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Miranda R. Dalton – Fall 2011 – PSC 540
http://247wallst.com/2010/11/19/the-most-mismanaged-non-profits/2
Structure
  Board of
                                    Executive Director
  Directors
                                      Manages the
Assumes the
                                          daily
     legal
                                      operations of
responsibility
                                          the
    for an
                                      organization
organization’s
  existence


              Effective or Ineffective?
Contributing Factors


• Conflict of Interest

• Founder’s Syndrome

• Program Monitoring

• Board Size

• Pluralistic Ignorance


                  Ineffectiveness
Conflict of Interest


    Interpretation of Mission and Vision Differ


     How Can Organizations Overcome Conflicts of Interest?

• Training

• Clarity of Roles and Responsibilities of Board & Executive Director




                    Gibelman Research
Founder’s Syndrome


 Emotional Investment of Founder Can Paralyze an Organization

           Personalized Leaders vs Socialized Leaders


                       Discussion Question

How can the emotional investment of the founder influence the board
and impede the progress of the organization?




           Block and Rosenberg Research
Program Monitoring


    “evaluations tends to be on processes and inputs rather than
                       outcomes” (Ott, 2001)

  “ideal methods of evaluation are rarely followed because goals are
    unclear and measurement instruments yield ambiguous results”
                             (Ott, 2001).


                       Discussion Question

How has the Sarbanes-Oxley Act impacted the nonprofit sector and do
 you believe that further government regulation is needed in nonprofit
               governance matters? Why or Why Not?


                    Herman Research
Board Size


Research reveals that smaller boards govern more
effectively

                     Discussion Question:
      Do you agree or disagree with this statement and why?


 Best practice for large boards - Bifurcated Board
 This type of board would allow some members to
 govern while and others are considered non-
 governing members

                   Discussion Question
     What would be the advantages of a Bifurcated Board?

            Klausner & Small Research
Pluralistic Ignorance


  Everyone presumes that the initiative is supported
         because of board member silence.

           Silence = Acceptance = Bad Strategy


                      Discussion Question

 Have you been guilty of not speaking up at work when you knew the
organization was not engaging in best practices? What kept you from
                       voicing your opinion?




                 Holloway Research
Literature Review

  Both Worth and Ott believe that there is no magic formula to board
                            effectiveness

  Worth states that organizations should be skeptical of “the one right
                way” prescription to board effectiveness

Worth and Ott recognizes that there is limited empirical studies on board
                            effectiveness

      Each research article had its own unique approach to board
                             effectiveness

  All cited research had a common theme: Success is dependent on
                      proper strategic planning.
Final Discussion Question




What would be your recommendations to nonprofits
         to ensure board effectiveness?

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Contributing Factors That Lead to Ineffective Nonprofit Boards

  • 1. Miranda R. Dalton – Fall 2011 – PSC 540
  • 3. Structure Board of Executive Director Directors Manages the Assumes the daily legal operations of responsibility the for an organization organization’s existence Effective or Ineffective?
  • 4. Contributing Factors • Conflict of Interest • Founder’s Syndrome • Program Monitoring • Board Size • Pluralistic Ignorance Ineffectiveness
  • 5. Conflict of Interest Interpretation of Mission and Vision Differ How Can Organizations Overcome Conflicts of Interest? • Training • Clarity of Roles and Responsibilities of Board & Executive Director Gibelman Research
  • 6. Founder’s Syndrome Emotional Investment of Founder Can Paralyze an Organization Personalized Leaders vs Socialized Leaders Discussion Question How can the emotional investment of the founder influence the board and impede the progress of the organization? Block and Rosenberg Research
  • 7. Program Monitoring “evaluations tends to be on processes and inputs rather than outcomes” (Ott, 2001) “ideal methods of evaluation are rarely followed because goals are unclear and measurement instruments yield ambiguous results” (Ott, 2001). Discussion Question How has the Sarbanes-Oxley Act impacted the nonprofit sector and do you believe that further government regulation is needed in nonprofit governance matters? Why or Why Not? Herman Research
  • 8. Board Size Research reveals that smaller boards govern more effectively Discussion Question: Do you agree or disagree with this statement and why? Best practice for large boards - Bifurcated Board This type of board would allow some members to govern while and others are considered non- governing members Discussion Question What would be the advantages of a Bifurcated Board? Klausner & Small Research
  • 9. Pluralistic Ignorance Everyone presumes that the initiative is supported because of board member silence. Silence = Acceptance = Bad Strategy Discussion Question Have you been guilty of not speaking up at work when you knew the organization was not engaging in best practices? What kept you from voicing your opinion? Holloway Research
  • 10. Literature Review Both Worth and Ott believe that there is no magic formula to board effectiveness Worth states that organizations should be skeptical of “the one right way” prescription to board effectiveness Worth and Ott recognizes that there is limited empirical studies on board effectiveness Each research article had its own unique approach to board effectiveness All cited research had a common theme: Success is dependent on proper strategic planning.
  • 11. Final Discussion Question What would be your recommendations to nonprofits to ensure board effectiveness?