1000 1000 1000 1000 1000 1000 1000 1000 958 958 << And finally, The National Council of Nonprofits provides a compilation of evaluation tools from various sources. In these cases, the nonprofit was working with a consultant who facilitated the same kind of process and discussions but without using a tool. 850 782 710 681 812 763 1128 763 736 691 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. In our experience, many battles over strategy are really disagreements over what organizations are trying to achieve. 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. 787 787 787 787 818 787 731 731 731 731 Community foundations are uniquely equipped for times like these. 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 /T 61755 958 958 958 958 958 958 958 958 958 958 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. This version and two shorter versions are posted on our website (www.mckinsey.com/practices/nonprofit). At one level, the simple solution is to fix the process. /Flags 32 /Ascent 1000 stream 644 818 454 1000 635 541 818 541 541 635 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. xœÍY[oÛ6~7àÿpŞÖ ¨Æ‹HJ{k¶dèÖ&]ì] 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. 1000 710 963 593 543 1067 710 596 736 341 /FontName /Verdana-Bold /Filter /FlateDecode /NeedAppearances true 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. 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. Meeting the Moment: A 2020 Report to the Community. Another possibility is simply to expand the board to bring in new blood while setting term limits for current directors. Digital upends old models. 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 To help any organization begin this process, the appendix includes a self-assessment tool for diagnosing board practices against the gold standard. 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. >> >> boardnetUSA is a collaborative network of companies, communities and nonprofit associations. 811 837 545 555 770 637 947 846 850 732 We work together to enable nonprofit boards seeking board members -- and individuals wishing to serve as trustees -- to learn about and connect with each other. An often overlooked one is for board members to upgrade their skills through training. Good boards, well aware that they lack the time and resources to tackle all of their responsibilities at once, manage to adapt—perhaps by devoting extra energy to a single task, such as a capital campaign, before moving on to the next challenge. The board of Scholarship America, for instance, routinely reviews individual decisions for consistency with its overall purpose: providing financial and academic support to students. The McKinsey & Company Nonprofit Board Self Assessment Tool. /StemV 80 Like McKinsey, Bain & Company is a wealthy parent for its nonprofit consulting spinoff, with sales of around $2.1 billion. /L 64667 How can a board begin the process of self-reflection? /Ascent 764 /LastChar 255 0000001606 00000 n 595 351 623 632 274 344 591 274 972 632 /ABCpdf 7012 40 0 R 124 0 R 125 0 R 126 0 R Without the push from the board, management might not have adjusted these programs so rapidly. 641 635 363 635 541 545 644 1000 1000 1000 /Outlines 112 0 R 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 /Widths [ 0 0 0 0 0 0 0 0 0 0 But if board meetings start and finish late, members receive preparatory materials late or arrive unprepared, and there is never enough time to address important matters sufficiently, the process isn’t working. The McKinsey Organizational Capacity Assessment Tool (OCAT) is based on a framework developed specifically for nonprofits and social enterprise organizations. 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. /Fabc11 151 0 R McKINSEY & COMPANY NONPROFIT BOARD SELF ASSESSMENT TOOL – SHORT FORM GUIDELINES FOR ASSESSORS The Nonprofit Board Assessment Tool has three sections: 1. /DR << 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. << /FontBBox [ 0 0 1000 1000 ] /N 9 958 958 958 958 958 958 958 958 958 958 686 699 699 497 593 455 712 649 979 668 520 595 595 595 595 274 274 274 274 611 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. Of the 32 high-performing institutions whose leadership we interviewed, 7 had some form of two-tier arrangement. 143 0 obj McKinsey’s Capacity Assessment Grid This grid is a tool designed to help organizations assess their organizational capacity/effectiveness. 0000003620 00000 n >> /FirstChar 1 >> /Type /XRef 545 685 545 545 268 268 458 458 545 635 >> /FirstChar 0 591 525 634 454 634 818 545 635 545 268 144 0 obj <159DE1A18ECC1851BE0F663C27DACB34> ] Another form of organization—the two-tier board—can eliminate the need to dispense with the valuable experience, relationships, and resources of departing directors. trailer Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Performance of the board (or board committee) on its core responsibilities 2. 606 623 623 426 520 394 632 591 818 591 146 0 obj Effectiveness starts with clarity of purpose. 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. Your leadership team and board have access to the internet, enough time to complete the survey, and are fluent in English. Any one of these can hamstring a board by wasting its time, causing it to fall short of its responsibilities, or making some directors less and less engaged. 958 958 958 958 958 958 958 958 958 958 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. endobj Directors might initiate the process themselves if they are frustrated with the way they are using their time or with their peers’ performance. /Length 1474 You want to know internal opinions.The OCAT is NOT a good choice when: 1. /Fields [ 115 0 R 117 0 R 118 0 R 119 0 R 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. Nonprofit leaders also say they successfully advanced organizational capacity without using a tool. >> >> /FontDescriptor 152 0 R These concerns, rumbling beneath the surface, were crystallized by a self-assessment initiative. Scholarship America, for example, pays bonuses to employees who deliver outstanding results. << endobj 0 0 0 0 0 0 0 0 0 0 Sometimes the executive director—concerned, perhaps, about whether the board has the right composition—takes the lead. 0000004964 00000 n << 3. The directors of the Girl Scouts of the USA are among that minority. We believe this combination of performance assessment and priority-setting is the foundation of superior nonprofit board performance over time. Please discuss each topic and rate the degree to which your organization has achieved the stated goal. Thus it comes as no surprise that a recent McKinsey survey of executives and directors of nonprofit social-service organizations found that only 17 percent of the respondents felt that their boards were as effective as possible.1 1. 850 850 850 850 867 850 812 812 812 812 /Fit ] /Flags 262176 /FirstChar 1 /ItalicAngle 0 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. Investing enough time and energy to reexamine the organization’s mission or vision can have profound consequences. 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. /Type /FontDescriptor Please try again later. 138 0 R 139 0 R 140 0 R 141 0 R /Fabc13 153 0 R 454 635 818 363 454 363 454 635 635 635 Rising to this level of performance takes time. 153 0 obj Something went wrong. /S 180 For more on metrics, see John Sawhill and David Williamson, “Measuring what matters in nonprofits,” McKinsey Quarterly, May 2001. 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. 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. 145 0 obj 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. << BoardSource publishes several board assessment tools, and your consultant may very well have developed one as well. 454 454 454 818 635 635 600 623 520 623 650 596 710 543 710 867 710 710 710 332 0000000012 00000 n 2. Our flagship business publication has been defining and informing the senior-management agenda since 1964. McKinsey Capacity Assessment Grid —PDF, free. They also answer to a wide range of stakeholders who may lack a single common goal, such as increasing shareholder value. %%EOF /OpenAction [ 146 0 R 0000003440 00000 n 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. /Dests << The directors are, after all, unpaid volunteers serving as a labor of love. Scrutiny of the board and its roles can take many forms, from facilitated workshops to one-on-one interviews and survey-based processes. Learn more about cookies, Opens in new 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. Over the longer haul, however, nonprofit organizations have no choice but to rethink the way they replace and recruit directors. Today, nonprofit organizations in the United States control upward of $1.5 trillion in assets and are increasingly relied upon to help address society’s ills. /Subtype /TrueType Regular evaluations can help by setting forth expectations, indicating when a change of behavior is needed, and even motivating underperforming directors to leave. D E S C R I P T I O N ■The McKinsey Capacity Assessment Grid is a tool designed to help nonprofit organizations assess their organizational capaci- ty. 147 0 obj 635 635 635 635 635 635 635 454 454 818 A free online tool published by Venture Philanthropy Partners and McKinsey & Company to help nonprofits assess organizational capacity, strengths, and weaknesses. 958 958 958 958 958 958 958 958 958 958 /Flags 4 xœc```b``sgP 2À$(@a Flip the odds. %PDF-1.1 1000 1000 958 958 958 958 958 958 958 958 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. 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. Organizational Capacity Assessment Tool (OCAT) Process and Comparison Between OCAT Version 1 and Version 2 We recognize that nonprofit practitioners are the program experts, and we aim to complement that expertise by working in partnership with those organizations. /ProcSet [ /PDF /Size 155 543 689 543 867 710 710 667 699 588 699 In addition to the study, McKinsey developed a capacity assessment tool for nonprofits. The governance portion of the McKinsey Organizational Capacity Assessment Tool (fee-based) is another one. /ImageC We interviewed executives and directors at 32 of the 100 organizations named as top nonprofit performers by Worth magazine to find out what their boards do. /Descent 0 /Linearized 1 712 686 686 686 686 686 867 686 712 712 << Nonprofit Board Self-Assessment Tool (free) (McKinsey & Company) Sample self-appraisals for the board as a whole and individual board members (Evangelical Council of Financial Accountability) Sucessful board self-assessments (BoardSource) Tip sheet for encouraging candid conversations with the board (National Council of Nonprofits) We believe this combination of performance assessment and priority-setting is the foundation of superior nonprofit board performance over time. /BaseFont /Marlett Please use UP and DOWN arrow keys to review autocomplete results. monitors the management) The TCC Group’s Core Capacities Assessment Tool also addresses governance. And the board as a whole can become complacent. /Length 0 127 0 R 128 0 R 129 0 R 130 0 R These boards get their hands dirty undertaking the tasks they do best while carefully avoiding micromanagement that would demoralize full-time staff members. You want to assess the overall management of your organisation. /ImageB /Widths [ 500 958 958 958 958 958 958 958 958 958 867 867 616 963 776 761 723 830 683 650 Board self-assessment is a best practice of successful nonprofit Boards of Directors. 150 0 obj 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. 958 958 958 958 958 958 958 958 958 958 >> It is broken into three sections and takes 30 minutes to complete. /MediaBox [ 0 0 612 792 ] endobj (Only 38 percent of the directors we surveyed, for example, served on the boards of organizations offering instruction in fund-raising—a crucial skill for nonprofit directors.) The desirability of a dynamic board might seem to be mere common sense, but it is uncommonly hard to become one. The corporate-governance debate in the United States is spreading from the for-profit to the nonprofit world. The organization quickly offered teachers and principals workshops that focused on the reduction of cheating and soon saw changes for the better. >> The Benefits of Online Board Self-Assessment Tools. Paul Jansen is a director and Andrea Kilpatrick is a consultant in McKinsey’s San Francisco office. See. runs in-school ethics programs, for example. /Contents [ 154 0 R ] 664 422 699 712 341 402 670 341 1058 712 It can be used by nonprofit managers, staff, board members and external capacity builders and funders to identify areas of … 736 734 712 667 667 667 667 667 667 1018 710 691 710 710 332 332 587 587 710 710 /Encoding /WinAnsiEncoding Use minimal essential 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. Commitment ; when the call for action comes from within the team, the key isn ’ t to so! Programs so rapidly use UP and down arrow keys to review autocomplete results us! Also answer to a wide range of stakeholders who may lack a single collective... 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Bonuses to employees who deliver outstanding results with priority-setting for the better year and taps its expertise necessary!