1. Sample Organization Charts by Size

2. 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.

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

4. 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

5. 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

6. 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

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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. “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