© 2014 SAGE Publications, Inc. Chapter 5: Executive Leadership

© 2014 SAGE Publications, Inc. CEO Responsibilities Commit to the mission Lead the staff and manage the organization Exercise responsible financial stewardship Lead and manage fund-raising Follow the highest ethical standards, ensure accountability, and comply with the law Engage the board in planning and lead implementation Develop future leadership Build external relationships and serve as an advocate Ensure the quality and effectiveness of programs Support the board Source: Board Source, 2006

© 2014 SAGE Publications, Inc. Observations About CEO Responsibilities Significant overlap between CEO responsibilities and governing board responsibilities Mission, financial stewardship, fund-raising, accountability, planning, performance standards, and the work of the board itself CEO responsibilities involve both managing and leading Management -- generally concerned with day-to- day operations, emphasizing policies, procedures, rules, and processes Leadership -- more about purpose, vision, and direction: more about the “where” and “why” rather than the “how”

© 2014 SAGE Publications, Inc. Managers and Leaders Managers Concerned with mastering routines Adopt impersonal or passive attitudes toward goals Excel in problem solving and work design Work with people in carefully controlled ways See themselves as conservators or regulators Leaders Concerned with vision and judgment Active and visionary about the future Seek out opportunities and take risks Passionate about their work and likely to cause turbulence See themselves as agents of change

© 2014 SAGE Publications, Inc. Leadership Theories: Introduction Key questions Are leaders born or made? If they are made, what specific knowledge or skills do individuals need to acquire in order to be strong leaders? What are there specific behaviors that are associated with effective leadership? Key caveats Most of the theories are generic (i.e., intended to apply to all types of organizations, not just nonprofits) There may be no one right theory of leadership that is applicable in every situation, at all times

© 2014 SAGE Publications, Inc. Leadership Theories: Overview Trait theories -- emphasis on innate characteristics of leaders Skills theories -- emphasis on specific skills leaders possess Technical skills – knowledge of the job/profession/task Human skills – ability to work with people Conceptual skills – ability to understand ideas and principles Behavior theories -- emphasis on behavior or actions Task behaviors – actions that relate to the work to be done Relationship behaviors – actions that focus on the feelings of subordinates Managerial grid (Blake and Mouton, 1985) Contingency theories -- emphasis on the situation Servant leadership -- emphasis on values and commitment

© 2014 SAGE Publications, Inc. Transformational Leadership Transactional leadership – rewards or punishment exchanged for behaviors of others Transformational leadership -- inspiring and empowering individuals to go beyond self-interest and pursue goals that are in the common interest Emphasis on developing personal relationships Appealing to shared values and ideals Transactional versus transformational leadership (Burns, 1978) Transformational leaders use transactional techniques, but should not overemphasize them (Bass, 1985; Bass and Avolio, 1994)

© 2014 SAGE Publications, Inc. Charismatic Leadership A leader is someone who behaves in certain ways that cause others to see him or her as charismatic Behaviors that cause others to see a person as charismatic (Rainey, 2003) Advocates a vision that is different from the status quo but still acceptable to followers Acts in unconventional ways in pursuit of the vision Engages in self-sacrifice and risk taking in pursuit of the vision Displays confidence in his or her own ideas and proposals Uses visioning and persuasive appeals to influence followers, rather than relying mainly on formal authority Uses the capacity to assess context and locate opportunities for novel strategies Need for social distance (Fisher, 1984)

© 2014 SAGE Publications, Inc. Effective Nonprofit CEO Behaviors Focus on mission Focus on the board Focus on external relationships Share leadership and empower others Focus on key roles and priorities Use the “political frame” Right person, right place, right time Alignment model (Dym & Hutson, 2005) Founder syndrome and life-cycle theories Executive transitions and leading change

© 2014 SAGE Publications, Inc. Right Person, Right Place, Right Time Alignment Model Seeks to integrate the major leadership theories The leader’s fit with the organization involves traits, skills, leadership style and situation Alignment must be achieved between the leader, the organization, and the community Founder Syndrome Organization’s need for leadership may change over time due to nature of nonprofit life-cycle theories Can pose challenge and even crisis for a nonprofit Executive Transitions Preparation should take place before a transition is needed Viable plan and procedure to be proactive vs. reactive

© 2014 SAGE Publications, Inc. Leading Change Eight-step change process to ensure momentum and provide for real and permanent change: 1.Establish a sense of urgency 2.Create a guiding coalition 3.Develop a vision and strategy 4.Communicate the change vision 5.Empower broad-based action 6.Generate short-term wins 7.Consolidate gains and produce more change 8.Anchor new approaches in the culture (Kotter 1996)