Management
Information on nonprofit strategic planning, budgeting, investment, and other nonprofit management issues. For a great overview of nonprofit management, enroll in Nonprofit Organizational Effectiveness I and II. You may take these University of Iowa courses online.
IV. A. Principle–Strategic Planning
To achieve its mission and vision, a charitable nonprofit organization needs a comprehensive plan which sets forth the organizational goals with specific action steps to be taken by specific individuals.
Organizational success depends on execution of the plan.
Practices
- The board has the responsibility for adopting the strategic plan. The executive director and staff should be actively involved in the planning process with counsel from other organizational constituencies.
- Board and staff often resist planning because of the time and group thought required. However, if there is no group consensus on organizational direction and implementation action, the organization will be dysfunctional. An outside facilitator can help bring issues before the group in a non-threatening way.
Managing a Nonprofit Organization in the 21st Century, by Thomas Wolf and Barbara Carter (1999).
Frequently Asked Questions about Management
One responsibility of the Board of Directors is to evaluate the work of the organization's Executive Director (ED). An evaluation can help improve the confidence, support, growth and working relationship between the Board and the ED. While this review is sometimes avoided or done poorly, it represents an opportunity to identify challenges in program or performance, reward the ED, and strengthen the organization's overall administration. The ED should expect to receive a coherent view of the Board's opinion of his or her work once each year. The evaluation process will be more effective with planning. At a minimum, the evaluation should take the form of a pre-arranged discussion between the ED and the Board Chair. The evaluation should also have a written component.
See Appendix 9 of The Governing Board for Iowa Charitable Nonprofits, 2nd edition, by Willard L. Boyd for more on evaluating the executive director.
Funders need to see that your programs are valuable in order to give your organization money or other resources. Outcomes are helpful indicators of the value of your organization's programs. By showing potential funders the outcomes you aimed for, the actual outcomes, and the programming changes you made as a result, you give funders a clear idea and greater assurance about how their resources will be spent by your organization.
You can make an outcome measurement plan that has multiple elements. Ask who, what, when, and how for each outcome and the output that is indicative of that outcome. Your data sources, data collection methods, and data analysis will vary depending on your outcome and the indicator of that outcome.
Learn more at The Free Management Library - Outcomes Based Evaluation
The strategic planning process consists of four basic elements: critical issues faced by the organization, the organization’s strengths, opportunities available to the organization, and different approaches available to the organization. An organization must identify and prioritize the critical issues it faces. Then, the organization must decide how its operational strengths can be applied towards the resolution of critical issues. Next, the organization should identify available opportunities (e.g., opportunities for facility renovation, fundraising expansion, collaboration, etc.). Finally, the organization must decide upon the approaches that will allow it to take advantage of new opportunities and address critical issues. Three key questions should be repeatedly asked during this process: Are critical issues being addressed? Is this on track with our mission? Is this a financially responsible decision?
Learn more: The Free Management Library: All About Strategic Planning
An outcome is the final component of any given program carried out by an organization. When a program’s inputs (resources dedicated to a particular program, including staff), activities (how the program utilizes the inputs) , and outputs (the direct products of the activities) are all taken into account, the result is an outcome— the effect the program had on the participants. After the activity, did the participants increase their skill in a particular area? Was their behavior modified? Did they accept a new perspective or obtain new knowledge? Many times, organizations keep thorough records about inputs, activities, and outputs, but they do not have a complete sense of what happens to participants after they receive their services.
Generally, four basic functions are included in the definition of management: 1) Planning. Goals must be prioritized, schedules must be created for employees and volunteers, and dates for various events must be set; 2) Organization. This includes the structuring of operations, implementing efficient communication systems, and developing better filing systems; 3) Leadership. Managers should lead by encouraging staff and volunteers and should champion efficient methods that are in line with the organization’s mission; 4) Coordination. Mechanisms for evaluation should be implemented, and information must be exchanged with the community so the organization can efficiently pursue its mission.
Learn more: The Free Management Library: Planning Assessment Checklist
