MAKING PR A MANAGEMENT FUNCTION – WHAT YOUR BOARD AND LEADERSHIP SHOULD KNOW

WMPRSA Nonprofit PR Conference

September 2013

Dr. Tim Penning, APR

Grand Valley State University

SOME THEORY BACKGROUND

Agency Theory Presumes conflict between board and executives Therefore board role is monitoring executives for stakeholders

Dependency Theory Board members provide resource the organization needs for growth or

survival Therefore board members are selected based on their skills or knowledge

Stakeholder Theory Stakeholders are anyone who has interest in and/or is affected by

organization In PR stakeholders also called ‘publics’ Organizations that value stakeholder relationships more are more likely to

see board role includes “boundary spanning”

TYPICAL NONPROFIT BOARD ROLES Mission and planning** Financial stewardship Human resources stewardship Performance monitoring and accountability** Community representation and advocacy** Risk management**

Source: GSAC: Governance Self-Assessment Checklist **Note how roles relate to “public relations”

QUESTIONS FOR STUDY:

1: What specific board member capacities are considered important by nonprofit leaders?

2: To what extent do nonprofit leaders see communications skill and experience by board members to be important compared to other board capacities?

3: Is there a difference in the size of nonprofit organizations (in number of full-time employees) or the size of its board in terms of whether or not any board member has PR expertise?

4: Does the manner by which board members are selected—appointed by the president or nominated by a board committee—affect whether at least one board member has PR expertise?

THE STUDY

Online survey of 704 nonprofit executives in a Midwestern state

List from GVSU Johnson Center for Philanthropy 215 responses, 30% response rate Final sample 167 to remove duplicates (same

organization) or non-executive respondents

RESULTS: RESPONDENT PROFILE

88% select board members through nomination by current board

12% have executive director appoint board members Organizations either very small (40% 0-5 employees) or

large (24% 25 or more employees) Board size varied greatly: 9% 4-6 members; 27% 7-9;

24% 10-12; 15% 13-15; 22% 15 or more.

RESULTS: CAPACITY SOUGHT

Board member capacity % N

Knowledge of cause 89.3% 158

Financial management 82.5% 146

Communication with stakeholders 76.3% 135

Position in community 71.2% 126

Management expertise 69.5% 123

Access to financial resources 68.4% 121

Legal counsel 58.2% 103

N= 177. Respondents could choose more than one answer

RESULTS: MOST IMPORTANT CAPACITIESBoard member capacity % N

Knowledge of cause 40.4% 74

Access to financial resources 19.1% 35

Position in community 13.1% 24

Communication with stakeholders

11.5% 21

Management expertise 8.2% 15

Financial management 6.6% 12

Legal counsel 1.1% 2

Total N= 183. Respondents could choose only one answer.

ANSWERING THE QUESTIONS

1: All capacities valued to a degree, but knowledge of cause and financial management received strongest support.

2: While communications/PR is valued generally, compared to other board capacities it is 4th (11.5% said most important)

3: There is a weak correlation between number of employees and PR capacity on board (size of organization); a strong and significant correlation between number of board members and PR capacity on board (size of board).

4: No significant difference in whether board nominated by board or appointed by executive director

INTERESTING NOTES

A nonprofit leader valuing communication with stakeholders did not necessarily lead to board members with PR capacity.

Executives viewing PR as two-way symmetrical did not necessarily lead to an organization having a board member with PR capacity.

Executives viewing PR as two-way symmetrical did not necessarily lead to an organization having a PR staff member who reports to the executive and communicates with the board.

DISCUSSION

Executive value of PR role for board emerges in mature organizations beyond entrepreneurial and survival stage, when knowledge of mission, access to finances and position in community are stressed more. (Resource dependency theory)

Organizations with more employees and board members are more likely to have PR capacity on the board, reflecting the reality of engaging more publics/stakeholders and necessitating PR skills.

No difference in how board members appointed, but most in this sample are nominated by current board members, possibly meaning perpetuating current values.

DISCUSSION

Executives value communicating with stakeholders but also 75% see PR as “getting the word out” and not a more sophisticated view of the profession. This may lead to a view that ‘PR’ is handled by technicians on staff and not a necessary management capacity for board members.

The fact that PR capacity not more evident on boards may simply reflect reality of nonprofits: they have a narrow view of PR and limited budget for it.

PRACTICAL ADVICE

Demonstrate full value of PR to executives Offer to present to board on key organizational goals Focus on strategy over tactics Advocate for face time with executive and board Speak about leveraging board members as nonprofit

ambassadors and relationship buildings Speak to importance of ALL stakeholders Do a capacity survey of current board and point out gaps

QUESTIONS OR COMMENTS

SLIDES AVAILABLE

penningt@gvsu.edu

http://www.slideshare.net/penningink