Mythbusters: Non-Profit vs. For Profit

How often have you heard: “but it’s only a non-profit”? This phrase might be followed by such statements as “we can’t expect the financial statements to be in business format” or “the board members are volunteers so we can’t demand too much of them”. Although it may seem through experience that these are reasonable things to say and think, if the organization is duly registered or incorporated with a government agency (regardless of whether it is a non-profit or for-profit entity), it is subject to essentially the same laws! The organization must have a board of directors, who serves the deemed owners (community) and/or the legal owners (members, shareholders); it must follow the laws of the land; and it must submit annual reports to the government. Yes, the details of duties and reporting differ, but generally speaking they are the same.
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Evaluating the CEO

Consistent, excellent performance is usually achieved by setting clear goals and expectations, monitoring progress towards them, repeating effective behaviors, stopping ineffective behaviors, and starting preferred behaviors. Great self-leaders hold themselves accountable to this top performance process. Unfortunately many boards assume that their CEOs are excellent self-leaders and abdicate their responsibility to hold the CEO accountable for organizational results.
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Board Succession Planning – Recruiting for Excellence

Board members serve an important role in ensuring that their successors are well equipped to lead the organization. They can fulfill this role by articulating the board’s job description, identifying the skill sets required by board members, identifying individuals that have the potential to be effective, and sharing key information with those who select board members so they can make wise decisions.
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Understanding the Diversity of Board Member Personalities

Although we know the value of diverse perspectives around the board table, sometimes the challenges such diversity presents cause us to wish for the calm of working with a homogeneous team. One tool that can enhance our understanding of diversity and help us appreciate its value is personality assessment.

Whether a board uses the Myers Briggs Type Indicator® (MBTI®), DiSC®, True Colors™, Kolbe A™, or yet another tool, board members gain insight into how their preferred approach to such things as gathering information, making decisions, and interacting with people impacts others. They also learn how their colleagues tick, gaining helpful insights into the sources of harmony and frustration among board members.
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