October 2008 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: Dealing with Boardroom Drama
- NEWS AND RESOURCES: Vital Signs 2008
- FOCUS ON RISK: 5 More risks to watch
- FROM THE ARCHIVES: Reduce Your Software Costs
FEATURE ARTICLE: Dealing with Boardroom Drama
In any group every group of people, conflict, power struggles, personality clashes, and the whole range of human emotion and interaction play out. It is the essence of life; it is drama.
When that group is the Board, and you are the Executive Director, however, you play a unique role, and that role is rarely sitting in the audience! Like it or not, you are a major player. What's important to realize, however, is that the script is rarely written in advance. You can often decide or at least interpret your role.
The other reality is that, in this fascinating cast of characters, you are the sole professional actor everyone else shows up and puts in whatever performance they can muster, but you are there, working the front of the house, the back of the house, on and off the stage, day in and day out.
As an independent adviser to not-for-profits of all shapes and sizes, I see more than my share of dramas being played out (I even get dragged on stage from time to time!), but I'm not going to retell any specific story, even with names changed to protect the innocent (i.e. me!). My goal in this article is simply to reinforce the points above: that you are the sole professional, that you can write or at least heavily influence your role, and that despite how it seems to you the other actors really only show up to give a best-efforts performance. Finally, I want to encourage you to embrace your role, with enthusiasm, energy and commitment.
The Sole ProfessionalAs the senior paid employee of the organization, you really are the sole professional. You know that you live and breathe this organization, that you spend more time, energy, and focus looking to the future (both immediate and distant) for your organization and its mission. Regardless of the specific wording in your position description, you are primarily responsible for the success of the organization, and for doing whatever is needed to ensure it. This includes playing whatever role is required in boardroom dramas.
Recently, an ED I know was swept up in an epic boardroom drama, and she confided in me her frustration: I'm not liking this at all....it takes me away from the cause . I assured her that this fight was for the cause! It's not the good work that her agency was there to do, of course, but it was very much her job, then and there, to move the board through and past their drama to a place where they could be effective again. After all, she and only she was the professional, who was being paid to ensure the organization's ability to achieve its mission.
The role is yours to defineThere is no script, and also no assurances of a happy ending. Some organizational dramas do end happily; others, not so much. Some end with a whimper, not a bang, and definitely not with the cavalry riding in. So, who will write the script? See the previous section of this article.
Often, EDs are called upon to play the mediator, the voice of reason, wise counsel. But, that's not the only role you can play, and sometimes not the best role either. Sometimes, a bad guy is needed. Sometimes, something heroic must be done. Sometimes, the dark must precede the light. Get the idea?
The ED mentioned above had, I think, been trying to play wise counsel, but sadly the chair was not the hero. She knew it was time to play a different role, as uncomfortable as it was.
The other actors only show upNobody else is a professional, in this drama anyway. They're all busy professionals in their own day jobs, of course, but here, they just show up and act.
I definitely don't mean this in a disparaging or pejorative sense the vast majority of board members are well-intentioned, committed, bright, ethical and hard-working. They just don't have the time and focus to bring to this drama that the ED does. Board service, by definition, can't be their profession, their vocation, their life's work. By comparison to the ED, who lives and breathes it, they just show up and thank goodness they do.
What does this mean for the ED, who reports to the Board? It means you have an unfair advantage! It means you can run rings around them on stage! It means that ... more often than not ... if you really put your mind to it ... if you deliver the performance of your life ... you can write the script and have the happy ending your organization needs.
So, I encourage you to look at your Board dramas as opportunities, where your active involvement and leadership are not out of place they are essential. Where you can, you should, you must be writer, choreographer, director and producer.
NEWS AND RESOURCES: Vital Signs 2008
Community Foundations of Canada (CFC) has released Canadas Vital Signs 2008, its annual report card on quality of life. Key findings of the report, which reflects local report cards from 15 major communities across Canada, are that child poverty in Canada is stuck at the same level as 1989 and immigrant family incomes are falling behind. The full report is available at http://www.vitalsignscanada.ca/index-e.html.
FOCUS ON RISK: Five More Risks to Watch
In our summer issue, we highlighted Ernst & Young's top 10 strategic risks for business globally, and promised to address them in more detail over the coming months. This month, we comment on five of these risks, and what they might imply for our sector. Keep in mind, however, that our sector is enormously diverse more so than most and no brief article can hope to capture all the possible implications of these global trends. Our focus here is simply to elaborate on the identified risks enough to allow you to consider them in your own circumstances. The first five risks identified in the E&Y survey, then, are as follows:
- Energy Shocks We've recently been seeing the price of gasoline behave far more like the commodity it is than in the past. No longer are energy prices immune to the dramatic changes happening throughout our economy and society. Could gasoline hit $2 per litre? Sure. $3? Why not? And, what would that mean to you. Whether delivering meals on wheels, heating your office, or simply reimbursing volunteers who travel to meetings (if they still will), the implications will be far-reaching. Cost spikes, for sure, but other changes more jarring, too. Do you need to video-conference instead of travelling? Got the hardware? Got the staff to support the hardware? Many ways of operating will change; some will be for the better, but few will be easy or cheap.
- Execution of Strategic Transactions The intersection of major risk and opportunity can be at the point of undertaking strategic transactions: mergers, acquisitions, divestitures, and so on. While presenting major opportunities to take significant steps toward your mission, these infrequent transactions must be carefully managed in order to actually achieve the desired and planned goals. Of course, failing to take advantage of significant opportunities as they present themselves is also a strategic risk to be monitored.
- Cost Inflation Significant inflation is something that a whole generation of organization leaders have not had to contend with. Even dramatic jumps in energy prices in recent years have been very much muted as they cascade through the economy. More broad-based inflation, if it happens, is a very different beast, however, in terms of managing your organization. The cycle of cost and wage inflation is a very real and very personal cycle that can dramatically upset operational stability, particularly if labour unrest should ensue as a result.
- Radical Greening Dramatic changes in environmental expectations, regulations and options are to be welcomed of course. But, these can have significant impacts on operations that need to be accommodated. Once again, costs can increase significantly, but some products may disappear altogether. Some regulations may have significant intended or unintended consequences, even for organizations that would, as a matter of principle, embrace enhanced stewardship of our environment.
- Consumer Demand Shifts Significant changes in consumer demand (think: auto industry, music, etc.) can present both challenges and opportunities. In addition to impacting your organization's services directly, these can cause significant displacements employment-wise in our communities, and this can impact many factors, from giving trends to the need for charitable services.
Next month, we'll look at the final five risks identified in the study, those shown as not in the top ten, but that could, if conditions change, become significant global risk factors nonetheless: War for talent, Pandemic, Private equity's rise, Inability to innovate, and China setback.
DID YOU SEE: Our September 2008 Newsletter Line Up
Last month's Newsletter included the following items. If you missed any of them, click here:
- Maximizing value from your finance function
- Five Risks to Watch
- Member Polls
FROM THE ARCHIVE: Reduce Your Software Costs (from August 2007)
Information technology is a strategic enabler for most organizations today, and not-for-profits are no exception. And, while IT costs in many areas have come way down, there is no doubt that IT investments are still a huge hit on many budgets.
Many of the dramatic IT cost reductions in recent years have been in the highly competitive hardware sector. Software, on the other hand, which is dominated by a few (or one ) major vendors, has not seen the same kind of landscape-altering cost declines. To be fair, of course, software today has incredible functionality, not even imaginable only a few years ago. However, some studies suggest that only a small portion of the functionality in today's software is ever used by most users.
It's like going new car shopping and finding only Ferrari's and Lamborghini's available in the marketplace. Where is the basic, reliable, cheap software? Now that this impressive new software has been developed, it costs the vendors no more to sell a Ferrari than it does a Chevy. So, there are no Chevy's for sale!
So what is to be done? While it is true that there are no more Chevy's to be had, there are options for getting an inexpensive super-car! Let's talk about two:
Open Source SoftwareYou've probably heard about open source software. Open source software is generally free or nominal cost to acquire. (There are other major differences in terms of the ongoing development and support of the product, but these are of less concern to us in the first instance.)
But, you've got questions and concerns: reliability, compatibility, hidden costs, training and support, and so on. And, you are right to consider these issues, though you might find these to be less of an issue than you had imagined.
Your open source options fall into two major categories: application software, and operating system.
Application software
These are programs that do specific things, like word processing, spreadsheets, or image editing. The good news about going open source for application software is that there are limited compatibility issues. As long as the program can read and save files in industry-standard file formats, you're pretty much good to go - if the software does what you need it to, why pay for another brand of software?
In almost any category of application, you can probably find open source software. In fact, the more common the application, the more likely you will find an open source alternative. As a start, simply search for "free {application} software", for example, "free word processing software".
When it comes to basic office applications like word processing and spreadsheets, however, don't even bother - simply go to www.openoffice.org and download a copy of Open Office (version 2.2.1 at the time of writing). Here you will find a package that is "compatible with all other major office suites free to download, use, and distribute."
So, what are the drawbacks? Training and user familiarity for one - while this package does mostly what, for example, Microsoft Office does, it is a different package, and the commands are not identical. If you have a fairly computer-savvy staff group, this may not be a big issue - its usability is no worse, just different. Proficient PC users will often pick up on the differences with no formal training at all. On the other hand, if your staff group struggled to get to a basic understanding of computers and your current applications, maybe you are asking for trouble by introducing different software. The key here is understanding your users and office culture.
Operating System
The operating system you are currently using is probably Windows (unless you are using a Mac), and you may not even know that there are alternatives. While there are in fact several, if this is news to you, then you should probably stick with Windows.
Why? Well, the operating system is the software that lets every piece of application software run. So, every piece of application software that you will ever want or need to run - today or in the future - must be compatible with the operating system that you are running. Here, market share is king and, like it or not, Windows has it.
Also, the operating system has to work closely with the computer's hardware so that you can actually use it. If you ever connect other hardware to your computers (think backup/storage devices, drawing tablets, digital cameras, etc., etc., etc.), the operating system must be ready to work with that device.
All of this is very doable - but, you need a level of technical expertise at the ready to make it so. If you have that expertise, nothing in this article should be news to you.
Techsoup.orgSo, is there no other option, just to get the software I need without all of these technical, compatibility and training considerations coming into play? Well, there is one great alternative, where you can legally obtain the software you need at a fraction of the price. It goes by the odd name of techsoup.org. This site offers a not-for-profit shopping spree!
In its own words, "techsoup.org offers nonprofits a one-stop resource for technology needs by providing free information, resources, and support. In addition to online information and resources, we offer a product philanthropy service called TechSoup Stock. Here, nonprofits can access donated and discounted technology products, generously provided by corporate and nonprofit technology partners."
This is a huge resource that you should spend some serious time with before you spend another IT dollar. In the context of today's discussion, you can acquire software at a tiny fraction of its retail cost. Beyond that, however, it has many valuable resources.
Check out techsoup.org today - your IT budget will thank you!
William Harper has had a variety of IT roles including as user, trainer, operator, programmer, analyst, auditor, steering committee member, project sponsor, project director, project manager, and managing an IT service bureau. Call us for assistance with your organization's strategic IT needs.