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Created for the Minnesota Council of Nonprofits’ Annual conference - October, 2010 Innovative Governance Models Staying flat, staying thin, staying effective! Jamie Schumacher

Staying Flat, Staying Thin, Staying Effective

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Created for MNCN's 2010 Annual Nonprofit Conference. Innovative Governance Models: Staying Flat, Staying Thin, Staying Effective Over the past years, nonprofits, including volunteer-led grassroots organizations, have faced a growing number of challenges. In the context of a changing environment, where nonprofit leaders are expected to do more with less and nonprofit volunteers are often expected to do more than before, is the traditional hierarchical form of nonprofit governance still relevant? In this session, we'll explore a governance structure for volunteer-led, grassroots organizations that offers shared power and decision making, greater flexibility and ability to innovate, and potential for greater organizational sustainability. Attend this session to discover an alternative for volunteer-driven organizational governance models, learn how you can effectively engage volunteers, board, and staff utilizing the model and see if it's a fit for your grassroots organization.

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Page 1: Staying Flat, Staying Thin, Staying Effective

Created for the Minnesota Council of Nonprofits’ Annual conference - October, 2010

Innovative Governance Models Staying flat, staying thin, staying effective! Jamie Schumacher

Page 2: Staying Flat, Staying Thin, Staying Effective

Before we begin... a few questions!

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Today

✤ Issues with the traditional model

✤ Characteristics of an effective board

✤ Dissolving Myths

✤ Case Study 1: the Northeast Community Development Corporation

✤ Case Study 2: Altered Esthetics

✤ Takeaways

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The Traditional Model

Pros:

✤Efficient (“Scientific Management”)

✤Order/Structure

✤Understood

Page 5: Staying Flat, Staying Thin, Staying Effective

The Traditional Model

Cons:

✤Lack of flexibility

✤Not built to incorporate change

✤Assumed benefit

✤“Key Man” weakness

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About Hierarchies

Rigid hierarchies tend to have authoritarian leaders

+

Authoritarian leaders can make subordinates feel vulnerable, helpless

=

Emotionally charged, stressful, potential negative environment.

(Goleman 2007, Wilkinson 1996, Gabriel 1998, Lynch 1979)

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Modern Organizations

Instead of rigid, need to be:

✤More connected

✤More flexible

✤More adaptive to change

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Nonprofit Organizations

✤ Charged with serving the needs of their communities

✤ Greatly utilize volunteers

✤ Fulfill a different bottom line

✤ Boards are stewards of the community

✤ Need something better than the traditional hierarchical model

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Flat, shared-power structures with clear expectations...

a better model for nonprofit management.

Role-Based Boards

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Role-Based Boards (Structure)

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✤ Non hierarchical (one member, one vote)

✤ Specific roles for EACH board member (no warm bodies)

✤ Board chair = project manager (not a default boss)

✤ Annual board reviews compulsory

✤ 2-3 year term commitments

✤ Built to transition, built to change

Role-Based Boards (Structure)

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Strong, Role-Based Boards

✤ Are able to do more with less

✤ Are more effective

✤ Can better engage volunteers

✤ Can flexibly respond to changing needs

✤ Can retain, sustain, or grow an organization

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MYTHS!

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✤ You need an Executive Director to get things done

MYTH #1

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✤ You need paid staff to be accountable

MYTH #2

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✤ Hierarchy is the best way to organize

MYTH #3

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✤ Nobody wants to actually work on a board

MYTH #4

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✤ The collaborative process sounds great, but you can’t really get anything done

MYTH #5

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✤ Consistency is better than change

MYTH #6

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✤ Prior board membership = valuable experience and knowledge

MYTH #7

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Northeast Community Development Corporation

A story of preservation.

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About the NE CDC

The mission:

The Northeast Community Development Corporation works to promote the economic development of Northeast Minneapolis in a manner that furthers the interest of both businesses and residents

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The Role of CDCs

✤ Varies from region to region

✤ Economic development

✤ Neighborhood organizing

✤ Small business services

✤ Retail recruitment and commercial corridor work

✤ Housing

✤ and more...

Page 24: Staying Flat, Staying Thin, Staying Effective

NE CDC’s History

✤ Created to represent 13 neighborhood organizations

✤ Jackson Street artist housing

✤ NE Futures - community conversations

✤ Small business planning and economic development

✤ Central Avenue Special Services District

✤ 20+ year history in the community

Page 25: Staying Flat, Staying Thin, Staying Effective

Changing Environment

✤ Between 2005-present, big changes for neighborhood orgs & CDCs

✤ Previous strategic planning not effective

✤ From 6 FTE to 1 part time staff person in two years time

✤ Energy, resources, at a minimum

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The Situation

✤ Pending projects (1.3 million invested)

✤ Minimal staff

✤ Limited resources

✤ Little opportunity for immediate funding

✤ Urgent need for organizational refocusing

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The Resolution

✤ Board decided to go into a restructuring period

✤ Preserves resources

✤ Allows for reflection and restructuring

✤ Maintains accountability for pending projects

✤ Retains history and networks

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The Model

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The Results

✤ Preservation of organization

✤ Re-engaged board

✤ Preservation of resources

Page 30: Staying Flat, Staying Thin, Staying Effective

Altered Esthetics

A story of growth and sustainability.

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About Ae

The mission:

Altered Esthetics works to preserve the historical role of artists as a voice of society through our exhibitions, events, services, workshops and programs.

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Ae’s History

✤ Founded in 2004 in Northeast Minneapolis

✤ Community arts organization

✤ Over 60 group exhibitions

✤ Publications, music compilations, and more

✤ Brought the work of over 1500 artists to public view

✤ Began hands-on curatorial and gallery director internship programs

✤ Beginning solo exhibitions programs and workshops 2010/2011

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The situation

Key issues for Ae :

✤Sustainability

✤Delegation of duties

✤Clarity of roles

✤Engagement of board members

✤The value of being volunteer-driven

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Our Solution

This model:

✤Shares power and responsibility

✤Is more flexible and adaptive to change

✤Requires greater communication

✤Grows organically using committees, systems and networks

✤Works well for a learning organization

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The Model

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The Role of Information Technology

✤ Telecommuting

✤ E-communication

✤ Wiki

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Altered Esthetics - The Results

✤ Board members are more engaged

✤ Organization is more innovative

✤ Creativity has increased

✤ Organization is more flexible

✤ Communication has increased

✤ The organization is sustainable

✤ Organization = growing!

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✤ Shared-power board structures are better model for small orgs

✤ Sustainable

✤ Preserves resources

✤ Clear expectations

✤ Helps curb “Agenda”

✤ Aids board reviews and individual assessments

✤ Requires a greater contribution/commitment

Role Based Boards - Possibilities!

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✤ Every board can grow and improve (large or small, old or new)

✤ Creating an environment hospitable to change can have many positive repercussions

✤ Financial resources do not dictate an organization’s ability to make a lasting impact in the community

✤ Volunteer driven orgs can do more with less!

Takeaways...

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✤ Board service can be simultaneously engaging, rewarding & effective

But mostly...

Thank you!contact information: [email protected]