Leadership Archives - Page 2 of 5 - TurnAround Executive Coaching

I just finished the Trillion Dollar Coach. It’s wisdom gathered about the life of Bill Campbell who coached Eric Schmidt (Google CEO) and others.

The most challenging idea is that the CEO should drive near term actions of the Board and remove members who don’t add value.

His idea is that the CEO is the one person who vitally needs the right people on the Board in order for success. Although Bill was working with boards who paid board members, the compensation didn’t often pay for the steering work needed when someone needed to be in a different car.

While each board is unique, all board members need accountability. I recommend an outside appraisal of the board and board members every three years. Adding a driver’s role for the CEO to set the agenda and recruit board members for needed roles on the board may shift your nonprofit into high gear!.

Leaders get lost in a fog of numbers when they only need 7 Key Financials to make decisions.

I hope that you can join me at OpCon, June 13th, where I will be on a panel “What Nonprofits Need to Know About Nonprofit Accounting and Finance”.  If you come with a CPA, bring aspirin as they recover from an encounter with a Management Accountant. If you’re a CEO, bring champagne to celebrate as you learn about 7 numbers that actually help you manage your agency.

In my book “Doing Bad at Doing Good”, I discover that the best nonprofits have an Operations Budget model that only requires 7 key financials. I’ll have copies of that available for attendees!

When you’re ready for a coaching investment, let’s talk! https://taconsulting.live/our-nonprofit-promise/

I stopped rolling pennies to take to the bank. I realized that I can only fill, tape, and address a roll of 50 cents every five minutes. My maximum profit is $6.00 per hour and it’s cheaper to use the machine at the grocery store!coins

Now the same process is happening at the school that I direct. 75% of the money that parents pay is with an app that we provide for their phone. The payment flows directly to the bank for the school and eliminates a physical deposit. The software automatically updates their account on student billing and also adds the revenue to the general ledger. Several tasks are reduced or eliminated.

Now the school is automating accounts payable for trusted vendors. And preparations are underway for triple entry bookkeeping with Blockchain to pay all vendors automatically. There will be no more audit sampling because every transaction will be proven with blockchain.

What does it mean for you as a leader? Accounting staff positions are changing steadily. Will anything be left? How should you arrange your projected Operations Budgets?

The Institute of Management Accountants just had the slide below in a presentation. It shows that nonprofits will still need an accountant who gives financial advice for management decisions. And your budget should include more money for the software that automates the transactions.

Are you leading a nonprofit and don’t feel prepared for the winds of change? Check with me because Cash and Execution Decisions are part of business coaching.

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A new survey of 2,100 people has found that only 19% of Americans really trust nonprofits and religious groups. The best news that we can take from this report is that they don’t distrust us as much as they distrust other companies and government.

We live in an age of Fake News. We have Wikileaks, Trump, and the Russians pushing out Fake News and accusing mainstream media and others of Fake News. Our nation has caught the Fake News Flu and is now vaccinated against most institutions. hyttalo-souza-1074680-unsplash

Rusty Shelton, author of Authority Marketing says that people trust people more than institutions. We tend to buy from stores where we know someone. We live in an atmosphere of high suspicion.

There is more need than ever for Strategic Planning.  There are 1.5 million nonprofits in the USA. Many are engaged in critical and worthwhile services. With planning, Fake News Flu is just another challenge that can be overcome. If I can help, email me at Ronald.Tompkins@TAConsulting.live to get a conversation started.

PS. Here’s the link to the entire report. https://www.give.org/docs/default-source/donor-trust-library/give-org-donor-trust-report.pdf

Are you turning around a difficult situation? It’s lonely. That’s why we all gather twice a year who are gathered in this business to hear stories of success and to share our struggles.

It’s not an easy event because so many thought leaders are onstage with great ideas. Tom Peters was a speaker in May. You will end up tired and with a new sense of partners in the determination to lead your company to success!

The Fall ScaleUp Summit in Denver (16-17 October, 2018) is nearing capacity, with 800+ business leaders and 12 bestselling business authors gathering together to focus on high-growth strategies. Register now to reserve your space — preferred seating available for teams of three or more.

Twice a year, I gather with nonprofit leaders who want to dream of greater mission. Can you invest two days on possibilities instead of problems? Check past summits with Verne Harnish online to see the great value! Text me to register.

What is the effect of a long-term CEO and management team on a nonprofit? What is the effect of a board with relatively little turnover? The 990 reports the name and position of each board member and senior manager annually. Let’s compare the lists over a 4 year period (2013-2016). Unfortunately, the truth is a wise and subtle mix of factors

  1. Effect of Long-Term CEO – The vision of an effective CEO is one of the magic quantities needed to produce success.
      1. One CEO in the study is in the 8th year of service. The nonprofit has more than doubled in revenue during that time to almost $30 million. Positive news articles have been written and many local school districts have signed contracts. These effective managers are rare outside of medicine and higher education (and not common anywhere – just ask Penney’s and S
      2. ears!). He has been able to articulate strategy, keep the leadership moving together, and has grown in his own skills to manage a much larger company.
      3. Unfortunately, another nonprofit with news reports about corruption also has a long-serving management team with board and management retention at 100% over 4 years. One way not to get caught is if you never leave!
      4. Another nonprofit lost its way and the recent audit has a ‘going concern’ paragraph. I had only heard about them! This is a first. The founder stayed for 30 years and did not grow in capacity to match the growth and challenge of the $9 million agency.1019_4231589

     

  2. Effect of a Long-Term Board – The growth companies in the study had board retention rates in the 80% range.
    1. A nonprofit incubated by people from Harvard has a board retention rate of 94% over 4 years. The annual revenue growth rate for this nonprofit is 127% annually.
    2. Nonprofits in existence over 25 years have more trouble keeping board members. They have a retention rate of about 50%. Many are teetering with ill-planned financing.
    3. New successful nonprofits benefit from a startup with a skilled CEO and Board chair. One promising startup in stress has a board retention rate of about 10%. The Board Chair was inexperienced and could not drive the board to support the agency in networks.

Conclusion

An effective leader and an effective board chair drive success. Effective boards need term limits, additional volunteer committees, and board members committed to learning.

Effective management requires a leader with time to preach a vision, arrange a team for flawless execution, and work with the board for abundant cash to fuel growth. There is often a plan for succession in these nonprofits. One consultant said that successful nonprofits hire management from within. It reduces the shock of succession. Normal succession with an outsider has a management turnover of 50% within 18 months. This is necessary when the nonprofit is stressed.

Note to all: The CEO/ED job is challenging. A business coach can help and contact me if you need support to go through this process.

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