What's New at NRMC?

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What's New at NRMC?

If you missed our updates in recent RISK eNews articles, you'll be happy to hear what our team has accomplished since January 1st! Our newest team member, Project Manager Eric Henkel, led the launch of our new Risk Benchmarking App to allow nonprofit leaders to compare their risk management functions to those of other organizations. We announced Jeremy Sutton as keynote speaker for the Risk Summit, our annual conference, which takes place in Philadelphia this September 17-19. Kay Nakamura, our Director of Client Solutions, welcomed five new Affiliate Members into our Affiliate Member community. We launched our beautiful new website mid-January with the help of our neighboring creative firm, Sagetopia. We hope the website easily directs nonprofit leaders to our free resources, our speaking engagements, our books and apps, and our consulting services. March 1, 2017 Succession Planning for [NOT] the CEO By Erin Gloeckner CEO succession planning arises as a strategic risk and key concern of nonprofit boards in many NRMC-led Risk Assessments. If you're looking for an article about CEO succession planning, this is not it. Instead, review our popular article, Avoid Transition Trauma with a Succession Plan. This article explores succession planning for nonprofit leaders other than the CEO. Eureka moments often occur during our consulting engagements when nonprofit teams realize the CEO is one of many individuals whose departure could cause 'transition trauma.' Read on for inspiration for establishing a non-CEO succession planning process. Why Succession Planning is NOT Defining a Successor While many organizations practice the literal form of succession planning--defining a successor or #2 person waiting in the wings--the NRMC team does not support this approach. This approach is problematic as many nonprofits are too small to have an internal pool of potential C-suite leaders or backups for any key positions. Plus, any nonprofit leader would be woefully naïve to believe that a talented, C-suite material staffer would wait around for her chance to take up the mantle as a key player on the team. And if your designated #2 departs for any reason, then the succession plan is suddenly kaput. Instead of defining actual successors for any key leadership roles, we believe that succession planning should be about the planning process and having an actual plan in place to help your organization effectively manage inevitable staff transitions. Using CEO succession planning as an example, the board is charged with establishing a succession plan that it will implement when the existing CEO is suddenly unavailable or announces her plan to leave. The succession plan should provide instructions--originally developed and approved by the board itself--that the board will now follow to conduct activities including: determining any shifting needs the nonprofit has for its incoming CEO, revamping and advertising the CEO job, filling the role temporarily with an internal or external candidate, vetting CEO candidates, hiring the selected candidate, and managing the transition and onboarding of the incoming CEO when the time is right. Now that we've cleared up what succession planning is and isn't, how can we apply this critical process to non-CEO roles? All Aboard the Succession Planning Train The aforementioned article, Avoid Transition Trauma with a Succession Plan,describes three preliminary steps to complete before beginning the succession planning process for any role. Conducting these three activities regularly will create a climate for effective succession planning at your nonprofit. Adopt and follow a performance review process for key leadership roles to empower your nonprofit team to continually assess and reshape leadership roles as the needs and priorities of the organization change over time. Keep position descriptions up-to-date for all key positions to ensure that day-to-day duties and overarching goals are fully understood, and are kept in an accurate, written record. Offer cross training and clarify back-up personnel for key activities completed by your team members to prepare your team for temporary succession solutions (e.g., in the event of an unplanned departure in which department staff must take on a department head's duties). If you're confident that the activities above are occurring at your organization, then you've laid the groundwork for managing leadership transitions. Now it's time to adopt an approach to succession planning. Depending on the size, complexity, and culture of your organization, your approach to non-CEO succession planning could be either formal or informal for certain roles. Generally speaking, succession planning for non-CEO roles will be far less formal than CEO succession planning, since there is no need to engage the board in planning for leadership transitions of other key staff. The NRMC team often recommends a collaborative succession planning approach, allowing the relevant departmental or functional teams to participate in the search and hiring process for their own staff colleagues and even department heads. Team-based hiring enables you to seek and select new hires based on the perspectives of your diverse team members, and team-based hiring also encourages the recruitment of new staff leaders who are truly welcomed and approved by many of their soon-to-be peers and direct reports. These benefits can cultivate feelings of positivity and ownership among staff while reducing stress associated with leadership transitions. If your HR team typically takes the lead on employee recruitment, then consider involving both HR and the department with open roles. Breaking down these silos will produce myriad benefits including gratification for HR staff whose employment practices expertise might be overshadowed by the work of programmatic staff, and an appropriate division of labor between HR and the initiating department, which promises to ease common recruitment pains that occur when these functions are out of sync (e.g., unrealistic expectations for personnel budgets and hiring/screening timelines, inaccurate position descriptions, ineffective onboarding that is either too general or is too role-specific, etc.). If an executive staff member is leaving your organization--whether planned or unplanned departure--we recommend that one or more leadership team members (e.g., other department heads, other C-suite leaders, etc.) collaborate with the departmental team of the departing executive (with the exiting executive participating if possible). A similar approach could be used when planning the transition of any staff member within a specific department. A leadership representative and the department team can collaborate to facilitate informal, candid team discussions about the nonprofit's near future and shifting personnel priorities, using questions like: ·         Is the staff member's position description up-to-date? Are there other critical responsibilities or personal qualities that the individual brought to our team, that are NOT listed in the position description? (If the answer is 'yes,' be sure to update the position description.) ·         What elements of the role should remain the same in the distant future? What elements need to change based on our internal and external environments and any opportunities or challenges that lie on our organization's horizon? ·         Are there any special considerations for the role based on other personnel gaps that exist within our department? Are there any other personnel gaps in our department that could potentially be filled or be partly filled by a single new hire? How might this type of role be structured or developed? ·         As we begin the search process, how will we support the departing staff member's role in the interim? What are the critical responsibilities that should be delegated to other members of our team for the time being? ·         Will the departing staff member personally be available to help onboard the new hire? If not, how will we capture and share the institutional knowledge needed to provide the new hire with a solid foundation during onboarding? If so, how can we ensure a positive and productive experience for both the exiting and incoming individuals? ·         As we identify candidates for the role, how do we foresee this transition occurring? What can we do now to ensure that a smooth, positive transition occurs? Are there any gaps we need to address in our screening/hiring processes or our onboarding/training programs? Whether it's your first foray into non-CEO succession planning, or you're a succession planning veteran just looking to revitalize your approach, your best bet is to rely on the intimate knowledge your own peers have of your organization. Leverage your team to cross-train each other and volunteer as backups, to manage staff transitions, and to seek out new colleagues who truly embody the spirit of your mission. Erin Gloeckner is the director of consulting services at the Nonprofit Risk Management Center. Erin invites you to say hello or share your thoughts about succession planning at Erin@nonprofitrisk.org or 703.777.3504. Nonprofit Risk Management Center, 703.777.3504, 204 South King Street, Leesburg, VA 20175

Inspiration, Not Perspiration: Risk Reporting and the Board - RISK eNews

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A SOURCE for Tools, Advice, and Training to control risks… so you can focus on your nonprofit’s mission.
March 11, 2015 Inspiration, Not Perspiration: Risk Reporting and the Board By Melanie Lockwood Herman Today’s nonprofit board cares deeply about the risks facing the organization. A Board wants to know that its executive director and leadership team have thoughtfully considered the risks that threaten the mission and objectives of the organization. Boards also want assurance that the executive team has developed plans to keep the nonprofit’s home fires burning, even if the primary fuel supply runs out. Pair the board’s interest in risk with the commitment of diligent nonprofit CEOs who want to be valued and trusted partners in the eyes of their boards. Given the mutual interests, risk reporting mechanisms are essential but can sometimes strain the relationship between board members and a CEO. Where’s the line between providing a report that inspires board leadership and informed decision-making, and sharing information that leads the board to break out in a collective sweat? When a CEO sees board members wiping perspiration from their brows, it probably isn’t a good time to ask for a raise or extra time off. Let’s take a look at a few risk reporting mishaps that cause board members to sweat and swelter: ·         Hiding a critical risk event within an otherwise bland staff report and hoping the board doesn’t notice. ·         Attributing a significant increase in property and casualty premiums to “market conditions.” ·         Allowing the board to find out about a crisis event facing the nonprofit by hearing a story on the local TV or radio station. ·         Telling the board that the combination of tort cap statutes, insurance coverage and your great reputation are an effective, triple-layered defense against lawsuits. ·         Telling the board to stop worrying about risk and trust you, because you’ve got everything under control. Instead of making risk the ‘bad guy,’ practice thoughtful risk reporting to inform and stimulate your board. What are the keys to inspiring the board when you report on risk? ·         Never present a risk analysis to the board unless you’ve stress-tested it by seeking the views of diverse stakeholders. Anecdotal fears and tenuous risk concerns can be blown out of proportion when they’re brought to the board table for discussion. ·         Create a diagram that helps you tell the story of risk. At the YMCA of Greater Toronto, VP of Risk Intelligence Monica Merrifield uses a “risk radar” diagram to differentiate between close-at-hand concerns, and risks perceived to be on the horizon. She uses the same diagram to distinguish between risks that are well understood, and those for which only partial data or intelligence is available. ·         Avoid vague statements masquerading as assurance. Choose clearly worded descriptions of changing policies and other mitigations. In his Risk Report to the Con Edison Board, Director of ERM Richard Muzikar presents a straightforward narrative that captures not only an assessment of the risk he’s reporting on, but also shares:  o    the outcome of board dialogue on the risks presented o    capital and operating expenditures related to the risks o    risk mitigation work to date and scores that convey mitigation effectiveness o    additional short-term and long-term mitigation strategies ·         Make the connection; don’t leave the Board hanging. A great number of nonprofits are trying hard to elevate their risk management programs to encompass the review and treatment of enterprise risks. Yet many organizations are ramping up risk management without getting close to the true purpose of enterprise risk management. At TSSA, ERM leader Michelle Williamson ensures that risk presentations are linked to the key strategies and objectives in the adopted strategic plan. Nonprofit CEOs who frequently cause members of the board to break into a collective sweat can expect a similar feeling when it comes time for the CEO performance review. No leader wants to be caught off guard or feel helpless. Yet no nonprofit can avoid the occasional surprise—some of them wonderfully mission-advancing, and others potentially mission-destroying. By avoiding the missteps described above and paying close attention to the “must do” items, you’ll be in the best position to deliver tough news to your board—accompanied by thoughtful strategies and solutions. Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center and the principal author of the Center’s new book: Exposed: A Legal Field Guide for Nonprofit Executives-2nd Edition. To inquire about the Affiliate Member program or Melanie’s availability to deliver a keynote or workshop, contact Kay Nakamura at 703.777.3504 or Kay@nonprofitrisk.org.	NEW RESOURCES Put your legal fears to rest, order Exposed, today! 2014 / 234 pages Member price: $27 Non-member price: $30 Screen with confidence and safety, order the Notebook, today! 2014 / 102 Pages Member price: $18 Non-member price: $20
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May I Help You? RISK eNews

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A SOURCE for Tools, Advice, and Training to control risks… so you can focus on your nonprofit’s mission.
January 15, 2015 May I Help You?  By Melanie Lockwood Herman Last week I was among the weary passengers on board a flight stranded at Chicago’s O’Hare Airport. After our delayed flight from sunny California landed around 8:30 pm, the pilot brought our plane to a ‘complete stop’ about 200 feet from the terminal. We remained parked there for 90 minutes due to the lack of an open gate. One by one, we watched helplessly as connecting flights completed boarding and taxied to the snowy runway. The experience was frustrating but also a bit surprising. The surprising part was the reaction of my fellow passengers. Instead of becoming visibly angry, impatient and emotional, everyone around me remained calm and dare I say, jovial. Not what I was expecting at the late hour and under the circumstances! I attribute the mood on board to one thing: excellent customer service. The flight attendants were thoughtful, professional and clearly concerned. Instead of hiding in the galley to avoid the brunt of unhappy passengers, they walked up and down the aisle to engage in conversation with customers, even offering post-landing beverages to anyone who was thirsty. The pilot provided frequent updates and apologized. If you think about the fundamental purpose of risk management—to inspire confidence on the part of an organization’s stakeholders—risk management and great customer service go hand in hand. Remember that the customer service professionals of any organization, including a nonprofit, play offense and defense. They offer support to back up the promises associated with the nonprofit’s products and services, and they serve as the first point of contact with happy as well as disgruntled clients. Yet too often there is a distance between the risk management function and the customer service team in an organization. There shouldn’t be. Reposition Risk Perhaps it’s time to rethink the risk function in your organization to ensure that is grounded in the principles of excellent customer service, such as: ·         Your staff members are the organization: Your employees’ actions and reputations are directly linked to that of your nonprofit. If your employees provide great customer service, that is what your nonprofit will be remembered for (and vice versa). Think about a time you had a positive or negative customer service experience—maybe while shopping, trying to get a broken machine fixed or replaced, or while on board a delayed flight. Your interaction with a single customer service associate can lead you to harbor strong feelings about an organization or brand, like “I’ll never go back to that store again!” ·         Employee satisfaction matters: Research shows that employee satisfaction leads to high performance, including customer service. Don’t assume you know what’s best for your staff or what they want or need. Ask them what they value and find ways to deliver the kind of workplace and workplace culture your staff will boast about. ·         Your nonprofit has both internal and external customers: We focus heavily on pleasing our external stakeholders, which means that important internal stakeholders get pushed aside. Since employee and customer satisfaction are linked, it’s essential that you provide the same level of care to your employees that you ask them to provide to your clients, consumers, service recipients, members and donors. ·         Customer service comes first: At the Center, our motto is that anyone can be trained to be an effective risk champion as long as they have the fundamental skills necessary to support the job. The same approach is embraced by Apple’s retail stores. While ‘auditioning’ for the position of sales associate, candidates are rarely asked about their technical skills or their knowledge of Apple products. Instead, they are asked behavioral questions, like how they would respond to challenging customer service scenarios. Apple, a hugely successful company, insists that customer service is key—and that value has made a huge impact on the company’s culture, customer loyalty and bottom-line. At the Center, we rarely identify customer service as a critical element of risk management. But now we recognize that this oft forgotten component can influence the effectiveness of the risk management function as much as—or more than—headline issues like catastrophic losses, loss ratios and the like. As we move forward into the New Year, remind employees with risk responsibility that great customer service is job #1 in their area as well. Likewise, remind yourself to ask your direct reports, superiors, and the colleagues you interact with every day, “May I help you?” Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center and the principal author of the Center’s new book: Exposed: A Legal Field Guide for Nonprofit Executives-2nd Edition. To inquire about bulk orders of Exposed or Melanie’s availability for a speaking engagement, contact Kay Nakamura at 703.777.3504 or Kay@nonprofitrisk.org.	NEW RESOURCES Put your legal fears to rest, order Exposed, today! 2014 / 234 pages Member price: $27 Non-member price: $30 Screen with confidence and safety, order the Notebook, today! 2014 / 102 Pages Member price: $18 Non-member price: $20
Pass it On! If you enjoy reading the Center’s Risk eNews and know others who would as well, please use the Forward email link that appears at the bottom of this issue. The link offers an easy way to share this issue with a colleague. When you use the link your colleague will receive an invitation to subscribe.
© 2015 Nonprofit Risk Management Center

Forward email This email was sent to amarietta@nycon.org by melanie@nonprofitrisk.org |   Update Profile/Email Address | Rapid removal with SafeUnsubscribe™ | Privacy Policy. Nonprofit Risk Management Center | 204 South King Street | Leesburg | VA | 20175