146 0 obj /Widths [ 0 0 0 0 0 0 0 0 0 0 /Widths [ 0 0 0 0 0 0 0 0 0 0 588 664 664 664 664 341 341 341 341 679 /Type /Font 1000 1000 958 958 958 958 958 958 958 958 A free online tool published by Venture Philanthropy Partners and McKinsey & Company to help nonprofits assess organizational capacity, strengths, and weaknesses. << /Type /Catalog /StemV 80 0 0 0 0 0 0 0 0 0 0 cookies. /StemV 80 The board of Scholarship America, for instance, routinely reviews individual decisions for consistency with its overall purpose: providing financial and academic support to students. 0000005161 00000 n /FirstChar 1 These problems might seem small, but unless they are addressed, directors may become discouraged or disengaged. 0 And when an affiliate of Easter Seals (which provides disabled children and adults with physical therapy, job training, and the like) questioned its clients, it found that they needed support delivered to their homes instead of through a network of external sites. 148 0 obj /Descent -206 686 699 699 497 593 455 712 649 979 668 Sometimes the executive director—concerned, perhaps, about whether the board has the right composition—takes the lead. /Subtype /TrueType 850 850 850 850 867 850 812 812 812 812 /ItalicAngle 0 /Type /Font /Type /FontDescriptor And the board as a whole can become complacent. Whichever approach is chosen, it should lead to the gathering of facts, to debate and consensus on priorities, and to assignments for individual board members. 3. >> /Text /Fabc13 153 0 R << 143 12 /Parent 113 0 R One way is to push management to look beyond measures of activity (dollars raised, constituents served) and of efficiency (cost per dollar raised or constituent served) and to stress instead measures of impact (how many children have been taught to read, how many people have become economically self-sufficient), which better reflect the organization’s mission.2 2. 958 958 958 958 958 958 958 958 958 958 >> /Subtype /TrueType 958 958 958 958 958 958 958 958 958 958 /FirstChar 0 /Type /FontDescriptor 867 867 616 963 776 761 723 830 683 650 Regardless of the source, the self-assessment should be an opportunity for education as well as evaluation; conversations about a “gold standard” for effective boards, for instance, can open the eyes of directors who haven’t served on strong ones elsewhere.3 3. /Widths [ 500 958 958 958 958 958 958 958 958 958 /ImageB Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. In addition to the study, McKinsey developed a capacity assessment tool for nonprofits. /BaseFont /Verdana Thus it comes as no surprise that a recent McKinsey survey of executives and directors of nonprofit social-service organizations found that only 17 percent of the respondents felt that their boards were as effective as possible.1 1. Reinvent your business. 0000003440 00000 n The governance portion of the McKinsey Organizational Capacity Assessment Tool (fee-based) is another one. Press enter to select and open the results on a new page. Character Counts! Once the mission and the vision are both in hand, it is important to use them as a guide to action. 147 0 obj This simple assessment tool—a good starting point for many organizations—is available in the report on which this article is based. 775 751 420 454 692 556 842 748 787 603 615 605 620 600 600 600 600 600 600 955 By being flexible and dynamic, embracing self-scrutiny, and acting on the findings, boards can do more and do it better. Organizations with broader sets of constituents might emulate the board of America’s Second Harvest, an antihunger group, which has formed a stakeholders’ committee explicitly charged with obtaining feedback. But how? /Length 0 A year or two later, as the organization grows and the external landscape changes, the board might have to change its priorities. ), systems and infrastructures, culture, etc. SELF-ASSESSMENT TOOL FOR NONPROFIT ORGANIZATIONS Name of organization: Directions: This checklist is designed to be completed by the Executive Director and Chairperson of the Board. The organization quickly offered teachers and principals workshops that focused on the reduction of cheating and soon saw changes for the better. /H [ 1606 213 ] 958 958 958 958 958 958 ] 0000001606 00000 n But if board meetings start and finish late, members receive preparatory materials late or arrive unprepared, and there is never enough time to address important matters sufficiently, the process isn’t working. 958 958 958 958 958 958 958 1000 1000 1000 �ÍÄ@ÌÅ¬@,ÅP ZÅÀ ü��Aªˆ�Êº4¦ ±(ãE¢Qæä10Ü�Òœ@Ì É»}:û20°(iW �Udk�½ˆã�>…» ¡l 153 0 obj We believe this combination of performance assessment and priority-setting is the foundation of superior nonprofit board performance over time. 150 0 obj 712 686 686 686 686 686 867 686 712 712 595 351 623 632 274 344 591 274 972 632 /FontDescriptor 147 0 R Nonprofit managers and/or board members can complete this assessment. 606 623 623 426 520 394 632 591 818 591 644 818 454 1000 635 541 818 541 541 635 We believe this combination of performance assessment and priority-setting is the foundation of superior nonprofit board performance over time. Digital upends old models. 958 958 958 958 958 958 958 958 958 958 0000006339 00000 n 0000003620 00000 n /924ee49b7bb1dbed2d3351ed4621eae7 114 0 R 0000004853 00000 n >> 0 0 0 0 0 0 0 0 0 0 /ABCpdfHelv 116 0 R >> McKinsey’s Capacity Assessment Grid This grid is a tool designed to help organizations assess their organizational capacity/effectiveness. /StemV 80 /Subtype /Type1 /ItalicAngle 0 The first task, then, is to nail down the fundamentals—a clear vision, appropriate board membership, and effective processes—because these elements enable directors to avoid wasting a great deal of time and energy. Conversely, many cultural institutions facing budget shortfalls have narrowed their focus in tough times by reducing the number of performances they give, focusing on cheaper exhibitions, or contracting their community outreach programs in hopes of maintaining essential activities. Today, nonprofit organizations in the United States control upward of $1.5 trillion in assets and are increasingly relied upon to help address society’s ills. endobj 120 0 R 121 0 R 122 0 R 123 0 R This tool helps to assess BOD performance and assists with priority-setting for the future. runs in-school ethics programs, for example. Formal targets pertaining to the board’s composition may also be useful: the National Urban League, for example, seeks to ensure that a certain percentage of the members of its board are less than 30 and 40 years of age. 616 776 776 776 776 776 776 1093 723 683 >> McKinsey & Company, Nonprofit Board Self Assessment Tool Dalhousie University, Board Self-Evaluation Questionnaire Board Member’s Activity Report The importance of D&O Insurance cannot be understated. << /LastChar 255 If your nonprofit receives funding from a private foundation(s), don't be shy about asking whether the grantmaker recommends a particular self-assessment tool or evaluation process. They also answer to a wide range of stakeholders who may lack a single common goal, such as increasing shareholder value. In these cases, the nonprofit was working with a consultant who facilitated the same kind of process and discussions but without using a tool. Our research indicates that the best boards also provide professional expertise, represent the interests of their nonprofits to community leaders, recruit new talent to the organization, and provide the more rigorous management and performance oversight that funders increasingly demand. Learn about To motivate individual employees to improve their performance, boards can tie personnel evaluations to the achievement of targets—a common for-profit practice that is catching on in the nonprofit sector. The OCAT from McKinsey & Company is a useful online tool to help your organisation assess its own strengths and weaknesses.The OCAT is a good choice when: 1. /Ascent 1000 << Nonprofit Board Assessment Tool Download copy of tip sheet. The board thus chose to expand the IRC’s activities from providing mainly short-term emergency assistance to rebuilding the lives of refugees through longer-term programs to resettle them, while safeguarding them from kidnappers and other traffickers in human cargo. endobj /Contents [ 154 0 R ] /Encoding /WinAnsiEncoding Even a nonprofit organization with a clear mission and vision may find that certain directors no longer meet its needs: as it expands and matures, for example, it might find that its founding board members lack relevant professional or fund-raising expertise. /Size 155 It can be used by nonprofit managers, staff, board members and external capacity builders and funders to identify areas of … BoardSource’s Assessment of the Chief Executive (ACE) tool helps you foster the growth and development of your CEO and organization and enables your board to evaluate the chief executive’s performance in four key areas: annual performance goals, core competencies, leadership qualities, and accomplishments and challenges. You want to know internal opinions.The OCAT is NOT a good choice when: 1. 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 149 0 obj Yet a dynamic board is quite valuable, as the experience of a major environmental nonprofit considering a billion-dollar expansion program shows. Community foundations are uniquely equipped for times like these. Perceived importance of responsibilities for … Preface >> We also surveyed executives and directors from a larger group of nonprofit health and social-service organizations. >> 545 683 683 683 683 683 683 984 698 632 641 635 363 635 541 545 644 1000 1000 1000 /Type /XRef 1000 635 976 520 454 981 545 525 615 351 << /FontDescriptor 152 0 R An often overlooked one is for board members to upgrade their skills through training. Use the right tool for the job Organizational assessment tools … The McKinsey & Company Nonprofit Board Self Assessment Tool. 1000 710 963 593 543 1067 710 596 736 341 How can a board begin the process of self-reflection? The executives of a nonprofit should meet frequently with the board’s leadership to discuss whether the organization is taking full advantage of the collective expertise and enthusiasm of its directors. endobj 635 635 635 635 635 635 635 454 454 818 Changes in the competitive environment can create the need for new skills in areas such as marketing (to attract new members), technology (to exploit new IT systems or the Internet), and public relations (to convey the organization’s message). Deciding what to emphasize demands serious self-scrutiny, and only 35 percent of the nonprofit directors we surveyed said that their boards submit to it now. Of course, the absence of a commonly accepted goal (such as boosting shareholder returns) makes it harder to pin down an organization’s purpose—and an ambiguous mission or vision may be the germ of potential conflict. Yet only 46 percent of the directors we surveyed thought that other directors on their boards could both summarize the mission of the organizations they serve and present a vision of where those organizations hope to be in five years’ time. Many boards are reluctant to do so because it takes time and can yield pointed criticisms. Becoming a dynamic board capable of making such shifts while periodically revisiting common challenges to its effectiveness is central to weathering change and building for the future. 632 632 632 420 420 420 420 775 748 787 958 958 958 958 958 958 958 958 958 958 635 458 818 635 635 635 1521 683 454 1069 Directors might initiate the process themselves if they are frustrated with the way they are using their time or with their peers’ performance. 818 818 545 1000 683 685 698 770 632 574 /FontDescriptor 149 0 R /LastChar 255 0000001820 00000 n For example, the CEO and board chair of the March of Dimes (an organization dedicated to improving the health of babies by preventing birth defects and reducing infant mortality) meet together twice a month for this purpose. In some jurisdictions, the directors are also evaluated along with the Boards. /Font << << 849 867 479 963 710 587 867 597 597 710 Our flagship business publication has been defining and informing the senior-management agenda since 1964. /CapHeight 699 Board self-assessment is a best practice of successful nonprofit Boards of Directors. Scholarship America, for example, pays bonuses to employees who deliver outstanding results. << Verifying the relevance of all board committees is also crucial; their objectives and accomplishments need to be examined annually. The organization’s local chapters evaluate the performance of the national office, and the results go straight to the board, which in turn suggests ways of refining the services that chapters receive. 154 0 obj sets the strategic direction of the company), it controls (i.e. BoardSource publishes several board assessment tools, and your consultant may very well have developed one as well. 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 As a result, the board had a series of discussions with management and ultimately modified the program. /ABCpdf 7012 << >> /BaseFont /Marlett Please click "Accept" to help us improve its usefulness with additional cookies. Performance of the board (or board committee) on its core responsibilities 2. 632 632 591 623 591 ] /Filter /FlateDecode endobj 1000 1000 1000 1000 1000 1000 1000 1000 958 958 /Filter /FlateDecode /Ascent 764 0000004964 00000 n Organizational Capacity Assessment Tool (OCAT) Process and Comparison Between OCAT Version 1 and Version 2 We recognize that nonprofit practitioners are the program experts, and we aim to complement that expertise by working in partnership with those organizations. boardnetUSA is a collaborative network of companies, communities and nonprofit associations. << /NeedAppearances true For contributions to this article and to the research underlying it, the authors wish to thank Vishy Cvsa, Devin Erhardt, Vidya Prakash, Les Silverman, and Lynn Taliento. /Encoding /WinAnsiEncoding >> Please try again later. /ImageC Boards should try to look at performance data unfiltered by management, but fewer than 40 percent of the directors we surveyed said that they actually did. Over the next two years, this board moved to improve its long-term effectiveness by increasing the directors’ fund-raising responsibilities, redesigning meetings to focus more on discussion (rather than management-led “education”), and restructuring committee roles. /ImageI ] tab. Another possibility is simply to expand the board to bring in new blood while setting term limits for current directors. A number of nonprofit boards whose members we interviewed arranged to have executives coached and CEOs mentored as a result of their disappointing performance against agreed-upon targets and feedback from stakeholders. The Dynamic Board: Self-Assessment Tool (Short Form) by McKinsey & Company (4/27/2004) << People create and sustain change. /Descent 0 If they feel that their time isn’t well spent, they might skip meetings or tune out. 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Leaders also say they successfully advanced organizational Capacity, strengths, and are fluent in English with... It provides direction ( i.e from day-to-day activities, an organization in achieving its.... Oversee performance without micromanaging operations which your organization has achieved the stated goal board... And social enterprise organizations this tool helps to assess BOD performance and with. Governance portion of the USA are among that minority – SHORT form GUIDELINES for ASSESSORS the world!