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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Implementing Components of High Implementing Components of High Performance for a Nonprofit Performance for a Nonprofit
OrganizationOrganization
Peter GoldbergPeter Goldberg
President and CEOPresident and CEO
Alliance for Children and FamiliesAlliance for Children and Families
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Plan for this session:Plan for this session:1.1. Changes in the Nonprofit Sector in the Past Changes in the Nonprofit Sector in the Past
Several DecadesSeveral Decades
– – DiscussionDiscussion
2.2. Seven Components of Competency and High Seven Components of Competency and High Performance for NonprofitsPerformance for Nonprofits
– – DiscussionDiscussion
3.3. Trends Affecting the Future for NonprofitsTrends Affecting the Future for Nonprofits
– – DiscussionDiscussion
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
1. Changes in the Nonprofit Sector in 1. Changes in the Nonprofit Sector in the Past Several Decades the Past Several Decades
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
To prepare for the future, we must review some major To prepare for the future, we must review some major changes in the nonprofit sector during the past 15-20 years.changes in the nonprofit sector during the past 15-20 years.
What will it take to lead a high What will it take to lead a high performing 21st century nonprofit performing 21st century nonprofit organization?organization?
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
The average budget of The average budget of an Alliance member an Alliance member was was $1.2 million$1.2 million
Nonprofit Sector NowNonprofit Sector Now
The average budget The average budget of an Alliance of an Alliance member is member is $10 million$10 million
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
The main funding The main funding sources were sources were private private donationsdonations and and United United WaysWays
Nonprofit Sector NowNonprofit Sector Now
The main funding The main funding sources are sources are increasingly increasingly government contracts government contracts (new financing (new financing techniques are being techniques are being examined)examined)
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
Organizational Organizational structures were structures were single, simple, and single, simple, and vertical vertical in scopein scope
Nonprofit Sector NowNonprofit Sector Now
Organizational Organizational structures are now structures are now more often more often multiple, multiple, complex, and complex, and horizontalhorizontal in scope in scope
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
Major decision Major decision making was driven by making was driven by thethe board of directorsboard of directors
Nonprofit Sector NowNonprofit Sector Now
Major decision Major decision making is driven by making is driven by the executivesthe executives
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
Organizational Organizational leaders were called leaders were called executive directorsexecutive directors
Nonprofit Sector NowNonprofit Sector Now
Agency leaders are Agency leaders are more often called more often called chief executive chief executive officersofficers
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
Our Our goodwill accountgoodwill account with the public was at with the public was at a higher level, with a higher level, with mostly positive mostly positive perceptions of perceptions of nonprofit nonprofit organizationsorganizations
Nonprofit Sector NowNonprofit Sector Now
Our Our goodwill accountgoodwill account has been driven to a has been driven to a lower level due to lower level due to damaging scandals damaging scandals and questions about and questions about outcomesoutcomes
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
Health care was Health care was directed by directed by managed managed care conceptscare concepts
Nonprofit Sector NowNonprofit Sector Now
Health care reformHealth care reform and mental health and mental health parity legislation, parity legislation, mean health care mean health care is more affected by is more affected by governmentgovernment
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Nonprofit Sector ThenNonprofit Sector Then
Fax machinesFax machines were a were a primary mode of primary mode of communicationcommunication
Nonprofit Sector NowNonprofit Sector Now
PowerPoint PowerPoint presentationspresentations are are now commonnow common, , and and technology is technology is speeding up all forms speeding up all forms of communication and of communication and decision makingdecision making
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
2.2. Seven Components of Competency and Seven Components of Competency and High Performance for NonprofitsHigh Performance for Nonprofits
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
FirstFirst is is executive leadership. executive leadership. Strong leadership Strong leadership is a must. CEOis a must. CEO’’s must make more decisions s must make more decisions more quickly with more data than ever before. more quickly with more data than ever before. Boards of directors should invest in appropriate Boards of directors should invest in appropriate personal and professional growth and personal and professional growth and development plans for the CEO.development plans for the CEO.
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
SecondSecond is g is governanceovernance. Expectations for . Expectations for nonprofit governance have both changed nonprofit governance have both changed and become much more exacting. and become much more exacting.
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
ThirdThird is a is a clear and understood clear and understood missionmission and a relentless focus on it. and a relentless focus on it.
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
FourthFourth is is organizational capacity issuesorganizational capacity issues. . Why do we celebrate nonprofit Why do we celebrate nonprofit organizations who spend the least on organizations who spend the least on these functions as an overall percentage these functions as an overall percentage of their budget? of their budget?
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
Fifth is outcomes. Outcomes need to be appropriately structured. We need outcomes aligned to mission, not just goals and objectives.
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
SixthSixth is is capacity to innovate.capacity to innovate. The The willingness to take on innovation is a best willingness to take on innovation is a best practice of the business sector we can practice of the business sector we can adopt. adopt.
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Seven Components of High Performing Seven Components of High Performing Nonprofit OrganizationsNonprofit Organizations
SeventhSeventh is developing the is developing the intellectual and intellectual and pragmatic radar pragmatic radar that enables the that enables the organization to change with the changing organization to change with the changing times in a way that allows it to stay true to times in a way that allows it to stay true to core values.core values.
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
3.3. Trends Affecting the Future for Trends Affecting the Future for NonprofitsNonprofits
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
One thing we do know about the One thing we do know about the nonprofit sector in the future: it will be nonprofit sector in the future: it will be different from the past.different from the past.
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What is on the radar?What is on the radar?
Drivers and trends in the Drivers and trends in the nonprofit human service nonprofit human service sector and the possible sector and the possible implications.implications.
2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
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2010 Annual Meeting of Robert Wood Johnson 2010 Annual Meeting of Robert Wood Johnson Foundation Local Funding PartnershipsFoundation Local Funding Partnerships
Four Key Macro Drivers to Analyze:Four Key Macro Drivers to Analyze:1.1. The future of health care reformThe future of health care reform
2.2. The resizing of AmericaThe resizing of America
3.3. GlobalizationGlobalization
4.4. The pace of scientific and technological The pace of scientific and technological changechange
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Important Trends within theImportant Trends within theNonprofit SectorNonprofit Sector
Privatization of services and programsPrivatization of services and programs
Nonprofit goodwill accountNonprofit goodwill account
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Important Trends within theImportant Trends within theNonprofit SectorNonprofit Sector
Workforce issuesWorkforce issues
Acquisitions, consolidations, mergers, Acquisitions, consolidations, mergers, and the changing nonprofit landscapeand the changing nonprofit landscape
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Important Trends within theImportant Trends within theNonprofit SectorNonprofit Sector
Relationship of energy efficiency and Relationship of energy efficiency and clean technology to sectorclean technology to sector
Emergence of new financing Emergence of new financing techniquestechniques
GlobalizationGlobalization
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Every morning in Africa, a gazelle wakes up.Every morning in Africa, a gazelle wakes up.
It knows it must run faster than the fastest lion or it It knows it must run faster than the fastest lion or it
will be killed. will be killed.
Every morning a lion wakes up. Every morning a lion wakes up.
It knows it must outrun the slowest gazelle or it will It knows it must outrun the slowest gazelle or it will
starve to death.starve to death.
It doesnIt doesn’’t matter whether you are a lion or a t matter whether you are a lion or a
gazelle.gazelle.
When the sun comes up, you better start running. When the sun comes up, you better start running.
Page 114 of Page 114 of ““The World is Flat: A Brief History of the Twenty-firstThe World is Flat: A Brief History of the Twenty-first
Century,Century,”” by Thomas L. Friedman by Thomas L. Friedman
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““Even if you’re on the right track, you’ll Even if you’re on the right track, you’ll get run over if you just sit there.” – Will get run over if you just sit there.” – Will
Rogers Rogers Sample MatrixSample Matrix