11/10/2016

THE CRISIS IN NONPROFIT

LEADERSHIP
A report on the 2016 Nonprofit
Sector Leadership Survey
Marc A. Pitman, CFCC
www.concordleadershipgroup.com

Twitter: @marcapitman

Why a survey?

 2 days unpacking CompassPoint’s

“UnderDeveloped” survey
 Answering the question “What’s going
on with the development director?”

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Why a survey?
 That led to a
popular seminar
on “The Current
Crisis in
Nonprofit
Leadership”

Problems persisted

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Problems persisted

Problems persisted

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Problems persisted

 Begged the question: “What’s going on

with leadership?”

Problems persisted & expanded

 Governments in the USA, the UK, and
elsewhere continue to increase
regulation

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Problems persisted & expanded

 Governments in the USA, the UK, and
elsewhere continue to increase
regulation
 Municipalities are increasingly looking
to tax charities

Problems persisted & expanded

 Governments in the USA, the UK, and
elsewhere continue to increase
regulation
 Municipalities are increasingly looking
to tax charities
 There’s an alarming increase in the
reports of boards bullying the CEOs
they hire

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It’s still not working

It’s still not working

.

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It’s still not working

.

It’s still not working

.

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It’s still not working

The Nonprofit Sector Leadership Study

gives us insight on why

CLG pulled together partners

 Steven Yoder, Get the Word Out
 Pearl Wright, UNA
 Jay Love, Bloomerang
 Randy Hawthorne, NonprofitHub
 Chris Johnson, StratusLIVE
 Rachel Hutchisson & team at
Blackbaud & Blackbaud K12
 Bill Tedesco & team,
DonorSearch
 AFP
 And key help from Bill Littlejohn at
Sharp HealthCare

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Goal: Dive below the surface

 We believe leaders happen at all
levels.
 So we wanted to go deeper.

38 Question Survey
.

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The Sample
 Wide range of leadership

The Sample
 Wide range of ages

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The Sample

The Sample
 Seasoned nonprofit tenures

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The Sample

Key Findings
 Strategic plan

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Key Findings
 Strategic plan
 Succession planning

Key Findings
 Strategic plan
 Succession planning
 Retiring comfortably

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Key Findings
 Strategic plan
 Succession planning
 Retiring comfortably
 Creative recruiting

Key Findings
 Strategic plan
 Succession planning
 Retiring comfortably
 Creative recruiting
 Sharing the story

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Strategic planning

Strategic planning

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The Surprise
 Half of nonprofits are building the
bridge as they cross it!

Strategic planning
 Varies by org size

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Strategic Speak?
 It seems the lower down the leadership
chain you go, the more likely you are to
believe a strategic plan exists.

Strategic Speak?
 It seems the lower down the leadership
chain you go, the more likely you are to
believe a strategic plan exists.

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Strategic Wishing
 62% say their plan doesn’t have a
sustainable fundraising plan

Strategic Plan

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Strategic Wishing
 62% say their plan doesn’t have a
sustainable fundraising plan
 58% say plan isn’t checked at least
quarterly

Strategic Wishing
 62% say their plan doesn’t have a
sustainable fundraising plan
 58% say plan isn’t checked at least
quarterly
 70% say no benchmarking occurred
with peer organizations

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Strategic Wishing
 62% say their plan doesn’t have a
sustainable fundraising plan
 58% say plan isn’t checked at least
quarterly
 70% say no benchmarking occurred
with peer organizations

Strategic “wishing” ≠ Strategic planning

Succession Planning

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Succession Planning

Retiring Comfortably?

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Retiring Comfortably?

Retiring Comfortably?

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Creative recruiting?
 36% of leaders said their nonprofit’s
turnover was “high”

Creative recruiting?
 36% of leaders said their nonprofit’s
turnover was “high”
 When asked what creative ways they
were competing for employees, over
half left comments

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Creative recruiting?
 36% of leaders said their nonprofit’s
turnover was “high”
 When asked what creative ways they
were competing for employees, over
half left comments
– But 61% of those comments were
variation on “Nothing” or “None”!

Creative recruiting?
 36% of leaders said their nonprofit’s
turnover was “high”
 When asked what creative ways they
were competing for employees, over
half left comments
– But 61% of those comments were
variation on “Nothing” or “None”!
– 10% in comments thought “offering
benefits” was creatively competitive!

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Creative recruiting?
 “We offer a 30% discount to our thrift store.”

Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”

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Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”
 “A $200 medical benefit, on which we have to pay taxes.”

Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”
 “A $200 medical benefit, on which we have to pay taxes.”
 “We provide employee of the month recognition.”

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Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”
 “A $200 medical benefit, on which we have to pay taxes.”
 “We provide employee of the month recognition.”
 “Competitive strategies? Aren’t you funny.”

Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”
 “A $200 medical benefit, on which we have to pay taxes.”
 “We provide employee of the month recognition.”
 “Competitive strategies? Aren’t you funny.”
 “We pretend everyone gets the same salary and hold a
bonus raffle.”

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Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”
 “A $200 medical benefit, on which we have to pay taxes.”
 “We provide employee of the month recognition.”
 “Competitive strategies? Aren’t you funny.”
 “We pretend everyone gets the same salary and hold a
bonus raffle.”
 “We give hats to volunteers.”

Creative recruiting?
 “We offer a 30% discount to our thrift store.”
 “We offer free lunches.”
 “A $200 medical benefit, on which we have to pay taxes.”
 “We provide employee of the month recognition.”
 “Competitive strategies? Aren’t you funny.”
 “We pretend everyone gets the same salary and hold a
bonus raffle.”
 “We give hats to volunteers.”
 “We give a free bus pass.”

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Creative recruiting?
Almost an abdication of responsibility:

Creative recruiting?
Almost an abdication of responsibility:
 “We can’t compete. People are here because they want to
be.”

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Creative recruiting?
Almost an abdication of responsibility:
 “We can’t compete. People are here because they want to
be.”
 “We hire people committed to the mission.”

Creative recruiting?
Almost an abdication of responsibility:
 “We can’t compete. People are here because they want to
be.”
 “We hire people committed to the mission.”
 “We do not compensate fairly.”

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Creative recruiting?
Almost an abdication of responsibility:
 “We can’t compete. People are here because they want to
be.”
 “We hire people committed to the mission.”
 “We do not compensate fairly.”
 “We simply don’t have the money to do more for the
employees.”

Creative recruiting?
Almost an abdication of responsibility:
 “We can’t compete. People are here because they want to
be.”
 “We hire people committed to the mission.”
 “We do not compensate fairly.”
 “We simply don’t have the money to do more for the
employees.”
 “[The board and CEO] do not take the process seriously
and it is a low priority.”

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Creative recruiting?
Almost an abdication of responsibility:
 “We can’t compete. People are here because they want to
be.”
 “We hire people committed to the mission.”
 “We do not compensate fairly.”
 “We simply don’t have the money to do more for the
employees.”
 “[The board and CEO] do not take the process seriously
and it is a low priority.”
 “Always looking to cut budgets and get a cheaper
employee, rather than paying the market rate for the skills
and experience we need.”

Creative recruiting?

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Sharing the story

 With such a lack of vision and
recruiting/retention, nonprofits must
surely be investing in PR, right?

Sharing the story

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Sharing the story

Sharing the story

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Shared Vision

Shared Vision

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Sharing the story

What?!
.

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7 Suggestions
 It all comes back to the correct use of a
strategic plan

7 Suggestions
 It all comes back to the correct use of a
strategic plan
– Not an ego exercise—although it is
inspiring
– Not something “in your head”—although it
should always be there too

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7 Suggestions
 It all comes back to the correct use of a
strategic plan
– Not an ego exercise—although it is
inspiring
– Not something “in your head”—although it
should always be there too
 A strategic plan inspires, unifies, and
calls everyone into a vision greater
than themselves

1. Write it down!
 Can easily become complicated
 4 steps we suggest

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1. Write it down!
 Can easily become complicated
 4 steps we suggest
1. What are we doing & why are we doing it?
• Mission, Vision, Guiding Values

1. Write it down!
 Can easily become complicated
 4 steps we suggest
1. What are we doing & why are we doing it?
• Mission, Vision, Guiding Values
2. How are we going to get it done?
• Goals, Objectives, Situational Assessments

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1. Write it down!
 Can easily become complicated
 4 steps we suggest
1. What are we doing & why are we doing it?
• Mission, Vision, Guiding Values
2. How are we going to get it done?
• Goals, Objectives, Situational Assessments
3. How will we fund it?
• Fundraising, Strategic Collaborations

1. Write it down!
 Can easily become complicated
 4 steps we suggest
1. What are we doing & why are we doing it?
• Mission, Vision, Guiding Values
2. How are we going to get it done?
• Goals, Objectives, Situational Assessments
3. How will we fund it?
• Fundraising, Strategic Collaborations
4. Who will we tell about it?
• Assessments, Advocacy, Internal & External
Marketing

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2. Live the Plan

 Include strategic plan objectives in
annual performance review
– Can be as simple as having a check box
or self reporting question “Which of the
strategic planning objectives did you help
with this year?”

2. Live the Plan

 Include strategic plan objectives in
annual performance review
– Can be as simple as having a check box
or self reporting question “Which of the
strategic planning objectives did you help
with this year?”
 Set a standing board & staff meeting
agenda to review the plan at least
quarterly

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3. Create cascading goals

3. Create cascading goals

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3. Create cascading goals

3. Create cascading goals

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3. Create cascading goals

3. Create cascading goals

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3. Create cascading goals

3. Create cascading goals

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3. Create cascading goals

4. Cross-generational teams
 Traditional involving “young people” is:

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4. Cross-generational teams
 Commit to involving a variety of ages in
real decision making
– Boards: create a grid for board &
committees

4. Cross-generational teams
 Commit to involving a variety of ages in
real decision making
– Boards: create a grid for board &
committees

– Staff: seek teams and involve people

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4. Cross-generational teams
 Commit to involving a variety of ages in
real decision making
– Boards: create a grid for board &
committees

– Staff: seek teams and standing

committees

4. Cross-generational teams
 Commit to involving a variety of ages in
real decision making
– Boards: create a grid for board &
committees

– Staff: seek teams and standing

committees

The key is involvement in existing

groups – not a “special initiative.”

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5. Create leadership training

 Two ways to start
1. Felt needs: poll your direct reports
(whatever level you are)
2. Strategic plan: what skills need to be
stronger to accomplish your vision?

5. Create leadership training

 Two ways to start
1. Felt needs: poll your direct reports
(whatever level you are)
2. Strategic plan: what skills need to be
stronger to accomplish your vision?

Key is to make sure the team debriefs.

Sharing learning hardwires education.

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6. Create a succession plan

6. Create a succession plan

.

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6. Create a succession plan

 Your “Moose Plan”

6. Create a succession plan

 Your “Moose Plan”
– Who steps in if you aren’t able to?

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6. Create a succession plan

 Your “Moose Plan”
– Who steps in if you aren’t able to?
– What functions are mission critical?

6. Create a succession plan

 Your “Moose Plan”
– Who steps in if you aren’t able to?
– What functions are mission critical?
– What systems exist to make on-boarding
as seamless as possible?

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6. Create a succession plan

 Your “Moose Plan”
– Who steps in if you aren’t able to?
– What functions are mission critical?
– What systems exist to make on-boarding
as seamless as possible?

Who do you need to be training or

mentoring to take over for you?

7. Learn storytelling

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7. Learn storytelling
 83% of leaders say “communicating a
compelling vision” is in their top 3
priorities

7. Learn storytelling
 83% of leaders say “communicating a
compelling vision” is in their top 3
priorities
 Yet 62% said they weren’t sure how to
create one

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7. Learn storytelling
 Human beings are hardwired to
remember stories

7. Learn storytelling
 Human beings are hardwired to
remember stories

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7. Learn storytelling
 Human beings are hardwired to
remember stories

7. Learn storytelling
 Human beings are hardwired to
remember stories

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7. Learn storytelling
 Human beings are hardwired to
remember stories

7. Learn storytelling
 Human beings are hardwired to
remember stories

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7. Learn storytelling
 Human beings are hardwired to
remember stories

7. Learn storytelling
 Start with “internal” stories
– How was the nonprofit founded?
– What values exemplify how staff
respond?

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7. Learn storytelling
 Start with “internal” stories
– How was the nonprofit founded?
– What values exemplify how staff
respond?
 Move to external
– What fight are you inviting people to join?
– Most importantly: make the donor the
hero!

Don’t go it alone

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Don’t go it alone
 You could be building the bridge as
you walk across it…

Don’t go it alone
 You could be building the bridge as
you walk across it…
...only to find it’s not ending up where you
expected.

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Don’t go it alone
 You could be building the bridge as
you walk across it…
...only to find it’s not ending up where you
expected.
 Seek help: peer groups, professional
associations, executive coaching

The future can be brighter…

1. Write the strategic plan down
2. Let the plan be a roadmap & a
compass
3. Create cascading goals
4. Create cross-generational teams
5. Start leadership training
6. Draft a succession plan
7. Learn storytelling

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Concord Leadership Group LLC

Questions? Ah-ha’s?

Get a free copy of the summary report:

www.ConcordLeadershipGroup.com/report/

For Executive Director strategies:

www.ConcordLeadershipGroup.com/ceo/

Strategic Plans

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Strategic Plan

Creative Recruitment

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Retirement Planning

Budgeting for Marketing

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