This Tip asks nonprofits to stop burning money by having new managers and boards that lack the necessary skills.
Stop Burning Money!
If you are a nonprofit organization, you are burning money!
New Managers Lack Management Skills
One way you’re burning money is by having new managers who lack effective management skills.
This causes employee engagement, productivity, and retention to be much lower than they need to be.
You may have heard the saying, “Happy wife, happy life.”
Well, let’s revise that. A more relevant saying would be “Happy employees, happy nonprofit.” Or “Good managers, happy employees.”
Seventy-five percent of employees who quit their jobs do so because of a bad manager.
The cost of refilling a position can be up to $200,000 in lost productivity per employee.
You need to train your new managers to do their jobs.
Otherwise, your employees won’t be as productive, effective, or content as they could be.
And, if your employees aren’t satisfied with their manager, they’ll leave.
That’s a terrible waste of time and money.
The Board is Unproductive
Another way you’re burning money is when your board holds unproductive, time-consuming meetings.
This could be due to a chairperson who doesn’t know how to run a meeting. Or board members who lack the necessary commitment to the organization.
Wrong Board Composition
“A high-performing and ethical boardroom doesn’t happen by accident. It requires careful cultivation and a thoughtful approach to board composition and dynamics.” The Virtuous Boardroom
Do you have the right people on the board? It should not include FRANs: friends, relatives, acquaintances, or neighbors. The board members need to be committed to the organization, not to you! They must also want to contribute their time and expertise.
Is your board at the forming, storming, norming, or performing stage? Your board may need team building, communication, and conflict management strategies.
Poor Meeting Management
According to Bill Gates, “You have a meeting to make a decision, not to decide on the question.”
Does the board chair know how to run an effective meeting? Is the board making timely decisions and assigning implementation responsibilities? The chair may need meeting management and group facilitation skills.
Board/Executive Director Impasse
“If there’s a disconnect between the Board and the Executives, the result is paralysis.” Board Room Blitz
Does the board overstep, miscommunicate, or refuse to collaborate with the executive director? Training in board governance is a must.
Your nonprofit can’t afford the staff time and energy to prepare for meetings that go nowhere.
You can’t afford the time and stress involved in butting heads with the board.
Make sure your new managers and your board have the skills they need to be effective and efficient.
Contact me for a personalized assessment. Learn how to enhance your management and board effectiveness to save time and money.
May your learning be sweet,
Deborah
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