Harnessing The Potential Of
Nonprofit Leadership:
Meeting Expectations And
Achieving High Levels Of
Performance
Yvonne D. Harrison, PhD
July 27th, 2012
Session Topic and Purpose
• Expectations for nonprofit leadership are very
high. Expectations extend beyond the CEO to
the board, the board chair, and all those who
serve as leadership volunteers.
• This session will explore nonprofit leadership in
the governance context, what is nonprofit
leadership and how it differs from for-profit,
nonprofit leadership competencies, and how to
help nonprofit leaders meet expectations and
achieve greater levels of performance.
Session Overview
• What is leadership?
– Org, nonprofit/for-profit, and governance
• What do effective nonprofit leaders do?
– Leadership competencies
• Why are some leaders more effective than
others?
• How can nonprofit leadership be
managed?
– Competing Values Approach
Warm-Up
• True or False
– Once a leader always a leader.
– Great leaders can lead in any situation.
– The secret to being a great leader lies in
possessing a lot of personal charisma
– If you want to succeed as a leader, “speak
softly and carry a big stick”
Emerging Area of Leadership
• http://www.ted.com/talks/lang/en/derek_siv
ers_how_to_start_a_movement.html
What is leadership?
• “Leadership is the process (act) of influencing
the activities of an organized group in its efforts
towards goal setting and its goal.
• There must be a group with a common task or
objective, and at least one member must have
responsibilities that are different from the other
members.
• If all members perform the same role there is no
leadership” (Stogdill, 1997, p. 114-115).
How is nonprofit leadership different
from for-profit?
Not for Profit
For Profit
• CEO and Chair are
different people
• Shared leadership
• Paid Executive and
Unpaid Directors
• Focused on top line
• Inputs less predictable
• Less certainty and
control organizationally
• CEO and Chair can be
the same person
• Hierarchical leadership
• Paid Chief Executive and
Directors
• Focused on bottom line
• Inputs more predictable
• More certainty and
control organizationally
What about leadership in the context of
governing?
• Different types of governance interactions and theories of
leadership:
– Interference Interactions
• Informal and collaborative (fluid, dynamic interactions to solve problems)
• Leader more influential than interaction (entity perspective)
– Interplay Interactions
• Horizontal and collective (balance, equity, loyalty to mobilize people)
• Leaders establish a connection, provide incentives for rewards (process
perspective)
– Interventionist Interactions
• Formalized and hierarchical (skill of leader in shaping dynamics and
complexity to advantage within system)
• Leaders create opportunities to cope with complexity, use for advantage to
influence (political perspective) (Kooiman, 2003)
• Follower perceptions are shaped in governing interactions
What do effective
nonprofit leaders do?
Leadership Competencies in the
Governance Context
Effective Chief Executives
• Facilitate Interaction in Board Relationships;
• Show consideration and respect toward board
members;
• Envision change and innovation for the
organization with the board;
• Provide useful and helpful information for the
board; and
• Promote board accomplishments and
productivity.
Herman and Heimovics, 1991; 2005
Effective Boards
• Actively works to achieve role clarity (e.g. job
descriptions)
• Ensures all members are oriented and trained for their
role (orientation, retreats, workshops etc);
• Seeks to build team and motivates all members to work
toward team goals (e.g. team-trust building etc.);
• Emphasizes full and clear communication on issues
brought to the board (e.g. general and specific issues);
and
• Focuses on performance by asking tough questions and
using evidence to support decisions (e.g. being strategic,
organizing around what matters etc.)
Axelrod, 2005
Effective Board Chairs
• Do not distract boards from their goals
• Create a safe climate where issues can be discussed
• Look for and acknowledge the contributions others make
to the board and organization
• Confront and resolve inadequate performance in a
respectful way;
• Are open to new ideas and information;
• Are fair and impartial;
• Provide the right amount of autonomy and independence
for the board and CEO
• Make people feel like a valuable member of the team
Harrison and Murray, 2012
Effective Board Members
(Leadership Volunteers)
• Motivated to Serve (e.g. Recruited for the right reasons,
empowered for the service of mission/others)
• Create, Share Vision, and Align Strategically (e.g. Is
informed, considers best practices, contributes to the
development of and commitment to a shared vision that
provides meaning and direction)
• Develop Effective Relationships (e.g. Nurtures a healthy
organization and work environment, is socially aware
and maintains effective relationships)
• Create Value (e.g. open to innovation, creativity, and
change; translates theories into action; is responsive and
accountable)
National Learning Initiative, 2003
Why are some leaders more effective
in their role than others?
• Leaders lack competency for the role
• Right competency but they exert too little
or too much influence in the role
• Leaders lack experience of leadership in
nonprofit governance context
• Leaders lack information and support
• Leaders don’t know they are ineffective
• Lack of performance evaluation and
development
How can nonprofit leadership be
managed for higher performance?
• Implement system of performance feedback
• Performance assessment in context of governance
is complex
– Diversity of leaders, leadership roles, and interactions
– Different leaders contribute effectiveness in different
dimensions of governance and organizational
effectiveness
– No one leader/actor contributes all that is required for
effective nonprofit governance
• Method of aggregating the value of nonprofit
leadership contributions
Competing Values Approach
Flexibility
External
Internal
Control
Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach,
5th edition
16
LEADERSHIP EFFECTIVENESS
HUMAN RELATIONS
OPEN SYSTEMS
F
COLLABORATE to sustain
commitment and effort
CREATE to produce higher quality
goods and services at lower cost
LEADERSHIP ROLES:
• FACILITATOR
• MENTOR
LEADERSHIP ROLES
• INNOVATOR
• BROKER
I
E
INTERNAL PROCESS
RATIONAL GOAL
CONTROL to increase coordination
and control
COMPETE to achieve mission and
goals
LEADERSHIP ROLES:
• MONITOR
• COORDINATOR
LEADERSHIP ROLES:
• DIRECTOR
• PRODUCER
C
Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th
edition
ASSESSMENT OF
NONPROFIT LEADER ROLES AND COMPETENCY DIMENSIONS
COLLABORATE ROLES:
FACILITATOR, MENTOR
CREATE ROLES: INNOVATOR,
BROKER
•
•
•
•
•
•
•
•
CEO
CHAIR
BOARD
BOARD MEMBERS
CEO
CHAIR
BOARD
BOARD MEMBERS
CONTROL ROLES: MONITOR,
COORDINATOR
COMPETE ROLES: PRODUCER,
DIRECTOR
•
•
•
•
•
•
•
•
•
CEO
CHAIR
BOARD
BOARD MEMBERS
CEO
CHAIR
BOARD
BOARD MEMBERS
Results (Competency 3-
Adapted from Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th
edition
ASSESSMENT OF NONPROFIT LEADER EFFECTIVENESS
Soft hearted,
Permissive,
Abdicates authority
Unrealistic,
Impractical,
Wastes energy
POSITIVE
Creative,
Caring,
Opportunistic,
Clever,
Sympathetic,
Overly democratic,
Overly aspiring,
Envisions
Shows
Too participative,
Disrupts
change
Politically astute, continuity
Slows production Processconsideration
oriented,
Acquires
NEGATIVE
Facilitates
resources
interaction
Unaware
Apathy
Belligerence
Unskilled
Indifference
Hostility
Technical expert,
Unpolished
Task oriented,
Well prepared,
Unimaginative, Collects information
Initiates action
Tedious,
Neglects
Overachieving,
Dependable,
possibilities
Decisive,
Individualistic,
Reliable,
Directive, Provides
Destroys
Maintains structure
structure
cohesion
POSITIVE
Skeptical,
Cynical,
Stifles
progress
Rigidity
C
O
N
T
R
O
L
NEGATIVE
Chao
s
C E
O
L
L
A
B
O
R
A
T
NEGATIVE
C E
R
E
A
T
C
O
M
P
E
T
E
Unreceptive,
Unfeeling,
Offends individuals
Adapted from Quinn et al., (2011).
Becoming a Master Manager: A Competing
Values Approach, 5th edition
COMPETENCIES TO MANAGE LEADERSHIP
COLLABORATE
• Understanding Self and Others
• Communicating Honestly and
Effectively
• Mentoring and Developing Others
• Managing Groups and Leading
• Managing and Creating Creative
Conflict
CONTROL
• Organizing Information Flows
• Measuring and Monitoring
Performance and Quality
• Encouraging and Enabling
• Working and Managing Across
Functions
• Planning and Coordinating
CREATE
• Fueling and Fostering Innovation
Implementing/Sustaining Change
• Using Power Ethically/ Effectively
• Championing and Selling Ideas
• Negotiating
Agreement/Commitment
COMPETE
• Developing and Communicating a
Vision
• Setting Goals and Objectives
• Designing and Organizing
• Motivating Self and Others
• Managing Execution and Driving for
Results for Results (Competency 3-
Quinn et al., (2011). Becoming a Master Manager: A Competing Values Approach, 5th edition
BEST PRACTICES TO DEVELOP THEM
COLLABORATE
•
•
•
•
•
ORIENTATION
SKILL BUILDING
TEAM-BUILDING
CONFLICT MANAGEMENT
PERFORMANCE FEEDBACK
CREATE
• STAKEHOLDER ANALYSES
• FORMING ALLIANCES
• DISCUSSION, CREATIVITY
EXERCISES
• IDEA GENERATION
• BARGAINING, NEGOTIATING
CONTROL
• DEVELOPING INFORMATION
RESOURCES
• MANAGING MEETINGS
RECORDS
• PROCESS FLOW DIAGRAMS
• SUPPORT SYSTEMS
• FOLLOW-UP ASSIGNMENTS
COMPETE
•
•
•
•
•
PREPARING MEETING AGENDAS
STRATEGIC PLANNING
FISHBONE DIAGRAMS
PERFORMANCE ASSESSMENT
SWOT ANALYSES
: 1-5
Adapted from Rohrbaugh, J. (2010).
Summary
• Be clear on leadership roles, role relationships
and competencies.
• Recruit and select the best leaders for the role.
• Develop them and assess their effectiveness.
• Recognize leadership strengths and
contributions.
• Link assessment results to development efforts.
• Choose strategies that reduce the challenges.
• Manage leadership to achieve and grow.
• Recognize leadership is one influence of many.
Influence of Leadership at the Governance Level
Influences
Governance Process
Effectiveness
Structures
& Processes
Meetings
Composition
and
Development
• Fiduciary
• Planning
• Performance
Assessment
• Fundraising
Governance
Effectiveness
Culture
Leadership
WHO and HOW
WHAT
WHY
Organization
Effectiveness
Thank-You
Questions