1 Leadership, Governance and Giving

2 The following material was prepared for the AFP Research Council Think Tank held October 7-8, The event was co-sponsored by the Philanthropy and Nonprofit Leadership Center at Rollins College. The Research Council is indebted to a generous grant from the Edyth Bush Charitable Foundation to the AFP Foundation that made it possible to convene nationally recognized presenters for the 2008 AFP Think Tank.

3 Leadership Dr. Rita Bornstein President Emerita Rollins College

4 Leadership in the Nonprofit Sector What we know –More professional & respected –More complex –Shifting job market (from expansion to contraction) What we need –Succession planning –New concepts of leadership –Changes in governance

5 What We Know (1) More professional & respected –Proliferation of nonprofit centers, courses, degree programs –Many more professionals certified or degreed –Higher compensation / inducements / incentive pay

6 What We Know (2) More professional & respected –More career mobility –More respect, status, & voice  For example, leadership on community and government boards and commissions –Focus on ethics, standards of practice, accountability

7 What We Know (3) More complex –State and federal laws, regulations, reports –Public scrutiny & mistrust –Proliferation & competition (worldwide) –Pressure for coordination, cooperation, combination

8 What We Know (4) More complex –Demands for program expansion –Escalation of campaign goals –Pressure for improved performance –Technology (benefits & costs)

9 What We Know (5) Shifting job market (boom to bust) –Boomers retiring (if they can afford to) –Professional mobility (impeded by economics) –Frequent turnover: loss of relationships & personal knowledge

10 What We Know (6) Shifting job market (boom to bust) –Lack of turnover: resentment & burnout –Inadequate pipeline: lack of diverse, trained, experienced professionals (pipeline may become clogged w/underemployed professionals)

11 What We Need (1) Succession planning –For CEOs, boards, staff –Home-grown talent (high failure rate for outsiders) –Systematic recruitment, training, evaluation, & mentoring –Recruit & train: financial planners, real estate agents, sales & marketing professionals, stockbrokers

12 What We Need (2) Succession planning –Internships for high school & college students, under-employed, others –Focus on diversity –In-house opportunities for cross-training, lateral shifting, career mapping, promotion, rewards, recognition

13 What We Need (3) Succession planning –Individual responsibilities for career development –Industry-wide perspective

14 What We Need (4) New concepts of leadership –Organizations are changing in response to competition, globalism, and needs –This requires changes in leadership style  The end of hierarchy – from ladder to web  Leading from the middle – collaborative, information flow  Working in teams – expertise resides in team (fund raiser, CEO, board member)

15 What We Need (5) New concepts of leadership – Integral – Integrative – Conceptual

16 What We Need (6) Integral leadership –Seeing the organization as a coherent whole –Big picture/holistic thinking (integrate mission, program, fundraising/giving) –One big hat/one big tent Source: Association of Governing Boards of Colleges and Universities

17 What We Need (7) Integrative leadership –Holistic thinking –Ability to consider two opposing ideas at once –Not “either-or” –Forge an innovative third way (elements of each, improving both) –Defining characteristic of top business leaders –Can be learned and become a habit Source: Roger Martin, Harvard Business Review

18 What We Need (8) Conceptual age leadership –Information age: left-brain dominant (analytical, rational, logical) –Conceptual age: right-brain dominant (intuitive, creative, holistic) Source: Daniel H. Pink, A Whole New Mind

19 What We Need (9) Changes in governance –Increased board engagement –Focus on board composition, orientation, communication, participation, evaluation –Transparency and accountability

20 What We Need (10) Changes in governance –Develop a culture of philanthropy (embedded in materials, activities, presentations, etc.) –Shared leadership (team work among the CEO, fund raiser, board member) –Distributed expertise for fund raising (e.g. Gladwell’s Connectors, Mavens, and Closers)

21 Leadership in the Nonprofit Sector SUMMARY What we know –More professional & respected –More complex –Shifting job market (from expansion to contraction)

22 Leadership in the Nonprofit Sector SUMMARY What we need –Succession planning –New concepts of leadership –Changes in governance

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