It is a question that organizations often need to ask themselves. But how do you go about determining the need for a consultant for various aspects of your organization? The task can be quite daunting, and the cost can be prohibitive for many. Here are some things to consider before you decide to hire a consultant.
First, what are you trying to accomplish? Is the task at hand so difficult that no committee or board member could effectively lead the organization to a consensus? Presumably, your organization has competent people who have knowledge, wisdom, and experience, otherwise they would not be in a leadership role within your organization. It is quite possible for highly functioning boards to handle many of the tasks that consultants can assist with. However, if the task at hand is too important to attempt without help, you may want to consider a consultant.
Has anyone on the board or committee ever been through this proceeds before? In many cases, there are board members or committee members who have been through this before and could provide insight and leadership to complete the task at hand. Even if no one from your organization has been in the situation you find yourself in, high functioning organizations can work their way through the process just by being resourceful. Sometimes, organizational leadership decides that even though they have experience with the task at hand, a professional impartial opinion may be best. In this case, a consultant should be considered.
There are many other questions that you should ask before considering the assistance of a consultant. If you have determined that you are going to hire a consultant, there are some things you should consider before hiring. To start, know what you want out of the consultant. Do your homework and keep focused when considering your options. Additionally, make sure your board or committee is in agreement. Don't let one or a few people demand a consultant if the majority don't approve. If you are looking for an outside source to lend credibility to a decision that has already been made, don't bother. Nearly all experienced consultants will consider this practice as unethical. If they don't, they are probably the wrong consultant.
Talk to more than one consultant and submit a request for a quote or proposal(RFP). Then, make sure you receive a proposal and quote from interested consultants. Look at relevant expertise, experience, and skill set. Good consultants should propose a contract covering services, dates and deadlines, costs, reimbursable expenses, scope of work (SOW), payment, etc. Evaluate all candidates for the consultancy, and make your decision. DO NOT HIRE ON COST ALONE!!! Many non-profit organizations are limited by funds, but never use cost as the only basis for consideration. Research the field of options, and select the best candidate that will fit in your budget. Make sure the consultant is an independent contractor and not an employee.
Once hired, don't have the consultant recommend actions only, your consultant should be assisting in implementation of actions. Help your consultant to know your organization better. Consultants will need to know the nature and purpose of your organization. Having a list of priorities will greatly aid the process.
So, do you really need a consultant? Maybe. If you have no expertise with the task at hand, it is a short term consideration, you want a non-biased opinion, or there is work that no one else wants to do, then you may want to consider a consultant.
Thursday, December 9, 2010
Wednesday, September 29, 2010
Types of Strategic Planning
So you want to move your organization forward, and you think that strategic planning will make everything better. Well, if you do it right, it could. Notice I did not say it will.
Strategic planning is something that typically takes a significant amount of experience to become proficient. In many organizations, the directors may have some experience in the business world of strategic planning, but the non-profit world can be very different.
There are many differences in the approach to strategic planning. The most common ways to plan are issues, goals, holistic, and scenario planning. The issues approach is often used when there are critical issues that need addressed and the setting of goals will have to wait until later. Frequently, lack of resources and time constraints dictate a issues approach to planning.
Goal based planning is probably the most common form of strategic planning. In one way or another, everyone has done some type of goals based planning, whether it is building a business, planning for college, saving for retirement, etc. The goals based approach is focused on a desired outcome at some point in the future, ie. 1-5years. The entire planning process is designed to ensure achievement of the set goal. Sometimes the goals come from the mission, vision, or values. Unlike issues based planning, the organization should have no real critical issues to face in the foreseen future, and the operational environment should be stable.
Holistic planning is often thought as not planning at all. Many people find it counter-intuitive to let organizations "self organize." This approach is one of emerging systems. Traditionalists will say that planning is linear, that is, a particular sequence must be followed if we are to achieve success. The more natural or "holistic" approach which is growing in its use, is to focus on the values and the vision while not worrying about the process. This process is more open to discussions with no defined time line for achieving success. The holistic approach is particularly beneficial when working with large, highly diverse groups which are focused on the what as opposed to the how.
Scenario planning is a technique from which the Shell Oil company is credited for developing. Scenario planning is considered a negative plan since the plan is derived from a worst case scenario mind set. Scenario planning is not concerned with finding out what the best and worst case scenarios for an organization are, rather they are designed to provide swift guidance for an organization in the event that such a scenario or something similar comes to pass. This type of planning is often used when organizations struggle to create a tangible vision, or when the operational environment has become relatively unstable.
Before you start your plan, you need to find out why you are considering a strategic plan. Is it routine, or is it out of necessity. Will it be met with open ears, or will there be resistance. Why? Do you want a written plan? Anyone can come up with a plan. Successful organizations know how to select the right type of plan to best fit there needs.
For a reference on strategic planning check out this book by John Bryson. It can be a bit dry, but the information is very good especially if you couple it with the workbook.
You can also see a good description of the strategic planning process Here
Strategic planning is something that typically takes a significant amount of experience to become proficient. In many organizations, the directors may have some experience in the business world of strategic planning, but the non-profit world can be very different.
There are many differences in the approach to strategic planning. The most common ways to plan are issues, goals, holistic, and scenario planning. The issues approach is often used when there are critical issues that need addressed and the setting of goals will have to wait until later. Frequently, lack of resources and time constraints dictate a issues approach to planning.
Goal based planning is probably the most common form of strategic planning. In one way or another, everyone has done some type of goals based planning, whether it is building a business, planning for college, saving for retirement, etc. The goals based approach is focused on a desired outcome at some point in the future, ie. 1-5years. The entire planning process is designed to ensure achievement of the set goal. Sometimes the goals come from the mission, vision, or values. Unlike issues based planning, the organization should have no real critical issues to face in the foreseen future, and the operational environment should be stable.
Holistic planning is often thought as not planning at all. Many people find it counter-intuitive to let organizations "self organize." This approach is one of emerging systems. Traditionalists will say that planning is linear, that is, a particular sequence must be followed if we are to achieve success. The more natural or "holistic" approach which is growing in its use, is to focus on the values and the vision while not worrying about the process. This process is more open to discussions with no defined time line for achieving success. The holistic approach is particularly beneficial when working with large, highly diverse groups which are focused on the what as opposed to the how.
Scenario planning is a technique from which the Shell Oil company is credited for developing. Scenario planning is considered a negative plan since the plan is derived from a worst case scenario mind set. Scenario planning is not concerned with finding out what the best and worst case scenarios for an organization are, rather they are designed to provide swift guidance for an organization in the event that such a scenario or something similar comes to pass. This type of planning is often used when organizations struggle to create a tangible vision, or when the operational environment has become relatively unstable.
Before you start your plan, you need to find out why you are considering a strategic plan. Is it routine, or is it out of necessity. Will it be met with open ears, or will there be resistance. Why? Do you want a written plan? Anyone can come up with a plan. Successful organizations know how to select the right type of plan to best fit there needs.
For a reference on strategic planning check out this book by John Bryson. It can be a bit dry, but the information is very good especially if you couple it with the workbook.
You can also see a good description of the strategic planning process Here
Sunday, August 1, 2010
So You Want to Start a Non-Profit
Everyday people are finding new causes to support. These causes range from small local concerns to global or international issues. Occasionally, a person or group of people decide they want to start their own non-profit organization. If this sounds like you, then consider this first.
You don't own your non-profit organization. You may be responsible for it, but you don't own it. By definition, a non-profit organization is publicly owned. You also measure the success of the organization by whether or not you are meeting the needs of the population you serve. Non-profit is sometimes a misnomer. Keeping balanced books is just as important for non-profit organizations as it is for a business.
Many non-profits get special tax status, such as 501(c)3 organizations in the USA. In the United States, the IRS will classify an organization as charitable so long as it fulfills public needs in areas such as science, social services, arts, religious, health, education, civics, environmental, human services, etc. Remember, not all purposes are acceptable for charitable status. Many lobbying organizations, while they may represent and seek to advance social needs, cannot be classified as charitable.
While you can create an informal non-profit, most likely you are looking to incorporate as a new organization. After you file with the appropriate agency, you then need to decide if you are going to seek tax-exempt status. During this process, you will also consider becoming a tax deductible entity. This will allow donors to your organization to receive a deduction on their tax liability. Be aware that the IRS can take up to 18 months to review and decide on your organizations charitable status.
In order to operate your organization efficiently, you need to remember three key components to non-profit organizations; Board, Administration, and Programming. The board consists of the legally responsible individuals who make decisions about the organization including mission, values, policies, etc. The administration is responsible for carrying out those decisions to the community the organization serves. Programs are how the administration effectively meets the needs of the community.
Setting up your organization properly to begin with will save you many headaches in the future. Before you incorporate your new organization, you should know who is going to be on the board of directors, who are the officers including the chair, and who will be the Executive Director. Typically, the executive director is not a board member. You should also know how you are going to administer your operations, handle staffing and volunteers. It is a good idea to start looking at a potential donor base by cultivating relationships within your community.
If after all of this you still think you are ready to begin the process of starting a new non-profit organization, take a look at the following links. Answer the questions honestly and evaluate your situation. If you decide to go forward, be prepared to seek help in getting started. Burns & Associates will be happy to assist you along the way.
Greenlights Start up Assesment
Non Profit Center Questionaire
You don't own your non-profit organization. You may be responsible for it, but you don't own it. By definition, a non-profit organization is publicly owned. You also measure the success of the organization by whether or not you are meeting the needs of the population you serve. Non-profit is sometimes a misnomer. Keeping balanced books is just as important for non-profit organizations as it is for a business.
Many non-profits get special tax status, such as 501(c)3 organizations in the USA. In the United States, the IRS will classify an organization as charitable so long as it fulfills public needs in areas such as science, social services, arts, religious, health, education, civics, environmental, human services, etc. Remember, not all purposes are acceptable for charitable status. Many lobbying organizations, while they may represent and seek to advance social needs, cannot be classified as charitable.
While you can create an informal non-profit, most likely you are looking to incorporate as a new organization. After you file with the appropriate agency, you then need to decide if you are going to seek tax-exempt status. During this process, you will also consider becoming a tax deductible entity. This will allow donors to your organization to receive a deduction on their tax liability. Be aware that the IRS can take up to 18 months to review and decide on your organizations charitable status.
In order to operate your organization efficiently, you need to remember three key components to non-profit organizations; Board, Administration, and Programming. The board consists of the legally responsible individuals who make decisions about the organization including mission, values, policies, etc. The administration is responsible for carrying out those decisions to the community the organization serves. Programs are how the administration effectively meets the needs of the community.
Setting up your organization properly to begin with will save you many headaches in the future. Before you incorporate your new organization, you should know who is going to be on the board of directors, who are the officers including the chair, and who will be the Executive Director. Typically, the executive director is not a board member. You should also know how you are going to administer your operations, handle staffing and volunteers. It is a good idea to start looking at a potential donor base by cultivating relationships within your community.
If after all of this you still think you are ready to begin the process of starting a new non-profit organization, take a look at the following links. Answer the questions honestly and evaluate your situation. If you decide to go forward, be prepared to seek help in getting started. Burns & Associates will be happy to assist you along the way.
Greenlights Start up Assesment
Non Profit Center Questionaire
Friday, July 23, 2010
Building Better Boards
Boards have the ultimate responsibility for making decisions on behalf of the organization. It doesn't matter how big or small the organization is, the board can make or break the mission. Before you decide to nudge your board into a major overhaul, it is important know if a change is needed. As mentioned in the last post, assessments can help with this process.
If you think something is wrong, but you just can't put your finger on the issues, try looking for potential indicators that something is not quite right. Some common indicators of struggling boards are burnout, high turnover, micro-managing, low attendance and participation, maybe even conflict amongst the members.
The non-profit organization works best when it is highly structured. When structures are soundly developed and maintained, the actions of the members becomes more focused thereby determining outcomes that are positive for the organization. In highly functioning boards, the actions are more important than the blame. In fact, blame is never helpful, only divisive.
Board members who are not willing to put in the time and effort needed to learn about the organization and address the polices and functions of the board will often find themselves working on the same problems time and time again. While keeping meetings short may help the board members feel like participating, their ability to actually tackle problems diminishes significantly when there is not adequate time for dealing with those issues. Longer, more frequent meetings are much more productive than short infrequent ones. If board members cannot commit to the time requirements, it may be time to look for new members.
Remember, telling a frustrated board that they need to change is not going to make it happen. They need to be heard, not told. This is another opportunity for an assessment of the leadership of the organization. This is time to focus on the "how" not the "who."
If Jim is burned out and Sara thinks that Jim is the problem with the board, we need to find out why Jim is burned out instead of blaming Jim for his problems. A high functioning board will find the "who" irrelevant except in the cases where a member is acting outside of the interests of the organization. In this case it is better to assign more specific tasks with deadlines and desired outcomes. This will either get them more involved with the organization or they will likely leave. If they stay, it could be that they felt they were not permitted to help or contribute to the organization.
Focus on the structure. Diversity is great, but don't let desire for diversity to take away from the mission of the organization. That being said, never discount another person or their abilities just because the are different than you!
If you think something is wrong, but you just can't put your finger on the issues, try looking for potential indicators that something is not quite right. Some common indicators of struggling boards are burnout, high turnover, micro-managing, low attendance and participation, maybe even conflict amongst the members.
The non-profit organization works best when it is highly structured. When structures are soundly developed and maintained, the actions of the members becomes more focused thereby determining outcomes that are positive for the organization. In highly functioning boards, the actions are more important than the blame. In fact, blame is never helpful, only divisive.
Board members who are not willing to put in the time and effort needed to learn about the organization and address the polices and functions of the board will often find themselves working on the same problems time and time again. While keeping meetings short may help the board members feel like participating, their ability to actually tackle problems diminishes significantly when there is not adequate time for dealing with those issues. Longer, more frequent meetings are much more productive than short infrequent ones. If board members cannot commit to the time requirements, it may be time to look for new members.
Remember, telling a frustrated board that they need to change is not going to make it happen. They need to be heard, not told. This is another opportunity for an assessment of the leadership of the organization. This is time to focus on the "how" not the "who."
If Jim is burned out and Sara thinks that Jim is the problem with the board, we need to find out why Jim is burned out instead of blaming Jim for his problems. A high functioning board will find the "who" irrelevant except in the cases where a member is acting outside of the interests of the organization. In this case it is better to assign more specific tasks with deadlines and desired outcomes. This will either get them more involved with the organization or they will likely leave. If they stay, it could be that they felt they were not permitted to help or contribute to the organization.
Focus on the structure. Diversity is great, but don't let desire for diversity to take away from the mission of the organization. That being said, never discount another person or their abilities just because the are different than you!
Saturday, April 24, 2010
Importance of Assesments
When your board of directors gets together, do you ever assess your organization? If the answer is "no," then you need to make it a priority. Highly functional non-profit organizations do many things but today I want to focus on just one of them. The assessment is a tool that helps to determine strengths and weaknesses of the organization. An assessment is a systematic approach to data collection on specific points.
Data collected during an assessment is then analyzed and ultimately used to draw conclusions about the status of the organization in the areas the assessment covers. A general rule is to start with a comprehensive organizational assessment which covers 10-20 questions about all aspects of an organization. In reality, the comprehensive assessment is a series of specifically directed assessments compiled in to a whole. These should include Legal, Board Governance, Human Resources (if applicable), Fundraising, Executive Director, Financial, Programming, Marketing, Strategic Planning, etc.
Before picking a tool at random, it is important to determine the focus of the tool. As mentioned before, this is where you determine what component you are going to assess. Next, determine the purpose. Why are you doing this? Is it to define your organization? Are you trying to compare to other organizations? Do you need to see how your organization compares to "best practices?"
After the purpose comes the assumptions. Does the tool assume the board is the initial board? Does the tool assume that you have seasoned staff and volunteers? After matching the assumptions to your organization, determine who the audience is.
Who is going to read the results? Is this assessment for the board? Staff? Funders? Community? Also consider who is going to administer the assessment. Is this process going to be "in house," or will you hire a consultant or some other outside person? Who will participate? Will board members be required to participate or will the assessment be purely random? Will you have a weighted scale based on who answers or will the assessment be completely anonymous?
Before making the final decision as to which tool to use, you also need to know if you have enough information to make sense of the results and how to apply them. Make sure you know if this tool can be reused, how long it will take to use, and if there are only certain times it can be used.
Cost is another area of possible concern. There are many tools available online and in books. Many of these tools can give you a good starting point if you need one. See at the bottom of this post for links to some useful tools. Some companies may custom design you a tool to fit your needs, but these can be costly and may not be available in the time you want to use the tool.
Make sure that you have the support you need before administering the tool. If someone has a question or concern, be ready to contact tech support if need be. Be prepared to modify the tool. As your organization changes, grows, and otherwise evolves, the needs and the areas which need assessment will change as well. A versatile tool should be easily modified and adaptable to your changing needs. Just remember to check to see if you need to get permission to modify or adapt a tool. Some online tools are free if you acknowledge the author. Some permit you to modify under the same circumstances. Other tools, are to be used as is and only with permission of the author. Know the restrictions on your tool before using. You may need to consult legal advice or contact the author prior to use.
Here are a couple of links to general assesments for your organization
http://www.lapiana.org/downloads/Start-Up_Assessment_Tool.pdf
http://surveys.wilder.org/fieldstone/lifestages/
http://www.greenlights.org/applications/DocumentLibraryManager/upload/Discussion%20Questions%20for%20Board%20Self-Assessment.pdf
http://www.managementhelp.org/org_eval/uw_list.htm#anchor149020
Data collected during an assessment is then analyzed and ultimately used to draw conclusions about the status of the organization in the areas the assessment covers. A general rule is to start with a comprehensive organizational assessment which covers 10-20 questions about all aspects of an organization. In reality, the comprehensive assessment is a series of specifically directed assessments compiled in to a whole. These should include Legal, Board Governance, Human Resources (if applicable), Fundraising, Executive Director, Financial, Programming, Marketing, Strategic Planning, etc.
Before picking a tool at random, it is important to determine the focus of the tool. As mentioned before, this is where you determine what component you are going to assess. Next, determine the purpose. Why are you doing this? Is it to define your organization? Are you trying to compare to other organizations? Do you need to see how your organization compares to "best practices?"
After the purpose comes the assumptions. Does the tool assume the board is the initial board? Does the tool assume that you have seasoned staff and volunteers? After matching the assumptions to your organization, determine who the audience is.
Who is going to read the results? Is this assessment for the board? Staff? Funders? Community? Also consider who is going to administer the assessment. Is this process going to be "in house," or will you hire a consultant or some other outside person? Who will participate? Will board members be required to participate or will the assessment be purely random? Will you have a weighted scale based on who answers or will the assessment be completely anonymous?
Before making the final decision as to which tool to use, you also need to know if you have enough information to make sense of the results and how to apply them. Make sure you know if this tool can be reused, how long it will take to use, and if there are only certain times it can be used.
Cost is another area of possible concern. There are many tools available online and in books. Many of these tools can give you a good starting point if you need one. See at the bottom of this post for links to some useful tools. Some companies may custom design you a tool to fit your needs, but these can be costly and may not be available in the time you want to use the tool.
Make sure that you have the support you need before administering the tool. If someone has a question or concern, be ready to contact tech support if need be. Be prepared to modify the tool. As your organization changes, grows, and otherwise evolves, the needs and the areas which need assessment will change as well. A versatile tool should be easily modified and adaptable to your changing needs. Just remember to check to see if you need to get permission to modify or adapt a tool. Some online tools are free if you acknowledge the author. Some permit you to modify under the same circumstances. Other tools, are to be used as is and only with permission of the author. Know the restrictions on your tool before using. You may need to consult legal advice or contact the author prior to use.
Here are a couple of links to general assesments for your organization
http://www.lapiana.org/downloads/Start-Up_Assessment_Tool.pdf
http://surveys.wilder.org/fieldstone/lifestages/
http://www.greenlights.org/applications/DocumentLibraryManager/upload/Discussion%20Questions%20for%20Board%20Self-Assessment.pdf
http://www.managementhelp.org/org_eval/uw_list.htm#anchor149020
Thursday, April 15, 2010
Welcome
Welcome to the Non-Profit Know How blog. This blog is dedicated to the advancement of non-profit organizations. I am Geoff and my goal is to improve the impact of non-profit organizations by increasing the functionality of their governing boards, the leadership, committees, and staff.
Not all non-profit organizations are the same, however, there are topically many similarities. High functioning high impact organizations all have one major thing in common: They assess and evaluate at a minimum annually.
Our company Burns & Associates, Ltd. is based out of Ohio, but we work with clients all over the Midwest. We offer many different services for non-profit organizations including organizational assessments, business plan writing and review, board and leadership development and evaluations, strategic and work planning, and program evaluations.
We also consult for organizations that need to do capital campaigns, and other fundraising, non-profit start ups, and struggling organization turnarounds.
Burns & Associates, Ltd. is not a legal firm and no view or opinion ever mentioned in this blog should be considered legal advice. Always consult an attorney for any and all legal advice.
Periodically I or one of our associates will post on a specific topic related to non-profit organizations. the purpose is to emphasize the importance of quality high level governance to ensure positive and effective impact on the communities which the non-profit serves.
Thanks for joining our blog,
Geoff
Not all non-profit organizations are the same, however, there are topically many similarities. High functioning high impact organizations all have one major thing in common: They assess and evaluate at a minimum annually.
Our company Burns & Associates, Ltd. is based out of Ohio, but we work with clients all over the Midwest. We offer many different services for non-profit organizations including organizational assessments, business plan writing and review, board and leadership development and evaluations, strategic and work planning, and program evaluations.
We also consult for organizations that need to do capital campaigns, and other fundraising, non-profit start ups, and struggling organization turnarounds.
Burns & Associates, Ltd. is not a legal firm and no view or opinion ever mentioned in this blog should be considered legal advice. Always consult an attorney for any and all legal advice.
Periodically I or one of our associates will post on a specific topic related to non-profit organizations. the purpose is to emphasize the importance of quality high level governance to ensure positive and effective impact on the communities which the non-profit serves.
Thanks for joining our blog,
Geoff
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