The board of directors’ primary responsibility is to guarantee that an organization’s mechanisms are in place to support long and short-term growth. The present economic and political landscape makes it even more important for charitable organisations to be sensitive and adaptive to shifting environments. Take into account the following:
Regulatory agencies that oversee some nonprofit groups are under more pressure to uncover proof that tax money is not being utilised for the purposes for which it was intended. When gaps are detected, it does not always imply that poor service was delivered. It’s more likely that the documentation didn’t accurately reflect the situation. Regardless matter whether the consequences are beneficial, NGOs must devote more time and resources to issues that only have a little impact on the quality of services given to their clients.
The number of charity organisations available to meet future needs is growing.
There will be more rivalry among organisations for limited financing from donors and a smaller tax base in the future.
There are more incentives for organisations to form strategic collaborations, combine, and acquire one other to fulfil needs and reduce duplication of services and administrative employees.
Despite low unemployment rates in the aftermath of the 2007-2009 crisis, nonprofit organisations are expected to face a leadership shortage. According to a comprehensive analysis conducted by the Bridgespan Group, charity organisations will require around 80,000 new senior managers each year by 2016.
The board of directors may be a powerful ally in forming an offensive line that helps the organisation to smoothly move through periods of change. However, the board of directors’ engagement is frequently confined to CEO succession planning. This method undercuts the organisational learning paradigm that is required to adapt to the environment successfully. A average board of directors has between 200 and 400 years of combined expertise, making them a tremendous resource to tap into! Consider the following suggestions for maximising the board’s engagement in staff development:
- Reconsider the mission and values of the company. Include a statement on how the organization’s staff development activities will help it achieve its purpose.
- The board should be encouraged to analyse present and predicted internal and external challenges and possibilities at various time intervals, such as one, three, and five years ahead, as part of its strategic planning.
Examine the abilities required to address the problems and find any gaps. It is frequently the case that the abilities required now differ from those required in the future.
Determine what efforts should be made to close the gaps. Consider establishing a mentorship programme for managers or senior employees, or modifying the present leadership training curriculum to reflect desired skills.
- A board of directors can establish a Leadership Development Committee.
Board members who are properly trained in their duties will be less likely to micromanage operations. Members of the board should ask excellent questions and foster meaningful, non-punitive talks.
Members of the board of directors might inquire about how employee development is emphasised at all levels of the business, as well as how executives are held accountable for such initiatives.
Members of the board can help design measures that will help assess the program’s efficacy.
- Board members can use their connections outside of the organisation to gain more access to persons who can help with training and assistance.
The board may be able to form collaborative ties with other NGOs, allowing limited trained human resources to be shared.
- A board of directors might find a variety of chances to connect with executives at all levels of the business in order to get a sense of the talent pool available.
- Employee development programme outcomes should be communicated to the board at regular intervals in the spirit of continuous quality improvement. This would enable the board to make recommendations to change efforts in response to changing circumstances or metrics data.
Instead of leaving projects in the hands of a few people in the company, a nonprofit organisation may gain a lot by maximising board engagement in the staff development process. The success or failure of such projects has an impact on the nonprofit board’s three core governance roles: fundraising, programme monitoring, and strategic planning. Nonprofit organisations will be better positioned to address the expected difficulties in the near and far future if they use all human resources, from the board to the front line staff!