Sample Organization Charts by Size

Introduction There is no single right answer to the question of what is the best organizational structure. What’s right for any particular organization will depend on that organization’s size, the stage in its evolution from a start-up to an established non-profit and the particular skills of its current managers, among other factors. And any organizational structure presents its own pros and cons. At times organizations do need to alter their structures, either because of growth, change in personnel, or because the current structure is inadequate for the needs of the organization. But organizations should be cautious before making significant organizational structure changes, as each structure has its own trade-offs and sometimes changes in workflow or communications can be as effective, and less disruptive, than changes in organization structure.

Contents High-level organization, including ED role Finance and administration – organization/leadership and staffing Program – organization/leadership

Organization Structures Follow a Typical Growth Path Young Phase 1: ED does it all All functions report independently to the ED, who functions as a “jack of all trades” Pros: low-cost; allows ED to be close to both program and administration, compensates for lack of high-quality staff Cons: not sustainable due either to ED burnout and/or growth ED Develop-ment Program #1 Program #2 Program #3 Admin #1 Admin #2 Maturing Phase 2: ED gets a deputy to help do it all All functions report independently to the ED or the deputy ED; reporting relationships are driven mostly by individual skills and interests Pros: removes about half of ED’s load; ED needs to find just one trusted person; still relatively lean Cons: generally the product of evolution, not design – often a confusing structure; insufficient for sustaining growth ED Develop-ment Deputy ED Program #1 Program #2 Admin #2 Admin #1 Program #3 Mature Phase 3: ED restricts activities and delegates in a more structured fashion Major functions delegated to senior staff Pros: frees up ED time for external-facing activities; can handle significant growth Cons: adds administrative costs; ED loses ability to control directly a variety of functions; requires strong staff in senior roles ED CPO Develop-ment CFO or COO Program #1 Program #2 Program #3 Admin #1 Admin #2

Examples of Organizational Structures Organized leaders into teams under COO (administration) and CPO (programs) Pros: Allows CEO to dedicate time and attention to fundraising and other external-facing matters Cons: Heavily layered and therefore more expensive > $10 million CEO COO General counsel Develop-ment CPO > $10 million Example #2: ED delegates much of programs to two associate directors and administration to a CFO Pros: ED has been able to dedicate needed time to administration with new CFO Cons: ED time may not be sufficiently directed to outward facing activities ED CFO Develop-ment Assoc Dir., Programs Assoc Dir., Programs Housing ED DED, Finance/Admin Compli-ance/ Audit Develop-ment DED, Research DED, Program ~ $10 million Example #3 ED delegates extensively to DED for finance and DED’s for program, who essentially run the organization Pros: Allows ED to focus on other roles, including fundraising Cons: Highly dependent upon presence of strong individuals in Finance and Program roles – each capable of becoming an ED

Examples of Organizational Structures (continued) All functions report independently to the executive director, who functions as a jack of all trades; extensive use of administrative outsourcing Pros: allows organization to remain lean and enables ED to stay close to programs to ensure quality Cons: perceived need now for ED to “let go” and move from crisis manager to leader ~ $10 million ED Finance MIS Program #1 Program #3 HR Develop-ment Program #2 Special Projects < $10 million Example #5: All functions report to ED, but transition underway to delegate more authority – particularly to MD and CFO; result of recent transition Pros: Beginning to take items off the ED’s plate Cons: Transition still in process and requires adjustments ED MD/ General Counsel Program #1 Program #2 Program #3 CFO < $10 million Example #6: Close oversight by ED except in program, where an additional layer (CPO) oversees sizable program staff Pros: ED prefers to stay involved in administration Cons: Highly dependent on having strong people that “play well together” in senior administrative roles ED Fiscal HR Operat-ions Develop-ment Chief Program Officer

Contents High-level organization, including ED role Finance and administration – organization/leadership and staffing Program – organization/leadership

Options for Fiscal/Administration Structure Option #1 – COO/CFO oversees all administration COO oversees all administration, including a finance/accounting department and a contracts department Pros: frees up ED time substantially; strongest potential for integration across administrative functions Cons: requires an additional, expensive layer; ED may feel overly detached from the organization ED Board COO/ CFO Development Programs HR Finance Office Services IT Option #2 – some administrative functions report to ED Several administrative departments report directly to the ED; CFO oversees both finance and one or more additional departments Pros: Removes one layer (overall COO) Cons: potential for insufficient integration and still excessive demands on ED time ED Board HR CFO IT Development Programs Finance Office services Option #3 – all administrative functions report to ED All administrative functions report directly into ED Pros: ED can stay closely involved with critical administrative issues Cons: Needed integration across administrative functions may not occur; ED may need to spend too much time on these issues ED Board HR Finance Office Services IT Development Programs

Finance and Administration: Example Structures > $10 million > $10 million COO CFO CFO SVP, Operat-ions Budget & Planning Finance HR Office Manager Contracts Account-ing Payroll Accounting Accounts payable Audit & Fin. Compliance Fiscal Reporting > $10 million ~ $10 million DD Fiscal/ Admin CFO Person-nel Deputy CFO IT Ops. & Property Mgmt Control-ler Purchas-ing MIS HR Business/contracts manager Accounts payable Accounts receivable Helper Grants accounting Grants admin. GL & fin. reporting Payroll Accounts payable

Chief Financial Officer Role: Tasks and Skills Key tasks Ensure integration so that various administrative departments work together to gather and interpret data, and provide services to the rest of the organization Direct financial planning, procurement, and investment of funds for the organization Provide financial and administrative input to agency strategy-setting, acting as a thought-partner for the executive director and other senior staff (beyond simply providing data) Work with Program to determine risks and benefits of pursuing new government contracts, including “fit” with agency strategy Work with Development to “sell” programs to donors through the use of outcome data and other means Monitor agency costs and identify ways to reduce these costs through process improvements or investments Work with HR to develop the careers and skills of senior administrative staff through recruiting, training, mentoring, and evaluation Key skills Leadership: able to motivate and direct staff members Technical skills: strong knowledge of finance and administration Collegiality: able to work well with other senior staff Vision: able to explore new and innovative ways to support programs and build organization

Example Fiscal Staffing Levels # of staff Budget (overall) # Finance Contracts Payroll Total Budget per person ~$1.5 million 1 2 3 $0.5mn ~$8 million 4 $2mn ~$10 million 1.5 6.5 $1.5mn 3.5 6 $1.7mn 2.5 ~$16 million 9 $1.8mn 7 11 ~$50 million ~5 ~30 ~36 $1.4mn

Contents High-level organization, including ED role Finance and administration – organization/leadership and staffing Program – organization/leadership

Options for Program Structure Option #1 – all programs report to a CPO Pros: frees up ED time substantially; strongest potential for integration of programs Cons: requires an additional, expensive layer; ED may feel overly detached from the organization ED Board Finance/ Admin Develop-ment CPO Program #1 Program #2 Program #3 Option #2 – most programs report to a CPO, but one more or more report directly to ED Pros: allows the ED to remain close to one or more key programs while consolidating oversights of other programs Cons: requires an addition, expensive layer; continued demands on ED time; limited integration with programs not overseen by CPO ED Board Finance/Admin Develop-ment CPO Program #3 Program #1 Program #2 Option #3 – all programs report directly to ED Pros: ED is able to stay close to programs; removes the need for an additional, expensive layer; can function well with strong program directors that can work well together Cons: Potentially least amount of program integration and highest demands on ED time ED Board Finance/Admin Develop-ment Program #1 Program #2 Program #3

Program: Example Structures Deputy Executive Director for programs oversees all program activities Pros: Enables ED to focus outward - only about 10% of ED time spent on programs; head of programs is given autonomy based on ability Cons: Requires strong, trusted head of programs ~ $10 million ED Dep. ED, Programs Program #1 Program #2 Program #3 Example #2 Although most programs report through two associate directors, two programs report directly to the ED Pros: Most suited for individuals leading the programs that do not report through the Associate Directors; ADs at capacity and limited money and candidates to find the right new person Cons: 30% of ED time spent on programs > $10 million ED Associate Director Program #4 Program #5 Associate Director Prog. #1 Prog #2 Prog #3 Prog. #6 Prog #7 Prog #8 Example #3 All programs report directly to ED Pros: ED sees top priority as ensuring maintenance of high program quality, which is enabled by close direct oversight; ED prefers to keep organization as lean as possible Cons: Hinders ED ability to shift attention more toward fundraising; 50% of ED time spent on programs ~ $10 million ED Program #1 Program #2 Program #3

“Chief Program Officer” Role: Tasks and Skills Key tasks Work with program directors to continually measure and improve programmatic performance against goals/objectives Work with program directors as well as contracts manager to determine risks and benefits of pursuing new government contracts, including “fit “ with agency strategy Enhance integration across programs Make progress on outcome evaluation by working with the COO to implement a system for capturing data and a methodology for interpreting it Work with Development to “sell” programs to donors through the use of outcome data and other means Provide programmatic input to agency strategy-setting, acting as a thought-partner for the executive director and other senior staff Work with HR to develop the careers and skills of program directors through recruiting, training, mentoring, and evaluation Key skills Leadership: able to motivate and direct staff members Program knowledge: intimate familiarity with services delivered Collegiality: able to work well with other senior staff Vision: able to explore new and innovative ways to deliver services; able to provide counsel to ED