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/Dests << 736 734 712 667 667 667 667 667 667 1018 These boards get their hands dirty undertaking the tasks they do best while carefully avoiding micromanagement that would demoralize full-time staff members. /Widths [ 0 0 0 0 0 0 0 0 0 0 664 422 699 712 341 402 670 341 1058 712 /H [ 1606 213 ] 1000 710 963 593 543 1067 710 596 736 341 127 0 R 128 0 R 129 0 R 130 0 R /Font << The organization’s local chapters evaluate the performance of the national office, and the results go straight to the board, which in turn suggests ways of refining the services that chapters receive. Press enter to select and open the results on a new page. /FontName /Verdana In some jurisdictions, the directors are also evaluated along with the Boards. /Text 0 0 0 0 0 0 0 0 0 0 Please click "Accept" to help us improve its usefulness with additional cookies. /PageMode /UseNone endobj It might be difficult to find new people with the same level of passion, and the organization could be reluctant to lose the personal connections of established directors. /ImageC /Encoding /WinAnsiEncoding endobj We interviewed executives and directors at 32 of the 100 organizations named as top nonprofit performers by, For more on metrics, see John Sawhill and David Williamson, “, This simple assessment tool—a good starting point for many organizations—is available in the report on which this article is based. We use cookies essential for this site to function well. These concerns, rumbling beneath the surface, were crystallized by a self-assessment initiative. Several directors feared that it would distract the organization from urgent advocacy priorities or founder because the board lacked members with experience running aggressive fund-raising campaigns. << Sometimes the executive director—concerned, perhaps, about whether the board has the right composition—takes the lead. An important (if not obvious) reason for involving the board in such performance-management efforts is the need to focus attention on the way it should use its own time and energy—for example, fund-raising, community relations, strategic planning, or tactical matters such as improving specific programs, recruiting staff, or overseeing financial plans. One way is to push management to look beyond measures of activity (dollars raised, constituents served) and of efficiency (cost per dollar raised or constituent served) and to stress instead measures of impact (how many children have been taught to read, how many people have become economically self-sufficient), which better reflect the organization’s mission.2 2. SELF-ASSESSMENT TOOL FOR NONPROFIT ORGANIZATIONS Name of organization: Directions: This checklist is designed to be completed by the Executive Director and Chairperson of the Board. In our experience, many battles over strategy are really disagreements over what organizations are trying to achieve. Nonprofit managers and/or board members can complete this assessment. 650 596 710 543 710 867 710 710 710 332 Flip the odds. /Fields [ 115 0 R 117 0 R 118 0 R 119 0 R Regardless of the source, the self-assessment should be an opportunity for education as well as evaluation; conversations about a “gold standard” for effective boards, for instance, can open the eyes of directors who haven’t served on strong ones elsewhere.3 3. >> 0 0 0 0 0 0 0 0 0 0 The McKinsey & Company Nonprofit Board Self-Assessment Tool not only provides an evaluation but helps the board prioritize its movement forward. << /O 146 How can a board begin the process of self-reflection? << stream /DR << /Ascent 764 /LastChar 255 Such efforts are worthwhile: effective board processes can help directors devote more time to the organization, increase their enjoyment of the work, and thus spur them to become more ardent ambassadors and fund-raisers. /Fabc13 153 0 R And the board as a whole can become complacent. startxref Nonprofit Board Self-Assessment This customized nonprofit self-assessment tool is designed to help nonprofits assess their board's current performance and to … /N 9 500 500 500 500 500 500 500 500 1000 1000 >> The tool is appropriate for directors of all levels of expertise and experience, and we recommend completing it at least once a year to track your development progress. Don't miss this roundup of our newest and most distinctive insights, Select topics and stay current with our latest insights, By Paul J. Jansen and Andrea R. Kilpatrick. You want to assess the overall management of your organisation. /FontBBox [ -49 -206 1446 1000 ] /FontBBox [ -73 -207 1707 1000 ] stream Another possibility is simply to expand the board to bring in new blood while setting term limits for current directors. >> /Type /XRef 143 12 /Type /Catalog The executives of a nonprofit should meet frequently with the board’s leadership to discuss whether the organization is taking full advantage of the collective expertise and enthusiasm of its directors. << endobj The McKinsey Company has created a useful framework for thinking about the important domains of non profit organization performance: Aspirations: An organization’s mission, vision, and overarching goals, which collectively articulate its common sense of purpose and direction. Directors might initiate the process themselves if they are frustrated with the way they are using their time or with their peers’ performance. /Flags 262176 Simple as this step should be, only 42 percent of the directors and executives we surveyed had participated in meetings or retreats devoted to clarifying the mission of their organizations and the strategies in place to achieve it. But removing board members can be tricky. endobj The corporate-governance debate in the United States is spreading from the for-profit to the nonprofit world. 146 0 obj <159DE1A18ECC1851BE0F663C27DACB34> ] 632 606 606 606 606 606 818 606 632 632 The TCC Group’s Core Capacities Assessment Tool also addresses governance. Scrutiny of the board and its roles can take many forms, from facilitated workshops to one-on-one interviews and survey-based processes. Well-publicized controversies at organizations such as The Nature Conservancy, the American Red Cross, and the James Irvine Foundation have even caused observers such as Eliot Spitzer, the attorney general of New York State, to suggest that the Sarbanes-Oxley Act should be applied to nonprofit boards. 0 0 0 0 0 0 0 0 0 0 In this way, boards build a set of well-understood precedents that directors can draw on when making choices. xref Meeting the Moment: A 2020 Report to the Community. /Subtype /TrueType 710 587 1048 710 710 710 1777 710 543 1135 /Ascent 764 /ItalicAngle 0 1000 1000 1000 1000 1000 1000 1000 1000 958 958 134 0 R 135 0 R 136 0 R 137 0 R 150 0 obj Effectiveness starts with clarity of purpose. The board thus chose to expand the IRC’s activities from providing mainly short-term emergency assistance to rebuilding the lives of refugees through longer-term programs to resettle them, while safeguarding them from kidnappers and other traffickers in human cargo. 958 958 958 958 958 958 958 958 958 958 A year or two later, as the organization grows and the external landscape changes, the board might have to change its priorities. The desirability of a dynamic board might seem to be mere common sense, but it is uncommonly hard to become one. runs in-school ethics programs, for example. There are a few short-term solutions. 40 0 R 124 0 R 125 0 R 126 0 R 0000000012 00000 n >> 591 525 634 454 634 818 545 635 545 268 616 776 776 776 776 776 776 1093 723 683 << Many boards are reluctant to do so because it takes time and can yield pointed criticisms. The Benefits of Online Board Self-Assessment Tools. 1000 1000 958 958 958 958 958 958 958 958 0000006339 00000 n The board of Scholarship America, for instance, routinely reviews individual decisions for consistency with its overall purpose: providing financial and academic support to students. 454 635 818 363 454 363 454 635 635 635 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 If you do not know whether the goal 818 818 545 1000 683 685 698 770 632 574 721 710 361 710 597 597 849 1181 1181 1181 Verifying the relevance of all board committees is also crucial; their objectives and accomplishments need to be examined annually. The CEO meets with the honorary board at least once a year and taps its expertise whenever necessary. /Ascent 1000 811 837 545 555 770 637 947 846 850 732 For contributions to this article and to the research underlying it, the authors wish to thank Vishy Cvsa, Devin Erhardt, Vidya Prakash, Les Silverman, and Lynn Taliento. McKinsey Capacity Assessment Grid —PDF, free. /LastChar 255 /AcroForm << 958 958 958 958 958 958 958 958 958 958 Today, nonprofit organizations in the United States control upward of $1.5 trillion in assets and are increasingly relied upon to help address society’s ills. >> 606 623 623 426 520 394 632 591 818 591 Conversely, many cultural institutions facing budget shortfalls have narrowed their focus in tough times by reducing the number of performances they give, focusing on cheaper exhibitions, or contracting their community outreach programs in hopes of maintaining essential activities. /FontDescriptor 147 0 R tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. The time when nonprofit boards were populated by wealthy do-gooders who just raised money, hired CEOs, and reaffirmed broad policy is over. /BaseFont /Verdana /ABCpdf 7012 Our flagship business publication has been defining and informing the senior-management agenda since 1964. We found that many nonprofit boards struggle with basics such as recruiting the right members and running meetings effectively. 0000005161 00000 n The Initial Self Assessment Tool is the first of 3 steps nonprofits may undergo to achieve a certificate of effectiveness. As for the recruitment of new directors, a standing nominating committee should have the responsibility for creating a board on which each member brings not only the all-important fund-raising capabilities but also necessary skills or relationships with community leaders, politicians, or regulators. Our research indicates that the best boards also provide professional expertise, represent the interests of their nonprofits to community leaders, recruit new talent to the organization, and provide the more rigorous management and performance oversight that funders increasingly demand. xœÍY[oÛ6~7àÿpŞÖ ¨Æ‹HJ{k¶dèÖ&]ì] Learn more about cookies, Opens in new 850 850 850 850 867 850 812 812 812 812 588 664 664 664 664 341 341 341 341 679 << 149 0 obj 154 0 obj /CapHeight 699 849 867 479 963 710 587 867 597 597 710 Scholarship America, for example, pays bonuses to employees who deliver outstanding results. 148 0 obj BoardSource publishes several board assessment tools, and your consultant may very well have developed one as well. tool for assessing Board effectiveness and efficiency. If they feel that their time isn’t well spent, they might skip meetings or tune out. /Type /Font /Type /FontDescriptor Deciding what to emphasize demands serious self-scrutiny, and only 35 percent of the nonprofit directors we surveyed said that their boards submit to it now. Boards might then fail to make decisions or become bogged down in painfully repetitive debate. 958 958 958 958 958 958 958 958 958 958 958 958 958 958 958 958 ] People create and sustain change. Character Counts! Also self-assessment is a board commitment; when the call for action comes from within the team, the “voice” is different. /FontDescriptor 149 0 R We believe this tool will help nonprofit leaders and staff gauge where they are in their organiza-tional lives and identify for themselves their capacity building needs. /Encoding /WinAnsiEncoding 545 683 683 683 683 683 683 984 698 632 /StemV 80 The first task, then, is to nail down the fundamentals—a clear vision, appropriate board membership, and effective processes—because these elements enable directors to avoid wasting a great deal of time and energy. The corporate-governance debate in the United States is spreading from the for-profit to the nonprofit world. endobj 151 0 obj Please try again later. Use minimal essential 0 341 402 587 867 710 1271 862 332 543 McKINSEY & COMPANY NONPROFIT BOARD SELF ASSESSMENT TOOL – SHORT FORM GUIDELINES FOR ASSESSORS The Nonprofit Board Assessment Tool has three sections: 1. /S 180 775 751 420 454 692 556 842 748 787 603 In addition to the study, McKinsey developed a capacity assessment tool for nonprofits. 595 351 623 632 274 344 591 274 972 632 << /Font << /Fabc10 150 0 R 0000004964 00000 n �ÍÄ@ÌŬ@,ÅP ZÅÀ ü��Aªˆ�ʺ4¦ ±(ãE¢Qæä10Ü�Òœ@Ì É»}:û20°(iW �Udk�½ˆã�>…» ¡l >> 138 0 R 139 0 R 140 0 R 141 0 R /Widths [ 500 958 958 958 958 958 958 958 958 958 << 641 635 363 635 541 545 644 1000 1000 1000 635 635 635 635 635 635 635 454 454 818 710 710 710 710 710 710 710 402 402 867 our use of cookies, and These metrics are certainly important, but they don’t measure the real success of an organization in achieving its mission. 867 867 616 963 776 761 723 830 683 650 If your nonprofit receives funding from a private foundation(s), don't be shy about asking whether the grantmaker recommends a particular self-assessment tool or evaluation process. This web-based tool defines nonprofit capacity across ten elements—from vision/mission to leadership to marketing to technology and more. %PDF-1.1 /924ee49b7bb1dbed2d3351ed4621eae7 114 0 R This self-assessment tool is comprehensive and evaluates the organization aspirations (mission and vision), strategy, organizational skills (including planning and fundraising for instance), human resources (board, staff, volunteers, etc. /CapHeight 699 trailer For example, the CEO and board chair of the March of Dimes (an organization dedicated to improving the health of babies by preventing birth defects and reducing infant mortality) meet together twice a month for this purpose. 0000003620 00000 n Becoming a dynamic board capable of making such shifts while periodically revisiting common challenges to its effectiveness is central to weathering change and building for the future. 0000003440 00000 n This tool helps to assess BOD performance and assists with priority-setting for the future. A free online tool published by Venture Philanthropy Partners and McKinsey & Company to help nonprofits assess organizational capacity, strengths, and weaknesses. Learn about 958 958 958 958 958 958 958 958 958 958 The OCAT from McKinsey & Company is a useful online tool to help your organisation assess its own strengths and weaknesses.The OCAT is a good choice when: 1. << 0000002270 00000 n Do not shortchange or rush the assessment process. << /FontName /Verdana-Bold This simple assessment tool—a good starting point for many organizations—is available in the report on which this article is based. Yet a dynamic board is quite valuable, as the experience of a major environmental nonprofit considering a billion-dollar expansion program shows. /FontName /Marlett Your leadership team and board have access to the internet, enough time to complete the survey, and are fluent in English. >> 120 0 R 121 0 R 122 0 R 123 0 R /Encoding /WinAnsiEncoding /Descent -206 >> Some grant reports have specific questions for the grantee to address that ask about the process the organization uses to neasure its outcomes or progress. We also surveyed executives and directors from a larger group of nonprofit health and social-service organizations. Please use UP and DOWN arrow keys to review autocomplete results. It can be used by nonprofit managers, staff, board members and external capacity builders and funders to identify areas of … And finally, The National Council of Nonprofits provides a compilation of evaluation tools from various sources. /StemV 80 1000 635 976 520 454 981 545 525 615 351 These trustees also have a single, collective seat on the main board. Yet only 46 percent of the directors we surveyed thought that other directors on their boards could both summarize the mission of the organizations they serve and present a vision of where those organizations hope to be in five years’ time. These tools support a nonprofit to assess and determine which capacity areas need to be strengthened, and can facilitate important discussions among leadership, board, and staff to help shape resulting priorities. Our new report, Meeting the Moment: A 2020 Report to the Community, illustrates how The Denver Foundation has brought people together in this time of crisis, pooled resources, and put them to immediate use. /Fabc5 148 0 R These organizations address issues ranging from the environment to education. /ItalicAngle 0 >> /ItalicAngle 0 /Subtype /Type1 Rising to this level of performance takes time. Digital upends old models. 545 685 545 545 268 268 458 458 545 635 958 958 958 958 958 958 958 958 958 958 xœc```b``sgP 2À$(@a /ImageB endobj 143 0 obj 454 454 454 818 635 635 600 623 520 623 Regular evaluations can help by setting forth expectations, indicating when a change of behavior is needed, and even motivating underperforming directors to leave. Unleash their potential. 958 958 958 958 958 958 958 958 958 958 The governance portion of the McKinsey Organizational Capacity Assessment Tool (fee-based) is another one. Nonprofit Board Assessment Tool Download copy of tip sheet. Furthermore, managers often feel indebted to board members who over the years have given generously of their time, money, and contacts. endobj endobj assessment, including “Grantmakers for Effective Organizations Tool for Assessing Start-up Organizations,” “McKinsey Capacity Assessment Grid,” “Technical Assistance for Community Services (TACS) Nonprofit Organization Self Assessment Tool,” “Capacity Benchmarking Tool for Faith and Community Based Organizations – Branch and Abt 145 0 obj endobj Even a nonprofit organization with a clear mission and vision may find that certain directors no longer meet its needs: as it expands and matures, for example, it might find that its founding board members lack relevant professional or fund-raising expertise. /Subtype /TrueType An often overlooked one is for board members to upgrade their skills through training. /NeedAppearances true Such discussions are often more relevant if a nonprofit’s board members have personally experienced the complexities and challenges of its mission and strategy by volunteering for or observing work on the front lines. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Community foundations are uniquely equipped for times like these. Directors volunteer their time, play an important role in raising funds, and in some cases are so numerous that board meetings resemble conferences rather than deliberative assemblies. And when an affiliate of Easter Seals (which provides disabled children and adults with physical therapy, job training, and the like) questioned its clients, it found that they needed support delivered to their homes instead of through a network of external sites. Of course, the absence of a commonly accepted goal (such as boosting shareholder returns) makes it harder to pin down an organization’s purpose—and an ambiguous mission or vision may be the germ of potential conflict. D E S C R I P T I O N ■The McKinsey Capacity Assessment Grid is a tool designed to help nonprofit organizations assess their organizational capaci- ty. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. >> 0000001071 00000 n >> 402 710 710 710 710 543 710 710 963 597 Our research and the work we have done with many nonprofit boards have highlighted certain recurring problems: a lack of consensus about missions or goals, poorly constituted boards, and failed processes. /BaseFont /Times-Roman /FirstChar 1 /Parent 113 0 R Use the right tool for the job Organizational assessment tools … 615 605 620 600 600 600 600 600 600 955 The committee should recruit candidates from as wide a range of channels as possible and recognize that sustained cultivation may be needed to get the best possible directors. McKinsey & Company, Nonprofit Board Self Assessment Tool ​ Dalhousie University, Board Self-Evaluation Questionnaire Board Member’s Activity Report The importance of D&O Insurance cannot be understated. Organizations with broader sets of constituents might emulate the board of America’s Second Harvest, an antihunger group, which has formed a stakeholders’ committee explicitly charged with obtaining feedback. /Descent 0 /Length 0 At one level, the simple solution is to fix the process. We believe this combination of performance assessment and priority-setting is the foundation of superior nonprofit board performance over time. The board of Scholarship America, for example, created what it calls its Honor Roll Trustees, a special board to which exceptional retiring directors are elected by their peers. /Contents [ 154 0 R ] The assessment tool is divided into different categories of specific performance indicators, including: legal, governance, human resources, strategic planning, program planning, evaluations, finances and fundraising. Leading nonprofits find it vital to plan—by setting dates for board and committee meetings early, arranging agendas to ensure that pressing matters can be discussed fully, and giving staff members enough lead time to develop reading lists for directors well in advance of meetings. ), systems and infrastructures, culture, etc. endobj >> /Length 1474 Whichever approach is chosen, it should lead to the gathering of facts, to debate and consensus on priorities, and to assignments for individual board members. Assessing Board Effectiveness The Board performs three major roles in a company – it provides direction (i.e. The best way for a board to begin resolving such confusion is to retreat to a quiet place and discuss the problem. /ImageI ] >> Please discuss each topic and rate the degree to which your organization has achieved the stated goal. /CapHeight 699 Paul Jansen is a director and Andrea Kilpatrick is a consultant in McKinsey’s San Francisco office. It is not necessary to conduct one every year — you need time to implement any potential changes and learn new ways to function as a board. Boards should try to look at performance data unfiltered by management, but fewer than 40 percent of the directors we surveyed said that they actually did. In fact, however, boards can oversee performance without micromanaging operations. The McKinsey & Company Nonprofit Board Self Assessment Tool. /Linearized 1 When the board of the International Rescue Committee, for example, conducted such an exercise, it realized that to mitigate the damage caused by crises such as earthquakes and civil wars, support must be sustained beyond the first wave of aid. For more on metrics, see John Sawhill and David Williamson, “Measuring what matters in nonprofits,” McKinsey Quarterly, May 2001. Over the next two years, this board moved to improve its long-term effectiveness by increasing the directors’ fund-raising responsibilities, redesigning meetings to focus more on discussion (rather than management-led “education”), and restructuring committee roles. /Type /Font Measuring results has always been a thorny issue in the nonprofit world, particularly for groups pursuing such lofty missions as ending hunger, improving education, or changing public policy. 958 958 958 958 958 958 958 958 958 958 /Flags 32 When its board focused on impact (measured by the number of incidents that involved fighting and cheating) rather than on activities (the number of schools visited and workshops held), it learned that its student-oriented programs helped reduce the level of violence in schools but not the level of cheating. Generally, the key isn’t to do more but to focus more. 0000004853 00000 n /FirstChar 0 Of the 32 high-performing institutions whose leadership we interviewed, 7 had some form of two-tier arrangement. Overview. Of course, nonprofit missions are notoriously lofty and vague. The Nonprofit Board Self Assessment Tool is designed to help nonprofit organizations assess their board's performance and identify priorities for board activities going forward. /E 7901 /Descent -206 tab. By being flexible and dynamic, embracing self-scrutiny, and acting on the findings, boards can do more and do it better. >> 543 710 867 361 479 361 689 710 710 710 McKINSEY & COMPANY NONPROFIT BOARD SELF ASSESSMENT TOOL – LONG FORM OVERVIEW The Nonprofit Board Self Assessment Tool is designed to help nonprofit organizations assess their board's performance and identify priorities for board activities going forward. /Type /FontDescriptor

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