November 2007 NEWSLETTER
William Harper Associates Newsletter
This newsletter is a free service to the North American not-for-profit community from William Harper Associates. Its focus, like everything we do, is on helping organizations that do good, do better!
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In this issue:
- FEATURE ARTICLE: Volunteer succession planning
- SECTOR BULLETIN: Ontario Government Issues 2nd Consultation Paper
- GUEST COLUMN: Generation "Y": Challenge and Opportunity
- QUICK TIP: Computer Virus Protection
- FINANCIAL LITERACY TERM OF THE MONTH: Fiscal year
- FROM THE ARCHIVES: Mentorship Programs
- RESOURCES: Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations
FEATURE ARTICLE: Volunteer succession planning
One of the major risks facing even well-run organizations is the loss of good, key people from the organization. While you can't control all the circumstances that cause people to leave, you can plan to deal with these departures when they arise, and particularly when the departure is known well in advance, such as in the case of a senior volunteer reaching the end of his or her term of service. While many Boards do think about (if not plan for …) the executive director's eventual departure, fewer Boards focus on key volunteer roles.
Succession planning is something that even the smallest organization should be doing. In fact, maybe it is the smaller organization - that relies so profoundly on the talents of key volunteers - that needs to pay it the most attention.
Succession planning need not be sophisticated and formal to be effective. As in so many things, in fact, simplicity and elegance can be powerful. So, here are a few simple steps:
1. Sit down and make up a list of the key volunteer roles: Chair, of course. Treasurer. Secretary. But, don't forget about important committee and event chairs. Key volunteers in any capacity need to be on this list - the person staffing the otherwise empty office every afternoon; the volunteer who does the books; works the phones. All those things that keep your organization alive.
2. Identify the key attributes those volunteers need. Maybe it's something specialized like accounting skills. Or, maybe it's "just" a willingness to make 300 phone calls a week on your behalf!
3. Look for other volunteers in the organization that you think might be able to fill each set of shoes at some point in the future. Don't worry so much right now about skills - those can generally be learned. Consider time availability, attitude, reliability, interest.
4. Develop the "career path" that each volunteer can follow in order to be ready for the role:
- Got an eager, hard worker on that major event? Move him or her through a variety of different roles on successive events to develop a range of exposures and skills, including key supervisory and communications skills. They'll be itching to chair the event when the time is right!
- Got a thoughtful, reliable Board member who knows nothing of finance and accounting? Get them on the finance committee; have them develop a budget for a program or event; and, recruit them to work the cash desk at that event. Before too long, you've got someone in a much better position to be your eventual Treasurer (whether they know it or not!).
5. Still got some blank spaces on the page at this point? Most organizations will! Now the fun begins. Now you need to start recruiting. As Stephen Covey suggests, begin with the end in mind. Get the incumbent to identify colleagues, friends, etc to get involved. Use services such as Altruvest's BoardMatch. Talk to other organizations and tap into their experienced volunteers who may be ready for a new challenge. The key, though, is knowing what you are looking for.
Though it's ideal, it's not essential to have a 100% complete roster of successors. The key is to have turned your mind to the issue, and to have some ideas of successors. Having some depth, or "bench strength" is also a huge relief - if you have a core group of 20 or 30 dedicated volunteers, the odds are that one of them will be able to fill a given role when the time comes.
As the time for retirements approaches, it is important to be timely in crystallizing succession plans. Asking a Board member to take on the Treasurer's role, beginning next week, is nothing less than a bombshell. Asking that same Board member to take on the Treasurer's role in a year's time respects their schedule, gives them a chance to "clear the decks" for the added workload, to brush up on the position's requirements, and to learn from the incumbent.
SECTOR BULLETIN: Ontario Government Issues 2nd Consultation Paper
Ontario's Ministry of Government Services has released a second consultation paper on reform of the Ontario Corporations Act, under which many charities and not-for-profits are incorporated.
According to the Ministry site, the Corporations Act "is an organizational statute, not a regulatory statute. In other words, enforcement of the rights and duties under the statute lies primarily with the corporation, its directors and its members. Hence, the focus of this consultation is not on the regulation of charitable and other not-for-profit corporations.
This paper focuses on the subject of directors and officers and requests comments on various issues, including:
- Board Composition
- Term of Office
- Delegation of Powers
- Directors' Meetings
- Resignation, Removal, and Vacancies
- Directors' and Officers' Liability
- Conflict of Interest
The Ministry kindly requests your input, views, and feedback on the issues and consultation questions outlined in this paper."
The comment deadline on the paper is December 31, 2007.
You can download a free copy of the consultation paper.
GUEST COLUMN: Generation "Y": Challenge and Opportunity
Many employers appear quite frustrated by the newest entrants to the labour force. These workers seem profoundly different and, it has been said, they have a weak work ethic, lack commitment, perceive themselves to possess knowledge beyond their experience, and harbour unreasonable expectations regarding position, income and career advancement. In many ways, they seem to exhibit a "Maturity Gap".
Who are these new workers and what do they really want? Are employers doomed to be frustrated by them forever or does this situation present an opportunity for establishing a strategic advantage?
Who Is Generation Y?
Demographics provide the first insight. The Baby Boom Generation was born between 1947 and 1966. Generation Y, born between 1980 and 1995, are children of the Baby Boomers. (Boom, Bust & Echo, David Foot) As with every generation, Generation Y manifests a number of common characteristics, some which are unique to this cohort.
Before this profile is described, a word of caution! There are grave risks in developing any profile. Generalizing from the individual or individualizing from the general is sloppy thinking and most often is outright wrong. A profile is useful to the extent that it portrays a cohort at the extreme, solely as a reflection point for robust analysis and deliberation.
What Are Generation Y's Life Experiences?
As children of the Baby Boomers, Generation Y has received unprecedented attention, protection and programming. They have been inundated with material things from birth, particularly electronic and digital goods. Their parents have been their strongest advocates and want to be their best friends. They have been sheltered from failure.
- First digital generation
- Cellphone, iPod, laptop computer, and electronic games are givens
- Not allowed to play outside, for fear of being kidnapped
- All activities are programmed and scheduled
- Parents are chauffeurs
- Parents are "best friends"
- Never told "no"
- School system altered to eliminate "failure" to avoid scarring the child
- Parent (usually mom) stands in Registration line with child at college
- Parent (usually mom) complains to the school about marks
- Parent challenges employer regarding Performance Review
- Parent confronts employer regarding dismissal situation
What Are The Values And Behaviours Of Generation Y?
- Lack a concept of fear
- Lack a concept of failure
- Ethically incomplete
- Assume invincibility and superior performance
- Used to being involved in "adult decision making"
- Short attention span
- Believe they are proficient at multi-tasking
- Digital communication and engagement
- Sense of entitlement
- Focused on their careers
- Want more than merely "a job"
- Want the organization to be connected to the community and make a contribution
- Question everything
- Want constant feedback
- Live with parents indefinitely
Generation Y In The Workplace
Generation Y enters the workplace better educated than previous generations. They arrive expecting to be treated as unique individuals with a great deal to offer to the organization. They come with a belief that they know more than they actually do about most things, including the world of work. They are supremely confident in their abilities.
Generation Y employees may not be patient in sitting through a "traditional orientation" to the company and the job. Their preference is to have information presented in a digital, self-paced, interactive format - an approach with which they are quite familiar.
They are looking for immediate connections - between themselves and the people around them; between their values and those of the organization; between their immediate needs and the "offer" in joining the organization. Generation Y also expect their organization to provide them with opportunities to participate in activities that will contribute to Corporate Social Responsibility and Sustainability, as well as to their own personal development.
From their first day, Generation Y is ready and willing to start questioning everything. "Why do you do that?" "Why do you do it that way?" "Why can't I try it my way?" The probing is insistent and unrelenting. Remember, they have immense confidence in their abilities and personal failure is unknown. The manner in which employers manage this situation will determine the commitment and longevity of these new employees.
Engagement And Retention
Retention of Generation Y employees already is and will continue to be a significant challenge for employers. This also varies by sector, organization and region. If Generation Y employees don't like what they are told or the working environment falls short of their expectations, they will not hesitate to quit, in the belief that there are better opportunities elsewhere. Their parents' willingness to allow them reside with them indefinitely, further exasperates this situation.
In order to retain Generation Y employees, astute organizations will be deliberate and methodical in evolving and supporting an environment that encourages open communication, provides experiential opportunities and engages employees in identifying, analyzing and solving problems, and exploiting opportunities. Coaching and mentoring are needed to reinforce this process of engagement, in order to capture the enthusiasm and commitment of Generation Y employees, and solidify retention. (See Article: THE GROWING SHORTAGE at www.diamondmanagementinstitute.com ) It also should be noted that Generation Y's loyalty tends to be to the individual, not to the organization.
More than ever before, it is necessary for managers to "know" their employees - their likes, dislikes, values, goals, behaviours -- and create situations where "the needs of the individual are aligned with the needs of the organization", in order to create an emotional connection between the employee and their work, and the organization.
Concurrent with this approach, managers will need to nurture higher personal standards and greater maturity in Generation Y employees. They will need to help "undo" some of the characteristics of Generation Y. This delicate process is situational and calls for sensitivity and dexterity on the manager's part. It demands a practised art.
It is ironic that Boomer Employers will need to re-mould Generation Y - the children shaped by Boomer Parents.
The Opportunity Provided By Generation Y
Generation Y definitely will frustrate many employers who will experience an ongoing cycle of costly recruitment, with corresponding weak retention. The time and resources expended in this "churning of employees" will come to be seen as yet another cost of doing business, even while performance, quality and productivity are eroded.
This ultimately will prove to be an unsustainable structure for managing a business, unless the organization can develop cost-effective and innovative approaches to recruitment, orientation and training for a low-retention workforce.
Another considered approach will see organizations evolving their culture to embrace and accommodate the aspirations of Generation Y and other employees. Responsibility and authority will become more distributed. By doing so, these organizations will be able to harness the creativity and energy of Generation Y to its own benefit. Employers who overcome these challenges will continue to search out innovative solutions to strengthen the connection with their Generation Y employees. They will apply as much rigour and resources to engaging their workforce on a daily basis, as they currently apply to their budgeting processes, for instance.
It has been noted that Generation Y employees arrive at the workplace asking many questions and challenging basic assumptions. Managed properly, these new workers have the potential to unlock enormous gains for the organization. By exploiting Generation Y's propensities, both the individual and the organization can realize significant and meaningful success. The Toyota Motor Company provides vital insight.
(The Toyota Way, Jeffrey Liker)
Organizations should not be viewed as static entities. They need to be perceived as dynamic and evolutionary, where opportunities for continuous improvement, work enhancement and productivity improvements abound. The Toyota example exemplifies an attitude and approach that "institutionalizes" these concepts.
Generation Y manifest many characteristics that could support and extend the re-organization of work and the positive outcomes of capitalism. In particular, exploring the potential for Corporate Social Responsibility and Sustainability are two areas that resonant strongly with these new workers. The choice is to capture this opportunity or lose to the competition. (See Article: SUSTAINABILITY at www.diamondmanagementinstitute.com)
These are strategic considerations that require thoughtful planning, organizing, training, and implementation. They go to the very heart of every organization. They are the new leadership challenge. Managers need to develop enhanced processes, modify their style and delegate in new ways in order to "connect" with the Generation Y workforce.
In pursuing this strategic approach, organizations and managers may be embarking on an unfamiliar journey. Practitioners of Culture Change and Leadership Development can provide critical assistance in helping to create a work environment that satisfies the values and characteristics of Generation Y employees and challenges their aspirations.
Bill Fields, President, Diamond Management Institute bfields@diamondmanagementinstitute.com 905-820-8308
www.diamondmanagementinstitute.com provides organizational development services through customized consulting, business planning and employee development solutions. Clients include Kodak, Lear, Compugen Systems, Consumers Glass, MTHA, Navistar, BASF, City of Mississauga, Dofasco, Technical Standards and Safety Authority, Textron Automotive, TD Bank Financial Group, College Student Alliance, Terra Greenhouses, Crawford Chondon and Partners LLP, Greenwin Property Management, Sheridan College, Canadian Standards Association, SOCAN, The Walkerton Inquiry, and the Governments of Canada, Ontario and Bermuda.
QUICK TIP: Computer Virus Protection
Viruses, worms, Trojan horses, and many other forms of nasty infections continue to increase in frequency and danger to every organization's computers. The threat is real, and the consequences can be extremely severe.
Every computer in your organization should be protected with up-to-date anti-virus software. That includes every desktop, laptop, server and similar computing device. And, while there may be good, free protection available, this is one area that you don't want to scrimp on - the cost of inadequate protection can be huge.
A word about updates: an adequate anti-virus package will periodically fetch updated virus information (so-called "signature" files) from its supplier over an Internet connection to protect against new and emerging threats. If your software doesn't have this feature, it is not providing adequate protection. Period. And, if you have not enabled this feature, you are not protected. Period.
So, how often to update this virus information? Well, once a day is a fairly common cycle in some organizations I have known. But, consider that the most dangerous viruses released these days spread to every corner of the globe in a matter of hours, if not minutes. You have to balance your risk tolerance against your bandwidth costs - personally, my virus files are checked and, if need be, updated, hourly!
FINANCIAL LITERACY TERM OF THE MONTH: Fiscal Year
"Fiscal year" refers to the reporting period used in an organization for its financial reporting. While this reporting period may be the calendar year, it also may not be.
The fiscal year is generally specified when an organization is formed, and is set out in its incorporating or similar documents. It is possible to change this period, but this is not often done.
There can be legitimate reasons for specifying a fiscal year as other than the calendar year, including:
- to accommodate the natural operating cycle of the organization. For example, an educational organization might run programs from September to June, and a year-end at the end of June may be appropriate to capture a full operating cycle within each fiscal year, rather than splitting it across years;
- to make comparisons easier, for example, if most other organizations of a similar type have a common year-end. Choosing the same year-end as these comparators facilitates timely and meaningful comparisons. Even where direct comparisons are not being made, it is common, for reasons sometimes lost to history, to see certain year-ends adopted in certain sectors;
- to make aggregating information easier, for example, if an organization is part of a federation or similar grouping, having a common year-end is an important enabler of producing system-wide information; and
- to smooth work-load of administrative staff, volunteers and professionals. With a large number of calendar-year-end clients, for example, auditors have a "busy period" in the winter and spring. Setting a different year-end can avoid adding to this crunch and, possibly, provide for faster or less expensive service.
Can a non-calendar fiscal year be confusing? You bet! It's important to always understand what year is being referred to: calendar or fiscal (and sometimes other yearly cycles as well - for example, volunteer roles sometimes follow yet another annual calendar!). That's why you'll often see references to the "07/08" year, or Fiscal '08 (or F'08). It's a sure sign that the fiscal year is not the calendar year in such cases.
FROM THE ARCHIVE: Mentorship Programs (from March 2007)
This month's 'member connections' idea is to facilitate mentoring among your members.
The term "mentoring" simply refers to a relationship between two individuals, one playing a growth-oriented guiding role for the other. Rather than being focused on technical knowledge or structured learning (though that can be one aspect of the relationship), mentoring relationships often focus on experiences, contacts and 'cultural' issues.
In the context of your association, there is likely a natural mentoring relationship that can be fostered between members, especially in professional or similar groups. But, associations of all types can find a solid basis for mentorship. It is simply a matter of examining the particular interest or focus of your organization. Then, identify the kind of personal growth that a typical member would want to achieve in this area.
What are the benefits to participants?
For the mentor (the more experienced member), mentoring relationships can be very satisfying. Through long membership in your association, these members will typically have achieved something quite valuable. This could be career-wise, in developing a personal interest or quality, or simply in being well-versed in the realm that your association works in. The mentor will often feel that they can and should "give something back" to the association, to fellow members, to colleagues, or to the community in general. After all, they have contributed over the years to the member's success! Mentoring - helping another member achieve what they have achieved - is a natural response.
Also, who doesn't enjoy being recognized - and appreciated - for their expertise, contacts, or wisdom, particularly in the field of their career or interest? Being asked to be a mentor, and being one, both appeal to any normal, healthy sense of self, or ego.
Finally, many mentors find that there is a very real two-way street in mentoring. While they bring contacts, experience, and wisdom to the table, their mentoring partners often bring up-to-date knowledge, skills and infectious enthusiasm to the relationship. This can be of great value to the long-standing member who may not be completely current in all aspects of their field of interest.
For the mentee, or protégé (the less experienced member), mentoring is of clear value. In a career setting, mentorship provides valuable contacts and introductions to people, organizations, settings and issues that they might otherwise wait years to be exposed to. But even in an area of personal interest, benefits abound. The less formal knowledge base inherent in many interest areas can most effectively be shared through informal, one-on-one relationships.
Even where knowledge and skills are well documented and perhaps even delivered through formal education and examination regimes (for example, in most professions), most experienced members will confirm that there is a world of difference between the text-book and real world. Wisdom is rarely found in a text-book!
Mentoring relationships can be either formal or informal. Very often, formal relationships will be found in work settings. Here, new or junior employees are formally matched up with more senior employees in an organization, department or group. These types of relationships may be more difficult for an association to establish without the employment relationship backing up the arrangement.
Less formal relationships can still be valuable. For any mentoring relationship to have maximum effect, there must be a trust, and a 'chemistry' between the parties. Once introduced, a new mentor and mentee will either
- find that basis to build on, in which case the relationship is likely to flourish in any event as it will effectively serve both parties' needs and interests, or
- not find a basis to build on, in which case even a more formal structure and mandate would not likely yield much in the way of results or satisfaction to the parties.
What are some considerations for designing a mentoring program?
Developing a mentoring program need not be a major, expensive undertaking in many cases. But, it is important that your association develop a reasonable plan and approach to doing so before boldly announcing it to the membership. A number of issues should be assessed prior to committing to launching a program. For example,
- will there be children or any individuals of diminished capacity involved in the program in any way at all? (If so, your mentoring program will need to have a much more comprehensive and rigourous process for participation, and advice should be sought from experienced mentoring program developers);
- are any of your members in a competitive situation that will impact the matching process?
- are any of your members employed in organizations that already have - or might want to introduce - such programs? If so, can you work with them on a partnering basis, or should you limit your program to avoid conflict? Or, might those organizations pay a fee-for-service to your association to operate a program?
- what will be the impact of geography and electronic communication on your program and the participants? Does your matching have to provide for face-to-face contact? Will you have to provide support (e.g. e-mail addresses, etc.) to members to facilitate their participation?
- do you have local chapters, affiliates or allied groups that you can/should work through or partner with for this program?
- are there aspects or attributes of your membership (e.g. areas of interest, specialties, types of member, etc.) that will impact the matching?
- what staff support will you be in a position to provide to individual mentor/mentee pairs, if any, and at what cost to whom?
- what other tools (e.g. orientation materials, checklists) will you provide to your members to help make the mentoring relationship effective?
- what reporting will you want from individual mentor/mentee pairs to monitor the program and assess its effectiveness and value?
What's involved in running a mentorship program?
Like many association activities, mentorship programs are essentially communication-driven activities. Just one more reason to make your association communications-centric!
Once the program and mentorship roles have been properly defined and positioned to be of maximum relevance and interest to members, both potential mentors and mentees, it will be necessary to effectively communicate the program to all members. You'll need to raise awareness, solicit interest, and actually sign-up members interested in either role. And, a key strategic communications objective will be to move the membership as a whole to become more culturally aligned with the notion of mentorship. It will be important to the long-term success of the program that an expectation and a culture of sharing be firmly established in members' minds.
Fortunately, electronic communication tools make this exercise far less daunting. For both broad communications (e.g. through your newsletters, broadcast e-mails, and so on) and targeted communications (e.g. invitations to participate, communications with - and between - participants, etc.), Web and e-mail technologies work like magic. Of course, if you don't have a fully integrated membership database and a properly architected, "Web-native" communication platform, you're in for a(nother) round of headaches … time to update your systems to a communications-centric platform!
Beyond that, any mentorship program will need
- a core registrarial function to register the interest of members in participating,
- some matching function (which could be very simple or very sophisticated depending on your association),
- tools and resources to support and facilitate the actual mentoring activity, and
- reporting or feedback mechanisms to monitor the program and derive maximum benefits (see below) from your investment of time and effort.
Ongoing staff resources will be required to some level, to answer member questions, and administer the program.
And, finally, what are the benefits to my association of offering this program?
First off, two happy members for every successful mentoring match-up! But, the potential benefits go far beyond this basic, but important criterion.
Mentorship promotes excellence in practice. For professional or other business-based associations, this is powerful. Mentorship contributes to the mandate of promoting high standards and norms of practice, compliance with prescribed standards, and professional excellence in all dimensions of practice. But, even for associations that are interest-based, this promotion of excellence is positive - excellence advances the art and science of whatever field your group operates in. It helps to build your association's profile and reputation as a thought-leader in your field, worthy of the members' continued keen support.
Mentorship promotes fellowship among members. It encourages more contacts and networking among members. This, in turn, will increase
- member satisfaction,
- involvement in other member events, whether fellowship or education-based, and
- ultimately, member retention through the strengthened sense of community that mentorship promotes.
Mentorship programs can be direct revenue generators. Always be on the lookout for opportunities to recoup your costs and benefit the membership at large by helping other organizations, such as employers, meet their needs for a fee, concurrently with you meeting your members' needs.
Mentorship, through reporting back to the association, or through direct staff involvement, can also be a valuable - and strategic - source of information: What are the emerging problems, issues and trends in your group's field? What new techniques, tools and tips can be gleaned from mentors for the benefit of the entire membership, not just the individual mentee? And what other needs and wants of the membership can be identified and addressed by the association, helping your association to stay ahead of the inevitable question, "what have you done for me lately?"
RESOURCES: Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations
The Panel on the Nonprofit Sector* has released Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations.
According to the Panel, "[t]he Guide represents the first time that charities and foundations reflecting a broad cross-section of the American nonprofit community have come together to develop principles of ethical conduct, accountability, and transparency that they aspire to and encourage all organizations to follow.
"The Guide outlines 33 practices designed to support board members and staff leaders of every charitable organization as they work to improve their own operations. The Panel encourages these leaders to examine the Principles carefully and determine how best they should be applied to their own operations.
"The Panel incorporated a careful review of more than 50 self-regulation systems, counsel from a diverse committee of experts, and significant feedback from the field in the development of these Principles. The Reference Edition of the Principles includes legal background for each Principle, studies on self-regulation systems, and a glossary of terms."
*The Panel on the Nonprofit Sector is an independent effort by charities and foundations to ensure that the nonprofit community remains a vibrant and healthy part of American society.