local churches, civic and social groups,
corporations and foundations.
Keep a supply of FCHQA materials on hand to share with friends and
associates.
Share email and mailing lists of friends and associates with FCHQA.
Have a FCHQA bumper sticker on personal vehicles.
















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Resource Development

Financially support the FCHQA and its activities.
Help identify potential donors for monthly, annual and planned giving
programs as well as in-kind gifts and major gifts.
Commit to cultivate three to five individuals, congregations or businesses
each year to become active supporters of the FCHQA. The cultivation may
include, but not be limited to:

Hosting luncheons, dinners or other social gatherings to explain the
mission, history, current work and future plans of the FCHQA.
Inviting prospects to special builds and other events.
Seeking prospects in business and social settings and sharing about the
important work of the FCHQA.
Ask for an annual gift from at least one church, community
organisation or business, and participate with staff in making a request
for a major donation if and when appropriate.





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Appendix 3 The Seven Division Organising Board












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Department Descriptions




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Bibliography
Anheier, H. K., 2000. Managing non-profit organisations Towards a new approach. London:
Centre for Civil Society.
Berman, R., 2011. Questions to ask during a non-profit swot. [Online]
Available at: http://www.rob-berman.com/questions-to-ask-during-a-non-profit-swot/
[Accessed 20 March 2014].
Drucker, P., 1989 . Drucker, P. F. "What Business Can Leam from Nonprofits". Harvard Business
Review, Issue Sept.-Oct. , pp. pp. 88-93.
Heyman, D. R., 2011. Nonprofit Management 101. San Francisco: Jossey-Bass.
Morton, L., 1989. United States Army in World War II - The War in the Pacific, Vol.2. - Strategy
and Command: The First Two Years. 5 ed. Fort Lesley J. McNair, DC 20319: US Army Center of
Military History.