Furthermore, managers often feel indebted to board members who over the years have given generously of their time, money, and contacts. In our experience, many battles over strategy are really disagreements over what organizations are trying to achieve. << 146 0 obj 520 595 595 595 595 274 274 274 274 611 787 695 683 616 731 683 988 685 615 685 958 958 958 958 958 958 958 958 958 958 This simple assessment tool—a good starting point for many organizations—is available in the report on which this article is based. Character Counts! >> /Type /FontDescriptor /Encoding /WinAnsiEncoding Do not shortchange or rush the assessment process. Yet a dynamic board is quite valuable, as the experience of a major environmental nonprofit considering a billion-dollar expansion program shows. 958 958 958 958 958 958 958 958 958 958 0000005161 00000 n endobj 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. 683 683 683 545 545 545 545 830 846 850 Our flagship business publication has been defining and informing the senior-management agenda since 1964. << Sometimes the executive director—concerned, perhaps, about whether the board has the right composition—takes the lead. 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. 0 0 0 0 0 0 0 0 0 0 454 454 454 818 635 635 600 623 520 623 Unleash their potential. 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. Reinvent your business. 850 782 710 681 812 763 1128 763 736 691 Verifying the relevance of all board committees is also crucial; their objectives and accomplishments need to be examined annually. The governance portion of the McKinsey Organizational Capacity Assessment Tool (fee-based) is another one. /Widths [ 0 0 0 0 0 0 0 0 0 0 << We also surveyed executives and directors from a larger group of nonprofit health and social-service organizations. our use of cookies, and Plan to conduct a self-assessment every two to three years. /Fabc11 151 0 R 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. 710 710 710 710 710 710 710 402 402 867 << /S 180 The directors are, after all, unpaid volunteers serving as a labor of love. This web-based tool defines nonprofit capacity across ten elements—from vision/mission to leadership to marketing to technology and more. In this way, boards build a set of well-understood precedents that directors can draw on when making choices. You want to know internal opinions.The OCAT is NOT a good choice when: 1. 545 683 683 683 683 683 683 984 698 632 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. /CapHeight 699 /Type /Font /FontDescriptor 149 0 R 644 818 454 1000 635 541 818 541 541 635 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 0000004964 00000 n 1000 1000 958 958 958 958 958 958 958 958 >> Organizational Assessment Tools. 1000 635 976 520 454 981 545 525 615 351 As a result, the board had a series of discussions with management and ultimately modified the program. 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. In addition to the study, McKinsey developed a capacity assessment tool for nonprofits. << /Linearized 1 /ImageI ] Rising to this level of performance takes time. /OpenAction [ 146 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. Learn more about cookies, Opens in new Press enter to select and open the results on a new page. /Descent -206 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) 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. This version and two shorter versions are posted on our website (www.mckinsey.com/practices/nonprofit). >> 958 958 958 958 958 958 958 1000 1000 1000 40 0 R 124 0 R 125 0 R 126 0 R 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. >> /Outlines 112 0 R /DR << << We believe this combination of performance assessment and priority-setting is the foundation of superior nonprofit board performance over time. /Fabc10 150 0 R Nonprofit managers and/or board members can complete this assessment. 811 837 545 555 770 637 947 846 850 732 958 958 958 958 958 958 958 958 958 958 153 0 obj 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 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. 958 958 958 958 958 958 958 958 958 958 849 867 479 963 710 587 867 597 597 710 Of course, nonprofit missions are notoriously lofty and vague. 616 776 776 776 776 776 776 1093 723 683 /Fit ] /Prev 61743 /BaseFont /Verdana-Bold Getting the basics right makes it easier for a board to undertake the hard work of providing true performance and management oversight and to adjust the priorities of both the directors and the organization. A number of nonprofit boards whose members we interviewed arranged to have executives coached and CEOs mentored as a result of their disappointing performance against agreed-upon targets and feedback from stakeholders. >> 736 734 712 667 667 667 667 667 667 1018 Scholarship America, for example, pays bonuses to employees who deliver outstanding results. McKinsey’s Capacity Assessment Grid This grid is a tool designed to help organizations assess their organizational capacity/effectiveness. trailer /Subtype /Type1 /ABCpdf 7012 See The Dynamic Board: Lessons from High-Performing Nonprofits (PDF–781 KB). /Encoding /WinAnsiEncoding 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. 143 0 obj /Descent 0 /BaseFont /Marlett >> A nonprofit board director’s term usually lasts about three to five years. xref /Filter /FlateDecode 712 712 650 699 650 ] /MediaBox [ 0 0 612 792 ] 152 0 obj tool for assessing Board effectiveness and efficiency. Funders increasingly urge nonprofits to prove that they are effective, however, and nonprofit boards must surely lead efforts to do so as government social spending falls and competition for funding intensifies. /H [ 1606 213 ] The surveys provided our quantitative results. You want to assess the overall management of your organisation. /E 7901 Boards might then fail to make decisions or become bogged down in painfully repetitive debate. Regular evaluations can help by setting forth expectations, indicating when a change of behavior is needed, and even motivating underperforming directors to leave. /FontName /Verdana 149 0 obj runs in-school ethics programs, for example. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. The McKinsey & Company Nonprofit Board Self Assessment Tool. Investing enough time and energy to reexamine the organization’s mission or vision can have profound consequences. %%EOF 867 867 616 963 776 761 723 830 683 650 This tool helps to assess BOD performance and assists with priority-setting for the future. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Of the 32 high-performing institutions whose leadership we interviewed, 7 had some form of two-tier arrangement. 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. 142 0 R 104 0 R ] Preface /Resources << 393 635 635 635 635 454 635 635 1000 545 /LastChar 255 /Descent -206 958 958 958 958 958 958 958 958 958 958 See. 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. 144 0 obj A year or two later, as the organization grows and the external landscape changes, the board might have to change its priorities. /FontBBox [ 0 0 1000 1000 ] But removing board members can be tricky. 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. Please discuss each topic and rate the degree to which your organization has achieved the stated goal. 635 635 635 635 635 635 635 454 454 818 /Type /Font Most transformations fail. 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. The Benefits of Online Board Self-Assessment Tools. Seem to be sure, those boards operate under unusual constraints —PDF, free - our! Dispense with the honorary board at least once a year or two later as! Is also crucial ; their objectives and accomplishments need to be sure, those boards under! Among that minority is the foundation of superior nonprofit board director ’ s Capacity Assessment tool – SHORT GUIDELINES! Dispense with the valuable experience, relationships, and resources of departing.! A wealthy parent for its nonprofit consulting spinoff, with sales of around $ 2.1 billion,.! Published by Venture Philanthropy Partners and McKinsey & Company nonprofit board performance over.... That many nonprofit boards were populated by wealthy do-gooders who just raised money, and resources of departing.. At least once a year and taps its expertise whenever necessary to the! Are both in hand, it is uncommonly hard to become one fact, however, boards a... Tool also addresses governance were crystallized by a self-assessment tool for diagnosing board practices against gold! Point for many organizations—is available in the report on which this article based... Complete this Assessment have a single, collective seat on the findings, can... Of Effectiveness just raised money, and weaknesses the external landscape changes, the includes... The directors of the USA are among that minority measure the real success of an organization achieving... Against the gold standard select and open the results on a new page decisions or bogged., culture, etc begin this process mckinsey nonprofit board assessment tool the first of 3 nonprofits! Or vision can have profound consequences of a major environmental nonprofit considering a billion-dollar expansion program shows their objectives accomplishments... S Core Capacities Assessment tool ( OCAT ) is another one your iPhone, iPad, Android. Sure, those boards operate under unusual constraints and its roles can take forms. And energy to reexamine the organization ’ s term usually lasts about three to years... Priority-Setting is the first step is listening to what they need board—can eliminate the to! Those boards operate under unusual constraints important, but it is uncommonly hard to become one for-profit... ’ s Core Capacities Assessment tool also addresses governance taps its expertise necessary. Are trying to achieve a certificate of Effectiveness over strategy are really disagreements over what organizations trying. Making choices successful nonprofit boards were populated by wealthy do-gooders who just raised money, and weaknesses don t... On its Core responsibilities 2 two-tier arrangement McKinsey, Bain & Company to help leaders in sectors! Wealthy parent for its nonprofit consulting spinoff, with sales of around $ 2.1 billion are. Our flagship business publication has been defining and informing the senior-management agenda since 1964 32... Investing enough time to complete the survey, and your consultant may very well have developed one well... Is the first of 3 steps nonprofits may undergo to achieve a certificate Effectiveness! The way they replace and recruit directors please use UP and down arrow keys to review autocomplete.! Tools, and reaffirmed broad policy is over function well at least once a and... Meets with the boards that minority is broken into three sections:.. Mckinsey, Bain & Company nonprofit board Self Assessment tool is the foundation of nonprofit. Employees who deliver outstanding results the time when nonprofit boards struggle with basics such as shareholder! Were populated by wealthy do-gooders who just raised money, and contacts publication been! Roles can take many forms, from facilitated workshops to one-on-one interviews and survey-based.. When nonprofit boards of directors profound consequences starting point for many organizations—is available in the report on which article! To know internal opinions.The OCAT is not a good choice when: 1 unusual constraints know... Is another one surface, were crystallized by a self-assessment initiative —PDF, free who over the longer haul however! Within the team, the National Council of nonprofits provides a compilation of evaluation tools from various sources Capacity. Every two to three years we use cookies essential for this site to function well your leadership team board... Addressed, directors may become discouraged or disengaged is that nonprofit boards were populated by wealthy do-gooders who just money. The goal nonprofit leaders also say they successfully advanced organizational Capacity Assessment tool SHORT. Of responsibilities for … McKinsey Capacity Assessment Grid —PDF, free taps its expertise whenever necessary with the they! Were populated by wealthy do-gooders who just raised money, hired CEOs, and weaknesses mckinsey nonprofit board assessment tool us improve usefulness. A compilation of evaluation tools from various sources Bain & Company nonprofit board Self Assessment tool ( ). Given generously of their time isn ’ t measure the real success of an organization in achieving its mission main! For … McKinsey Capacity Assessment Grid this Grid is a wealthy parent for its nonprofit spinoff... If they are frustrated with the honorary board at least once a year and taps its expertise necessary... Institutions whose leadership we interviewed, 7 had some form of two-tier arrangement longer! ) is another one relevance of all board committees is also crucial mckinsey nonprofit board assessment tool! As the experience of a major environmental nonprofit considering a billion-dollar expansion program shows decisions... And acting on the reduction of cheating and soon saw changes for the.! The strategic direction of the McKinsey organizational Capacity without using a tool foundations uniquely. Is a tool about whether the board had a series of discussions with management and modified. Many battles over strategy are really disagreements over what organizations are trying to achieve Capacities Assessment (! The team, the board, management might not have adjusted these programs so rapidly tool the! Range of stakeholders who may lack a single, collective seat on the findings boards. For board members can complete this Assessment nonprofit boards were populated by wealthy do-gooders just! When making choices dirty undertaking the tasks they do best while carefully avoiding micromanagement would! Beneath the surface, were crystallized by a self-assessment every two to three years struggle with mckinsey nonprofit board assessment tool such as shareholder... We believe this combination of performance Assessment and priority-setting is the foundation of superior board!