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Board/Management Training [1982-1985]
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Board/Management Training [1982-1985]
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Board/Management Training [1982-1985]
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f Carll Caparasa-
Alumni aBoard
How to get maximum mileage from your alumni governors
by William E. Stone
omeone once said that being an
pleasure of the board." That does tend
an institution's permanent trustees.
S
alumni director wouldn't be such
to get one's attention.
Students and faculty come and go, col-
a bad job if it weren't for the
Italso accounts in part for my ap-
lege presidents certainly come and go,
alumni. That (usually unspoken) sort
proaching my work with our prime
coaches and, perish the thought,
of heresy may cross the mind of any-
volunteer group with the same degree
alumni directors come and go (per-
one who works with and depends on
of purpose that managing a capital
haps not always by choice). But, once
volunteers. But I was the one who said
campaign or editing a magazine de-
an alum, lifetime tenure.
it out loud.
serves. That's why I've found it useful
2. Voluntarism is undergoing
Along these same lines, my staff col-
to think of the board not as a quarterly
dramatic changes. Women who once
leagues at other institutions have even
ordeal but in programmatic terms:
had time for unpaid work are now in
whispered to me that they look for-
What can I do to assure that its
the job market. Self-achievement is
ward to board meetings the way they
members will come away from their
valued more than service. Idealism is
look forward to a funeral on the morn-
tours of duty with the same sense of
under siege in some quarters. It's easy
ing of a dentist appointment. I confess,
satisfaction and usefulness that we set
to believe, to borrow a thought from
though, that this kind of testimony
as goals for reunions, clubs, seminars,
Stanford President Donald Kennedy,
generally catches me by surprise.
tours, publications, and the like?
that the whole world is made up solely
For the record, I should note that
Let's consider the answers to this
of venture capitalists and software
our alumni association's major volun-
question on a couple of levels.
designers.
teers, particularly the ones on our
At the same time, the complexity
governing board, are a considerable
A few ground rules
and sometimes the risk of our alumni
preoccupation for me. The bylaws, for
1. In the sense that they're the only
programs is increasing. This means
one thing, note that I serve "at the
unchanging constituency, alumni are
volunteers need to spend more time
PROBLEM BOARD MEMBERS I HAVE KNOWN
I'erning board, the history of the gov-
PROBLEM: DIDN'T-DO-THE-
we would no doubt
HOMEWORK DUDLEY. He's full of ad-
discover some archetypal volunteers
vice and opinions, but be's a bit wide
who add challenges to our work and
of the mark on most subjects because
sleeplessness to our nights.
be's never prepared.
You know the types. Inevitably, at
SOLUTION: If you cannot gracefully
I one time or another, a few somebow
donate bim to the university parking
get elected. Sometimes more than a
committee, consider bis individual
few get elected, and they take over.
skills and interests for a special as-
When this happens, the alumni asso-
signment. We took a chance and en-
ciation loses, the institution loses,
trusted a complicated but narrowly
6
and the alumni director may start
focused project to one of our less
working on the old résumé.
6
productive colleagues last year. To our
Before you do anything drastic, I
relief, not only did be do it well and
have some free advice. Look at your
energetically, but be also relaxed
roster of board members and draw up
when the topics about which be knew
a list of your problems. Then develop
less came up for debate. We got some
a strategy for each. I've tried this, and
useful work from bim and saw bim
it works. Here's proof.
off with mutual good feelings.
C
L
6
C
6
c
6
DIDN'T-DO-THE-HOMEWORK DUDLEY
Illustrations by Guy Scbum/CASE
May 1984
photographs-some dating from the 1870s
-for its alumni weekend. The exhibit fo-
cused on WVU'S history, showing turn-of-
the-century classes, original buildings, and
old-fashioned dress. The photos are now
permanently mounted in the student din-
ing room, though some do double-duty in
campus calendars, publications, and picto-
rial histories.
and energy to serve effectively. It's
hard work to get the best people to
NO-SHOW
volunteer their undivided attention
precisely when you need it most.
3. Lines between volunteers and
NATASHA
staff are blurring. So? Relax. If we
approach our jobs with all the flexibil-
ity of the Great Santini, we'll miss some
C
opportunities. Because of the com-
C
plexities and pressures of our work, it's
important to be able to depart from
'
PROBLEM: NO-SHOW NATASHA. Her
the bylaws or job descriptions on OC-
casion. That requires shared assump-
crises elsewbere are real and her
tions and trust. And here I want to talk
apologies profuse, but she is bolding
about some strategies that guarantee
a valuable seat that might be rede-
that these vital assumptions will in-
(
ployed to advantage.
deed be common ones.
SOLUTION: Have a respected
member of the board propose a bylaw
The volunteer life cycle
or rule that simply states: "Any
(
A marketing wizard might say there
member who is unable to attend two
are four phases in the product life
consecutive meetings shall be deemed
cycle of the volunteer or board
to have resigned." Bingo. No need to
member: identification and selection;
NATASHA
apologize, no need to duck an awk-
information and orientation; involve-
ward situation. This also gives ad-
ment; and recycling. Here are strate-
vance notice that your work is serious
gies for dealing with each phase.
and commitment to it should be
undertaken carefully.
1. Identification and selection
Obviously, you don't need me to tell
give you added control over the work
who work with trustees, athletics, vis-
you to "get the best people you can."
of an independent selection panel if
iting committees, and so on, by being
You know that, and we both know that
you are not-an often underestimated
candid about our experience with one
"best" isn't a useful definition when
point from my observations.
or another well-intentioned volunteer.
you're sorting through potential vol-
Where to look for nominees? For my
I'm confident that my contacts will do
unteers. What you need to arrive at a
money, alumni who have earned their
likewise. This is an important network
useful definition are answers to ques-
stripes in other volunteer assignments
to have in place when you're looking
tions like these:
are the obvious starting point. If our
for something new for your best peo-
What skills do you need?
staff doesn't know these alumni per-
ple as well.
What's the board's role?
sonally, we send them questionnaires.
Once you have the names of the
What technical slots need to be
These are labeled as talent bank sur-
intended victims, it's time for a large
filled?
veys with no implied or expressed
dose of truth in advertising. What do
What demographics should the
commitment. The questionnaires ask
you really want from Mr. and Ms. X?
group reflect?
for a short résumé of professional,
Their participation in a rubber-stamp
In what ways will individuals
Stanford, and civic work.
group that will make minimal demands
have to work together and work
Another source for us is the applica-
on your time and attention? Their
separately?
tions we use in elections for the uni-
names on your masthead as a kind of
These questions will give you a start
versity board of trustees. Imagine the
good-housekeeping seal of approval?
on a shopping list if you are responsi-
value of a file cabinet with two or
Or do you take seriously their at-
ble for a pool of nominees. It will also
three hundred complete dossiers on
tendance and preparation for meet-
potential leaders, complete with refer-
ings, and estimate that you need the
William E. Stone, a survivor of several
ences and individual statements on
equivalent of three work weeks of
boards and terms of community vol-
important issues. Those dossiers make
their time in the next 12 months?
unteer service, is association director
for great fishing expeditions, and
Which of their skills are you going to
of the Stanford Alumni Association in
they're an unbelievably helpful early
call on? Maybe you need an attorney
Stanford, California. Although the
warning system about those rare
who doesn't bill you, or perhaps you're
SAA is not legally affiliated with Stan-
alumni who show few signs of ever
having trouble selling ads, or possibly
ford University, the association's mis-
having gone to college-much less to
you need to involve more young alum-
sion is to serve the interests of its
your own institution.
ni or minority graduates, or, or, or-
members and the university. SU is a
Campus colleagues are another
make that and, and, and!
private institution of 12,500 students.
source. I know I've helped the people
This, in sum, is full disclosure time.
bring in 1,602 new donors, which gave
encourages seniors to get in the giving
Hope a 45 percent participation rate and a
habit; and so easy that it takes little money
27.7 percent giving increase. The effort
or staff time. It's the St. Lawrence University
helped HC top last year's record and its
Thanks-for-Giving Phonathon. For a paper
campaign goal. Tom Renner, director of
outlining details, from how to enlist volun-
information services, says the directory has
teers to scheduling the jazz band, write
some unusual features. He has 75 copies at
Carol J. Christie, Assistant Director of An-
HC, Holland, MI 49423.
nual Giving, SLU, Canton, NY 13617.
Believe me, honesty up front pays off
manage it, a retreat for newcomers and
operating plan. Drafted by staff, the
later. If someone is going to be a disap-
important staff may pay off down the
plan outlines the means to achieve
pointment (or disappointed), better to
line, too. We usually add that to the
the goals from the prior meeting.
know that at the outset.
meeting just before the start of their
Stage 3, three months before the
terms. Then, and only then, do we
next fiscal year, is the budget meeting.
2. Information and orientation
unleash the upperclassmen to show off
That's when the governing board re-
Now to the ones who say yes.
their amazing grasp of the enterprise
views resource commitments to meet
At Stanford we send our board
and its nuances. It's a bit like sopho-
the objectives of the five-year plan.
communications to new members be-
mores showing off to the freshmen at
The idea throughout the year is to
fore they take office. Bewildering or
that point, but at least we've already
narrow the focus to a precise set of
not, monthly activity reports and
had the first crack at them.
manageable options that set our
financial statements go to everybody.
For newcomers and repeaters alike,
course for the ensuing period. The
So does our faculty/staff newspaper. In
it's helpful to walk through a year of
next year, we repeat the process with a
addition, new volunteers get invited to
board activity to set a scheme for all to
new group of freshmen.
our activities in their areas and are
follow. Ours is a simple schedule, but it
advised of events elsewhere. They also
allows us to ration and allocate re-
3. Involvement
get a call from a staff member who's in
sources. We divide every year into
their territory on other business, just
three stages, each tied to one of the
Since we've talked specifically about
to make it easier to match names and
three meetings of the group.
meetings already, let me mention a
faces and to give them at least one
Stage 1 is an annual review of our
couple of other pointers about those
acquaintance at the office.
association's objectives and goals-a
delightful occasions when they're all
By the time our board members re-
broad and meandering discussion of
coming tomorrow! Or Zeus, they're
port for duty, they have at least a work-
what we ought to be about.
already here! As with any program,
ing vocabulary in what might other-
Stage 2, three months later, is the
being overprepared is the key.
wise be a foreign language. If you can
annual consideration of a five-year
Our mainstay is what we call the
board book, a three-ring binder that
we prepare for each meeting. It is a
collection of everything the board
GRANDSTAND
member needs, such as agendas, pro-
posed items for action, minutes, and
resolutions, all in order of urgency for
GREGORY
each board committee.
On yellow paper in the back are
reference materials. These include
board member biographies with pic-
tures (so you can remind yourself just
who that S=%&* at the end of the
table is); bylaws (so that you can find
out how to nominate him or her for
early retirement); lists of phone num-
bers and staff charts; one-page sum-
maries of the year's work for each of
the 10 standing committees (to dis-
courage reinvention of the wheel); and
the newest draft of our goals statement
(to stifle debate about our mission
PROBLEM: GRANDSTAND GREG-
when we're supposed to be approving
ORY. He's the one who loves to show
the reunion budget).
off at meetings and zap the staff, but
When the stuff changes, we issue
who bas little of value to add.
updates, along with careful instruc-
SOLUTION: Again, find a specific as-
tions about how to open the binder
signment that carries with it some
and what to take out.
responsibility and recognition. At my
The neatest trick of all is a rule that
first meeting, we had three of these
our staff must always have the book in
back benchers, all trying to one-up
the mail 10 working days before the
each other in criticism of staff
first meeting session. We urge mem-
preparation.
bers (1) to read it or at least the ap-
By the way, two of them became
propriate parts of it when they receive
presidents of the association.
it and (2) to ask questions of indicated
with colorful campus memorabilia. After
alumni travel, continuing education pro-
the cover drew raves from nostalgic SMU
grams, and campus events, Alumni News
fans, the Class of '84 adapted it into a poster
goes two times a year to members in cities
for a fund-raising project. Next season, says
where large numbers of alumni live. For
Editor Patti LaSalle, the photo may go to bat
one of 50 copies, write Nancy Raskin, Di-
again on an alumni association brochure.
rector of Alumni Programs, GU, 3604 o St.,
NW, Washington, DC 20057.
staffers before they come. The people
PROBLEM: LOVE-THE-PLACE-
who've done their homework are thus
LYNETTE. She says yes to 17 assign-
more helpful, and the ones who
ments because she bleeds your school
haven't are at a disadvantage that's ob-
colors. Then she's hopelessly overbur-
vious to all.
dened-to the detriment of
If I'm the staff person in charge of
everybody.
the whichever committee, I also have
SOLUTION: Try rationing her chores
a note on my calendar to call the
-by mutual agreement with an in-
committee chair a few days ahead of
stitutional colleague or two. This
the meeting to review the agenda and
C
way, the university is not the victim of
agree on a meeting plan. You can imag-
marginal contributions throughout.
ine how many times that has headed
off a serious problem or redirected
debate on important matters. It also
CC
LOVE-THE-PLACE
gives the volunteer in charge confi-
dence about what work needs to be
done and a chance to direct and lead
C
LYNETTE
in the most useful ways.
The special beauty of providing
homework before the meeting is that,
once the book is on the way, you and
C
your colleagues are free to concen-
trate on ways to enhance the meeting
itself. For us that usually includes some
chance to meet with faculty and stu-
dents or to get an "executive briefing"
on some aspect of institutional policy
that is not in the papers.
We also include time for the board
members and spouses to do something
fun. Try anything: wine tastings,
4. Recycling
profit from the help of good alumni
dinners at unusual campus locations,
"Recycling" is the term we prefer to
volunteers.
roasts, board VS. staff snowball fights at
"retirement." We believe it ought to
I'd argue that, as a category, alumni
the Stanford Sierra Camp, blackjack-
include some formal tribute to each
board "alumni" constitute a potential
dealing for a senior class casino party
graduating member for his or her con-
booster group the likes of which it
-in short, whatever will give the
tributions. Because I am not a fan of
would be impossible to create other-
members (and their relatives who can
engraved trophies that might also have
wise. We have given ours formal stand-
profit from an understanding of what
been captured by the member's basset
ing and work with them in much the
you do) a good sense of family.
hound, we're partial to framed, suita-
same way we work with reunion
We've also been fortunate to have as
bly inscribed, large color photographs
classes. We assemble a quarterly news-
working board members a few indi-
of a cherished campus vista. With luck,
letter as well as a periodic gathering of
viduals for whom time itself is a big
these end up on display in offices and
the faithful. These graduates keep up
contribution. Currently, that group in-
homes for other alumni to see-free
on our problems and ambitions, and
cludes the president of the university
advertising for us as well as for the
they are a network of informed
(elected by the board, not installed
volunteer.
spokespeople for our association-in
from on high) as well as carefully
As we see it, the deprogramming
perpetuity, on call when needed.
screened senior business and profes-
process should include a conversation
Whatever your situation, think of
sional people who remind the rest of
about other appealing forms of service.
your board as a reflection of how well
us that our assignments are serious.
I already mentioned a network with
you're doing your job. Few, if any, in-
One of our other mainstays has been
departmental colleagues who also
stitutions lack a reservoir of good will
a policy the board itself set during a
work with alumni volunteers. It's al-
and loyalty on the part of their
particularly rough period for us finan-
ways an asset to have someone in de-
graduates. Make the most of it. If you
cially. Board members are not only
velopment or trustee meetings who
are doing well, you'll have first-hand
encouraged to pay their way to meet-
understands your mission and has en-
evidence of your success after every
ings, but they're also notified of out-
joyed contributing to it.
meeting-and you'll have a rich range
of-pocket costs the association incurs
Nor should retirement be the end of
of friendships and experiences to boot.
in working with them and invited (not
an individual's involvement with you.
IfI am an enthusiast about my line of
required) to make a small contribution
There are endless committees, clubs,
work, this stems in large part from
to the organization.
reunions, and special projects that will
precisely that kind of dividend. CASE
MAY 1984
45
Voluntary Action eadership
1066 is of THE 4. GETSU boy
WINTER1 983
THE
NONPROFT
BOARDIN
1983
Growing Expectations
Greater Responsibilities
Voluntary Action
Contents
Leadership
Features
WINTER 1983
12
Effective Boards in a Time of Transition
By Eva Schindler-Rainman, D.S.W.
The author presents the major trends that imply new challenges
Published by VOLUNTEER
for nonprofit boards of directors.
The National Center for Citizen Involvement
THE
14
The Business of Boards
NONPROFIT
HONORABLE GEORGE ROMNEY
is Serious Business
BOARDIN
Chairman
By G. Neil Karn
1983
What are a board's moral and
DIANA L. LEWIS
legal responsibilities in this
Vice Chairman
age of increasing account-
ability and decreasing re-
KERRY KENN ALLEN
sources? Neil Karn explains.
President
16
What Nonprofit Board Members Should Know About Legal
BRENDA HANLON
Liability
Editor
By Stephen H. McCurley
Today, the decision-making board volunteer assumes an
STEPHEN M. KELLEY
increased responsibility-particularly from the legal standpoint.
Circulation
19
How to Be a Better Board Member
AMY LOUVIERE
Intern
By Don Bates, APR
Six guidelines for trustees.
20
The BBB (Building Better Boards) Project
By John Weber
Subscription Problems?
A look at a three-year project/that is establishing board training
services from coast to coast.
VAL subscriptions are pro-
22
Volunteering in America, 1982-83
of
cessed through VOLUNTEER's
By Kerry Kenn Allen
/
office in Boulder, Colorado. In-
The annual status report on
volunteering-what happened in '82
quiries concerning your
will continue, but to what degree?
subscription or changes of ad-
dress should be sent to: Volun-
25 The President's Task Force on Private Sector
tary Action Leadership, PO Box
Initiatives- What It Did to Promote Volunteering
Ten pages of results and products of this presidentially
4179, Boulder, CO 80306, Attn:
appointed 44-member group, including the final report of the
Steve Kelley. Phone: (303) 447-
Marshalling Human Resources Committee, recommendations
0492.
of the Contributions Strategies Committee, and useful excerpts
from "Volunteers: A Valuable Resource."
Copyright 1983 by VOLUNTEER: The National Center for
Citizen Involvement. All rights reserved. Contents may not
Departments
be reproduced in any manner, either in whole or in part,
without permission from the editor. Voluntary Action
Leadership is published quarterly by VOLUNTEER: The
5
Voluntary Action News
National Center for Citizen Involvement. Bulk postage paid
10
Communications Workshop
at Washington, D.C. Subscriptions: $12 one year (pre-
paid); $22 two years; $32 three years. Outside U.S. Canada
35
Tool Box
add $4; foreign add $8 (prepaid). Changes of address:
Send both old and new addresses, including zip code to:
37
Readers' Advisor
CIRCULATION, Voluntary Action Leadership, PO Box 4179,
39
Letters
Boulder, CO 80306. Allow at least six weeks for change to
take effect. All other correspondence should be directed
40
Calendar
to the editor, c/o VOLUNTEER, 1111 N. 19th St., Room 500,
Arlington, VA 22209, (703) 276-0542.
3
VOLUNTARY ACTION LEADERSHIP Winter 1983
Mc Donald
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Non-Profit Board
Issue 9 Volume 5
May 1985
longld
DON'T BE A CASUALTY
OF THE REVOLUTION
IN HUMAN RESOURCES
Many Boards Are Facing
Implications of Change
Starting In Health Care
Casualties of Revolution
What started as a competitive battle among hospitals
In Human Services
for beds in the community health care delivery system has
Page 1
spread to the complete network of human service agen-
cies.
Writing Your Mission
Statement
Page 2
Plainly it is a revolution - not a transition as many
are calling it.
Discover The Significant
Trends Affecting You
Shock waves of the revolution are spreading to all
Page 4
segments of the human service delivery network as first
reported in last month's issue of Non-Profit Board.
News Of Interest
Page 7
WHAT IT MEANS TO BOARDS
The crisis, even though not yet recognized by the vast
majority of human service organizations, is one that
demands priority attention by the Board of Directors of
each organization.
But far too many Boards are busy with current fun-
ding problems and have been reluctant to devote any time
to looking down the road.
"When I grew up in Louisiana," one Board member
in Virginia told us recently, I learned that when you are
in the swamp fighting alligators, the one that has the best
chance of getting you is not the one you are fighting. It is
Copyright 1985 by McDonald Management Training Group
the one that you never see coming up behind you!"
No portion of this copy may be reproduced
or published without written permission.
Careful assessment of exactly what is happening in
Published monthly at $75 per year at
5992 Cypress Lane, Bonita Springs, FL 33923
each market area of each organization is the key to mak-
Mailing address: P.O. Box 219
Tel.: (813) 992-5547
ing the best plan for the future. Without an accurate
assessment, plans can be meaningless.
~CLip
Karen
Non-Profit Board
April 1985
Issue 8, Volume 5
MARKETING MISUNDERSTOOD
Marketing Misunderstood By
Organizations Needing It
BY THOSE ORGANIZATIONS
Page I
WHO NEED IT THE MOST
Marketing, Strategic Planning
Help Manage Change
Check Your Organization
Page 2
To See If It Utilizes
Some Hospitals Moving
The Power of Marketing
Into Voc-Rehab
Page 3
Few Voluntary Organizations understand what is
meant by total marketing and thereby pass up what could
True Marketing Can
Help You In Many Ways
be one of the most powerful tools of management.
Page 4
Simply put, Total Marketing is being responsive to
How To Start Strategic
customer needs.
Planning & Marketing
Marketing orientation is the opposite of product
Page 6
marketing that is practiced by the vast bulk of non-profit
News Of Interest To
organizations.
Voluntary Organizations
Page 7
WHO IS YOUR CUSTOMER?
Wake Up Before It Is
To be customer oriented the organization must first
Too Lake To Change!
of all be able to identify exactly who the customer is. Sim-
(An Editorial)
ple as that sounds, it is not easy!
Page 8
Many organizations have been surprised to discover
that their primary customer, at least the one with the
ability to buy, is the state counselor who refers the in-
dividual to the services of the organization.
True, the one ultimately served is the person needing
the services of the organization-or services of that type.
Years after the business world proved the power of
true marketing many non-profits have failed to realize
Copyright 1985 by McDonald Management Training Group
No portion of this copy may be reproduced
they are product oriented-not marketing oriented.
or published without written permission.
Published monthly at $75 per year at
Product orientation led many competitive firms to
5992 Cypress Lane, Bonita Springs, FL 33923
Mailing address: P.O. Box 219
bankruptcy. It will do the same for many voluntary
Tel.: (813) 992-5547
organizations.
For And Boar
ANDREW SWANSON
COMMUNITY SERVICES
CONSULTANTS, LTD.
MEETING SENSE
For Boards and Board Committees
is the third in a series of monographs dealing with
the management of community service organizations
by voluntary boards of directors and is available
from Community Services Consultants, Ltd. P.O.
Box 2644, Providence RI 02907.
your
THIS
organiza. OF GREAT
Copyright © 1984
ANDREW SWANSON
The
he decisions that are reached in meetings of a board are the end product
of all board activity. The meetings of board committees and of the full board
itself should be regarded as the principal tool that is used in order to arrive
at those decisions. How well those meetings are prepared for and how well
they are conducted will have much to do with the quality of the board's
decisions.
Meetings should also be considered as part of a total network of board
activities. There are four inter-related components of board activity which
must work together in order to have productive meetings and, thus, sound
decisions. They are as follows:
1. There must be a year-round leadership development effort to assure
the board of a continuing supply of people with the necessary skills, talents,
community linkages and other relevant characteristics, when and as needed.
This is, perhaps, the most important component for lacking capable people,
the remaining three components fail or, at best, are severely hampered.
2. The members of the board must all understand the fundamental respon-
sibilities that go with board membership.
3. There must be a family of well thought out and productive committees.
4. The meetings themselves must be properly prepared for and conducted.
Meetings of any board and that board's several committees should be viewed
within the context of a complete agency year. It is in meetings of the board
where most of the many issues with which the board must deal originate, and
then eventually return for decisions. Between these two extremities the
board's committees will be employed to study, research, review, evaluate,
deliberate and reach recommendations upon which the full board will then act.
It is therefore good practice for any board to develop a master calendar for
the full organization year which will list all of the activities with which
the board expects to be involved together with all of the regularly scheduled
meetings of the full board, as well as those anticipated for the board's active
committees.
In this monograph we will use the term "board" and this will mean any type
of governing or advisory board or council in an established, or about to be-
come established, nonprofit human service, arts or environmental organization.
When we use the term "committee" we will mean any committee of such a board.
GOOD BOARDS ARE DELIBERATELY ASSEMBLED
How successfully a board or its committees will function, and how produc-
tive their meetings will be, will depend in a very large measure upon the
GAINING
MOMENTUM
FOR
BOARD
ACTION
Marlborough Publications
P.O. Box 16406
San Diego, California 92116
Contents
Introduction
5
Section 1
GAINING MOMENTUM
for understanding the basics
YOU AS BOARD MEMBER
Board member expectations; what is expected of board members; information board
8
members need
BOARDS DEFINED
Policy making boards and advisory councils; summary of tasks
14
BOARD STRUCTURE
Formal and informal structure; by-laws; size of board; formal and informal leadership;
standing and ad hoc committees; recruiting and retaining committee members
18
YOUR COMMUNITY
National trends; concepts of community; the boards relationship to community;
importance of collaboration
24
Section 2
GAINING MOMENTUM
for accomplishing tasks
PLANNING
Planning steps; who plans and when; planning guidelines
28
POLICY-MAKING
Policies and procedures defined; variables that influence policy
34
FUND-RAISING
Board fund-raising responsibilities; fund-raising approaches and sources
36
FINANCIAL MANAGEMENT
Budget and accounting systems; responsibilities of board in financial management;
controls; glossary of financial management terms
42
PUBLIC RELATIONS
Formal and informal, external and internal public relations; board responsibilities and
limitations, public relations guidelines
48
PERSONNEL
Hiring and supervising the executive director; basic personnel functions
54
BOARD RECRUITMENT AND RETAINMENT
Importance of strong board members; system of recruitment; nominating
committee responsibilities
59
Section 3
GAINING MOMENTUM
for working together
LEADERSHIP
Leadership effectiveness; styles of leadership; development of new leadership
66
GROUP PROCESS
Basic skills needed by board members; meeting agenda development; committee
reports; techniques for generating ideas; problem solving and decision making
methods; conflict resolution
72
TEAM BUILDING
Basic elements of a team; factors that influence team effectiveness
80
BOARD AND STAFF
Qualities board and staff bring to the organization; determining responsibilities of board
and staff; building good working relationships
84
Section 4
GAINING MOMENTUM
for continuing board development
Reasons for board development; focus on organization purpose; approaches to
development for the total board and for the individual board member
92
Appendix
Bibliography
Sample by-laws
Worksheets
1
WHAT I EXPECT
WHAT IS EXPECTED OF ME
Goal: To assess the expectations you have about board membership and to understand the
expectations other people have of you as a board member.
10
2
WHAT YOU NEED TO KNOW
Goal: To ensure the availability of relevant board and organization materials that are necessary
for informed, appropriate and legal decision-making
12
3
FORMAL LEADERSHIP OF OUR BOARD
Goal: To help you determine the formal leadership and working relationships of the board.
20
4
INFORMAL BOARD STRUCTURE
Goal: To determine the informal structure of the board.
21
5
YOUR COMMUNITY
Goal: To help you begin gathering information about your organization and its community.
25
6
PLANNING
Goal: To help your board plan more effectively.
31
7
FUND-RAISING
Goal: To provide an overview of your organization's fund-raising programs.
41
8
FINANCIAL MANAGEMENT
Goal: To identify what information/understanding board members already have and to
stimulate interest in finding answers.
47
9
PUBLICITY
Goal: To provide a checklist for current publicity activities and future planning.
53
10
PERSONNEL POLICIES
Goal: To summarize current personnel policies.
57
11
BOARD MEMBER RECRUITMENT
Goal: To establish a planning calendar for the Nominating Committee.
63
12
LEADERSHIP DEVELOPMENT
Goal: To assess your organization's methods of leadership development.
71
13
WHAT WE DO TO KEEP OUR GROUP WORKING TOGETHER
Goal: To look at those actions which help a board work on a task and build board
cohesiveness.
79
14
FACTORS IN TEAM EFFECTIVENESS
Goal: To enable the board members to assess and evaluate their own individual perceptions of
board teamwork.
83
15
BOARD AND STAFF
WHO DOES WHAT
Goal: To improve board-staff relationships by coming to consensus on who has primary
responsibility for various organizational tasks.
89
16
BOARD DEVELOPMENT READINESS SURVEY
Goal: To help gauge individual and total board's commitment to development.
96
17
GAINING MOMENTUM for Board Action SURVEY
Goal: To assess current board effectiveness or 'preparedness'.
97
BREAKING
THE
BOARDOM
An Annotated Bibliography
On Boards and Councils
SCW:
by David Magnani
and
Newell McMurtry
The Citizen Involvement Training Program is a resource of the School of Education, Division of Instructional
Leadership at the University of Massachusetts
©
University of Massachusetts (Citizen Involvement Training Program) 1983
The contents of this book are the sole responsibility of the authors; endorsement of the content by the University of
Massachusetts or sponsoring organizations should not be inferred.
Cover design by David Magnani
iii
TABLE OF CONTENTS
ACKNOWLEDGEMENTS
INTRODUCTIONS
About the CITP Program
>
About the CITP Manual Series
V
Getting the Most Out of This Bibliography
vi
1 Learning to be a Board Member:
Introductory Materials for the
Orientation of a New Board Member
A. Books
1
B. Papers and Journal Articles
4
C. Pamphlets and Manuals
5
2 Becoming a Better Board Member:
Detailed Manuals for Advaced Study
A. Books
12
B. Papers and Journal Articles,
16
C. Pamphlets and Manuals
25
3 Training Resources for Board Trainers
and Administrators
A. Books
34
B. Papers and Journal Articles
36
C. Pamphlets and Manuals.
44
4 Board Development Theory
A. Books
52
B. Papers and Journal Articles
55
C. Pamphlets and Manuals
64
5 Topical Information
I. Effective Meetings
A. Books
66
B. Papers and Journal Articles
68
C. Pamphlets and Manuals
70
II. Legal Implications of Boardmanship
A. Books
74
B. Papers and Journal Articles
76
C. Pamphlets and Manuals.
79
III. Public Relations/Fundraising
A. Books.
81
B. Papers and Journal Articles
84
C. Pamphlets and Manuals
87
IV. Nominating Process/Board Recruitment
A. Books.
89
C. Pamphlets and Manuals
90
V. Chief Executive Officer/Board Member Relations
A. Books
91
B. Papers and Journal Articles
92
C. Pamphlets and Manuals
96
VI. Policy/Goals/Evaluation
A. Books
100
B. Papers and Journal Articles
103
C. Pamphlets and Manuals
106
VII. Board-Employee Relationships
A. Books
B. Papers and Journal Articles.
108
C. Pamphlets and Manuals
109
111
6
Resource Organizations and Other
Bibliographies
112
Fundamental
Practices
for Success with
Volunteer Boards
of Non-Profit
Organizations
A SELF-ASSESSMENT & PLANNING GUIDE
By
Nancy S. Nordhoff
Jo Larsen
Putnam Barber
Dorothy P. Craig
FunPrax Associates
711 Skinner Blda
Seattle WA 98101
Fundamental Practices
Acknowledgements
United Way of King County volunteers and staff have given generous support throughout the preparation of
Fundamental Practices. The book began as a project of the United Way Volunteer Bureau Advisory Board; we
particularly want to acknowledge the advice and encouragement of three advisory board chairs, Prue Baldwin,
Sally Walker and Elisabeth Tuttle. Along with many other members of the staff, Roger Thibaudeau and Jan
Knutson contributed important insights and suggestions; Jim Bob Gallaway gave invaluable assistance in
preparing the book for press.
In its final form, Fundamental Practices reflects the wisdom and experience of many people, some of whom
are listed here.
Advisory Board Committee
Consultants
Editor
Nancy S. Nordhoff, chair
Ellen Gamrath
Elisabeth Tuttle
Putnam Barber
Dorothy P. Craig
Mary Gates
Sally Walker
Linda Clingan
Joseph Kahle
Mel Warn
Bernita Birmus
Jan Knutson
Graphic design
Pete Guzzo
Alan Waugh
Bonath & Associates
Mary Ann Lawson
Robin Webber
Christine Meade
Rick Lynch
Mollie Pepper
Colleen Willoughby
Valerie Lynch
Printing
Jo Larsen, staff
Wendy Morgan
W.F.Hall
Ralph Munro
Bob Ness
Clerical support
Kay Rapier
Joan Baley
Judy W. Schroeder
Copyright © 1982 by
FunPrax Associates
Forthcoming in this Series:
A Limited Partnership
Fundamental Practices for Success
Excerpts from this book may be freely
with Service Volunteers
reproduced for use by non-profit organi-
Fundamental Practices for Success
zations. Reproduction of any part of this
with Volunteer Advisory Groups
book in any form or by any means, for re-
sale or commercial gain, may be made only
with prior written permission of the publisher.
The following statement should appear on
Library of Congress Cataloging in Publication Data
all reproductions of substantial excerpts:
Main entry under title:
Reproduced from Fundamental Practices
for Success with Volunteer Boards of
Fundamental practices for success with volunteer boards
Non-Profit Organizations, by Nancy S.
of non-profit organizations.
Nordhoff, Jo Larsen, Putnam Barber and
Bibliography: p. 125
Dorothy P. Craig
1. Associations, institutions, etc. - Management
Copyright © 1982,
Handbooks, manuals, etc. 2. Corporate planning- Handbooks,
FunPrax Associates, A Limited Partnership
manuals, etc. 3. Voluntarism - Evaluation - Handbooks,
711 Skinner Building
manuals, etc. I. Nordhoff, Nancy S., 1932-
HV41.F944 1982
Seattle, Washington 98101
361.7'63'068
82-83808
IBSN 9-0609972-0-2
Fundamental Practices 1
Table of Contents
Page
How to Use this Book
2
Fundamental Practices for Success
with Volunteer Boards of Non-Profit Organizations
Chapter 1 Self-assessment
5
Fill out quick self-assessment checklist
Complete self-assessment exercises
List improvements needed
Chapter 2
Planning for Change
99
Review improvements needed
Select improvements
Plan for action
Refine the plan
Implement the plan
Chapter 3
Measuring Progress
111
Follow up with summary checklist
Appendix
Recommended Reading
125
Blank Worksheets
127
List of Major Improvements Needed
List of Minor Improvements Needed
Priority List of Major Improvements
Action Plan
7
BOARD FUNCTIONS
I. WHAT (STRUCTURE) É How (PROCESS)
- POLICY Determination
- Legal stewardship.
— Public accountability
- Problem - solving
II.
PROGRAM PLANNING
- Defining needs and target population
- Develop goals and objectives
- Monitor and evaluate programs & activities
III FINANCE
-
Fiscal planning cantrol, reporting
- Development of financial resources.
IV PERSONNEL
Staff chief executive
— Personnel policies
II PUBLIC & COMMUNITY RELATIONS
- Inform public
I
Inter act with constituencies
-
Help with community relations.
ACCESS INFORMATION II
A Region V Conference on Independent Living
University of Wisconsin, Milwaukee, Wisc.
July 7-8-9, 1982
BACKGROUND RESOURCE MATERIAL FOR TRACK A*
How To Survive and Prosper in the 80's
Page 1
Outline For Financial Development Planning
Page 2
IRS 990 Form A Goldmine
Page 3
Twelve Basic Steps In Foundation Grant Process
Page 5
Writing The Private Sector Proposal For Funding
Page 7
Check List For Non-Profit Board Evaluation
Page 8
Policy Versus Administration
Separate Them!
Page 10
Do's & Dont's In Dealing With News Media
Page 12
Checklist To Rate Your Management Skills
Page 15
Management Skills Personal Growth Program
Page 16
Action Plan For Team Building
Page 19
My 30-Day Goal Action Plan
Page 20
About The Presenter
Presenter:
Fred W. McDonald
200 North Wheeling Rd.
Prospect Hts., IL 60070
Tel. 312-255-0078
Address after August 1, 1982:
Fred W. McDonald
1132 Hinckley Road
Bonita Beach, Florida
33923
*All resource material for this conference copyrighted by
McDonald Management Training Group and extracted from current
training manuals published by MMTG.
Mc Group
ling Road
PLANNING FOR FINANCIAL DEVELOPMENT
Prospe
9
illinois
I What must I do, and by what date, to establish the needed
organizational structure to carry out our financial development plan?
II What must I do to determine the feasibility of our achieving
our financial development goals?
III What skills must we add, or improve, to achieve our financial
development goals? How will I do this?
IV How much money must we raise, and by what dates? What "Reasons
For Giving" can we advance to convince prospective donors?
V Specifically, where will we get this money?
Foundations
Corporations
Individuals
Special Events
OTHER:
VI What plans do I have for each specific source of potential
funding? Timetable? Staff & volunteer assignments?
VII What checkpoints have I set up along the way to monitor
progress and make adjustments?
THE IRS 990 FORM-GOLD MINE OF INFORMATION
Perhaps the best single source for information on
foundations in this country is the U.S. Government. Each
foundation is required to file an annual report with the
IRS and at the same time send a copy of that report to
the state's attorney general.
These forms, called the IRS 990 , are in the process
of being changed this year but the same basic information
is provided in the form---and what is most important to
you, copies of these forms are available to you through
your state's attorney general's office. They are usually
made available for inspection shortly after filed, in
most cases around mid-May of each year.
Information in the 990 includes the address of the
foundation's principal office where records and books are
kept.
Total contributions and gifts for the tax year.
Gross income for the year.
Disbursements for the year, including administrative
expenses.
Name and address of each grant recipient during the
year; amount awarded and for what purpose and the relation-
ship, if any, between any recipient and foundation officers
or key contributors.
The latest reports put the number of foundations in this
country at approximately 28,000 but more than 5,000 of these
have not given grants recently, or for one reason or another
do not give grants at all.
DO NOT OVERLOOK THE SMALL FOUNDATION
Of the 22,000 plus foundations that are active in the
grants business, less than 1200 award total grants for the
year in excess of $100,000.
That explains why 90% of the grant applications go to
less than 10% of the foundations. Put in a more favorable
way for you would be the fact that 90% of the foundations
receive less than 10% of the proposals!
Figures show that even though those top 1200 foundations
give out 87% of the total foundation grants, the more than
20,000 other family and small corporate foundations still
award millions of dollars.
Every state has a publication of some sort that lists
those smaller foundations. See page 69 of this manual for
a state-by-state list of such sources.
TWELVE BASIC STEPS IN THE FOUNDATION GRANT PROCESS
Once you have done your research on the proper found-
ations to approach; assured yourself that "your own house
is in order" and written the proposal (See Section X"
Proposal Writing") you are ready to go through the next
12 basic steps in the process.
(1) Prepare a one-page summary of the project proposal
A. Define the problem
B. Your approach to solving it
C. Benefits of the solution
D. Amount being requested
E. Funding plans after grant expires
(2) Secure an appointment with foundation director
A. By telephone, if possible
B. Second choice would be a letter
(3) Check your board for linkage with foundation board
A. Ask him to accompany you on foundation visit
B. Secure permission to use your linkage's name
(4) Check other sources for relationships with foundation
A. Fully inform them of what's in your proposal
B. Secure their willingness to support the proposal
(5) Prepare a good background kit on your organization
A. Annual report
B. Latest Audit
C. Proof of non-profit status and IRS exemption
D. Roster of board with company affiliations
E. Very brief program description
(6) Meet with the foundation executive or designate
A. Your objective is to get green light to submit proposal
B. Try (softly) to get reaction to proposal idea
C. Remember, the proposal can not be approved at this
stage-but it can be killed
D. Check procedures, style, documentation and support the
foundation might need
E. Be alert to detect areas of possible emphasis
F. Try to get as many suggestions as possible
(7) Write brief thank you note following meeting
A. Write the foundation officer thanking him for his
time and advise date to expect proposal. Keep in
mind the foundation's deadline!
B. Write yourself a detailed report of meeting immediate1;
after the meeting itself
C. If your board member was with you, get him to write
a brief thank you note to his contact on foundation
board praising cooperation of foundation staff. Ask
for no special favors!
(8)
Pay careful attention to suggestions you received
A. Tie your final proposal as closely as possible to
foundation goals, priorities and concerns
B. When appropriate use language and terms you heard
(9)
Have proposal (with correct number of copies per their
policy) delivered to foundation as far in advance of
next deadline as possible. That gives staff the
time they need to prepare it for good board review
(10)
Cover letter to director upon submission, again
thanking him for his courtesies in assisting you,
signed by chairperson of your board. Indicate
board involvement , commitment and support
A. Deliver it yourself, if possible
B. If not, have it hand-delivered
C. Ask when you might expect to hear from proposal
(but, be patient!)
D. Copy your centers of influence who are involved
(11)
Write come-up-date in your calendar when reaction linely
(12)
Check to make certain your centers of influence have
adequate proposal and background materials available
GIVE THE FOUNDATION A REASON TO FUND
There is one common denominator that appears in every found-
ation grant somewhere in the proposal or application process a
reason to fund that proposal was supplied to the foundation.
For the applicant, therefore, it becomes the number one
goal that reason to fund must be made clear. In fact, chances
for success mount dramatically if multiple reasons are established.
The fact that you desperately need the money is not a reason
to fund your proposal: It may be a reason from your point of
view, but not from the donor's. Remember, it is the donor who
makes the decision.
Foundations are not interested in funding your problems. They
are, however, very interested in funding those proposals that
pose a good potential solution to a problem in which they are
deeply interested.
XI
WRITING THE PROPOSAL
One of the most important things that non-profits
have to learn when writing proposals for private found-
ations, corporations or for the consideration of an
individual is not to follow the accepted format used
in government grant writing.
Contrary to the understandable belief that govern-
ment grant proposals are weighed with heavier proposals
getting more consideration, those proposals sent to
private sources should be ultra brief.
So-called experts differ as to just what length
a proposal to a private foundation, for example, should
be. Most agree it should be in the 5-10 page category-
no longer.
This will be a hard skill for experienced govern-
ment grant writers to acquire. We have seen many of
the government grant proposals that went on and on and
on with total pages sometimes being in the hundreds!
A BRIEF GUIDE
Here is a very brief guide to help you in writing
your proposal:
Key to a good proposal is briefly and
clearly stating your proposed solution to
a need that you know interests that found-
ation, corporation or individual.
You must establish your credibility and
expertise in that field and your capability
to do what you say in the proposal.
Perhaps the single most important part
of that proposal is a concise, attention-
grabbing, one-page summary at the beginning.
You must convince the foundation that you
have good prospects for continuing funding of
the program after the foundation grant runs
out.
All of this must be accomplished in 5-10
pages.
SUGGESTED OUTLINE FOR YOUR PROPOSAL
1. Your summary page
2. A brief Introduction
3. Outlining The Need
4. Your proposed solution
5. Evaluation component
6. Future funding plans
7. The budget
PROPOSAL ADDENDUM FOR DONOR REVIEW
1. Copy of your 501 (c) (3) tax exemption letter
from IRS
2. Copy of most recent financial statement. If
you have valid external audit that is best.
3. List of your board of directors, with their
business or professional affiliation.
4. Copy of your most recent annual program report.
YOUR LETTER OF TRANSMITTAL
Even if you take the proposal in person to the
foundation you should have with it a brief letter of
transmittal.
Have the chairperson of your board sign that
letter. It indicates board support and involvement
in the proposal.
A single sentence can stress your solution to
the need in which the foundation is interested that
is what you are selling!
That letter will remain with your proposal long
after you have left the foundation office. All those
good board names (with their companies listed) on
your letterhead adds strength to the proposal.
Invite questions or even a visit from the
foundation. They may take you up on it and when
that kind of involvement results, you are on your way!
A CHECK LIST FOR EVALUATING THE NON-PROFIT BOARD OF DIRECTORS
1. Has your board, working with staff, adopted a written statement of
goals and objectives---long range and short range?
2. Does the Board have standing committees operating under a statement
of purpose, outlining their scope of activity as an advisory group
to the board itself and do these committees meet regularily ?
3. Is there a clear-cut understanding of the difference between policy
and administration in defining the roles of board and staff?
4. Do Board members understand their difference in roles as a board speaking
as a board, and a board member speaking as a board member?
5. Does the Board take responsibility for the financial base for the agency?
6. Does the Board insist upon complete reports at regular intervals on the
state of the agency?
7. Is there a clear-cut policy on conflict of interest drawn up by the Board?
8. Is there a policy of rotation of Board members?
9. Is there an executive committee of the board to function on policy matters
between board meetings?
10. Has the Board , with staff assistance, drawn up emergency plans including
contingency plans for funding problems?
11. Have Board members been through sufficient orientation to the agency to
speak intelligently about its programs, purposes and problems?
12. Is the Board representative of the community leadership?
13. Is there consumer representation on the board?
14. Are funds received from the community allocated wisely through the board
in support of programs of the agency?
15. Are endowment funds professionally managed without conflict of interest?
16. Are regular meetings of the Board announced well in advance?
17. Are by-laws reviewed frequently for possible changes?
18. Are meetings of the Board and its Committees well attended?
19. Are regular minutes, including record of votes taken, recorded and kept on
file. Do all members, including the executive director, receive copies?
20. Is the Executive Director an ex-officio member of the Board?
21. Has the Board given the executive director a statement of accountability?
22. Is this accountability reviewed at least annually?
23. Is the Board aware of, and does it seek to maintain, national standards of
excellence as required by certifying accreditation bodies?
24. Does the organizational structure of the Board coincide with organizational
structure of the agency?
25. Has the Board established a criteria for membership in seeking new members?
7
POLICY VERSUS ADMINISTRATION- A COMMON PROBLEM IN BOARD-STAFF RELATIONSHIPS
By Fred McDonald
Consultant-In-Management For Non-Profit Organizations
By far the most common problem that plagues the Board-Staff relationship
in non-profit organizations is a true lack of understanding as to what
constitutes policy and what is administration.
There is little arguement that the function of a Board is one of forming
policy while the role of staff is carrying out the administration. Confusing
the two functions, however, is a common cause of complaint and tension from
both board and staff.
Making the conflict possible is the fact that both bodies have a function
in the inherent responsibility of the other but they must not assume that
function.
One of the primary tasks of the Board of Directors is forming the basic
policy of the organization. Staff does play an advisory role in this matter,
however. Indeed, it is a responsibility of the staff to provide the board
with alternative policy recommendations and the implications of each alternat-
ive.
More than that, when everything else has been done it is the responsib-
ility of the executive director to recommend which of the alternatives he
feels board should adopt and his reasoning.
Ad hoc committees of the Board, and standing committees, face this same
responsibility and in this respect are functioning much like staff. No committee
should formulate policy. The committee recommends to the Board and the Board
votes its decision.
Once the policy is formed it is the function of staff to administrate
that policy- to carry it out. Here, however, the Board has the same function
that staff had in the first instance when the policy was being made. Now it
is the Board that is in the advisory capacity to staff on its administration.
As for the committees of the Board. They also carry over their advisory
capacity in the administration function. They can recommend to staff but in
the end, it is the executive director---staff--that must make the administrat-
ive decision.
For example, the planning function is basically a board function but it
requires considerable input from staff. The good executive director places
the challenge and alternatives before his board with his recommendations. The
board makes the decision.
Now, it is the function of the executive director through his staff, to
formulate administrative plans to comply with the board's policy decision.
Similar administrative plans and decisions are made right down the supervisory-
management line.
In the budgetary process, the board budget & finance committee, working
through the full board, can present guidelines to the executive director and
staff for preparation of the annual budget.
The budget is reviewed by the budget and finance committee who makes its
recommendations to the board. This does not prevent staff from presenting its
full views to the board, even though they may have been rejected by the board
committee. Now it is the function of the board to resolve the budget with
its decision.
8
page 2---policy vs admin
The personnel administration policy must be set by the board with staff
submitting its recommendations. This includes the hiring and firing policy,
benefits schedule, wage and salary administration, affirmative action,
equal opportunity, etc.
Once that policy has been set, administration is turned over to the
board and all decisions within the administrative framework should be made
by staff. Committees of the board, indeed the full board, may advise but it
is the administrative management that must make the decision.
Certain financial policies must also be established by the board. What
What borrowing powers are delegated to the executive director? What contin-
is the policy on fee's and tuitions? How is the cash flow to be floated?
gency plans for financial crisis exist? What financial controls called over the
budget are built into the system? What alternative actions are for
if income does not meet expectations, or budgeted figures?
Written policies should be drawn up by the board concerning the
disposition of all income, including gifts, bequests, income from endowment, income
grants from foundations, state and federal agencies, etc. All agency
should be spent only upon authorization from the board.
Unnecessary meetings can be avoided if the agency executive director
is authorized a small contingency fund to use for expenses that were not
anticipated. No budget is going to anticipate everything that will happen
during the program year.
This all means planning---anticipating The board that does this and
establishes the long range and short range objectives, sets a good working
budget with controls and alternatives, has a good working personnel director committee
and sets sound personnel administration policies for the executive
to out, and then anticipates financial decisions that must be made
during carry the year and establishes broad policies covering these decisions, has
done much to avoid the potential of board-staff misunderstandings and conflict.
It must be realized, that the board that fails to establish policy, is
in effect waiving its fiduciary responsibility, since in a vacuum, staff
Tn doing whatever it does, is assuming the policy function.
There is another area of potential conflict, however, and that comes
from board member failing to recognize the difference between his function
with a the board, and his function as an individual board member. With the board
he recommends and has one vote. Otherwise, in every other situation involving
the agency, he can only recommend. He can never take administrative action
or order such action to be taken.
If Board constantly rejects the recommendations of its executive director,
it is clear the two are not in a compatabile situation. One should go, and
99 times out of 100 it is the executive director since legal authority for the
agency policy rests with the board.
with the board, and once that policy is made make one of only two possible
By the same token, staff has a duty to press its case hard for policy
decisions: (1) carry out the administration within the framework of the
board policy or (2) leave.
The Board-Staff relationship for respective accountabilities is the
foundation upon which an agency and its programs are built. It deserves far
more attention than has been the case in the past.
9
SOME DO'S & DONT'S IN DEALING WITH THE NEWS MEDIA
DO get to know those men and women who have responsibility with their
newspaper, radio or television station for getting out the news.
DO NOT send in news releases through someone you may know in the
advertising department or circulation department.
DO study the way the media puts out their news their format, and
follow their style.
DO NOT ask the newspaper to print your story "just the way I've given
it to you." If that's the way you want it, purchase an ad.
DO check the correct spelling of any name that appears in your news release.
DO NOT use nicknames in a press release.
DO underline any unusual spelling of a name such as SMITTHE to show it
is correct as written, or in parenthesis after the name put (cq) for
the same reason.
DO NOT send the same press release to several people on the same newspaper
unless you indicate to them you are doing it for informational
purposes.
DO send your press release to the newspaper several days in advance of
their deadline if possible. The closer your news story comes to the
actual deadline, the higher the news value, if it is to be printed.
DO NOT send your press release to the press hand written. Type it, double
space, one side of the page only and do not break a paragraph from
one page to another.
DO put in either the upper left hand corner, or the upper right hand corner
of the page the name, title, address and phone number of the person the
media should contact to verify or check some part of your press release.
DO keep your news release as brief as possible. Assume it will be cut after
the first paragraph so put the key elements, who, what, when, where, and
sometimes how and whyin that paragraph (the lead).
10
DO leave 3-4 inches of blank space in the upper part of the first
page of your release--space for the copy desk to insert headline
information, etc.
DO NOT use the words "today" and "tomorrow" in your press release. Use
the day of the week and if it's far enough in advance in parenthesis
after the day put the date: Wednesday (April 23) to assure they know
exactly which day you are talking about.
DO date your copy in the upper right hand, or left hand margin (4-23-80)
to assure that the copy desk knows exactly how old the copy is.
DO use attribution in your news story. If your story says this will be
the largest event of its kind ever held, that statement must be
attributed to an authority. If not, it's the newspaper making that
statement and they do not appreciate being out on a limb like that.
DO NOT editorialize in a press release. If you have a burning desire to
write editorials start your own newspaper and take charge of the
editorial page.
DO check carefully any facts, figures etc. that are in your news release.
It is very easy to wear out your welcome by putting invalid data in
your release.
DO NOT use complicated, wandering sentences. Keep them brief, terse
simple and clear.
DO get releases describing something that has happened, such as elect-
ion of a new board president, to the media so that they can use it
within 24 hours of the happening. Nothing is as old as old news.
DO NOT favor one newspaper, radio station or television station over
another. Space your releases for equal treatment.
DO indicate the "release" date and time (RELEASE AFTER 10 a.m., Wednesday,
April 23, 1980) if the timing is critical. You may indicate (RELEASE
AT WILL).
RATE YOUR MANAGEMENT SKILLS
(a checklist)
If one of your goals is to develop new management
skills and improve those you already have, one of the
first things you must do is take stock of where you are
right now.
Spend time on each of these points and be as honest
in evaluating yourself as you can. Score yourself on a
scale of one to ten. Then write out exactly what you plan
to do about that particular skill. From time to time go
back to this list and review progress you have made. It
will help you in setting new priorities. Circle one number
on each line.
THE TEN BASIC SKILLS
ANALYZING: That is exactly what you are doing right now -
analyzing where you are on a scale of one to ten in each
of the important areas of management skills. As a manager
you are constantly doing this in regard to a project ,
your job, a problem, etc.
Today: 123456789 10
90 days later : 12345678910
Six months later: 12345678910
PLANNING: No one can question the importance of planning to
any manager. The ability to visualize what must be done and
when is critical. It is a process that can be learned but
requires practice.
Today: 12345678910
90 days later : 12345678910
Six months later: 12345678910
ORGANIZING: Whereas planning could be described as our
thoughts being organized and put on paper, it is also
necessary to put together other critical elements. These
include human resources, fiscal resources and physical
resources. How well can you mold these together when
needed?
Today : 12 3456 78 9 10
90 days later : 123456789 10
Six months later: 123456789 10
12
DELEGATING: How well have you mastered this art? Are
you sure what should be delegated and to whom? Have you
learned how to do this in such a way that it offers the
person maximum flexibility in carrying out the delegat-
ion yet lets you maintain control and keep the delegated
activity within guidelines and policy?
Today : 12 3 4 5 6 7 8 9 10
90 days later : 1 2 3 4 5 6 7 8 9 10
Six months later : 1 2 3 4 5 6 7 8 9 10
COMMUNICATING: For most people, this is the priority
skill first tackled in a personal growth program. Certainly
it is one of the most important. You might want to break it
out into separate areas as listed below.
One-On-One
Today : 1 2 3 4 5 6 7 8 9 10
90 days later :123456789 10
Six months later :123456789 10
Speaking To Groups
Today : 12345678910
90 days later : 1 2345678910
Six months later : 1 2345678910
Written Communications
Today : 1 2 3 4 5 6 7 8 9 10
90 days later :123456789 0
Six months later :12345678910
MOTIVATING: Again, because of its tremendous importance let's
break this skill out into two areas motivating yourself and
motivating others.
Motivating Self
Today : I 2 3 4 5 6 7 8 9 10
90 days later : 123456789 10
Six months later : 123456789 10
Motivating Others
Today : 12345678910
90 days later : 12 34 56789 10
Six months later : 12345678910
13
CONTROLLING: How well are you able to keep on top of the
work under your accountability? This includes the work
that is delegated as well as that work you do yourself.
Have you established the skills of knowing where certain
projects are ? Do you know whether or not they are all
on schedule? Are they being carried out within the frame-
work of policy?
Today : 1 2 3 4 5 6 7 8 9 10
90 days later : 12345678910
Six months later : 1 2 3 4 5 6 7 8 9 10
ANTICIPATING: Have you programmed your mental computer to
be aware of what might happen in the future? Are you always
thinking ahead and saying, "What if this happens what would
I do?" In working with your board are you safeguarding your
relationships with the board by activating the policy of
"No Surprises ?"
Today : 1 2 3 4 5 6 7 8 9 10
90 days later : 12345678910
Six months later : 12345678910
REVIEWING: Are you able to discipline yourself to keep
reviewing progress toward goals? Do you do this often
enough so that major change is not needed? Have you built
this into your habit system?
Today : 12 3 4 5 6 7 8 9 10
90 days later : 12345678910
Six months later : 123456789 10
EVALUATING: This skill is coming to the fore more and more
in the non-profit world. Can you establish systems that give
you a good evaluation of results and cost effectiveness?
Have you trained your mind toward this process or are you
slipping into the habit of rationalizing poor results?
Today : 12345678910
90 days later : 123456789 10
Six months later : 12345678910
WHAT ARE YOU GOING TO DO ABOUT IT?
Now that you know where you are concerning these
skills, what are you going to do about it?
Move on to the next exercise that allows you to set
priorities for development in your own Personal Growth Plan.
14
MY MANAGEMENT SKILLS PERSONAL GROWTH PROGRAM
I am committing myself to work on my management skills
through personal growth. Although these are initially intend-
ed for use in my work, I also understand that they are the
same skills that I use in my personal life. Here are the priority
rankings I have decided upon for improvement:
#1
Skill I am giving #1 priority for development:
My goal and how I will achieve it:
#2
Skill I am giving #2 priority for development:
My goal and how I will achieve it:
#3
Skill I am giving #3 priority for development:
My goal and how I will achieve it:
Other things I will do to achieve these goals:
When I will achieve these goals and checkpoints:
15
AN ACTION PLAN FOR TEAM BUILDING
As a manager I am always working toward building my
team of workers who will accomplish our objectives and goals.
At the same time, I must always work toward my role
as a member of another team - the individual or board to which
I am accountable.
Therefore I have to play two key roles in building teams.
I must build my own. I must be a contributing member of another.
Both are critical to my success as a manager.
BUILDING MY TEAM
A. Who are the people and positions that make up my team?
1.
2.
3.
4.
5.
6.
7.
8.
B. Rate these people on these values:
Knowledge
Loyalty
Motivator
dn-MOILOR
Skills
Communic-
ator
Strength
Honesty
Dependab-
ility
Initiative
Achiever
Potential
1.
2.
3.
4.
5.
6.
7.
8.
16
C. Are there members of my team that are not measuring up
to par in specific areas? List those:
D.
Can I help these team members improve in these areas?
E. How?
F.
Are there team members that I must replace?
G. Who ?
H. When?
I.
Who will fill these vacant slots?
J. What things can I do to improve the effectiveness of my
team?
K. What things can I do to improve my effectiveness as a
leader with my team?
(where indicated set specific goals and dates)
17
WORKING ON MY OTHER TEAM
A.
Who heads up the team on which I also serve ?
B. How can I best serve on that team other than being
an effective leader of my own team?
C. How can I help that team leader with shared accountabilities?
D. What do I see as the major needs that leader has that I
should address?
E. How can I work better with others on that team through
communications, coordination, problem solving, etc.?
F. Are there other ways I can improve the effectiveness of
this "other" team?
18
MY 30-DAY GOALS
NAME
DATE
Step # #1 1
Step #2
Step #3
Step #4
Step #5
Step #6
Date Goal
Achieved
Remarks -
My Personal Goal:
My Personal Growth Goal:
My Business Goal:
Daily Review Dates:
(Circle When Done)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
NOTE:
Write out your goal in each of the three areas
Make a check mark in each of the next columns to indicate you are satisfied
that you have met the requirements of that individual step in goal setting.
Be honest with yourself and circle only those numbered days below your
goals in which you actually reviewed goal progress and made adjustments
in your plan if that was necessary.
For this initial goal-setting exercise, establish the fact that you will
review your goal progress daily
.
When you finally reach your goal, indicate the date in the final column
and then reward yourself! You are on your way to a fantastic adventure
in goal setting!
19
McDonald Management Group
Donard
200 North Wheeling Road
Fred W. McDonald
Prospect Heights, Illinois
Manager
60070
Group
Founder and Managing Director of McDonald Management Training
Group is Fred W. McDonald of Prospect Heights, Illinois. His firm
is one of the most sought-after training organizations for non-profit
management in the country.
Mr. McDonald has served extensively in both the business world and
the non-profit sector. While still in college studying for his degree
in Marketing and Psychology, he started work as a newspaper reporter,
later becoming an editor. Later he joined a Fortune 500 Corporation in
Hartford, Conn. in the Marketing Department, becoming Manager before
accepting an invitation from the Kennedy family to join the Joseph P.
Kennedy Jr. Foundation in Washington, D.C. where he served as Director
until after the death of Senator Robert Kennedy. Prior to moving his
family overseas to England and Ireland, he served in the administration
of the psychiatric teaching hospital for Harvard University. Overseas he
conducted management training and personal growth training programs.
Returning to this country in 1975 he became Executive Director of a
major Rehabilitation Agency in Chicago where his organization won the
coveted Chicago Community Trust $10,000 Management Award in the same year
that his organization won the Management Effectiveness Award of Chicago
United Way.
He formed MMTG in 1978 and since that time has served as training
consultant with a number of national organizations including the American
Management Associations, and American Foundation for the Blind. He has
conducted more than 150 seminars and workshops for such organizations as
the American Council of the Blind ; National Easter Seal Society; Goodwill
Industries of America; Volunteers of America; and has served on the adjunct
management training faculty for non-profit organizations for the University
of San Francisco, Seattle University and the University of Missouri-Columbia.
He has also conducted seminars and workshops for state chapters of the
National Association of Rehabilitation Facilities in Illinois, Iowa, Kansas,
Wisconsin, Ohio, Indiana, Arizona, Washington, Oregon, Minnesota, Idaho,
and New York. Other seminars have been presented in Massachusetts, Oklahoma,
Georgia, Washington, D.C., California, Missouri etc. He has also presented
seminars for Illinois Association for Retarded Citizens; New York State
Executive Directors (ARC's) Association; Illinois Family Service Association.
Mr. McDonald is the editor and publisher of four monthly newsletters for
non-profit management: Non Profit Board, Personnel Practices & Labor Relations,
Small Agency Management, and Management Up-Date. He has published the
following manuals: Non-Profit Board Policy & Operations, Developing Effective
Budgets For Non-Profit Organizations, and Developing Alternative Funding For
Non-Profit Organizations; and two monographs, Labor Unions Look At The
Non-Profits, and Marketing Non-Profit Organization's Services & Products.
Mr. McDonald is currently a member of the U.S. Commission on Standards
for the National Accreditation Council and a member of the Professional
Advisory Board of National Easter Seal Society. He formerly served as a
member of the board of Metropolitan Chicago United Way and National Industries
For The Blind.
McDonald Management Training Group is represented by Associates throughout
the country. Home office is 200 North Wheeling Road, Prospect Heights, Il 60070
(Tel. 312-255-0078).
20
Quasi-Boards: Useful Small
Business Confidants
Owner/managers can improve their businesses
with the advice of outsiders.
By Harold W. Fox
unning a successful small business can be a lonely task,
with important administrative or operational issues.
thanks largely to the entrepreneur's natural tendency to
Consultants may also be inappropriate, if only because the
be secretive.
owner/manager's administrative problems are not just a mat-
Secrecy seems necessary partly because of a fear of competi-
ter of one-time assignments. Rather, the problems are ongoing
tion. Most small businesses are easy to start and simple to
and require some permanent provisions for dialogue and par-
operate, given the proper financing. They are also, of course,
ticipation with outsiders respected as peers.
highly susceptible to failure. But the successful entrepreneur
The board of directors in theory offers entrepreneurs a
has demonstrated the viability of the business and fears that
source of guidance, but in practice small company boards are
others with a similar specialty, a minimum of financing, and a
often either an arena for battling family and shareholder inter-
knowledge of the company's operations could replace it in the
ests or a nominal body to ratify the owner's proposals. Because
marketplace.
the directors have significant authority, owners are usually
At the same time, the owner feels that "my business is dif-
reluctant to place too many outsiders on their boards; con-
ferent"-and does not, therefore, see the need to share with
versely, outsiders may be reluctant to get involved because they
others the challenges of planning strategies and operations.
dislike quarrels and legal entanglements.
In addition, the owner/manager frequently fears being
targeted by relatives and others seeking various kinds of
Alternative Approach
favors. The less they know, the owner assumes, the less they
Small companies can enlist expert advice at low cost,
will pressure me to give unemployed son-in-law Louis a job,
however, through a few independent overseers who might be
referred to as a quasi-board of directors, an advisory board, or
an advisory council. Quasi-boards perform many of the func-
When a small business becomes
tions that conventional boards dominated by outsiders do (or
profitable, its owner needs to confide
should do) in publicly held corporations, but without the
in others more than ever.
latter's legal power and accountability. (See the chart on page
22 for a comparison between conventional boards and quasi-
boards.)
buy office supplies from some nice young striver, or extend
A quasi-board probes deeply into matters of policy and
favorable credit terms to an acquaintance of my mother's
operation. It critiques management's actions, raises new ques-
bridge partner.
tions, and offers suggestions to strengthen the company. An
Ironically, it's when a small business finally becomes profit-
advisory board's effectiveness depends on the proprietor's
able that the need for an entrepreneur to confide in others
becomes acute. After a new business has weathered a shake-
down period of round-the-clock schedules, daily crises, and
quick-witted improvisation, a daily routine evolves. Now
subordinates perform the tasks that the founder and associates
used to do. The founder is the boss; the founder's original
John Professor R. Slattery
associates are called managers. Overlapping responsibilities
and cramped quarters inevitably lead to bickering. And, with
time, the camaraderie from jointly surmounting obstacles
gives way to a climate of underlying tension.
ASHTON
Yesteryear's conquering heroes stay on for lack of equally
remunerative and impressive employment alternatives; the
College UNIVERSITY University
owner retains them from a sense of obligation. But procedures
stifle the managers' impulses, and the boss's secrecy impedes
their effectiveness. The boss and many of the managers are in
over their heads.
(804) 312-1640
To whom can owner/managers turn for the special advice
and assistance they need? The usual sounding boards - the
company's public accountant or lawyer - apply their par-
ticular professional viewpoints, often without coming to grips
Reprinted with permission of the Harvard Business Review. "Quasi-Boards: Useful Small Business
Confidants" by Harold W. Fox (January/February 1982.) Copyright ©1982 by the President and
Fellows of Harvard College: all rights reserved.
21
Conventional boards vs. quasi-boards
Conventional
Quasi
Accountable to numerous.
Not accountable.
interests for corporate conduct.
Have or need directors' liability
No such need.
insurance.
Required to make certain public
No such requirement.
disclosures.
Spend an average of 122 hours
Spend an average of 30 hours
annually on board duties (survey
annually (survey of ten owner-
of 576 major companies).
managed companies).
Select or dismiss the president.
No such power.
Represent the stockholders.
No such representation.
Executive Janet E. Clasent
Elected by stockholders for
Appointed by owner/manager
stated term.
who determines tenure.
Nominated because of respected
Selected for prudence and
position in the business world,
diligence.
liability, or being a symbol of a
hitherto unrepresented group, as
well as prudence and diligence.
Comply with legal requirements.
No special requirements.
Evaluate performance of CEO
Yes, evaluate performance.
and key executives.
Review and approve major cor-
Yes, plus take some initiatives.
porate objectives, policies,
budgets, and strategies as in-
itiated by CEO.
Monitor the company's financial
Yes, monitor financial structure.
structure.
Monitor, review, and appraise
Provide opinion but lack
management.
authority.
Monitor, review, and appraise
Yes, monitor, review, and
management's decisions and
appraise.
plans, management development,
and employee relations.
Serve individually as advisers
Yes, advise.
to the president and, with his or
her approval, to others in the
company.
Monitor the company's
Yes, monitor company's
performance.
performance.
Assume responsibility for
No such responsibility.
management of the board.
Review document of board
No such review.
responsibilities periodically
Ensure company's compliance
No such function.
with all national, international,
foreign, state; and local laws
affecting the enterprise
Do not usually arbitrate quarrels.
Arbitrate quarrels that threaten
company's existence.
22
Adapted from Myles L. Mace, "Designing a Plan for the Ideal Board," Harvard Business Review,
November-December 1976, p. 21.
In its early stages, a quasi-board
typically focuses on traditional
management functions.
voluntary decision to respect its advice. And because the quasi-
cil's scope and objectives. If the outsiders have coped success-
board has no legal power, the owner does not feel threatened
fully with a wide variety of challenges, they will likely tackle
when it exposes problems, worries, and ideas. In cases of fam-
the next change in direction as well.
ily squabbles or disagreements among partners, the quasi-
Business owners are likeliest to meet prospective members at
board offers a detached and neutral viewpoint and can often
country clubs, executive seminars, and through acquaintances
arbitrate settlements.
and recommendations. Prospects with the appropriate per-
sonal and technical endowments rarely refuse an owner's invi-
The Best Candidates
tation to join. Why? Some feel underused in their own organi-
Organizing a quasi-board need not be difficult. With the
zation. Many welcome a change of pace and a chance to prove
help of an attorney, the owner drafts a description of the
or raise their potential.
board's function, emphasizing its advisory role and its exemp-
tion from legal responsibility toward the company's share-
While small business owners are limited in what they can pay
holders. Then the owner recruits a panel whose collective
members, they are free to demonstrate their appreciation in
outlook and judgment he or she feels comfortable with.
more imaginative ways. One proprietor rented a motion pic-
ture theater and invited all council members, top executives,
Members of such boards usually receive far less pay than
and their spouses to an afternoon of movies and popcorn. A
directors of large corporations. Typical fees range from $500 to
distributor who frequently runs sales contests gives quasi-
$1,000 per session. The quasi-director's honorarium, besides
board members rotating assignments to investigate the top
being an expression of appreciation from the owner, balances
prizes - fully paid vacations to exotic resorts. Another owner
two factors. It is high enough to establish an obligation of
entertains the panel on her yacht. In these and other ways,
diligence. On the other hand, it is low enough to preserve the
shrewd business people are eager to show their thanks to those
member's autonomy. Advisory boards offer neither the
who help them.
prestige nor the financial rewards sufficient to tie a member to
a company with which he or she disagrees.
Striking the Right Balance
Appointments are based on ability and willingness to contrib-
Two to four formal meetings per year, preferably on
ute. Advisory panels thrive only in an open-minded atmos-
weekends, usually keep a quasi-board current, yet limit its role
phere, where all members can freely argue their convictions.
to matters of greatest significance to the company. Occasional
The quasi-boards with which I am familiar have never taken a
ad hoc committees and private sessions with the owner/
vote. Rather, after spirited exchanges of opinions, members
manager, as needed, supplement the regular schedule.
always reach a consensus.
An advisory board functions best if it is small. Ordinarily,
The purpose of the board may vary somewhat among com-
four or five members - the owner (chairman) plus some out-
panies. For example, a small bank in California organized an
siders with overlapping expertise - suffice. Members should
advisory council of local business and community leaders as a
have empathy for small business problems, care about the
sounding board for keeping in touch with the community. At
company's success, and work effectively with other board
quarterly luncheon meetings under the chairmanship of the
members.
bank's president, officers took turns presenting to the board
Members can come from any number of backgrounds,
new developments and other matters for comment. Inaugura-
including the following:
tion of a bank newsletter was one of the quasi-board's first
Staff work in a giant corporation.
projects.
Top-level responsibility in a bank or a small noncompeting
Especially at the outset, an advisory council must avoid
concern.
meddling in procedural details. Forbearance helps allay the
Technical knowledge (e.g., chemical engineering) of the
apprehensions of department heads. As in any new relation-
company's business.
ship, the owner/manager, executives, and members of a fledg-
Consulting experience or professional status in business
ling board may be skeptical. Early successes and reassurances
administration.
help dispel these misgivings. Ideally, the company's owner and
Contacts with regulators, vendors, or large buyers.
executives handle the exigencies of the moment and look to the
Professional specialty such as practicing attorney or practic-
advisory board for guidance on basic, long-term challenges.
ing psychologist.
During its orientation stage, a newly constituted quasi-
Broadly diversified business experience with a record of
board learns the business and focuses on traditional manage-
success.
ment functions. A typical action is a recommendation for a
The last-mentioned qualification is probably the most
logical organization design including, where needed, position
valuable. Over a period of time company objectives change,
descriptions for the top managers and organization charts. At
and the board's effectiveness increasingly depends on
several companies, these requests forced management to
members who, together with the owner, can redefine the coun-
strengthen internal control, fill functional gaps, and eliminate
23
VP/Marketing Victor T Blough
Carlson Manufacturing Building
In another case, a seven-year-old diversified manufacturing
Recruit advisors you feel comfortable
company incurred its first deficit, which the owner-manager
with
people who have empathy for
deemed an exception that further growth would rectify. Coun-
cil members noted, however, that many distant operations
you and your business.
were out of control and apparently unprofitable. They per-
suaded the owner to shrink his business by more than one-
half. Almost immediately, the business began generating
profits. From its reduced scale, growth resumed - this time
overlaps. As byproducts, internal squabbling dies down and
soundly planned, financed, and controlled.
the need for policies in some operating areas (e.g., inventory
control, insurance programs) becomes evident.
Adopting Various Roles
Advisory boards can be particularly effective in resolving
Gaining Acceptance
the conflicts so common in small companies. At a publishing
In several cases, executives' revelation of dishonesty by
company, the chief executive and the managing editor clashed
subordinates overcame the initial resistance within their com-
about operating policies. The board interviewed each person
panies to setting up a quasi-board. Each quasi-board recom-
separately and established an agenda for a one-on-one meeting
mended appropriate protective measures, which in turn paved
in which the two individuals aired their views. This frank
the way for budgeting and long-term planning. Small business,
exchange saved the publisher an employee who would have
after all, is not immune to white-collar crime.
been almost impossible to replace.
Since some crisis - cutoff by a major supplier, reduction in
Another company's production manager revolted against
sales, need for a loan - frequently triggers the board's start-up,
the sales-minded executive vice president, also the owner's son.
the panel's initial encouragement or guidelines for a solution
Both parties threatened to quit and start rival business. The
help it gain credibility.
owner, unable to settle this dispute, empowered the quasi-
The first meeting of one quasi-board, for example, touched
board to decide the future of the company. The board was split
on cost overruns, a slippage in margins, division of respon-
on what to do. Finally it called the bluff of the two antagonists.
sibility for producing and filling orders, shipping delays, and
Each was told he was free to leave but unlikely to earn
sales agents' dissatisfaction with commissions. A board
elsewhere anything near his present income. If they stayed,
member suggested a simple job order and project account-
they had to "cool it.' Both men acquiesced. Harmony pre-
ability system, which helped the executives resolve these and
vailed and, to the surprise of everybody, they became close
other problems as well. Several years later, the president still
friends.
refers to this contribution as the one that confirmed his con-
Somewhat similar clashes occurred at two other businesses
fidence in the quasi-board.
with advisory boards. At one of these, private interviews with
As its acceptance grows, so does the range of issues
top executives revealed that the superintendent of production
confronting the council. Often the issues aren't what they
and the manager of quality control were working at cross-
originally seemed to be. For example, one company was eager
purposes. Further probing indicated that poor communica-
to commercialize three new products of seemingly high poten-
tion, ambiguous assignments of responsibility, and vague
tial, but it lacked the marketing skill. After questioning the
standards were the main causes. The board explained to the
owner, the panel redefined this problem as imbalance in
owner/manager how to rectify these structural problems and
organizational design and haphazardness in selecting product
recommended that he do so.
ideas for development. The problem was now put in a perspec-
tive that company management could deal with.
At the other company, the district managers ignored the
general sales manager. The latter merited the owner's backing,
Helping Map the Future
in the quasi-board's opinion, and the owner agreed.
Sometimes councils can persuade owners to change their
Perhaps the most delicate subject that reaches quasi-boards
plans. When the owner of a seasonal business presented to her
concerns managerial succession. One president without
quasi-board a set of plans for geographic expansion, members
natural successors wants the board to select and supervise his
noted that she had picked the locations arbitrarily and had no
successor after his death. Thus far the members have resisted
estimates of sales potential. Eventually, the owner shelved the
this sensitive assignment. But some quasi-boards have been
plans. She and the board are looking for a contra-seasonal
drawn into this issue - where impatient fifty-year-olds are
business instead.
waiting for father to yield his place to them.
24
Be Demanding
When quasi-boards fail to live up to the business owner's
expectations, a purge may be necessary. Members who are
apathetic in meetings or skip many meetings should be asked to
resign. One board requested the owner to nudge an absentee
colleague who prolonged his nominal association with the
group. In such a situation, prompt severance and replacement
are appropriate.
Some members favor staggered turnover for continual self-
renewal of the quasi-board. One quasi-board conducts an
annual evaluation of its own performance.
Board members can provide valuable
contacts to help your company grow.
In practice, no conflict exists between a board of directors
and a quasi-board. The position of director is nominal in most
closely held corporations; in proprietorships and partnerships
it does not even exist.
Nor does the quasi-board usurp the role of consultants. It
does not conduct detailed studies, install systems, formulate
procedures, or implement special projects. It is concerned with
important policies, questions of strategy, and decisions that
promote a company's lasting prosperity. And successful quasi-
boards contribute to the growth of not only the company but
also the owner/manager, executives, and their own members.
Adams Securities Management, 700 Inc.
3200 Georgia 368-7470
Tel:404,
Ronald President s. Adams
WILLIAM C.. GOWEN
ATTORNEY AT LAW
E&W Comment
Harold Fox illuminates a concern many business owners
TEL
face - how to make a successful enterprise even more success-
ful by inviting the opinions of outsiders. Especially important
is his emphasis on the owner retaining responsibility for run-
ning the business day-to-day, while looking to an advisory
board for guidance on long-term challenges. It is no doubt
hard for some entrepreneurs to believe that more - not fewer
- advisors can help mediate disagreements among family
members or define markets for new products, but the author's
examples of quasi-boards' successes are persuasive. A key is to
invite people onto the board who will provide the impartial,
experienced perspective Mr. Fox urges. As your business advi-
sor, an E&W executive can offer valuable, practical sugges-
tions for recruiting and evaluating quasi-board members.
25
BOARD COMPOSITION ANALYSIS
Public Relations
Marketing
Recruitment of Board Leadership
Training/Development
Policy Determination
Annual Giving Campaigns
Personnel
Budget/Fiscal
CURRENT PROGRAM ACTIVITIES
Program
Legal/Covernmental
Vocational
Soc./Rec./Cultural Arts
Counseling
Education/Training
Community Development
Service Recipient
Willing to work on fund
raising projects
Willing to raise money
Financial
Development
Willing to give personally
Access to Individuals with
wealth
Access to corporate wealth
Access to Local Business
Social Service
Medical
Media
Experience
Agricultural
Small Business
Corporate
Ministry
Political
Educational
Community Organization
Management
North West
(City or
State)
Geographic
South West
Area
Central
North East
South East
Female
Sex
Male
over 65
45-65
Age
30-45
19-29
16-19
BOARD MEMBER
NAME
30
BOARD COMPOSITION ANALYSIS
Score each catagory for which you have an interest,
talent, or experience
5= very high 1= Minimal
Public Relations
Marketing
Recruitment of Board Leadership
Training/Development
Annual Giving Campaigns/Fundraising
Personnel
Budget/Fiscal
Current Program Activities
Policy Determination
Advisory Board
Program
Legal/Governmental
Vocational
Soc./Rec./Cultural Arts
Counseling
Education/Training
Community Development
Service Recipient
Willing to Work on Fund
raising projects
Willing to Raise Money
Financial
Development
Willing to Give Personally
Access to Individuals with
Wealth
Access to Corporate Wealth
Access to Local Business
Social Service
Medical
Media
Fundraising
Small Business
Experence
Corporate
Ministry
Political
Educational
Community Organization
Management
North West
South West
Central
Area
North East
South East
Sex
Female
Male
Over 65
45-65
Age
30-45
19-29
16-19
e. Do you feel that as board members you are receiving up-to-
date information on the organization's activities, services,
funding appeals, etc.?
Yes No
f. Do you believe that your participation can have an
impact on the organization?
Yes. No
g. Do you believe that the organization staff provides
adequate support to Board members?
Yes No
11. Concerning the Chairman of the Board or President -
a. Does he/she appear to understand the functions of various
divisions/departments of the agency and how they (functions)
relate to each other?
Yes No
b. Does he/she preside over meetings in such a way as to keep
the discussion focused, but allow for comment by all
who choose to do so?
Yes No
c. Does he/she appear to understand the matters brought before
the Board, including possible side issues, and maintain
an objectivity in dealing with such matters?
Yes No
d. Does he/she represent the United Way appropriately in the
community and give adequate time to this function?
Yes No
e. Is he/she sensitive to individuals in such a manner that
foster their contributions and committment?
Yes No
12. Other comments/elaborations:
Adapted with permission from United Way of the Texas Gulf Coast
Name of Organization
Independent Living Program Board Member Self-Evaluation and
Evaluation of the Organization
Date
Please complete and return in the enclosed envelope by
.
1. Have I made an effort to inform myself about the organization?
Yes, to a reasonable degree
, not really
.
2. Do I understand board member/staff relationships, including use of staff as
a resource in my decision-making role?
Yes
, no
.
3. Am I prepared for Board meetings and do I actively participate in the decision-
making process?
Always , usually , not very often
.
4. In general have I given adequate time to my duties as a member of the Board of
Directors?
Yes
, no
.
5. Have I taken the initiative to share my talents and expertise in organization
matters?
Always
, usually
, not often
.
6. Have I made an effort to participate in other organization activities such as an
agency committee?
Usually
, occasionally
, no
.
7. Do I contribute money to the organization as well as talent and time?
Yes
, no
.
8. Have I used my knowledge of the community and its leadership to provide an entree
for the organization?
Usually
, not very often
, only when asked
.
9. Do I promote interest and understanding of the organization in my other community
contacts?
Yes generally when an opportunity arises
, no
.
10. Concerning the functions of the Board itself and the organization support staff-
a. Has your role as a Board member been adequately defined?
Yes No
.
b. Has your orientation as to the purpose and functioning
of the organization been adequate?
Yes No
.
C. Do you believe that the Board is appropriately briefed
on all issues put to it for decision?
Yes No
.
d. Do you feel that you are encouraged to participate in
the operation of the organization?
Yes No
.
TRAINING FOR A BOARD OF DIRECTORS
AN OVERVIEW
I. WHY AND WHAT ARE BOARDS?
Why and What are Boards introduces the entire subject area.
It emphasizes the importance of the subject by discussing
response to community and agency needs, and introducing con-
cepts of accountability and liability. Finally, it focuses upon
the resources of the individual volunteer board member himself
or herself. This induces participants into the conceptual area,
and gives simple answers to the basic questions.
II. DECISION MAKING I
The dynamics of individual versus group decision-making
are illustrated through this exercise. The exercise is used
to draw out lessons related to the role of representatives and
constituents, time constraints, and group cohesion and compromise.
III. ORGANIZATION AND STRUCTURE
In this segment, the structure of organization and activities
is presented as the prerequisite for being able to consistently
accomplish work. Discussions will include distinctions between
responsibility and authority, the importance of division of labor,
and a structural means of dividing board work into committees.
IV. DECISION-MAKING II
This segment is designed to demonstrate methods for group
decision-making: defining the issues, brain-storming, open
discussion, narrowing the issue and deciding, modes of decisions
especially in relationship to qualitative and objective factors.
V. PROGRAM PLANNING AND MANAGEMENT
Emphasized in this segment is the importance and usefulness
of the planning process in an organization, and management
by objectives will be discussed.
VI. DECISION-MAKING III
In this exercise, participants' understanding of board
functions and management by objectives will be reinforced. The
division of board labor and functions of board committees will
be discussed and specified in terms of objectives. The objectives
will be prioritized and broken down into action steps.
ILRU 1333 Moursund Avenue Houston, Texas 77030 713 797 1440
BOARD COMMITGES
EXECUTIVE
F INANCE
PERSONNEL
PROGRAM PLANNING
PUBLIC in COMMUNITY
RELATIONS
SHOW TRANSPARENCY18
EXPLAIN TRANDITIONAL BOARD COMMITTEES.
Tranditionally because of the functional areas of board work, boards
have the following committees.
Executive Committee
Finance Committee
Personnel Committee
Program Planning Committee
Public and Community relations Committee.
These committees each have a chairperson. Sometimes these chairperson make
up an executive committee. The committees may meet regularly
or as needed. Each committee should have goals and objectives, and a
clear understanding of what its mandate is. Board members may serve on
more that one committee.
Board committees may also involve administration and staff. The board may
want to have periodic advise and consultation or ongoing advise and consultation.
F¹/₂ᵣ example a Beard Finance Committee might involve the bookkeeper, on staff
and a CPA from the community.
ASK PARTICIPANTS HOW THIS RELATES TO THE DIVISION OF LABOR THEY NOW HAVE
DISCUSS ALTERNATIVE IDEAS THAT MAY BE RAISED.
SHow transparency 19.
6
DELEGATION
RESPONSIBILITY
You can't
AUTHORITY (POWER)
You Can and you should
TRUST
SHARE
INFORM
ADVISE
CONSENT
SHOW TRANSPARENCY 16
EXPLAIN THE BOARD'S RESPONSIBILITY AND AUTHORITY
EXPLAIN DELEGATION AND DIVISION OF LABOR.
The Board has ultimate responsibility for the functioning of the organization.
The Board is legally accountable to all constituencies. It cannot give
this responsiblity away.
The Board also has the authority to decide how things will be done. This
is power which the board can, and must delegate to its executive. The Board
is not extablished to do the work of the organization
only to see that it
gets done.
The Board generally retains power only over policy level ecisions, and hires
an executive director to run the agency. In hiring the executive director
the board delegates authority for the daily running of the organization.
The board and the executive director must trust each other, share, inform,
advise and consent.
Because the board has a lot of work to do is has to delegate tasks among
itself, and divide labor in order to accomplish everything.
SHOW TRANSPARENCY 17
THE LESSON
SHOW TRANSPARENCY 15.
EXPLAIN THE NEED FOR ORGANIZATIONAL STRUCTURE.
Structure is the framework that gives us the freedom to
effectively achieve our objectives. Without structure we run all over
each other, duplicate effort, dont know how to communicate, and are lost.
The larger the group the more important the need for structure.
Traditionally when setting up the structure of an organization there are several
principles to remember;
Unity of command - each person has only one supervisor. This is to avoid
confusion and conflict.
Chain of Authority - there is a clear line of authority from bottom to
top or top to bottom. This person reports to that person who reports to
the next person. When an individual has a problem he or she reports to
thier immediate supervisor. Lines of authority should never be jumped or
they defeat their purpose. Jumping lines of authority is a frequent reason
for demoralization and collapse of agency functions.
Standardization of function - Generally people who are in similar job
levels perform similar functions. For example committee chairpersons all
have responsiblity for convening their committees and reporting back to
the board. Within the organization this is true also. There are some
aspects of jobs which are similar across the board.
Specialization of function - No two people are supposed to do exactly the
same thing. Everyone specialized to some extent. Two caseworkers are each
responsible for different caseloads. One chairperson chairs one committee,
another person a different committee.
Clarity of job specifications - What a person is supposed to do needs to
be spelled out and agreed upon by the parties involved.
Line and staff functions - In the organizational structure of an agency
some functions are administrative and supports to the provision of direct
services
director, secretary, bookkeeper, supervisors,
others are direct service functions, counselors, trainers and so on.
SHOW TRANSPARENCY 16
TITLE
ORGANIZATION AND STRUCTURE
PURPOSE
The structure of organization and activities is a prerequisite for
being able to consistently acocmplish work. Structure and a well defined
division of labor give an organization freedom to get things done.
INSTRUCTIONAL AND PROCESS OBJECTIVES
1. Participants will be able to explain the importance of organizational
structure.
2. Participants will be able to distinguish between responsibility
and authority.
3. Participants will recognize the five main functionalafxaxhsaxd areas for
a board; Administration, Program Planning, Finance, Personnel, Public and
Community Relations.
4. Participants will be able to explain the importance of division of labor,
and a structural means of dividing board work (committees)
5. Participants will apply their knowledge of organizational structure to
their own organization
PLANNING AND MATERIALS
Large Board or surface to write on and chalk/pens etc.
ESTIMATED TIME
90 mins.
SEQUENCE OUTLINE
1. Show Transparency 15. Explain need for organizational structure.
Vexangle,
2. Show Transparency 16. Explain boards authority and responsibility.
Explain delgation and division of labor.
3. Show Transparency 17. Briefly explain Board functions.
4. Show Transparency 18. Explain traditional committee structure. Discuss altematives
Dicuss communication between chairpersons, committees, board, and staff.
Discuss use of advisors and consultants.
Vexamples
5. Show Transparency 19. With group's input draw their organizational
structure, and the structure of their board. Explain need to observe
lines of authority andxdengexsxef. Explain board and executive functions.
6. Show Transparency 20. Ask for feedback
TRAINING FOR A BOARD OF DIRECTORS
AN OVERVIEW
I. WHY AND WHAT ARE BOARDS?
Why and What are Boards introduces the entire subject area.
It emphasizes the importance of the subject by discussing
response to community and agency needs, and introducing con-
cepts of accountability and liability. Finally, it focuses upon
the resources of the individual volunteer board member himself
or herself. This induces participants into the conceptual area,
and gives simple answers to the basic questions.
II. DECISION MAKING I
The dynamics of individual versus group decision-making
are illustrated through this exercise. The exercise is used
to draw out lessons related to the role of representatives and
constituents, time constraints, and group cohesion and compromise.
III. ORGANIZATION AND STRUCTURE
In this segment, the structure of organization and activities
is presented as the prerequisite for being able to consistently
accomplish work. Discussions will include distinctions between
responsibility and authority, the importance of division of labor,
and a structural means of dividing board work into committees.
IV. DECISION-MAKING II
This segment is designed to demonstrate methods for group
decision-making: defining the issues, brain-storming, open
discussion, narrowing. the issue and deciding, modes of decisions
especially in relationship to qualitative and objective factors.
V. PROGRAM PLANNING AND MANAGEMENT
Emphasized, in this segment is the importance and usefulness
of the planning process in an organization, and management
by objectives will be discussed.
VI. DECISION-MAKING III
In this exercise, participants' understanding of board
functions and management by objectives will be reinforced. The
division of board labor and functions of board committees will
be discussed and specified in terms of objectives. The objectives
will be prioritized and broken down into action steps.
ILRU 1333 Moursund Avenue Houston, Texas 77030 713 797 1440
2.
LESSON
DW TRANSPARENCY 3 COVER EVERYTHING UNDER WHY BOARDS?
PLE THE OF GROUP MINUTES. WHY THEY THINK BOARDS EXIST? ELICIT THEIR THOUGHTS FOR A
OVE COVERSHEET. PRESENT EACH POINT RELATING THEIR ANSWERS WHERE APPROPRIATE.
several Collective wisdom - The idea that two heads are better than and
answers, but as a group we will make quality decisions.
are better still. As individuals we may not have all one, the
to community, the and through the members, the community gives of
Community support - The board members are representatives the
agency. The board members themselves gain community support support.
change, Continuity but : some policy and programs - Staff may change, conditions may
programs the board of an agency to give it stability. The and
basic continuity is needed in the policies
will itself will change over time - but the board composition as a group of
give continuity to the agency.
Democratic give participation - as a principal of organization
members an equalitarian manner. This necessitates that equal
vote in individuals an opportunity to participate with voice boards and
are equally well prepared to fulfill this. Which board leads to
Leadership individual training - The most often neglected. This
It is board members can expect to get from their is what
a training ground for community leaders, organizers participation. and planners.
Legal the bottom stewardhip and accountability for money Most
legal line. The board of an incorporated - organization importantly
1
agency were held accountable for something in an examples agency). of
members responsiblity for the agency. (Cite recent bears where
money, the foundations, board etc. As long as we are spending contract elses
agencies, spends money that comes from someone else - taxpayers, The
the givers intend exists it to be to make spent. sure that it is being spent someone the way
TRANSPARENCY 4
TRANSPARENCY 4
COVER RIGHT HAND SIDE. LEAVE FIRST TWO LINES VISIBLE
AND "TO" "FOR" "HOW"
AIN ACCOUNTABILITY
To answer, explain, respond. The agency does not operate in
a vacuum. Through its board it is responsible to answer,
explain and respond to a number of constituencies, all of
which have an interest in, or are related to the agency. If
you view this from a systems perspective, here is the agency
(trace circle in the air) and here are all these other
related groups (trace intersecting circles around the agency).
THE GROUP WHAT THESE CONSTITUENCIES ARE THAT THEY MUST BE ACCOUNTABLE TO.
OVER THE RIGHT HAND COLUMN NEXT TO "TO".
IEW THE CONSTITUENT GROUPS:
The Organization
The Community
Clients/Consuemrs
Executive Director
Staff
Funding Sources
Public
Each has an interest in the agency.
COVER THE RIGHT HAND COLUMN NEXT TO "FOR"
VIEW ACCOUNTABILITY FOR:
Remediation of Problems
Quality of Services
Expenditures of Funds
Legal Requirements.
COVER THE RIGHT HAND COLUMN NEXT TO "HOW".
ATE TREXTHE PRIMARY MEANS FOR HOW THE BOARD WILL MEET THESE NEEDS
RE FAIRLY SIMPLE : Through the Budget, Monitoring, and Evaluation.
HOW TRANSPARENCY 5.
:-
-.
ACCOUNTABILITY
ANSWER EXPLAIN RESPOND
The Organization
The Community
Clients / Consumers
Executive Director
Staff
Funding Sources
Public
Remediation of Problems
Quality of Services
Expenditure of Funds
Legal Requirements
Budget
Monitoring
Evaluation
TRANSPARENCY 5
THAT THI S IS A BUSINESS. Even though it is not-for-profit, it
incorporated, just like General Motors, or (name a small company in the
THAT AS INDIVIDUALS THE BOARD MEMBERS ARE THE TRUSTEES OF A CORPORATION
AIN BOARD MEMBERS LIABILITY
Legally every board member is responsible
- if there is negligent or willful mismanagement
- for all transactions approved by the board (after someone runs away
with all the funds of the organization its too late to say "I
wasBitithere when they voted to do such and such)
- for all funds and propert y
- for contract compliance
- for all legal requirements (whether you know about them or not)
AIN THAT BOARD MEMBERS ARE EXPECTE D TO BE RESPONSIBLE IN THEIR
TO BE DILIGENT AND PRUDENT. TO ATTEND BOARD MEETINGS REGULARLY
SS EXCUSED, TO THINK AHEAD, TO ASK QUESTIONS, TO BE AWARE OF THEIR
TLITIES. BOARD MEMBERS ARE EXPECTED TO BE SELFLESS. IF THERE IS ANY
TION OF CONFLICT OF INTEREST THE MEMBER SHOULD NOT VOTE.
AIN THAT BOARD MEMBERS HAVE A RIGHT TO HAVE THE ANSWERS TO THEIR
TIONS BECAUSE THEY ARE LEGALLY RESPONSIBLE. THEY ALSO HAVE A
ONSIBILITY TO DELEGATE. AUTHORITY TO COMPETENT AND TRUSTWORTHY STAFF
VILL DISCHARGE THEIR RESPONSIBILITIES.
TRANSPARENCY 6
T-5
U/
BOARD LIABILITY
This is business !
You are trustees of a corporation.
Liability: You are legally responsible
for - negligent and willful mismanagement
- transactions approved by Itc board
funds and property
-
- Contract compliance.
- Oill legal requirements.
If you have a self - interest don't vote.
Attend all meetings , unless excused.
tarnsparency 6
AIN THAT THERE ARE DIFFERENT TYPES OF BOARDS. ONE OF THE MAJOR
INCTIONS IS BETWEEN A BOARD OF DIRECTORS AND AN ADVISORY BOARD.
Board of Directors.
Sets direction and policy, provides sanction, monitors,
evaluates, is liable (legally), does planning, hires and fires
the director, may do public relations and advocacy, may be
involved in fundraising.
Advisory Board
Lends its expertise, gives advice, does not have any legal
responsiblity, makes policy recommendations, may help with
fundraising, many be have honorary positions.
AIN THAT BOARDS ALSO RANGE E FROM ACTIVE TO PASSIVE.
A passive board may be large, its members may not even be expected
to attend regularly, it may be disinterested, it basically jsn just
rubber stamps what the executive director brings before it.
An active board may E be smaller, its members attend regularly and
HAIR are genuinely interested in their responsiblity to the
public, the community, clients and staff.
AIN THAT THE CHARACTER A BOARD TAKES ON DEPENDS ON THE BALANCE STRUCK
HE BOARD ITSELF AND E THE EXECUTIVE DIRECTOR,
There will be a comfortable balance point with optimum interaction
TRANSPARENCY 87
TYPES OF BOARDS
Board of Directors
Direction, Policy setting, S anction,
monitor, evaluate, liable,
planning, hire and fire director,
public relations and advocacy, fundraising.
Advisory Board
Expertise, advice, No liability,
Policy recomm endations
Active
PASSIVE
Exocutive
Board
Director
W TRANSPARENCY 7
LAIN THAT EVERY BOARD NEEDS
PEOPLE - to be on the board, to gi bring the sanction of community
groups, consumers, professional groups,
POWER - the ability to accomplish thi ngs
MONEY - to keep the agency running
INFORMATION - to keep the agency alive, and with the knowledge it
needs to plan and to meet the needs of the community.
W transparency 8
T- 8
THE BOARD MEMBER
QUALIFICATIONS:
interest
and share
Ability to work with people (ant communicate
Time
Willingness
Ability and interest to do a particular job
Community and organizational viewpoint
KNOWLEDGE POOL:
Community- population, education, mobility,
economics, politics , diversity
information, relations
FUNCTIONAL TOOLS- policy planning, personal,
administration finding, programs,
public relations, management,
responsibilities division of labor
T-9
I
RESOURCES
You !
VOLUNTÉER
BOARD
MEMBERS
GROUP DECISION-MAKING
WAS THE ISSUE DEFINES?
HOW?
HOW DID THE GROUP DISCUSS THE ISSUE?
Discuss
1 some cround
WHAT KINDS OF TOLES DID THE INDIVIDUAL PLAY IN HELPING TO REACH A DECISION?
WERE THE TIME LIMITS OVSERVED?
WAS A DECISION MADE?
WAS EVERYONE HAPPY WITH THE WAY THE DECISION WAS MADE?
ARE MOST PEOPLE HAPPY WITH THE DECISION?
CAN EVERYONE LIVE WITH THE DECISION?
HOW MUCH TIME WAS SPENT ON THINGS BESIDE THE POINT?
DOES EVERYONE KNOW WHAT THE DECISION WAS?
ANYTHING ELSE?
T-27
GOALS
FOR:
planning
focussing
informing
Identifying problems
communicating
ass essing
A
broad based statement
of mission or purpose or
long range desired outcome
based on values / general
a formant
27
MANAGEMENT
by
OBJECTIVES
MISSION
GOALS
OBJECTIVES
ACTION
STEPS W - W ACTIVITIES.
CAUSES FOR NON-PARTICIPATION
REFERENCE: Haiman, Franklyn I., Ph. Group Leadership and Democratic Action,
School of Speech, Northwestern University, Houghton Mifflin
Company, page 145-146.
and proportion to their ability is obvious to anyone who observes
That people in discussion situations do not necessarily participate in
each: just a few possibilities, along with typical comments exemplifying
Here explores are the issue. There are a multitude of causes for non-participation. group behaviors
1. whether A lack of confidence in one's own ideas: "It doesn't make difference
contribute. I say " anything or not, because I never have anything any original to
LANE. Lack didn't of emotional involvement in the matters being discussed: "I just
2.
feel excited about the subject."
much A lack of skill in verbalizing ideas: "The others can state their ideas so
4.
more clearly than I can; so I'd rather just listen.
An inability to think rapidly enough to keep up with the of
discussion. "By the time I've mulled over a point long enough pace to the have
else. something to say on it, the rest of the group has noved on to something
5. A but deeper I reflection of ideas: "Some people just seem to think out loud;
a
An prefer to think to myself a while before speaking. "
(
have attitude to scy of about detached these observation: things. " I just like to hear what other people
7. Habitual shyness: "I never talk very much. :1
2. A eyes lack open. of sleep, " or other physical disturbances: "I could hardly keep my
9
Distraction to more pressing personal problems: "The reason I didn't
10
Submissiveness today was because I was worrying about a mid-term exam I have next talk "
V11.
edgewise in this outfit, so I just keep quiet. :1
to more aggressive members: "A guy can never get a word period. in
An told interpersonal that conflict: "I knew that if I over got started I'd have
12. A non-permissive it atmosphere: "I don't feel free to speak when Miss
off, so I decided not to say anything at all."
is around.
13. An audience overdeminant leader: "He doesn' care what I think. He just wants an
to make big speeches to 11
14. Fear is of being rejected: "I'm afraid everybody will think that what I have to
say silly.
15. A used solidified to pattern of participation: "Everyone in the group has gotten
my not talking much, so I feel uncomfortable
13.
were surprised when I do speak. "
as though everyone
A really feeling knew of superiority: "That was such a pointless discussion and nobody
17. A so disbelief why bother. in the value of discussion: "Talk never changes anybody's mind,
what they were talking about. What a waste of time. "
18. Lack of knowledge or intelligence: The discussion was way over my head. "
1
This talkative list members is based of upon their the testimony of students who have been
THE LESSON
HANDOUT "CAUSES FOR NON-PARTICIPATION. EXPLAIN THAT THIS IS AN EXERCISE
IN DECISION-MAKING.
PARTICIPANTS TO READ THE LIST AND TO DECIDE ON WHAT THEY MINUTES. FEEL ARE THE
ASK FIVE MOST IMPORTANT CAUSES. TELL THEM THEY WILL HAVE TEN
WAIT TEN MINUTES.
PARTICIPANTS TO NUMBER OFF BY 2,3,4, or 5 (DEPENDING ON SIZE OF GROUP IN A
ASK so that you have small groups of 4-6 people) ASK EACH GROUP TO GATHER
DESIGNATED SPACE IN THE ROOM.
ASK GROUPS TO COME UP WITH A GROUP DECISION ON THE FIVE MOST IMPORTANT CAUSES.
TELL THEM THEY WILL HAVE TEN MINUTES TO DO THIS.
WAIT TEN MINUTES
ASK EACH GROUP TO TAKE TWO MINUTES TO SELECT A REPRESENTATIVE TO GO TO A
MEETING.
WAIT TWO MINUTES
ASK THE "Let's call this a board.") TO COME UP WITH A FINAL ARE' THAT EACH THE
REPRESENTATIVES TO FORM A CIRCLE IN THE MIDDLE OF THE ROOM. LIST ASK OF THE
GROUP (saying IMPORTANT CAUSES OF NON-PARTICIPATION. THE GROUND RULES WITH THEIR
5 REPRESENTATIVE MOST MAY USE UP TO 60 SECONDS OF TIME OUT TO CONFER
GROUP. TELL THEM THAT THEY WILL HAVE 7 MINUTES TO DO THIS.
WAIT 7 MINUTES.
SAY STOP. ASK THE "BOARD" WHAT THEY AGREED ON.
LEAD DISCUSSION PROCESS AND ROLES.
FIRST ASK REPRESENTATIVES ONLY TO
COMMENT
- on their satisfaction with the outcome.
- - how felt about the time constraints.
- on on whether they or not they used their time outs to confer. If they did, why?
- the role conflict they experienced as individuals and as group
If not, why not?
on representatives, then as members of the new group (the "board").
the feelings expressed to real life role conflicts and time
Relate Encourage participants to see that the board members
constraints. responsible as representatives to their constituency, but also
are to getting tasks accomplished, which may involve them in compromise.
ASK CONSTITUENTS TO COMMENT
- how they felt about the outcome.
- on how well they felt their representative represented them.
- on on whether or not they were interested in the outcome of the board meeting.
Relate the feelings expressed to real life frustrations of consumers
and the need to remain interested and involved.
Discuss the differences between the small groups and the cohesion and
purpose they felt while they were doing their task, compared with
SHOW TRANSPARENCY 23
EXPLAIN THAT IN A GOOD MEETING
- The procedure is democratic. Everyone has a voice and a vote.
- Everyone has a fair hearing (Especially if you stick to the P.R.E.P. rule of thumb)
- There is flexibility.
- Individual rights are protected.
- Change can take place.
STATE THAT IF THE OBJECTIVE OF A MEETING IS TO MAKE DECISIONS THEN THE
IMPORTANT WORK TAKES PLACE OUTSIDE THE MEETING. THE THINKING AND PREPARATION
OCCUR BEFORE AND THE IMPLEMENTATION AFTER. SOME MEETINGS MAY BE ONLY FOR
DISCUSSION.
TO MAKE A DECISION-MAKING MEETING WORK YOU NEED ;;; PRIOR PREPARATION.
YOU SHOULD READ THE MIUTES OF THE LAST MEETING AND ANY BACKGROUND MATERIAL.
THINK ABOUT AND DISCUSS THE ISSUE BEFORE HAND. PREPARE ANY REPORTS WHICH YOU
ARE RESPONSIBLE FOR. MAKE THEM BRIEF AND TO THE POINT. IF YOU ARE THE CHAIR
THEN PREPARE AND AGENDA IN CONSULTATION WITH THE DIRECTOR. IF YOU ARE A BOARD
MEMBER AND HAVE ANYTHING IMPORTANT TO BE ADDED TO THE AGENDA CONTACT THE CHAIRPERSON.
THE MINUTES ARE AN EXTREMELY IMPORTANT PART OF ANY BOARD. THEY SERVE AS A LEGAL
RECORD OF PROCEEDINGS AND DECISIONS. THEY CAN ALSO GUIDE THE WHOLE WAY IN
WHICH THE BOARD CONDUCTS ITS BUSINESS. THERE ARE SEVERAL WAYS TO RECORD MINUTES.
ONE USEFUL ONE IS TO IDENTIFY THE ISSUE BEING DISCUSSED AND TO SUMMARIZE THE
POINTS MADE ON EITHER SIDE. ONCE THE ISSUE IS NARROWED, WRITE THE MOTION ITSELF
AND THE VOTE TAKEN. LASTLY AND PERHAPS MOST IMPORTANTLY, ONCE A DECISION HAS
BEEN MADE THEN THE BOARD SHOULD DISCUSS ITS CONSEQUENCES AND THE NEXT STEPS
SHOULD BE IDENTIFIED AND RECORDED. THIS SERVES AS A HANDY REFERENCE FOR PEOPLE
TO REMIND THEMS ELVES OF WHAT THEY ARE RESPONSIBLE FOR
IT IS ALSO THE BASIS FOR
LOOKING AT OLD BUSINESS TO SEE WHAT IS STILL OUTSTANDING. IF THERE ARE REALLY
NO CONCRETE "NEXT STEPS" THEN THE SECRETARY CAN RECORD "NEXT STEPS - NONE".
AN AGENDA IS THE STRUCTURE THAT GIVES A GROUP THE FREEDOM TO GET BUSINESS DONE
DEMOCRATICALLY. THE AGENDA, DEVELOPED BY THE PRESIDENT OR CHAIR AND THE DIRECTOR
SHOULD BE PREPARED BEFOREHAND. IT SHOULD BE MAILED OUT, HANDED OUT, OR POSTED
IN FRONT OF THE MEETING. EVERYONE SHOULD BE REVIEWING IT AT THE GEGINNIN OF
THE MEETING. THAT WAY PEOPLE CAN IDENTIFY WHERE THEIR CONCERNS WILL BE ADDRESSED
AND WILL NOT NEED TO INTERRUPT IRRELEVANTLY AT OTHER TIMES.
CHANGES IN THE AGENDA SHOULD BE CALLED FOR THE THE BEGINNING OF THE MEETING. THE
AGENDA SHOULD BE PRIORITIZED AND THE CHAIRPERSON SHOULD HAVE APPROXIMATE TIME LIMITES
IN MIND FOR EACH ITEM IN ORDER TO FINISH BUSINESS IN A REASONABLE TIME. CHAIRPERSONS
SHOULD BE ABLE TO ESTIMATE THE LENGTH OF THEIR REPORTS TO HELP.
IN GENERAL THE AGENDA SHOULD BE SET OUT AS FOLLOWS
CALL TO ORDER
MINUTES (READ AND CORRECTIONS TAKEN)
REPORTS (NO DISCUSSION AT THIS TIME ALTHOUGH QUESTIONS CAN BE ASKED AND
NEEDED DECISIONS IDENTIFIED)
OLD BUSINESS (ANYTHING THAT CAME UP AT THE LAST MEETING
DECISIONS CAN BE MADE)
NEW BUSINESS ( ANYTHING THAT DIDNT COME UP AT THE LAST MEETING
IN GENERAL
THE PREPARATION FOR THIS SHOULD HAVE COME UNDER SOMEONE'S REPORT
DECISIONS
CAN BE MADE).
ANNOUNCEMENTS
ADJOURNMENT
SHOW TRANSPARENCY 24
TRANSPARENCY 23
GOOD MEETINGS
DEMOCRACY
FAIR HEARING
FLEXIBILITY
PROTECTION OF RIGHTS
CHANGE
THE WORK GOES ON BEFORE AND AFTER THE MEETING.
** PRIOR PREPARATION
-Read Minutes and all background material.
- -Talk with people, think about the issues.
-Prepare reports.
-Develop an agenda
*** MINUTES
Meeting, Date, Time, Place, Who Attended.
(Follow the sequence of the agenda)
1. Issue
Pros
Cons
MOTION (proposer and seconder)
Vote
NEXT STEPS (Who will do what and by when)
A.
B.
C.
*** AGENDA
- Call to Order
- Minutes
- Reports - officers
- standing committees
- special committees
- Old business
- New business
- Announcements
- Adjournment
THERE SHOULD BE NO MAJOR SURPRISES IN A MEETING.
T-IS
A Little Bit About Conflict.
Conflict is okay AMR Not everyone
agrees . Conflict can be productive,
Beware of :
tendency to stereotype and judge
setting up a WIN/LOSE situation
You may notice i
WIN group - draws closer, people
who appreciate the other side are
seen as traitors, feel they were
right all along,
LOSE group - tends to fall apart,
tends to blame its leaders, everything
others say is proof of evilness
Will
T- 30
ACTION STEPS
I
E ACTIVITIES
the objective broken
down. The sequential
lascer tasks which need
to be accomplished.
1. a statement
2. large tasks
Sub-tasks Sub- tasks
3. sequential
4. has time frame
5. person (s) responsible.
1-28-29
OBJECTIVES
An operational statement
which is specific,
measurable and / or
observable and is written
with the intention of working
towards a goal.
GOOD
1.
Begins with "To"
2. Contains a strong action verb
3. Qualitative or Quantitative
(Process)
(outcome)
4. Measurable or observable
5. single aim or end product
6. Has a time frame (+ Geographic area)
valid:
Consistent with agency piticy,achievabl
meets client needs, sufficient impact ?
SHOW TRANSPARENCY 2
EXPLAIN THAT BEING ON A BOARD MEANS BELONGING TO A
THAT AND THAT GROUPS ARE ONLY AS EFFECTIVE AS THE COMMUNICATION GROUP
EXISTS WITHIN IT (and without).
EXPLAIN THAT THE FIRST STEP IN COMMUNICATING IN GROUPS
IS SHARING INFORMATION BETWEEN INDIVIDUALS.
ASK PARTICIPANTS TO PAIR UP WITH SOMEONE THEY DO NOT
KNOW VERY WELL AND TO SIT WITH A PARTNER
EXPLAIN THE JOHARI WINDOW. (There are four
The only pane that a group can work with is panes. the open
one where both the self and others share the
knowledge. The hidden area is the one we know same about
but others do not. The blindspot is
about The unknown is the area
the one we dont know about ourselves, and others know
of is us is aware of. In working in a group our objective none
of the unknown)
to expand the open area by pushing back the boundaries
OTHER PERSON DOES NOT KNOW, FROM BOTH THE HIDDEN AND
AREA BY INFORMING EACH OTHER ABOUT SOMETHI NG WHICH THE
ASK PARTICIPANTS TO SPEND TEN MINUTES EXPANDING THE OPEN
BLINDSPOTS. TELL PARTICIPANTS THAT AFTER TEN MINUTES
THREE PIECES OF INFORMATION WHICH THEIR PARTNER HAS
YOU WANT THEM TO INTRODUCE EACH OTHER TO THE GROUP WITH
AGREED SHOULD IS OKAY TO SHARE WITH THE GROUP. (THE GROUP LEADER
DO THIS WITH COLEADERS, OR A PARTICIPANT).
AFTER TEN MINUTES ASK GROUP TO REFORM THEIR CIRCLE.
STARTING WITH THE GROUP LEADER ASK PARTNERS TO INTRODUCE
EACH OTHER TO THE GROUP.
MOVE TO MODULE 1
TRANSPARENCY 2
SHARING INFORMATION
TO SELF
K
KNOWN
UNKNOWN
N
0
W
N
OPEN
BLINDSPOT
ERS
U
N
HIDDEN
UNKNOWN
K
N
0
W
N
WHAT
manual is designed to help orient consumers, and others,
This training functions, of a non-profit board, the roles and responsibilities
to the members, and tools for decision-making. It provides a structured and
of training board format for use by social service administrators, planners,
developers already familiar with the concepts involved.
Learning this program and never need to attend to this dedicated again.
is an ongoing process - and SO is training. Do not expect task
This to implement is just the first step. It is just the ground breaker for
volunteers who think they want to do it.
the manual we have made several assumptions. If you share needs.
In these designing assumptions with us then the training we hope will fill your
If you dont then you should look for another tarining program.
Our assumptions are that
- level of consumer participation in decision-making decisions. in social
service for input into decis@jn-making is consistent sound
A high organizations is desirable in order to make good with
An administrative open system practice. Tokenism and paternalism are not acceptable
alternatives.
- A board should be active in assessing social problems, developing and
maintaining programs to address these needs, and monitoring is for
and evaluating the accomplishment of objectives. Rubber stamping for
the post office and should not be the general mode of operation a
responsible board.
- Consumers, business people and professionals alike, need training
in order to be effective board members.
= Training is an ongoing process.
- roles and responsibilities of board, executive and staff must be
defines The and clarified within every agency by the groups involved.
- Agencies exist to fill unmet needs in the community.
- members should serve selflessly in the interests of the community in
they Board represent, and in the intersts of the agency. They can expect
return to receive leadership training, and to effect change.
WHY
In recent years numerous community-based not-for-profit organizations
have developed from consumer advocacy associations into service providers.
In some instances membership organizations are responsible for determining
agency goals, electing board members, establishing by-laws, and approving
policies. (Examples are associations for retarded citizens, independent
living centers, lábor community organizations).
Consumers are called upon to participate in the decision-making and
control of organizations that exist to meet their needs. Sometimes
this is a blessing leading to quality, effective and creative solutions
to social problems. Sometimes it has meant an abbrogation of all
responsibility to administrators and professionals who become (benevolent)
dictators. Sometimes it has resulted in well-intentioned but destructive
meddling leading directly to headaches for executives, staff , and
consumers, or even to the demise of badly needed programs
The central issue in consumer participation on agency boards relates
to role adoption. Board participants must understand their roles,
and then learn how to better perform in them. Executive and staff must
concur in these role expectations. Common breakdowns occur when active
consumers fear that the agency will not fulfill their desires, or
when staff fear that consumers will interfere in daily operations.
A healthy, and active board can integrate consumers when they serve
selflessly in the interests of the agency and community welfare, and
when staff welcome consumer input. Of course asserting this does not
make it so, and it must be genuine. Even when this relationships is
desired and is genuine, training is still needed to clarify roles.
The board of an agency has ultimate legal responsibility for its activities.
The executive and staff implement the program on a daily basis. The
board delegates its decision-making authority as it chooses. Board,
executive and staff roles must be understood and accepted by all parties.
When this happens staff can concentrate on providing quality services,
and change can be integrated smoothly. When these roles and
responsibilities are confused, everyone suffers. If everyone is riding
roughshod over each other, time and energy are wasted.
WHO
The Trainees - These are consumer and other members of boards of not-for
-profit organizations. They may be staff members, or even potential
board members. They should desire training.
The Trainers - Three things qualify a trainer; understanding the issues
andmaterials, credibility with the audience, ability to facilitate group
process.
The best teachers know that the participants have all the answers and
only need to be guided to discover and express them. Participants
need to learn in a setting which does not threaten them personally
and in which they can learn by doing. Sometimes an administrator can
Seliver training to his or her own board. Generally, an outsider who
is not personally involved with the agency is in a better position
to consult with the board and may be listened to more intently as the
recognized expert.
HOW
The training package is divided into two parts. Part A i-s the
Board Training Manual which is designed as a curriculum for use by trainers.
Part B is a companion Board Manual which reinforces some of the concepts
raised in the curriculum and provides both additional reference and
training material and a structure for the agency's own board materials.
The training curriculum is divided into 6 modules which can be
presented at monthly board meetings over a six month period, at a
special series of three to six workshops over two to four weeks, or over
a two day period. (See sample agenda).
Each module takes from 60 to 90 minutes to present. Each can be skimmed,
skipped, or expanded to meet the needs of a particular group.
The modules are presented as follows.
Title
Purpose
Instructional and Process Objectives
Planning and Materials
Estimated Time
Sequence Outline
The Lesson
he Lesson consists of
Presentation instructions, content notes, transparencies and handouts.
The presentation intructions are in bold face and indicate procedures
0 guide the trainer through the module. The transparencies are for
isplay on an overhead projector and serve both to outline and reinforce
cints for trainees. The content notes explain issues and implications.
rd the handouts are for group exercises.
he Modules are, in sequence;
I.
Why and What are Boards?
II.
Decision-Making I
III. Organization and Structure
IV.
Decision-Making II
V.
Program Planning and Management
VI.
Decision-Making III
11 prople
PLANNING CHECKLIST
ROOM - Is the size appropriate for the number of participants?
(Participant numbers can range from six to twenty-four, but
remember that there should be enough room for small groups
of 4 to 5 people to have some territory to themselves)
Is it accessible? (To mobility impaired, blind, deaf people).
Can the furniture be moved around? (The socio-physical design
of the room is important in setting the tone of the training.
If the furniture is big and unmovable the atmosphere will
remain formal and stiff. If the furniture is not obtrusive,
and can be used flexibly, then participants will quickly catch
on that the environment can be manipulated as it suits their
needs. Create an informal socio-physical setting without rows
of chairs or tables, but using a loose, irregular horseshoe.)
Find out where the restrooms, water fountain, fire exits are.
EQUIPMENT - Do you have the overhead projector? Is it set up where
there is good view and magnification.
Name tags
Pens
Registration List
Sufficient Handouts
THER Coffee, etc.
TITLE
WARMING UP
PURPOSE
Warming up is an important part of any group process. The participants
are goin g to share a learning experience together. To do this they
must feel comfortable. The participants must make mistakes together.
To do this they must feel trust.
The physical design of the room is important in setting the tone of
the training. If the furniture is big and unmovable the atmosphere
will remain formal and stiff. If the furniture is not obtrusive, and
can be used flexibly, then participants will quickly catch on that
they environment can be manipulated as it suits their needs. Create
an informal socio-physical!setting without rows of chairs or tables.
INSTRUCTIONAL AND PROCESS OBJECTIVES
1. Participants will learn something new about each other,
2. Participants comfort level will increase.
E. Participants will begin to see themselves as a group.
PLANNING AMD MATERIALS
daye a table set up at the door with name tags, pens andregistration list
Prepare agenda handout for each participant.
ESTIMATED TIME
me hour.
EQUENCE OUTLINE
As participants arrive, ask them to make a name tag for themselves
with the name they wish to be called. Make yourself nonity
Checkeach participants name off the registration list.
(No one should participate as an observer, or without the consent
of the primary group of trainees)
Ask participants to help themselves to coffee etc.
When all participants have arrived ask them to seat themselves.
Show transparency 1. Take care of housekeeping. Handout agenda.
Show transparency 2. Explain Johari window.
Lead Johari window exercise.
Go directly into Module 1.
THE LESSON
INTRODUCE YOURSELF
STATE *HI THE GROUP IS HERE. (Because they have expressed a desire to receive
SHOW TRANSPARENCY 1
training)
EXPLAIN THAT FIRST WE WILL TAKE CARE OF HOUSEKEEPING
PASS OUT AGENDA HANDOUT
IF INTERPRETERS ARE PRESENT ASK IF EVERYONE IS FAMILIAR WITH HOW
TO USE AN INTERPRETER. IF NOT EXPLAIN. (The interpreter will interpret
everything that is said to the hearing impaired person (s), and
III
everything the hearing impaired person says The interpreter is not
participant, but a facilitator. In general the hearing person should
te looking at the deaf person he or she is communicating with, and
hould speak directly to to him/her.)
DINT OUT THE RESTROOMS
OINT OUT THE COFFEE, WATERFOUNTAINS
EFER TO THE AGENDA, DESCRIBE THE SEQUENCE OF MODULES BRIEFLY, POINT
UT BREAKS. ASK IF THERE ARE ANY QUESTIONS
OKING ASK THE GROUP HOW THEY FEEL ABOUT SMOKING? ASK HOW MANY
EOPLE FEEL THEY NEED TO SMOKE? SUGGEST THE GROUP DECIDE WHAT THEY
ANT TO DO ABOUT SMOKING. EXPRESS YOUR OWN FEELINGS. AS THE GROUP
UGGESTS POLICY, CONFIRM THAT THE SOLUTION IS AGREEABLE TO EVERYONE.
XPLAIN YOUR OWN STYLE OF TEACHING. (Will use a combination of talking,
xplaining, demonstrating, doing. Tell the group that they already
he now what you are here to teach them, and that you are still learning it.
ill teach you. It is a learning process for everyone involved. There
roles of teacher and learner are interchangeable. The participants
re no absolute answers.)
HANGE TO TRANSPARENCY 2.
the disintegration of the small group once the new board group formed.
If one group's ideas were utilized more than another's then show
that strengthened. Explain that in groups and out groups
how frequently group form, when win-lose situations are set up, and that this can
be avoided by reaching decisons through consensus and compromise.
SHOW TRANSPARENCY 11. Relate this to any conflict which arose when
participants gave feedback. EXPLAIN INTERPERSONAL COMMUNICATION.
That when two parties communicate two things are happening; one person the
sending a messages has an intention, the other person receiving is
has a perception of what was intended. If communication least to
message be effective then the intention and perception have to be at
similar. One way to ensure this is through feedback.
SHOW TRANSPARENCY 12.
THE LESSON
CONTINUED
ASK PARTICIPANTS TO PROCESS WHAT OCCURRED
FROM THE BEGINNING
,
Relate responses to real life, clarifying and identifying different stages
- when did they agree to start, who picked up the envelope, did they try to
avoid the whole task? Did they resist it or accept it?
- Did they have any leaders ? Was there a chair? Did having a chair make a
difference?
- Did they define the problem. Did they waste time with the guy in left field
who wanted wallpaper or did they define the problem clearly so that that issue
would not obscure the task. Did they accept the objectively defined
task of choosing i; paint If not was that through lateral thinking and
creativity or was it avoidance of reality.
- Did they observe the time factors and work within them?
- Was there an initial brainstorming stage when ideas were thrown out without
any judgement? Was there open dicsussion ? Was there compromise? consensus?
- Was the decision formally adopted. Was a vote recorded? D₂es everyone know
what the decision was? Can everyoen live with it? (or is someone likely to
leave angry and either quit or sabotage later) (Quiting is sometimes okay too...)
If the group did or didn't do some things simply reflect their choices and
the options that they had. Compliment them for all positive aspects of their
interaction.
HAND OUT GROUP OBSERVATION SHEET.
ASK EACH QUESTION ON THE SHEET AND ASK GROUP TO RESPOND. SUGGEST THAT THIS
CAN BE USED AFTER MEETINGS TO ASSESS THEIR PRODUCTIVITY.
SHOW TRANSPARENCY 21
SELF-EVALUATION
A YARDSTICK FOR MEASURING THE BOARD*
Thirty-six suggested criteria for Boards to use in self-evaluation.
Rating
Need to Work
Criteria or Measures of:
Yes
No
on This
A. Selection and Composition
1. The agency has a written statement of
qualifications for board members.
2. The Nominating Committee works on a year-round
basis and solicits staff, board, clientele,
and organization suggestions for nominations
to the board.
3. The agency is always thinking ahead and has
a pool or reservoir of potential board members
for the future.
4. The board is composed of persons vitally
interested in the work of the agency.
5. The board is widely respresentative of the
community.
6. There is a satisfactory combination of
experienced and new board members to guarantee
both continuity and new thinking.
7. The agency has a formal plan for limiting the
tenure of board members which specifies
rotation so as to assure a steady supply of
new board members.
B. Orientation and Training
1. The agency has a clearly written statement
outlining the duties and responsibilities
of the new board member.
2. The agency has a written plan which it
follows in its program of orientation for
its new board members.
3. The agency has a board member manual which
it supplies to all board members. The
manual is revised periodically.
4. The agency has a plan for and program of
board member training carried on throughout
the year.
5. Board members participate in community,
state, regional, and national training
opportunities.
*From Citizens Boards at Work: New Challenges to Effective Action by
Harleigh B. Trecker.
-1-
A YARDSTICK FOR MEASURING THE BOARD (Continued)
Rating
Need to Work
Criteria or Measures of:
Yes
No
on This
C. Organization of the Board
1. The board has a simple, concise set of
bylaws which provide clear duties for the
officers of the board and spell out the
procedures by which the board transacts its
business.
2. The board has an elected executive committee
to handle matters which may come up between
meetings.
3. The board has working committees such as
program, personnel, legislation, public re-
lations, etc., through which work is
channeled.
4. Committee assignments and responsibilities
are in writing and copies are supplied to
committee members.
5. Committee assignments are reviewed and
evaluated periodically.
6. Working relations between the executive and
the board are clearly defined and understood.
7. Board and staff members are clear about
their specific duties and responsibilities.
D. The Board at Work
1. There are regularly scheduled board meetings
at least ten times per year.
2. Meetings begin on time and end on time as
per agreed upon schedule.
3. There is adequate preparation of material
including agendas, study documents, etc.,
in advance of board meetings.
4. Board meetings are characterized by free
discussion, general participation, active
thinking together.
5. Board meetings deal primarily with policy
formulation, review of plans, making board
authorizations, evaluating the work of the
agency.
6. Routine matters, that is, items requiring
official action but little discussion, are
handled with dispatch.
-2-
A YARDSTICK FOR MEASURING THE BOARD (Continued)
Rating
Need to Work
Criteria or Measures of:
Yes
No
on This
7. Minutes of board and committee meetings are
written and circulated to the members.
8. Regular reports of committee work are made
to the board.
9. The board spends some time on matters of
community, state, and nationwide concern
within the field of service of the agency.
10. Individual members of the board accept and
carry assignments within the area of their
special talents and competencies.
11. Board and staff members work together on
specific programs and projects from time
to time.
12. Executive functions and direct services
are left to the staff.
E. Evaluation of the Board
1. Board members give sufficient time to the
work of the agency and have a good record
of attendance at regularly scheduled board
and committee meetings.
2. The board conducts an annual review of its
own organization and work.
3. The board has an agenda of future plans for
the agency scheduled in terms of program
priorities.
4. New leadership is emerging constantly from
the board and its committees.
5. The board participates actively in com-
munity wide social welfare planning
programs.
-3-
^ NUMBER of private nonprofit
whenever by some act or omission he
agencies involved in the delivery of
fails in the performance of some duty
social services rely heavily on the use
[as] a result of which injury is sus.
of volunteer help. Although the speci-
tained by the corporation, its stockhold.
fic functions they perform may vary
crs, creditors, or any other person to
Liability
from agency to agency, voluntecrs can
whom duty is owing.
be found in almost every facet of
agency operations, whether raising
For purposes of this discussion, lia-
for social
funds, stuffing envelopes, answering
bility may be thought of in terms of
telephones, providing direct services,
three categories of acts: (1) illegal
or serving on boards of directors. The
(an actual breach of the law), (2)
number of volunteers donating their
tortious (a tort being a wrongful act
agency
time to agencies is considerable, and
that, although not illegal, causes in-
the amount of time they donate is
jury to someone), and (3) unautho-.
boards
overwhelming.¹ For instance, based
rized (an ultra vires act representing
on a study involving 174 cities, the
action beyond the scope of granted
United Way of America estimated
power). This article will not focus on
that in 1973 between 2.2 and 2.6 bil-
the consequences of criminal, willful,
lion hours of volunteer time were
William N. Zelman
or intentional departures from duty,
donated to its member organizations.²
fradulent breaches of trust, or ultra
Although 80 percent of this time was
vires acts. Rather, the following dis-
spent in the area of programs and ser-
cussion will be about those liabilities
vices, over 12 million hours were ex-
that may result when a member of
pended in activities relating to board
the board of directors of a social ser-
membership. Certain aspects of these
vice agency makes an error in judg-
Acceptance of a board position in a
board activities will be the concern of
ment or fails to carry out fully his or
social service agency has always
the present article.
her obligations.
brought with it potential personal
By virtue of law, national charter,
Large numbers of social service
or affiliation, many private agencies
agencies are incorporated, and as non-
liability. However, private non-
are mandated to have a voluntary
profit corporations they are subject to
profit agencies themselves are now
board of directors.⁸ One of the main
corporate law. Corporations must act
losing their special status with re-
purposes of voluntary boards is to en-
through human agents, and they com-
gard to liability for legal damages.
sure community input and representa-
monly do so through a board of direc-
tion in an agency's policymaking func-
tors. The Colorado Corporation Code,
This trend has profound conse-
tions. But the assumption of a board
for example, indicates that unless
quences for volunteers and regular
position brings with it attendant lia-
otherwise specified in the code itself or
staff alike.
bilities. That is, board members are
in a particular organization's articles
legally responsible for possible or ac-
of incorporation, corporate manage-
tual losses, penalties, or expenses.
ment rests with the board of direc-
Damages resulting from these liabili-
tors. Board members do not occupy
ties may have serious consequences
their positions to look after their own
for social service agencies and their
interests; they are to watch over the
boards. This article will present an
interests of the corporation's stock-
OTICE: THIS MATERIAL MAY BE
overview of some major issues in the
holders or members. The trust placed
complex area of liability.
in them by the membership forms the
ROTECTED BY COPYRIGHT LAW.
basis of what is in legal terms called
(TITLE 17 U.S. CODE)
BASIS OF LIABILITY
a fiduciary relationship. It is also a
major basis of the responsibilities and
Contrary to popular opinion, liability
liabilities of a corporate board mem-
ber.
may stem from improper or wrongful
behavior and not just from the per-
It is not possible to specify the re-
formance of a criminal act. What con-
sponsibilities and liabilities of all cor-
William N. Zelman, Ph.D., is a Com-
munity Mental Health Center Ad-
stitutes liability can be described in the
porate board members. A specific list
ministrative Specialist, College of
following comprehensive way:
is determinable only on a case-by-case
basis. The individual powers, duties,
Business Administration, School of
Liability and duty are merely the op-
and liabilities of board members stem
Accountancy, University of Denver,
posite faces of the same coin. In gen-
Colorado.
from three major sources: federal,
eral, a director is liable in damages
state, and local statutes, the corporate
270
charter, and the corporate bylaws, and
only through close scrutiny of these
"As a result of changes in their legal status, board members may now
may the duties of a particular board
member be determined. In general
become more involved in the day-to-day operations of their agencies, an
terms, however, the chief duties of
area in which they may have little previous experience. This, of course,
members of the board are the follow-
will greatly affect the individual social worker, whose practices will
ing: to exercise their powers for the
come under increasing scrutiny."
benefit of the corporation and all its
members-not only some of them—
with full honesty and reasonable
efficiency; to exercise their greatest
organization's character, purpose, size,
themselves against such interpreta-
care, skill, and judgment; to act out
financial means, location, and charter
tions, board members unable to attend
of good faith and deal fairly with the
and by-law provisions. Nevertheless,
a meeting should be sure that the rec-
corporation; to display highest loyalty,
board members who attend to certain
ord shows a valid reason for their ab-
reasonable care, and business pru-
considerations are more likely to carry
sence. They should also obtain the
dence in regard to the interests of the
out their responsibilities in what is
minutes of the meeting and have en-
corporation; and to be diligent in the
considered a diligent manner.
tered as part of the record any dis-
performance of duties and obedient to
First, members of the board should
agreements they may have with the
the law and to the charter and bylaws
be fully aware of the duties and obli-
actions taken.¹²
of the corporation.⁷ Although this de-
gations of their position. 10 Ignorance
Third, board members should ac-
scription seems nebulous, scrutinizing
of responsibilities cannot be relied on
tively take part in the board's de-
it can lead to a greater understanding
as an excuse or defense for neglect of
cision-making processes. If no written
of the areas in which a board member
duty. Board members should therefore
record exists to the contrary, it may be
is potentially liable. Such an examina-
insist on being fully briefed, both
assumed that a board member agrees
tion can be facilitated by discussing
orally and in writing, regarding the
with any action undertaken by the
the duties of a member of the board in
requirements of their position. Gen-
board. Therefore, any disagreements
terms of two significant concepts, dili-
eral obligations as well as specific
an individual may have with a board
gence and prudence.
tasks should be outlined, and responsi-
action should be recorded.¹³
bility for them should be fixed in a
In addition, members of the board
manner clear to all parties involved.
of directors should actively oversee
DILIGENCE
If there is any doubt about the nature
the action of their agencies. Since they
Although few agency board members
of a particular responsibility or the
are responsible for being informed
may be aware of it, accepting a board
person with whom it rests, legal
about the general activities and prob-
position obligates them to be diligent
counsel should be sought.
lems of the agency, those who fail to
in looking after the interests of the
Second, board members should be
become at least generally acquainted
membership they represent. Through-
able to devote the time necessary to
with its charter, bylaws, and other
out the years and in different locales,
fulfill their responsibilities. Many of
documents "face allegations of negli-
three different standards have been
them are chosen for their position on
gence, if not violation of specific statu-
used to determine the degree of dili-
the basis of past successes and accom-
tory provisions.' 14 Their responsibil-
gence a member of the board may rea-
plishments in community endeavors.
ities do not end here, however. Board
sonably be expected to display: that
Their duties as a member of the board
members should define the scope of
of an ordinarily diligent. man acting
may represent only a small portion of
officers' authority and make certain
under similar circumstances; that of a
the activities in which they are en-
that they carry out their jobs honestly
reasonably diligent man acting under
gaged (which probably also include
and competently and do not under-
similar circumstances in a like posi-
earning a living). It is not surprising,
take actions that exceed their author-
tion; and that of a reasonably diligent
therefore, that many agency board
ity. It is also incumbent on any board
man acting in a like position under the
members are not able to attend every
member who is suspicious of the na-
same or similar circumstances in the
board meeting and find it necessary to
ture of board activities or of the ac-
conduct of his own affairs.⁸
delegate responsibilities to others. Al-
tivities of other board members to
Theoretically, each of these stan-
though such absences and delegation
make inquiries in keeping with the
dards places a different level of re-
are understandable, they may not
exercise of ordinary diligence and to
sponsibility on a member of the board.
make board members any less ac-
undertake efforts to correct the ques-
However, the degree of diligence
countable for the proper performance
tionable situation.¹⁵
expected of a board member varies
of their duties. For example, if a
Finally (and perhaps most at vari-
from situation to situation and ulti-
member of the board is not present at
ance with current practices), mem-
mately depends on such factors as
a board meeting, it may be inferred
bers of the board must scrutinize the
the specific laws under which the or-
that he or she approves of any actions
official records and financial state-
ganization operates as well as the
taken
at
the
meeting.¹¹
To
protect
ments of their agencies and question
ZELMAN / Liability for Agency Boards
271
subordinates about them in a way that
any injury. Similarly, board members
tions and, on the other, to discourage
would be deemed reasonable. If a
may not use their position to obtain
them from taking advantage of the
board member feels lacking in suffi-
advantage of the corporation's rc-
public. "Striking this balance is," ac-
cient background to analyze the in-
sources for personal gain, including
cording to Morrison, "the most signifi-
formation provided, then a request
corporate facilities, funds, credit, and
cant problem in the area of director
should be made for the resources
property."
negligence liability." 22 If board mem-
necessary to make competent deci-
Although the injunction against a
bers were liable for every judgment
sions. For instance, even though it is
board member's acting as or for a
that in retrospect seemed faulty, few
commonly understood that members
competitor appears straightforward
capable persons would volunteer to sit
of the board are neither accountants
and to merit no discussion, in reality
on boards. Finally, regarding liability
nor bookkeepers, they may still be
it touches on the sensitive question of
in this area, it should be noted that the
SC
held liable for gross negligence in the
overlapping board membership. In the
burden of proof is on the plaintiff to
ta
area of finances. They should there-
case of nonprofit agencies and giant
prove "bad faith" and "disloyalty" on
fore avail themselves of competent
business corporations alike, it is not
the part of a board member and that
professional advice whenever neces-
unusual for the same individual to sit
the standards of diligence and pru-
sary. Incidentally, the board member
on the board of more than one organ-
dence applicable to the highest corpo-
who obtains the opinion of only one
ization. Possible conflicts of interest
rate officer (often called the executive
professional may not be considered to
may arise when, for example, a mem-
director in social service agencies) are
have been sufficiently diligent.¹⁶
ber of the board of one agency has
the same as or more stringent than
participated as a board member in dis-
those applicable to board members.22
cussions of another agency's fund-
PRUDENCE
raising strategies. The problems in-
CHARITABLE IMMUNITY
The exercise of prudence as well as
volved in overlapping board member-
diligence is associated with the satis-
ships are often overlooked in regard to
To reiterate, when an individual ac-
factory performance of board duties.
nonprofit corporations, and board
cepts a board position in a corpora-
a
In contrast to the concept of diligence,
members would do well to increase
tion, he or she becomes vulnerable to
which involves positive action, pru-
their awareness of them.
potential personal liabilities. In addi-
dence involves the avoidance of acts
Essentially, then, a board member's
tion, the corporation accepts responsi-
demonstrating lack of loyalty or good
primary concern regarding the issue of
bility for the acts of its agents,
faith. In this context, loyalty refers to
loyalty would be avoidance of con-
whether they receive salaries or not.
refraining from acting in one's self-
flicts of interest. In regard to the ques-
Until recently this responsibility was
interest in any manner that may inter-
tion of good faith, fraudulent acts and
not a pressing concern for many social
fere with corporate business. 17 Good
unreasonable judgment must be
service agencies, for they were pro-
faith refers to the exercise of honest
avoided. Arbuckle has summarized
tected by charitable immunity even
and reasonable judgment to perpetu-
the relationship between liability and
though their boards of directors were
ate the best interests of the organiza-
good faith in this way:
not. This may be about to change,
tion. To avoid liabilities resulting from
however, for the doctrine of charitable
The law will not hold directors liable
a lack of reasonable prudence, board
immunity has come under increasing
for honest errors, for mistakes of judg-
members should bear these definitions
ment, when they act without corrupt
attack. The history and rationale of
in mind, as well as the following pre-
motive and in good faith, that is, for
the doctrine will be briefly reviewed
cept: they may not gain private profit
mistakes which may properly be classi-
here, for the decline of charitable im-
from their official position and may
fied under the head of honest mistakes.
munity has considerable import for
not deal with the organization from an
And that is true even though the er-
social work professionals. The chances
adversary position, acting as or for a
rors may be so gross that they demon-
of successfully undertaking a liability
strate the unfitness of the directors to
competitor.¹⁸
suit against a social service agency
manage the corporate affairs.20
A member of the board of a non-
may be greatly increased if charitable
profit corporation represents the inter-
However, this general rule has
immunity is abolished.
ests of the corporation's members and
many exceptions, and the amount of
It is generally agreed that the doc-
may act for their benefit only. Conse-
negligence allowed by a court may
trine of charitable immunity origi-
quently, board members who are ex-
vary from case to case within the same
nated in Great Britain in the mid-
posed; in the course of attending to
jurisdiction. 21 The courts have at-
1800s. Although it was later overruled
agency affairs, to information relevant
tempted to allow boards of directors
there, the doctrine was instituted in
to their business interests may not use
as wide a latitude possible to run their
the United States in 1876, presumably
the information for personal gain. If
corporate business as they see fit and
without knowledge that it was no
such information is used by an indi-
to make the judgments they feel to be
longer recognized by the British. Since
vidual to his or her advantage, the
correct. The balance they have striven
that time, almost every state has had
corporation may claim all the benefits
for is, on one hand, to encourage inno-
a chance to accept or reject the doc-
derived even if it has not sustained
vative boards and well-run corpora-
trine, and the results have been far
SOCIAL WORK / JULY 1977
272
Rom uniform. Four basic reasons
Agencies may be able to indemnify
toward full tort liability of agencies
have been cited by various states for
their boards of directors for their torts,
and suggested they seck insurance
their adoption of charitable immunity:
and it may be possible for boards to
protection.
(1) forcing charities to pay damages
indemnify their agencies. As of 1972,
would be counterproductive to the
every state except Idaho and Illinois
CONCLUSIONS
purpose of the charities, (2) in reality,
had enacted some form of statute rc-
employees of a nonprofit corporation
garding the indemnification of corpo-
This article has focused on the grow-
work for the clients rather than for the
rate officers and boards of directors
ing tendency of legal entities to treat
corporation, which should not, there-
and, in some cases, of other corporate
the private nonprofit agency in the
fore, be liable for their torts, (3) per-
employees. Although statutes vary
same way as any other incorporated
sons who accept benefits from a chari-
from state to state, the majority of
agency. As this trend continues, it will
table, nonprofit corporation waive
statutes, if interpreted literally, would
become increasingly important for all
their right to collect damages from it
allow a corporation maximum flexi-
board members and staff to recognize
for torts committed by its agents, and
bility in determining indemnification if
their legal and organizational inter-
(4) regardless of fault, it is better for
it so desired. Because the statutes and
dependence. Although the material
society if the injured party rather than
rulings of various states differ, agen-
presented here concentrated on the
the charity accepts the burden caused
cies should inform themselves about
liabilities of agency board members, it
by any tort committed by the charity's
those in effect in their respective
has important implications for the
agent.
states. For example, a comparison of
front-line social worker, who may
Such reasons notwithstanding, re-
recent statutes would find that corpo-
have to work with boards that are as-
cent court decisions have tended to
rations in Delaware must indemnify
suming new roles in light of their in-
exclude or restrict the application of
their board (but cannot do so if they
creasing legal accountability. It is be-
charitable immunity. Prior to 1942,
are found liable); corporations in
coming the legal responsibility of
the doctrine had been rejected by only
Colorado may indemnify (but not if
the board to see that their agencies are
a few courts. Since then, however, it
their board is found liable); but in-
run in accordance with good business
has been overruled by what has been
demnification is allowed in New York
practices. Many agencies, therefore,
described as a "deluge of decisions
even when a board member has been
have been trying for some time to per-
holding that there is no immunity at
found criminally liable, provided that
suade board members to take a more
all and that a charity is liable for its
he or she acted in good faith.2
active role in the determination of
torts to the same extent as any other
Another option to be explored by
policy. As a result of changes in their
defendant." As of 1972, the con-
agencies to protect themselves and
legal status, board members may now
cept of charitable immunity had been
their board members is liability or
become more involved in the day-to-
rejected by approximately 35 states.
indemnity insurance coverage. There
day operations of their agencies, an
Clearly, then, the trend is to severely
are those who feel that the use of di-
area in which they may have little pre-
limit if not abolish it. In 1971 one
rectors' and officers' insurance, also
vious experience. This, of course, will
esteemed legal authority commented
known as D & o insurance, will tend
greatly affect the individual social
on this trend:
to diminish the sense of responsibility
worker, whose practices will come
In short, the immunity of charities is
felt by the board members. It has
under increasing scrutiny. Many po-
clearly in full retreat; and it may be
been argued that individuals confident
tential problems can be avoided if
predicted with some confidence that
of insurance protection against lia-
boards and those who deliver services
the end of the next two decades will
bility may feel less pressure to exer-
work together to accommodate the
see its virtual disappearance from
cise due care. However, problems
new challenges placed on them by this
American law.26
cited in these arguments are not as sig-
country's legal system.
nificant now as they may be at some
It is important that agencies be-
later time. For the present, the na-
come familiar with the liabilities to
INDEMNITY AND INSURANCE
ture and extent of coverage in existing
which they may be subject and with
In view of the decline and seemingly
insurance policies is a matter of con-
ways of mitigating the effects of possi-
imminent abolition of charitable im-
siderable confusion, and operational
ble law suits. This article has exam-
munity, social service agencies should
problems such as this one may pre-
ined general rules of conduct that
familiarize themselves with the laws
vent the widespread use of indemnity
may be used as guidelines by agency
of their state regarding this matter and
insurance in the immediate future.29
boards of directors. Agencies are ad-
determine ways to protect themselves
For example, most policies contain
vised to review the laws of their re-
against liability suits. One of the op-
built-in exclusions as well as wording
spective states regarding charitable im-
tions to be scrutinized is indemnity,
subject to interpretations that may di-
munity, indemnity, and D & o
which in this context refers to a
minish their potential value. Regard-
insurance. They should act as quickly
guarantee of protection against loss
less of these drawbacks, as long ago as
as possible to bring their charter and
arising from a tort committed in the
1939 a ruling handed down by a Colo-
bylaws up to date to take full advan-
course of business.²
rado court noted the growing trend
tage of any opportunities for protec-
ZELMAN / Liability for Agency Boards
273
tion allowed them under the law; in
16. Knepper, op. cit., pp. 85-86; and
many states, authorization for indem-
Interested in
Grissom and King. op. cit., PP. 144-145
nification or insurance coverage of
and 158.
boards must be included in these
health?
17. Miklos S. Nicolson, Duties and
corporate documents. Alternative in-
IN THE NEW
Liabilities of Corporate Officers and Di.
surance policies should be carefully
1977
rectors (Englewood Cliffs, N.J.: Prentice-
Hall, 1972), p. 216.
scrutinized. for although they may be
called D & 0 insurance, they may
ENCYCLOPEDIA
18. Farfaglia, op. cit., p. 244.
OF SOCIAL
19. Dyson, op. cit., p. 65; Knepper,
have built-in exclusions that reduce
op. cit., pp. 3-4 and 49; and Grissom and
their potential value. Regardless of
WORK
King, op. cit., p. 154. See also Oleck, op.
any insurance an agency may buy, its
cit., p. 758.
board of directors should be advised
you'll find such articles as:
20. J. Gordon Arbuckle, "The Con-
HEALTH AS A
that they are liable for their actions
Community
SOCIAL
tinuing Viability of the Business Judgment
Mental Health
even if they serve without pay, for
PROBLEM
Genetic
Rule as a Guide for Judicial Restraint,"
they may want to consider purchasing
HEALTH CARE
Counseling
in Protecting Corporate Officers and Di-
SYSTEM
Health and
personal liability insurance. Finally, it
rectors, op cit., p. 248.
Hospital Planning
is suggested that agencies seek compe-
Potients' Rights
Maternal and
21. Ibid., p. 249.
tent legal advice whenever they are
Social Compon-
Child Health
22. Morrison, op. cit., p. 77.
ents of Health
Public Health
doubtful about the legal ramifications
23. See Knepper, op. cit., p. 2; Morri-
Care
Programs
of their actions or wish specific in-
Ambulatory Care
Social Workers in
son, op. cit.; Nicolson, op. cit.; and M. C.
General Hospital
Health Services
Knatz, "Case Note-Protecting Against
formation regarding the matters dis-
Care
Voluntary
Personal Liability of a Corporate Officer
cussed in this article.
Group Medical
Agencies in
on Contacts Made by Him on Behalf of
Practice
Health Services
the Corporation," in Protecting Corpo-
Price: $40.00 per two volume set plus
$2.00 for postage and handling charges
rate Officers and Directors, op. cit., pp.
NOTES AND REFERENCES
237-240.
Order from:
24. Charles Glidden Johnson, "Char-
1. See Ann David, A Guide to Vol-
National Association of Social Workers
itable Immunity: A Diminishing Doc.
unteer Services (New York: Cornerstone
Publications Sales
1425 H Street N.W.
trine," Washington and Lec Law Review,
Library Publications, 1970).
23 (Spring 1966), p. 112. For a review of
2. A Study of the Quantity of Volun-
Washington, D.C. 20005
teer Activity of United Way and Its Mem-
pertinent cases, see St. Mary's Academy
ber Agencies (Alexandria, Va.: United
op. cit., pp. 4 and 15-16; Robert S. Pas-
of the Sisters of Lorcito of the City of
Denver, et al. v. Solomon, 283, 77 Colo-
Way of America, 1974), p. 6.
ley, "Non-Profit Corporations-Açcoun-
rado 463, 42 A.L.R. 964, followed in 238
3. See Howard L. Oleck, Non-Profit
tability of Directors and Officers," The
Corporations, Organizations, and Associa-
Business Lawyer, 31 (April 1966), p. 628;
Colorado 474; and Johnson, op. cit., pp.
109-110.
tions (3d ed., Englewood Cliffs, N.J.:
and Theodore S. Farfaglia, "The Business
Prentice-Hall, 1974); and Requirements
Judgment Rule: A Guide to Corporate
25. Oleck, op. cit., pp. 224-225.
for Membership (New York: Family Ser-
Directors' Liability," in Protecting Corpo-
26. William L. Prossor, Handbook of
vice Association of America, 1972).
rate Officers and Directors, op. cit., p.
the Law of Torts (4th ed., St. Paul,
4. William J. Grange, Corporation
242.
Minn.: West Publishing Co., 1971), p.
Law for Officers and Directors (New
8. Grissom and King, op. cit., pp.
996.
York: Ronald Press, 1935), p. 403.
140-141; and Knepper, op. cit., pp. 6-7.
27. Ibid.
5. Oleck, op. cit., pp. 222-223. See
9. Oleck, op. cit., pp. 476-477.
28. See Morrison, op. cit., pp. 86 and
also Robert N. Corley and William J.
10. Knepper, op. cit., p. 16.
96; Palsey, op. cit.; Knepper, op. cit.; "In-
Robert, Principles of Business Law (10th
11. John S. Morrison, "Factors That
demnification of the Corporate Insider:
cd., Englewood Cliffs, N. J.: Prentice-
Limit the Negligence Liability of a Cor-
Directors' and Officers' Liability Insur-
Hall, 1975), pp. 624-625; William E.
porate Executive or Director," in Protect-
ance," in Protecting Corporate Officers
Knepper, Liability of Corporate Officers
ing Corporate Officers and Directors, op.
and Directors, op. cit., p. 261; and Grace
and Directors (2d ed., Indianapolis, Ind.:
cit., p. 75; and Grissom and King, op. cit.,
Reddam, "Student Comment-Indemnifi-
Allen Smith Co., 1969), p. 88; and
p. 143.
cation of Directors and Officers; Public
Joseph W. Bishop, Jr., "New Cure for
12. Knepper, op. cit., pp. 16 and 87.
Policy vs. Corporate Responsibility,"
an Old Ailment: Insurance Against Di-
See also, Richard B. Dyson, "The Direc-
Journal of Urban Law, 48 (1971), pp.
rectors," The Business Lawyer, 31 (No-
tor's Liability for Negligence," in Protect-
957-967; Oleck, op. cit., pp. 223-225; and
vember 1966), pp. 92-115.
ing Corporate Officers and Directors, op.
Colorado Revised Statutes (Denver:
6. Garth C. Grissom and Francis P.
cit., p. 59; and Grissom and King, op. cit.,
Bradford Robinson, 1973), p. 116.
King, "Liabilities of Directors of Closely
p. 145.
Held Corporations," in Protecting Cor-
13. Ibid.
29. See Morrison, op. cit., p. 86;
porate Officers and Directors Against Lia-
14. Grissom and King, op. cit., p.
Reddam, op. cit.; Nicolson, op. cit.; Knep-
bility (Greenvale, N.Y.: Research and
145.
per, op. cit.; and Bishop, op. cit.
Documentation Corporation, 1971), p.
15. Ibid., pp. 144 and 145. See also
30. O'Connor V. Boulder Sanitarium
137.
Dyson, op. cit., p. 59; and Knepper, op.
Association, 96 P. 2d 835, 105 Colorado
7. Oleck, op. cit., p. 462; Knepper,
cit., p. 3.
259, 133 A.L.R. 819.
274
SOCIAL WORK / JULY 1977
AGENCY SELF-APPRAISAL
This is a tool to be used by you as you
see fit. Only some sections will apply
to you and your chapter. Please review
and bring with you to use in the sessions.
All information is confidential and will
be kept by you.
Prepared by
Tom Runyan
The Support Center
Washington, D.C.
January 1978
PURPOSE
This manual's purpose is to provide the
manager of an MSO a tool for evaluating the quality
of service provided to a client by a staff consultant.
It is intended to (a) ensure the comprehensiveness
of the consultant's investigation, (b) provide the
manager with information for critical review of the
consultant's work plan, (c) provide the manager with
a summary of work accomplished at the end of the
project, and (d) provide the manager with possible
future needs of the client.
"No" answers are not to be construed as a
deficiency of the client organization. Systems,
documentation, forms, etc. that work in one organi-
zation may not work in another. Size, sophistication,
and budget are other considerations to keep in mind
when reviewing the "yes" and "no" answers. The
importance of these questions is whether the changing
of a "no" to a "yes" would resolve problems, or
increase the effectiveness and efficiency of people
responsible for the function under review.
TABLE OF CONTENTS
1. PLANNING WORKSHOP
2. ORGANIZATIONAL STRUCTURE WORKSHEET
3. THE BOARD OF DIRECTORS WORKSHEET
4. PERSONNEL ADMINISTRATION WORKSHEET
5. QUALITY CONTROL WORKSHEET
6. FUND-RAISING WORKSHEET
7. PUBLIC RELATIONS WORKSHEET
You have an option to fill out the
following three worksheets:
8. EXTERNAL COMPLIANCE WORKSHEET
9. PURCHASING WORKSHEET
10. BOOKKEEPING WORKSHEET
PLANNING WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Do they have a concise definitive written statement of why the
organization exists (a statement of purpose) ?
2. Do they have concise written organizational goals?
3. Do they have an organization chart showing (1) functional
and (2) staff positions in the organization?
4. Do they have precise, attainable, measurable and written
annual organizational objectives?
5. Does each functional department have written responsibilities
and objectives?
6. Does each staff person have a written job description?
7. Do they have written organizational/personnel policies?
8. Does each staff person have copies of the purpose, goals,
objectives, policies, etc. of the organization?
9. Would the successful implementation of the policies, organiza-
tional structure, programs, and the accomplishment of the
objectives satisfy the purpose of the organization?
10. Do they periodically review their goals, objectives, purpose,
organizational structure, etc. and brainstorm alternatives?
11. Have they performed cost/benefit estimates for alternative
program plans?
12. Have they divided their resources among their programs as
efficiently as possible?
13. Do they prepare an annual budget?
14. Do they review progress of plans against budget monthly,
or quarterly?
15. Do they have well-planned programs which ensure that:
a) quality service is provided to clients/customers/audience?
b) activities/programs/etc. are completed on schedule?
c) the organization has sufficient funds to operate?
d) staff personnel are treated fairly and equitably?
e) reports and records provide timely management information
i.e., a well-planned bookkeeping/accounting system?
f) legal requirements are met?
g) the public is aware of their existence?
h) there is control of physical resources--supplies,
materials, equipment?
16. Do they have agendas for meetings and are they distributed
beforehand?
17. Are scheduled evaluations part of their planning process?
ORGANIZATIONAL STRUCTURE WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Do they have an organization chart?
2. Do they have written job descriptions for each job
to be performed?
3. Are there job specifications for each job description?
4. Has sufficient authority been delegated to lower levels
for competent performance?
5. Do they have centralized records?
6. Does each employee have a "fair day's work?"
7. Is accountability for performance/success of activities
established?
8. Does the structure facilitate communication, cooperation
coordination?
THE BOARD OF DIRECTORS WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Does the Board have a written statement of purpose?
2. Does the Board have written goals?
3. Does the Board have written measurable objectives?
4. Does the Board have well defined committees with written
objectives and specific tasks?
5. Does the Board have an effective written procedure for
evaluating the organization's effectiveness in
accomplishing its purpose, goals, and objectives?
6. Does the Board have an effective written procedure for
evaluating the top administrator?
7. Does the Board have an effective periodic procedure
for reviewing programs?
8. Does the Board have an effective periodic procedure
for reviewing budgets?
9. Does the Board have fund-raising objectives?
10. Does the Executive Director (in reality) report to the
Board?
11. Does the Board meet at least monthly?
12. Is the location of the meetings conducive to effective
and efficient meetings?
13. Are agenda's prepared in advance jointly by the
President and Executive Director?
14. Are minutes of meetings kept in a form useful to those
who want to review the reasons for board decisions,
evaluate the Board's work, understand the organization's
past, or orient themselves as new members?
15. Are members of the Board aware of their legal
responsibility and liability as Directors?
16. Is there a comprehensive Board Manual?
17. Do Board members have a length of service limit?
18. Do Board members attend meetings regularly?
19. Is each Board member a contributor?
20. Is an advance information package sent out before each
Board meeting?
21. Other areas of concern:
PERSONNEL ADMINISTRATION WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Do they use job specifications in hiring new staff?
2. Do they have a step by step training program for orienting
new staff?
3. Do they have a written statement of policies concerning
items of interest to staff?
4. Do they have training programs which will contribute
toward staff growth, and do they base training needs on
job descriptions and specifications?
5. Have they compared their salaries with other organizations
in the same industry and area, and are they consistent
with company objectives?
6. Are staff benefit programs a part of the total
compensation program?
7. Have they investigated the possibility of a retirement
program?
8. Are personnel records kept in accordance with federal,
state and local requirements?
9. Are references checked on job applicants?
10. Are staff evaluated periodically--in a constructive
manner?
11. Are staff work loads reviewed periodically?
QUALITY CONTROL WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. DO they have written policies and procedures for the conduct and
supervision of work at all organizational levels?
2. Do they have written policies and procedures for client acceptance
or continuation?
3. Do they have written job specifications (contained in the job
description) to provide reasonable assurance that each job will be
performed by persons having at least the degree of technical training
and proficiency required for the competent performance of that job?
4. Do they have written policies and procedures for the supervision
of field work?
5. DO they have written policies and procedures for consultation to
provide reasonable assurance that important decisions have input
from persons having the appropriate levels of knowledge,
competence, judgment, and authority?
6. DO they have written personnel policies and procedures to provide
reasonable assurance that the purpose, policies, professionalism,
and image of the organization are maintained?
7. Do they have written policies and procedures for staff development
to provide reasonable assurance that personnel will have the
knowledge required to enable them to fulfill assigned
responsibilities?
8. Do they have written policies and procedures for personnel
advancement to provide reasonable assurance that people selected
will have the qualifications necessary for the fulfillment of the
responsibilities they will be called on to assume?
9. Do they have written policies and procedures for inspection to
provide reasonable assurance that the quality of the oragnization's
service is being maintained?
10. Do they have written policies and procedures for obtaining client
feedback to provide reasonable assurance that their perception of
quality conforms to the client's perception of quality?
FUND RAISING WORKPLAN
Answer based on
Yes No Observation Inquiry Assistance Given
1. Is there a job description with job specification for the
person responsible for fund-raising?
2. Does the person (s) responsible for fund-raising have the
qualifications listed in the job specification (or if there
is not a job description, does this person have experience
and training in fund-raising)?
3. Do they have fund-raising objectives for each fiscal year?
4. Does their Board of Directors (or a committee) have fund-
raising objectives?
5. Have they solicited funds from
a) religious institutions
b) business institutions
c) Government:
1. local: city, county, district
2. state
3. federal
4. revenue sharing
5. CETA
6. Fellowships
d) United Way
e) Foundations:
1. Local
2. Regional
3. National
f) direct mail solicitations
g) membership drives
h) benefits
i) fund-raisers (auctions, parties, fairs, bingo, etc.)
j) renting unused daytime or evening space to other groups
k) piggy-backing on someone else's event
6. Do they solicit contributions in forms other than money?
(supplies, equipment, furniture, technical assistance, publicity)
7. Do they go to GSA sales/auctions?
8. Do they utilize their full staff to brainstorm resources?
9. Do they perform cost/benefit estimates for feasible options?
10. Do they have a fund-raising schedule for the next ]2 months?
11. Have they budgeted sufficient time and money for fund-raising?
12. Do they have sufficient tools/guides for fund-raising (Foundation
Directory, Taft Information System, Foundation News) ?
FUND RAISING WORKPLAN (continued)
13. Is a sufficient percentage of their total fund-raising effort spent
on personal contact?
14. Do they have a standard format for purpose, history, finances,
etc. ?
PUBLIC RELATIONS WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Does the Board of Directors have written responsibilities
and objectives for public relations?
2. Is there a Public Relations Plan?
3. Does one position in the organization have the stated
responsibility for public relations, and has this person
been alloted sufficient time for planning, organizing,
implementing, and directing such programs?
4. Have they identified the media available to them (name,
address, staff name, circulation deadlines)?
a) daily newspapers?
b) weekly newspapers?
c) radio?
d) television?
e) wire services?
f) national press bureaus and correspondents?
5. Do they bring their activities to the public's attention?
a) press releases?
b) news conferences?
c) interviews/talk/public affairs shows?
d) editorials, rebuttals, letters?
e) public service announcements?
f) free speech messages?
6. Do they select the PR medium in proportion to the significance
of the news to be presented, i.e., the more people your news
will affect, the more you try to reach?
7. Do they have brochures describing their organization?
8. Do they use "organization headed" stationary?
-9. Do they use flyers/handouts to promote activities?
10. Do they have mailing lists?
EXTERNAL COMPLIANCE WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Are funds obtained through grants being used for the purposes
and in the manner described by grant guidelines?
2. Does the organization comply with the Fair Labor Standards Act
(Department of Labor) in regard to non-discrimination in hiring
and promotion, overtime pay, minimum wages, etc.?
3. IRS Compliance
a) Have they filed for an Employee Identification Number
(SS-4) ?
b) Do they maintain a record of Federal Withholdings for each
employee (W-4) ?
c) Do they report and pay federal employee deductions
quarterly (941E) ?
d) Do they report and pay FICA (tax exempt NP not required) ?
e) Do they report income and expenses, and a balance sheet
annually (990) ?
f) Do they report and pay unemployment insurance (501 (c) (4)
required; forms 508 and 940) ?
g) Do they report employee earnings to the state tax depart-
ments and the IRS by February 29 (W-2) ?
h) Do they inform the IRS how many W-2's they are mailing
(W-3) ?
i) Do they report consultant's earnings (1099) ?
j) Do they inform the IRS of how many 1099's they are sending
(1096) ?
k) Do they carry Workman's Compensation Insurance?
4. Is the organization aware of OSHA regulations which pertain
to them, and do they comply with these regulations?
PURCHASING WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Is purchasing a major function in the organization (i.e.,
do materials, supplies, equipment purchases, etc. account for
10% or more of the total expenditures) ?
2. Has one position in the organization been assigned the
responsibility for purchasing approval?
3. Has sufficient time been allocated for competent purchasing
in that position's job description (i.e., if purchasing is
only one of many functions that this person has responsibility
for, is it specifically stated that X hours per week, or month
are set aside for purchasing responsibilities) ?
4. Do they maintain a log book with the date, description, quantity,
vendor, and cost of supplies/materials purchased?
5. Have prices for supplies/materials been obtained from three
or more sources and is this documented?
6. Is their selection of a vendor based on convenience rather than
price? If so, does this cost the organization significantly
over a twelve month period?
7. Have they checked into purchasing directly from the
manufacturer rather then the distributor?
8. Do they obtain discounts for volume purchasing (either one
time, or for volume over a year) ?
9. Are receipts for materials/supplies purchased signed by the
person receiving them, and are the receipts maintained in a
file attached to the corresponding invoice?
10. Are pre-numbered purchase order forms utilized, containing the
vendor, date, description, quantity, price, and purchasing
authorization, and are they maintained numerically?
11. Do they have a petty cash fund for purchases of under
$
?
12. Do they maintain pre-numbered petty cash vouchers containing
description of materials/supplies, date, person receiving, cost,
and authorization?
BOOKKEEPING WORKSHEET
Answer based on
Yes No Observation Inquiry Assistance Given
1. Do they have a chart of accounts?
2. Are checking accounts reconciled monthly?
3. Do they have a cash receipts and cash disbursements journal and
do they post entries to these journals at least monthly?
4. Do they have account ledgers, and do they post to these ledgers
at least monthly?
5. Do they prepare balance sheets annually or more frequently?
6. Do they physically inventory assets before preparation of the
balance sheet?
7. Do they prepare income and expense statements annually or more
frequently?
8. Do they prepare a budget at the beginning of the fiscal year, and
do they review and revise it periodically?
9. Is there a petty cash fund, and are disbursements documented?
10. Do they have a substantial number of accounts receivable 30 days
and over, and if so do they prepare an overdue accounts report
periodically for follow-up activities?
11. Are accounts payable frequently overdue by 30 days or more, and
if so, is it due to a cash flow problem, or inefficient bookkeeping?
12. Are voided checks maintained?
13. Is the person who deposits checks different from the person
writing checks?
14. Is the person who signs checks different from the person
writing checks?
15. Are receipts for purchases maintained under the program activity,
the account name, or other easily retrievable files?
16. Are cash receipts deposited daily?
17. Is the person reconciling the checking account different from the
person maintaining it?
18. Are checks numbered?
19. Is the person authorized leave requests different from the person
maintaining leave records?
20. Does their bookkeeping system conform to the Accounting Institute
of Certified Public Accountants guidelines for "generally accepted
accounting principles and procedures?"