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BOOK REVIEW
"The Strategic Board: The Step-by-Step Guide to High-Impact Governance"
by Mark Light |
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This book is a guide to the Strategic BoardTM model of governance. As Light explains in his introduction, a strategic board is neither an operational board nor a rubber-stamp board, but rather a group that in partnership with management "focuses its energy on making sure the organization achieves its chosen destiny."
Light proposes that boards and executives are often ineffective because of the complexity of their relationships -- each being both leaders and followers at the same time in balance with each other -- and because of the seven realities of nonprofit boards [scarce time and knowledge with no consequences for poor participation; board size, composition and continuity issues; and the relative inexperience of most executives]. Instead of trying to change these conditions, Light presents a detailed recipe to help boards and management both plan and execute plans to move organizations ahead and provide clarity and accountability to their participants
This book is literally a step-by-step guide helping organizations that may not know what to do or where to begin to determine both the way their leadership will work together and what their nonprofits will do
Light provides examples throughout the text and sample plans at chapter ends and in the appendix as further guides for organizations implementing his ideas.
What makes Light's approach refreshing for all nonprofit leaders is that he begins specifically with organizational values and guidelines -- what organizations are and how they act -- instead of dealing with just with their visions and duties -- what organizations do.
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| Contact Us
Patty Oertel
323-257-1125 |
Charles Watson
Oertel Group Website |
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UPCOMING EVENTS
Sept 12, 2007 - "Managing Cash Flow" workshop at CNM - C. Watson instructor. |
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August 2007 Edition News from The Oertel Group |
Greetings!
Welcome to our monthly newsletter. As a member of our e-news community, The Oertel Group is pleased to provide you with regular updates about issues and information that effect the nonprofit field and help to maximize your nonprofit's performance. |
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FEATURED SERVICE:
Financial Management Coaching May Be Just The Ticket . . .
Charles Watson, MBA offers a "retainer-based" service to Executives and Senior Management Teams focused on financial management, government contracting and accountability systems.
EXAMPLE: A $2.5m Family Service Agency whose Executive Director is a talented leader whose experience and education speaks more to program issues than finance and accounting, contracts with Mr. Watson (on a $750/mo retainer) to provide 4-6 hrs of service by reviewing "draft" financial documents developed by accounting staff, a monthly teleconference with the Executive Director to review/comment on the materials, provide coaching assistance regarding Finance Department supervision issues, and help prepare for the Finance Committee meeting by asking as many difficult, complex and hard questions as needed to ensure that everyone is ready. A follow-up teleconference is held with the Executive Director and Lead Accountant to debrief the Finance Committee meeting and make plans as needed.
Additional services compliment the "Coaching" process: An intitial Financial Management Systems and Reporting Assessment, Finance Committee Training and Board Training on financial management topics. |
THIS MONTH'S QUESTION:
Is it a legal requirement that Executive Directors make a report to the Board of Directors each month?
There is not a legal requirement for an Executive Director to make an oral or written report to the Board of Directors. However, it makes sense for the Executive Director who is charged by the Board of Directors with carrying out the mission and work of the nonprofit organization to report on how the execution of that work is going. It is also not unusual for the Board (your boss) to require such a report.
With that said, it has been the experience of the consultants affiliated with The Oertel Group that if an Executive Director's report is too detailed, it can either "invite" micro-management by the board members and/or distract them from those board duties that only the board can fulfill (i.e. high level oversight, setting of board policy and being involved in top level fundraising requests). Since many board members welcome a chance to focus on something other than whether and how they should be involved in fundraising, too detailed an Executive Report could easily create such a diversion.
Board members gravitate towords providing operational suggestions (generally perceived by Executive Directors as micro-management) because they want to be helpful, make a meaningful contribution and these suggestions come easily to most board members because it is at that level that they are the most comfortable.
To fully deal with this dynamic may require several actions including:
- Board members fully understanding their roles and responsibilities vis a vis the Executive Director through Board training that makes clear the essential roles of Boards -- those functions that only the Board can do such as policy setting;
- The Executive Director working with Board Committees and Board Members so that essential information comes forward to the board meetings through other Board Members -- this also increases the sense of collective Board responsibility;
- Placing the Executive Director report at the end of the board agenda -- when the report is early in the agenda the board focuses on that item because its placement gives it prominence and a seeming priority level; and
- Discussing with the Board Chair and Board the function of the Executive Director report and what type of information is truly needed.
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New I.R.S. Form 990 - Give Feedback!
The Internal Revenue Service (IRS) is updating Form 990, the annual return that nonprofits are required to file if their annual income exceeds $25,000. The most recent draft update was issued in June, and the IRS is accepting questions and comments about it until September 14.
The 990 revision includes a "core form" of ten pages, which includes summary information about the nonprofit, such as mission, expenses, governance and compensation. Answers to particular questions on the core form may require the nonprofit to complete one or more of 15 additional schedules. For more information as well as links to summaries and the actual draft, please click HERE.
The IRS and the nonprofit community have devised several ways you can submit questions and comments about the 990 draft revision:
Directly through the IRS via e-mail to Form990Revision@irs.gov or via regular mail to IRS, Form 990 Redesign, SE:T:EO, 1111 Constitution Ave., NW, Washington DC, 20224.
NCCS and GuideStar have developed a Form 990 WIKI (group collaboration website) where you can both read other peoples thoughts and add your own. Click HERE to participate.
The IRS anticipates that the new form will be ready in time for the 2009 filing season.
Your Feedback is Important! |
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BEST PRACTICE TIP:
A Board Book Group
A new client of The Oertel Group, STIPDA (State Territorial Injury Prevention Directors Association), has begun a practice we think is great and wanted to pass it along to you. They have their board members periodically read a book focused on management and then have the board discuss the book and apply its concepts to STIPDA, a professional development organization for the injury and violence prevention field.
Initially the approach was launched as a full membership venture with Good to Great and the Social Sectors by Jim Collins. STIPDA's leadership soon realized that board members wanted to apply the concepts to STIPDA and provided a second forum for that discussion. The board subsequently read 7 Measures of Success: What Remarkable Associations Do That Other's Don't by the Center for Association Leadership.
Through these book groups, STIPDA has strengthened the sense of community among the board members, provided professional development to the board members for the organizations they represent, and provided a common framework for advancing the mission of STIPDA.
The membership book group has also continued via lively teleconference discussions. Member have read and discussed Made to Stick: Why Some Ideas Survive and Others Die in this fashion. These virtual books groups have provided members with an opportunity to enhance their leadership and management practices.
If your board has used this book group idea or other innovative techniques, please send a note to Patty Oertel at poertel@theoertelgroup.org -- we may highlight you in a future best practice tip. | |
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Please fell free to pass this newsletter along to your friends.
Patty Oertel and Charles Watson
The Oertel Group |
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