Boards Evaluating Chief Executives

by:

Joe Patti

I don’t know why my entries have been revolving around employment and leadership the last couple weeks but here I go again….

I happened across a brief article on BoardSource about assessing an organization’s chief executive. As the piece points out, boards go to great pains in the interview process to ensure they are hiring the most capable candidate but rarely set up a formal process by which they can regularly provide feedback.

There are going to be periods of high emotion when the chief executive is either being patted on the back or glared at. Waiting until these times to assess a person is not the most constructive for the chief executive’s development and growth, even if one has a positive impression of them.

I should note that the article I linked to partially consists of instructions of how to set up a review process using the assessment tool BoardSource has developed. I generally try to avoid hawking other peoples services specifically if they aren’t fairly inexpensive. But having sat on many boards and attended meetings of boards of which I was not a member, I can attest to the number of meetings some boards will take parsing the language on simple amendments to the governing rules. It might take years for a board to draw up an assessment instrument.

BoardSource has an assessment tool that can be completed on a print version or online by board members. Their questions at the very least provide a strong starting point if the board feels the need for a more customized questionnaire.

That said, the online tool while time saving and convenient on a number of fronts is also 4 1/2 times more expensive than the print version. Unless it allows 5-10 years of usage, it seems excessively expensive to process the assessment of a single person. Human Resource professionals can probably speak on the reasonableness of the cost better than I. I understand they need to recoup their investment in developing it, but if it were the only option available, I am sure the cost would present an even greater impediment to evaluating a chief executive for many boards.

For most boards, whether they know about the assessment tools or not, it can be easier to promise a chief executive a similar amount of money as a bonus next year if they improve or as a raise if the valued person stays than to invest weeks completing, collecting and collating an evaluation. Given the salaries and bonuses for profit CEOs are granted by their boards, it wouldn’t be surprising if non-profit boards perceived money as the medium by which rewards and severance are conducted.

Why Do You Want To Leave Your Job?

by:

Joe Patti

Neill Archer Roan doesn’t write as often as I would like him to, but when he does, it is always worth reading. Apropos to my entry last week about how I suspected turnover in nonprofits was having a greater negative impact than organizations were letting on, Neill quotes a gentleman named Matthew Kelly on the core reasons for turnover.

“The #1 reason people leave a job is not because they have a dysfunctional relationship with their manager or because they don’t feel appreciated. They leave because they cannot see the connection between the work they are doing today and the future they imagine for themselves.”

Now given that I have had those exact same thoughts verbatim when I was considering leaving a job and until this morning believed I was the pretty much the only one who did, I felt an obligation to quote it. While I haven’t always liked my bosses and certainly felt under appreciated, it wasn’t enough to make me want to leave. Others I have worked with have said, and occasionally fumed, they were leaving because of bosses, under appreciation, lack of pay and work environment.

I always thought I was atypical for having “pictured something different for myself as a primary reason for moving on. Frankly, next to “the boss is a bastard,” it seems like pretty weak motivation. If the boss isn’t a jerk and things aren’t overly oppressive, why would anyone want to move on?

Probably because the boss is a jerk is a more convincing reason than I want more self-actualization and so the boss gets blamed a lot more often than he/she should because nobody has the guts to admit they want more fulfillment. People expect fulfillment from their spouses and low cal, low fat brownies, work is supposed to be dispiriting, endured and complained about. I want more from my job sounds whiny in comparison.

Interestingly enough, about 10 years ago I was attending a customer service seminar. The woman leading it quoted stats showing that quality of product being equal, people don’t defect to a competitor because they are cheaper, that is just the easiest excuse to use. Kelly’s message seems to be quite similar.

While I wouldn’t be surprised to learn a little consumer mentality has crept into how we approach our jobs over the last decade, I suspect that this unspoken motivation has been lurking below the surface for a long while now.

I will say that was I a little disappointed with the way Kelly’s piece ended. It started out being damn interesting and thought provoking but ended with a him encouraging people to follow their dreams which just seemed de rigeur motivational speaking.

So You Think You Are An Emerging Leader…

by:

Joe Patti

…or maybe there is someone you think is.

Arts Presenters is soliciting applications for participants at the next Emerging Leader Institute being held at conference January 2008.

Deadline is next Monday though. I am sorry I didn’t see the announcement on the website sooner. The application may be found here and the guidelines here. There are some nice benefits like free APAP membership for a year and free conference admission if you are a first time attendee. You do have to be affiliated with a member entity- presenter, artist, agency, etc.

I attended last year (which you can read about here and here), and found the experience enjoyable and valuable.

In fact, I had a conference call today with some other alumni of the program to discuss steps we would like to take to improve the experience for both new attendees and alumni both at the conference and after they return home. This is an effort that had its impetus with the alumni of the program who wish to have the emerging issues facing arts leaders addressed and planned for. And to develop a network of support.

Frankly, if I have my druthers, I’d want whatever network of support is developed opened to all arts people be they members of the organization or not.

But that could be many years down the road. In the meantime, if you are interested in the program, apply!

Creativity A Euphemism for Extreme Thrift?

by:

Joe Patti

Apologies to regular readers of the blog. I started using a new ticketing system and started training a new staff person in the same week which has not be conducive to blog entries. But things have evened out a bit and here I am.

I read a report over the weekend on the perceived lack of qualified workers in non-profit settings. A study done by people at Johns Hopkins of all non-profit sectors, including performing arts, found that, in general, it wasn’t as difficult to find qualified people to fill positions as some recent newspaper articles have made it out to be. Most organizations were also mostly pleased by the quality of the people they did hire.

There were some areas that were harder to recruit for than others. Organizations that served the elderly had a slightly harder time than most finding people. Fundraisers and information technology staff were among the toughest positions to fill. Trying to achieve greater minority representation was also quite difficult. The report did note that few organizations made special efforts to attract minorities, though.

For the arts in particular, there were some details that boded well and others not so well. On the positive side, “…turnover and hiring activity was somewhat lower…among theaters. On the negative side, both theatres and museums were the group most dissatisfied with the diversity of their applicants and with their ability to meet the salary requirements of their applicants.

I had mixed feelings about the results the survey found regarding staff turnover. Eighty percent of those surveyed had turn over in the year prior.

“Surprisingly, however, the proportions claiming negative effects from this turnover were less pronounced than might have been expected, and were often offset by roughly similar proportions claiming positive effects.”

In the accompanying chart on page 5, the only categories in which the positive responses outstrip the negative are in organizational budget and staff creativity. The negatives were much higher than the positives in productivity, morale and burnout.

The positives about the budget are obvious. Not having to pay someone helps save money. I am uneasy about the staff creativity result because I think the go to position for so many non-profits when they face staff shortages of any sort is to smile and determine to work harder and smarter.

I suspect creativity claim is actually a ploy to cope with the increased workload and is a facade for the damage to morale and feeling of burnout. Having been in similar situations, I imagine that the creativity manifests itself in penny pinching steps akin to my grandmother washing aluminum foil and hanging it on the line to dry so it can be reused.

Everyone stands around and congratulates each other on how clever they are to be so thrifty. Then go back to their offices and skip lunch so they can get all their work done, their hunger pangs temporary dulled by the recently shared optimism over how creative the staff has become.

The areas where the negatives and positives were close were ability to fulfill mission, quality of programming and quantity of programming. I would be interested to know if there was a correlation between those who felt the staff became more creative and those who cut programming and reported the quality of the programming increased. I know I sound cynical, but again I suspect that people soothed their concerns about cutting back on programming by convincing themselves that they had succeeded in providing higher quality with fewer resources.

I have had the same conversation internally and among staff at a number of places. So yes, you can accuse me of projecting my biases, but I can’t imagine those dialogs are anywhere near atypical.

When I read in the report about how resilient these nonprofits are, I think about the fact that it is actually individual people who provide the resiliency by redoubling their efforts out of dedication to a cause. I am pleased that many organizations are able to satisfy their personnel needs. But the situation still bears watching because the individual’s determination to soldier on may be masking a problem that will suddenly emerge with mass burnout or retirements.