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Leading Through Tough Economic Climates

What does it take for a board of directors of a pregnancy help organization (PHO) to lead through one of the toughest economic climates in decades is a question that is quickly becoming a topic of major discussion in PHO boardrooms across the country as board members begin to respond to the new IRS guidelines and best practices.

This fact is sure to impact board recruitment as well.

Anyone being approached to join a PHO board these days could easily see the opportunity as more work than what they are willing to commit to. But the truth is, directorships remain a vital function of nonprofit organizations and those who are successful at it are in great demand.

So what does it take to succeed in these turbulent times?

First, build a strong and healthy board structure that includes major focus on accountability and governance issues. This should include establishing board recruitment and orientation processes, board committees and corporate officers. Be sure to check your state regulations regarding this as often there are statutes that need to be adhered to. Also, make sure that your bylaws address this topic as well.

Second, assure that the organization's legal documents are in order and relevant.

Third, get the board educated in the fiduciary duties of board membership.

Fourth, develop a corporate structure that includes organizational departments and divisions. For example, the four primary divisions of nonprofits are: 1) governance, 2) administration, 3) marketing and 4) programs.

  • Governance Division: Deals with legal, corporate structure and policies, organization's mission, vision, and core values, program assessing systems, budget, strategic planning, business plan, etc.

  • Administration Division: Deals with business licenses, developing procedures to governance policies, HR, insurance, accounts receivable and payable, quality control, operational systems, etc. 

  • Marketing Division:  Deals with fundraising, client/patient marketing, media, public relations, donor development, special events, etc. 

  • Programs Division: Deals with various services provided by the pregnancy help organization such as medical clinic, abstinence teaching, Bible studies, post-abortion healing, Earn While You Learn, Mommie and Me, etc. 

The board of directors needs to focus on all four of these divisions. One division not properly staffed or funded can mean serious trouble for the organization.

Monitoring vs. Micromanaging
Another thing for boards of directors to watch for when leading in tough economic times is to ensure that their efforts to oversee the CEO fall into the camp of monitoring rather than micromanaging.

The difference between monitoring and micromanaging can be based on the perspective of the CEO or the fact that PHO board must become more involved in times of economic uncertainty. Therefore, monitoring should be carefully defined so as to avoid the board falling into micromanaging by default.

Experienced CEOs know how to properly push back when they feel they are being micromanaged by boards, while less experienced CEOs will allow the board to over-manage them and all the while they are growing increasingly more dissatisfied. This is a recipe for major conflict.

Therefore, a wise board will find the balance between these two dynamics. One way to do this is to determine processes of accountability while allowing management the freedom to do its job.

 

Beth Chase is the CEO of Chase Advancement Services and Lead Consultant for the National Institute of Family and Life Advocates (NIFLA). You may email Beth at Beth@bethchaseinfo.com or office number 540-886-4894.

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