Support Mechanisms for CEOs - Why are they important?

The challenges for nonprofit CEOs and equivalent positions is immense and even more so in the current environment of economic uncertainty, political instability (especially in an election year), organisational change, and, in the context of nonprofit disability service providers, the changing nature of their business models in response to the movement away from a supply-driven market to one that is responsive to the demands of consumers in the form of the NDIS.

This scenario places heavy burdens on the CEO and equivalent positions as they face these challenges whilst maintaining ongoing service levels, addressing organisational sustainability, and dealing with boards that may not be necessarily skilled in identifying or addressing the strategic challenges that need to be understood and faced.

In August 2013, Forbes Leadership polled 200 CEOs and board directors and noted a range of collective concerns which were reflected as themes from the survey. These included:

• the need to get help with handling conflicts
• the need to further develop talent within their organisations
• the need to establish improved motivational skills amongst their executive teams

Whilst these were seen as major challenges within these organisations and ones that needed to be addressed by the CEO, there is ongoing recognition amongst organisational leadership, that active CEO groups could greatly impact the effectiveness of CEOs as they address these and many other related challenges including responding to such questions as:

• as your organisation grows, how do you maintain an inspiration to innovate and not dampen enthusiasm amongst your managers and staff?
• how do you encourage creative thinking in your organisation to foster growth and development?
• how do you promulgate your organisation's mission, vision and core values?
• how do you ensure that vision is being correctly interpreted in your organisation?
• how do you achieve organisational alignment through all levels of the organisation?
• how do you ensure your own growth and development?

CEO groups can be effective in improving the overall effectiveness of CEOs, ensuring improved organisational and personal outcomes, and this is why:

1. There is always more than one way of looking at a problem or a challenge. Obtaining broader input is necessary to ensure that you overcome any myopic tendencies.
2. A small supportive group can develop into a community of trust which can underpin an "off-the-record" type of engagement, allowing you to speak your mind freely without fear of repercussion.
3. Diversity within such groups ensures that input into your challenge is based on perspectives that you may not have or even able to see at given points of time.
4. The role of the CEO has often been described as a lonely one for various reasons. There can be an understandable tendency to be somewhat isolationists in your thinking. This can be balanced by the recognition in seeing your group as a small but safe 'community'.

OPTIMUM NFP recently launched its CEO Roundtable in response to the individual challenges associated with being a CEO and in the context of the organisational implications associated with the CEO performance. The CEO Roundtable ("CEOR") has been designed exclusively for CEOs of nonprofit organisations as a professional learning forum to support ongoing development of CEOs through a facilitated discussion and peer support process. The CEOR supports CEOs by:

1. being a sounding board
2. sharing experiences and challenges whilst collaboratively searching for solutions
3. challenging your thinking purely for the purposes of getting better organisational and personal outcomes, and
4. benchmarking your own performance through personal and group reflection

The CEOR is based around 4 foundational pillars:

1. FACILITATION  - it is professionally facilitated with a structured agenda that combines free-flowing discussion within focused attention to agreed pertinent issues
2. CONFIDENTIALITY - meetings take place in a confidential and emotionally safe environment enabling easy exchange of ideas
3. EXPERTISE - guest speakers with required specialist expertise will be invited as appropriate and as agreed to by the group
4. NETWORKS - fostering and supporting new and existing professional networks 

CEORs are being introduced in Sydney, Melbourne, Brisbane and Adelaide. For further information regarding the CEO Roundtable, visit the OPTIMUM NFP website at www.optimumnfp.com.au and click the tab entitled "CEO Roundtable" which provides further information as well as an online registration process. Alternatively, you can contact David Rosenbaum on 0411-744-911 or at drosenbaum@optimumnfp.com.au to make further inquiries.

The Business of Nonprofits

Much has been written about appropriate business models in nonprofit organisations. In what many are calling a paradigm shift in this sector, from a 'non-profit' mindset to a more 'business-like" mindset, there is evidence that the sands are shifting quite rapidly in a sector that has traditionally seen itself in a different light to that of a business. 

Additionally much has been written and spoken about the comparative positioning within a social-good perspective and whether this shift is in fact good, or is it actually undermining the sector and detracting from the social focus that should be at the heart of this sector's approach - the age old "Mission / Margin" argument. 

Whichever side of these arguments you sit, there is a number of realities that cannot be ignored, with these realities not really responding to the social considerations of the nonprofit sector, but the realities of markets, economics, and government policy. In essence, these realities are:

1. Economic circumstances in Australia are challenging and despite what politicians may tell us, the reality is that as Australia shifts from a mining economy to other forms, fallout will occur and consumers and businesses alike are being cautious. This caution challenges the ability of nonprofit organisations to increase funding from philanthropic sources.
2. Governments are facing many years of ongoing deficits irrespective of their political persuasion. Nonprofits that really heavily, or in fact entirely on government sources for their funding are facing the greatest risk to their sustainability and therefore their existence.
3. Government policy, again irrespective of political persuasion, is tending to prioritise their funding in this sector to larger service providers and relying on these server providers to interact with smaller organisations to deliver services at the ground level. This is a shift in governments' own business models and leaves smaller and possibly medium-sixes nonprofits at the mercy of larger nonprofits. This will, over time, force a degree of rationalisation into the sector. I make no value judgement as to the positives and negatives of such an approach, but merely state the obvious - it is happening.

An interesting article recently appeared in the Nonprofit and Voluntary Sector Quarterly (Volume 44, No.2 April 2015, pas.205-222) entitled "Being Nonprofit-Like in a Market Economy: Understanding the Mission-Market Tension in nonprofit Organising" written by Matthew Sanders, Assistant professor, Communication Studies, Utah State University. It makes for interesting reading as it trawls through various arguments associated with both sides of this debate. What is unique about this article is that it focuses on the role of communication in potentially bridging the apparent competing aspects in this debate.

In essence however, market and political realities are what they are and nonprofit organisations will not be able to address these in isolation. What they may be able to do is to better understand how they can work within this apparent conflict of ideas to build better organisaiotns and to design and deliver their services accordingly. Don't fight it - work within it!

Letting Your Employees In and The Impact on Leadership

Interesting article in the October 2015 edition of the AIM magazine on page 12, entitled "Time to Open the Books". In light of some recent client assignments it raised in my mind the question of what and how much do employees need to know, or should know, about the broader business, as distinct to the narrower view of what is going on within their own teams, departments, work groups etc. And of course in light of the frequent mantra regarding change management, where building the case for change and setting the scene is considered a pre-requisite for success, how does not 'letting them in' or giving them the broader context, fit that story?

There are other issues here of course, which revolve around keeping your employees engaged and, to a very great extent, excited about what is going on in the organisation, and, more importantly, engaging them in the organisation's future by chasing innovation, efficiency and effectiveness. Additionally, as the article eludes to, what about their emotional well being. A substantial part of an employee's life is focused around their work, so an environment that encourages enthusiasm surely can only be one where engagement is seen in the broader sense rather than the more narrower sense.

One of the key challenges in this approach to employee engagement and inclusion is, of course, the ability for organisational leaders to cope with a changing landscape where leadership is not seen as having all the answers and 'directing' staff, but rather seeking broad input into organisational challenges, recognising that a wide range of requisite skills exist right through the organisation, and diffusing the 'management' process. In many organisations such skills are not necessarily harnessed or even known, let alone sought and embraced. Potentially this begs the question as to the role of such areas as Human Resources - where I often suggest that operational and transactional approaches provide little value-add to the organisation, whilst strategic approaches should really be the focus.

Have organisations truly embraced this openness, as distinct to saying they do but practically they do not, or are some still operating within a historical paradigm of hierarchy and power, as distinct to a flatter, inclusive leadership and management culture?

How does your organisation function in this aspect?

The CEO Roundtable Launches

“The quality of a leader cannot be judged by the answers he gives, but by the questions he asks.” [Simon Sinek]

OPTIMUM NFP is pleased to announce the launch of the CEO Roundtable “(CEOR”), designed exclusively for CEOs of nonprofit organisations. This professional learning forum supports the ongoing development of CEOs through facilitated discussion and peer support

Being the CEO of an organisation is often referred to as a lonely position. The business challenges are coupled with the organisational challenges, which in turn are overlayed with the challenges of simply being the leader.

Would you like the opportunity to meet with other CEOs to

• have a sounding board when your work as an organisational leader challenges the status quo?
• Share your experiences, discuss challenges and collaboratively seek solutions?
• Challenge your thinking so that you achieve better organisational and personal outcomes?
• Benchmark yourself and performance through open and honest reflection?
• Seek strategies for supporting, developing or improving your Board’s governance?

The CEO Roundtable will:

• Be professionally facilitated with a structured agenda that combines free flowing discussion with focussed attention to pertinent issues, ensuring a positive experience for all
• Offer a confidential and emotionally safe environment in which you can exchange ideas, challenge your own and peer thinking
• Hear from invited guest speakers who are recognised experts in relevant fields when appropriate to the group’s needs
• Foster and support new and existing professional networks

How the CEOR will work?

• The CEOR will comprise a series of 10 monthly professionally facilitated sessions, each of 3-hours duration
• The agenda will be structured to provide for reflection on achievements and information sharing; identification of challenges and issues pertinent to the sector with solutions focussed discussion and; specific topic discussion
• The group will be self governing and responsible for setting key components of the agenda for each meeting

Where will the CEOR sessions be held?

• Sydney sessions will be held at the offices of the Australian Institute of Company Directors and the Australian Institute of Management. These sessions will be fully catered.
• Melbourne, Brisbane and Adelaide sessions will be held in similar venues with full catering available

David Rosenbaum is an internationally accredited facilitator and a highly experienced consultant to Government, commercial and in particular, the Australian not for profit sector. Within a professional learning framework, David’s group facilitation skills successfully foster peer support, increase positive networking outcomes and encourage individual personal and professional development.

What is the financial commitment to become a member of the CEOR?

• Annual membership of $3,100 plus GST covering 10 CEOR sessions.
• Membership fee becomes payable in full upon registration
• To ensure the integrity of the group’s intent, participants are encouraged to commit to regular personal attendance. Proxies cannot be used to cover absences

For further information, contact David Rosenbaum of OPTIMUM NFP or visit the Website and click on the tab entitled "The CEO Roundtable"

What's in Store for 2016 at OPTIMUM NFP?

Welcome to 2016. Wishing all readers of The OPTIMUM Newsletter a Happy, Healthy, Safe, and Prosperous year ahead.

2015 was a very special year for OPTIMUM NFP as it saw the successful implementation of the Action Learning Question Public Program (marketed as the Cross-Organisational Cohort) following its formal launch in mid 2014. The success of that launch and that initial Program, has resulted in a second public program commencing in mid February 2016, with interest levels such that places for this second program are filling fast. My website contains feedback from the first public program (click on the Tab entitled "ALQ Workshops"). In-house Action Leaning Question Programs are also being discussed with numerous organisations, and these are expected to come to fruition during 2016.

In addition, I was offered the opportunity to join the Australian Institute of Management as a Facilitator in their fast developing Graduate School as part of their highly accredited MBA Program, where I am currently involved in the delivery of two units, namely Managing Financial Resources and Strategic Organisational Change. The former further supports my keen interest in developing financial expertise amongst non-finance professionals, whilst the latter further extends my interest in change management as a result of my current PhD research.

And finally, 2015 saw me obtain preliminary confirmation of the publication in an international peer-reviewed academic journal of one of my key papers related to my PhD research. This paper presents the actual findings of the research and is hopefully the first of a series of 4 such papers that, depending on the peer review process, could see all published during 2016. As these papers are published, I will be keen to share them with interested readers of this newsletter, as they have direct impacts on the nonprofit sector with regards the management of successful organisational change.

These achievements and activities all feed into the quality of consulting input that OPTIMUM NFP continues to provide its clients.

In 2016, OPTIMUM NFP will launch the "CEO Roundtable", designed exclusively for CEOs of nonprofit organisations. It will be a professional learning forum that supports ongoing development of CEOs through facilitated discussion and peer support. Details including registration forms will be available shortly and interested CEOs can pre-register their interest by contacting David Rosenbaum direct. The CEO Roundtable will be launched in Sydney, Melbourne and Brisbane.

During 2016, The OPTIMUM Newsletter will seek to cover many relevant topics for this sector, so keep a watchful eye out for those that may be of specific interest to you. It is currently anticipated that topics will include, but will not be limited to the following areas:

• organisational learning
• role of strategy in organisational learning
• innovation and how to find it and encourage it
• assessment tools for reviewing board performance
• culture assessments for change readiness
• mission/market tension in nonprofits

There will also be ongoing updates as to progress with the Action Learning Question Program including attendee feedback.

2016 will continue to be a year of challenge for all of us, economically, politically, and socially. I look forward to The OPTIMUM Newsletter being a source of relevant information that can assist, in a small way, your organisations, and your personal path through these challenges.

Contact David Rosenbaum on 0411 744 911 or at drosenbaum@optimumnfp.com.au to enquire how OPTIMUM NFP could assist you and your organisation in achieving stated goals and objectives.

Developing Leadership and Measuring It: The Action Learning Question Program Could Be A Way Forward

Recognition as to the effectiveness of Action Learning as applied to the development of leadership skills, has been highlighted by two well known and internationally accredited academics and leadership practitioners, Michael Marquardt (Professor of Human Resources and International Affairs at the US based Elliott School of International Affairs and Program Director of Overseas Programs at George Washington University) and H.Skipton Leonard (Faculty member at the Carey School of Business at John Hopkins University). In a 2010 publication entitled "The Evidence for the Effectiveness of Action Learning", as published in the Action Leaning: Research and Practice Journal, they identified four reasons to support their conclusion regarding the impact of Action Learning in this field, being:

1.    Action Learning encourages people to take responsibility and action to achieve a desirable result or goal;

2.    Action Learning provides a disciplined process for reflecting and learning;

3.    Action Learning allows people to work on the specific skills necessary to get things done through people, and

4.    Action Learning provides people with the direct and indirect feedback necessary to learn complex leadership skills along the way.

Having considered the strengths associated with Action Learning as it applies to the development of leaders within organisations through either formal in-house leadership development programs or through less formal development, the question of measuring the success or otherwise of leadership development programs becomes the next issue to be addressed. In a recent edition of the MITSloan Management Review, Gandossy and Guarneri (Principal and Research Consultant respectively, from the US based Hewitt Associates, human resource consultants) reported that research from the top tier of US based companies identified the development of a range of holistic measures that addresses key organisational stakeholders namely, people managers, business leaders, HR professionals, and key organisational talent. These measures included, but were not limited to the following:

• identifying when key talents would be ready to move onto new roles within the organisation
• understanding the extent to which leaders take responsibility for their own development and that of their people
• identifying how leaders contribute to the development of talent as a corporate resource
• understanding the extent to which leaders 'walk the walk' on effective leadership behaviours
•  identifying the business trends that most influence leadership strategies within the organisation, and
• understanding the link between our leadership development programs and the internal supply of qualified candidates.

The real linkage that appears to be highlighted throughout the discussion presented by Gandossy and Guarneri relates to the extent to which an organisation can ensure that the leadership development programs are aligned to actual business needs as distinct to being abstract and somewhat detached from the organisational imperatives that need to be addressed.

The design of the Action Learning Question Program ("ALQ") addresses such needs by operating at the dual level of developing your staff but doing so in the context of resolving very real organisational challenges that, left unresolved, will hinder organisational efforts towards future and long term sustainability.

The 2015 public ALQ Program, referred to as Cross-Organisational Cohorts, (which recently concluded in November 2015) proved highly successful and delivered real solutions to the organisations that were represented, and real value to the individuals involved in the cohort.

Similar programs with bespoke ALQ Program structures are commencing in March 2016 as in-house ALQ Programs. These are developed for medium and large organisations that are, from a resource perspective, able to accommodate unique Learning Sets necessary for an effective program. Whilst structural elements are uniquely developed in these instances, both the in-house and the cross-organisational cohorts all operate under a common ALQ framework.

The support provided by the Australian Institute of Management ("AIM") has added further value to both the Cross-Organisational Cohorts, as well as the In-House Cohorts. AIM have identified the rigour and value of the Program, and have agreed to recognise completion of the Program (through undertaking a multi-tiered written assessment process) as one Credit Unit towards their highly acclaimed 8-Unit Graduate Diploma of Management and their 12-Unit MBA programs. Whilst this accreditation path is not compulsory, it provides a very sound base to support ongoing education and staff development - a very valuable process for organisations. 

OPTIMUM NFP in conjunction with Action Learning International Ltd. is currently preparing a further Cross-Organisational Cohort to commence in February 2016. Given the success of the recent Program, and the detailed expressions of interest received from five prospective cohort members to-date, it is recommended that you lodge your interest as early as possible, as these Programs are designed for a maximum number of participants of eight per Program. You can register on-line at www.optimumnfp.com.au (ALQ Workshop tab), or contact David Rosenbaum at drosenbaum@optimumnfp.com.au or on 0411-744-911 to register or to discuss the nature of the Program and how it may benefit your organisation, as well as yourself.

As the Principal of OPTIMUM NFP and Senior Consultant and Head of Relationship Management and Program Delivery for Australia at Action Learning International Ltd., I am well placed to structure a program that responds to your organisation's requirements. With the advent of both the Cross-Organisational Cohorts as well as In-House Cohorts, all organisations, irrespective of size, can now consider the practical benefits resulting from participation in an Action Learning Question program to solve sticky organisational challenges whilst simultaneously developing the leadership skills that your organisation will need in the coming years.

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au or 0411-744-911 to discuss how an Action Learning Question program can assist your organisation achieve its objectives.

Fairness in Our Taxation System

We are currently hearing allot about our taxation system at the moment. Seems like the so-called national conversation is happening. Something that was very much absent in the previous incarnation of our federal government. But if this is what a national conversation looks like, then I am slightly underwhelmed by its process, let alone by its potential outcomes.

What I am really hearing is a government process of softening and filtering, where the discourse from government, frontbenchers and backbenchers alike, is really targeted at preparing the broader electorate for what perhaps could be a forgone conclusion. Perhaps I am getting very cynical about politicians, but then again, the last few years have probably prepared me well for higher than ordinary levels of cynicism.

One of the key descriptors in this 'debate' that is racing down the highway, is 'fairness' and 'equity' in our tax system. I feel that these words are being overdone with a sense that the more the word is used, the more it appears to be self-evident and the true driver of the 'tax debate".

Not so. Espousing these words and yet truly applying all considerations with regards tax to blowtorch of fairness and equity, would actually mean that our superannuation tax system would change drastically, as would our somewhat outdated and 'unfair' capital gains tax provisions. As would also, the strange array of corporate incentives that tend to allocate taxpayer largesse to the most inappropriate corporate beneficiaries.

It appears that fairness and equity must apply primarily to the GST, which by-the-way, it never can given the nature of what the GST targets and how it is calculated. Fairness and equity, however you define this, must apply to a complete rewrite of our tax system, not just elements thereof. From a sceptics perspective, it very much appears, despite whatever our politicians tell us, that the GST is the headline act, but there is much more that needs to be considered before placing at further risk, the most vulnerable in our community.

I suspect that the current debate, especially from the government's perspective, reflects deep underlying beliefs in a system or process that has been clearly debunked by an influential list of well regarded economists, the theory of 'trickle-down economics'.  Just to rehash, this theory espouses the notion that extra wealth being generated at the top of the wealth tree eventually makes its way down to the roots of the tree where we all benefit and live happier ever-after in an environment of growing economic prosperity. The only problem, and it is indeed a small problem that our government has an obvious ideological problem with in terms of recognising it to be a problem, is that it does not work.

This has been proven by the International Monetary Fund, where in its 2015 report entitled "Causes and Consequences of Income Inequality: A Global Perspective" wherein they state, in part, 
"...we show why policymakers need to focus on the poor and the middle class. Earlier IMF work has shown that income inequality matters for growth and its sustainability. Our analysis suggests that the income distribution itself matters for growth as well. Specifically, if the income share of the top 20 percent (the rich) increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down. In contrast, an increase in the income share of the bottom 20 percent (the poor) is associated with higher GDP growth. The poor and the middle class matter the most for growth via a number of interrelated economic, social, and political channels." 

If we are going to continue down this facade of fairness and equality, perhaps the message is clear - focus our attention on the poorer and the middle class - that is where we are going to get the biggest 'bang for our buck'!

Shall we now continue with the so-called national conversation? If you can't find it, its in the press where all things fair and equitable are discussed.