Wednesday, January 27, 2010

Clear as Mud: Defining Organizational Capacity Building

We’ve been spending time this week discussing organizational capacity building. It’s the world NorthSky lives in and we are frankly, immersed in it; considering such topics as how to build board effectiveness, infrastructure development, executive director talent, systems, measures…. well, the list goes on and on. But just try and come up with a clear definition of organizational capacity building. Barbara Blumenthal defines it as “the actions that improve nonprofit effectiveness including organizational and financial stability, program quality, and growth.” That doesn’t really go far enough, does it? Because we know that elements (beyond actions) such as behaviors, skill sets, attitudes, and culture all play a role in the capacity of an organization to thrive and sustain to fulfill its mission.

Paul Light, author of Sustaining Nonprofit Performance, describes capacity as “an output of basic organizational activities such as raising money, forging partnerships, organizing work, etc.” I like this definition better and it seems more in line with the real life experience of nonprofits.

While the definition may not be clear, it is clear that capacity building is worthwhile for every nonprofit. Completion of an organizational capacity assessment http://www.northskynonprofitnetwork.org/resource_drillDown1.php?recordID=185 is a good first step in that it not only provides data identifying where you are stronger and weaker but a forum for board and staff to learn and grow together.

Capacity building efforts can include a broad range of activities such as training, leadership coaching, systems development, performance measurement, and capabilities enhancement (such as marketing, financial management, and fundraising). The right formula varies for each nonprofit and is dependent on its history, leadership, and stage of organizational life cycle. The needs of a start-up organization are far different than that of a mature nonprofit… although, for some, they can be frighteningly similar. Well, that’s another story…

Paul Light says it well. “These are times that try the nonprofit soul.” Well, amen to that. But nonprofit leaders are a persistent group and we keep working at it.

Please share your thoughts on defining organizational capacity and strategies for strengthening it.

Wednesday, January 13, 2010

2010 and We're Still Trying to Figure Out Board Recruitment

January and it seems like everyone is talking about the need for additional board members and the difficulty in identifying individuals to round off and build their leadership. The NorthSky team preaches that it all starts with your board, that term limits are critical, and that a diverse board is a best practice. Isn’t that frustrating? You already know all that and we haven’t been very helpful in working with you to recruit new talent. Well, we’re really excited about our partnership with the United Way Volunteer Center and the opportunity to more aggressively recruit candidates for your board. Some suggestions as you move forward.

1) Conduct a composition analysis. We have two great tools created by Ameen & Associates in our online Resource Center. http://www.northskynonprofitnetwork.org/resource.php#JumpGovernance Use them to identify the ideal composition of your board, who you already have and where there may be gaps that present recruitment opportunities. If possible, tie the ideal composition of your board to the priorities you’ve identified in your strategic plan and vision.

2) Recruit carefully and don’t rush the process. Consider requiring candidates to serve on a board committee prior to joining your board. It’s always a good idea to date before you get married.

3) Prepare to start new board members off on the right foot with a comprehensive board manual and solid orientation. You’ll find outlines for these also in our Resource Center. http://www.northskynonprofitnetwork.org/resource.php#JumpGovernance

4) Consider sending new board members to our session “The Board Primer” scheduled on February 4. This session provides the specifics about the fiduciary role and responsibilities of nonprofit board members and what it means to be a “best practicing” board. Even experienced board members will gain something from a refresher course and an update on what has changed in the nonprofit world.

5) Get new board members engaged immediately by giving them an assignment. One of the common complaints we hear from board members is that they are bored. Bored??? How is that possible?

Oh, and yes, it’s o.k. to pressure NorthSky to help more. It does motivate us to look for creative solutions to your problems.

Any other suggestions about board recruitment to share?