Nonprofit Cultural Afflictions that Stop True Social Innovation in Its Tracks: Founderitis Part III

Hey, social change agents!

We've explored the definition of Founderitis, its symptoms, and treatments. Like other diseases of the body, this cultural affliction is much better prevented in the first place. Today will be a deep dive into how to set yourself and your social enterprise up for success by avoiding Founderitis with my favorite thing: systems!

A fish rots from the head. - quote of unknown origin

I'm 98% sure this quote is biologically incorrect, but it helps make my point that prevention of Founderitis and its devastating effects has to come from the top - the Board of Directors/Trustees. They can either be the beginning of a social revolution or the beginning of the end.

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Culture Bootcamp is a Thing.

CONTINUOUS LEARNING Organizational culture can be optimized and nurtured through the board's understanding and acceptance of accountability measures. Some measures are required by nonprofit law such as conflict of interest policies and avoidance of operating for private benefit (though there isn't much oversight. See 7 Reasons Why Nonprofits Are A Hot Mess Part I). Social enterprises who are incorporated as for-profits should also be aware of conflict of interest policies and periodically assess private benefit to ensure that both bottom lines are being served.

In the words of President Obama, Let Me Be Clear

Other measures are more about good governance in general such as organization-wide succession planning policies and keeping up to date on social mission subject area expertise. Succession planning is the process of identifying internal candidates for leadership. Wikipedia provides a more in-depth definition: " Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available...Effective succession or talent-pool management concerns itself with building a series of feeder groups up and down the entire leadership pipeline or progression (Charan, Drotter, Noel, 2001)." The systems of continuous learning and professional development I mentioned in Part II are a crucial step in succession planning. This applies to both employees and board officers. When skills for high-level positions in the organization and on the board are cultivated in multiple individuals, clear succession pathways emerge, and no one person decides the future of the organization. Similarly, when everyone in the organization is encouraged to learn more about the social challenge at hand, group collaboration around problem-solving can democratize influence and lead to more comprehensive solutions. This is especially important in a for-profit social enterprise balancing both bottom lines. CONFLICT WITH PURPOSE I noted in Why Nonprofits Need Business Plans and Revenue Models More Than For-Profits Part II that the scale of social issues are so much larger and more complex than anything existing exclusively in the market. As such, group dynamics become essential in maintaining mission and core values alignment throughout both large and small decision-making processes.

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Groupthink, defined by Merriam-Webster as "A pattern of thought characterized by self-deception, forced manufacture of consent, and conformity to group values and ethics," has no place in social change. The complexity of the challenge requires complexity in the solution, so disagreements are not only likely to happen, but they are required to happen. Conflict with the purpose of furthering the mission can be tiring and even intimidating, but social change agents have to be ready to be temporarily uncomfortable to make decisions that yield lasting innovation.

Yes, Board Members Have Job Descriptions Too.

Because safeguarding the mission and articulating the vision IS a job. Board member job descriptions, like any other job description, clearly define what they are required to do to move the organization forward. That means not only voting on new members, but reaching into their own networks to grow the organization's influence and recruit mission-aligned (and crucially, core values-aligned) fellow change agents. They should conduct self-assessments that take into account their financial, relationship investments, and time investments. Most importantly, they should review the founder's performance objectively without the founder being present.

It Takes a Village To Govern.

With all of the pressure on board to steward the organization's mission and the public trust (rightfully so!), they should have their own network of advisors to help with hard processes like Founder or CEO compensation and evaluation. This is where the Board Advisory Committee comes in. This committee should consisted of third-party (non-founder and non-board member closely related) individuals with expertise areas vital to the organization's operations like finance, organizational communication (culture), human resources, fundraising (or sales), program evaluation, mission, legal, auditing, marketing, and anything else the board might need to help them form policies to govern the organization. To guard against disproportionate power by the Founder or any specific board member, these committee members could serve as non-board member on board committees such as Nominating and Governance, Audit and Finance, Development, Marketing, etc.

Blog Ending

As with treatment, prevention of Founderitis requires systems and cultural awareness. By employing both treatment and prevention strategies, nonprofits and social enterprises can create a network of checks and balances that ensures the organization stays laser focused on the mission and objectives that further that mission. Great ideas can die without great implementation. That's why Collaborative Philanthropy Consulting specializes in business and revenue models, online communities, and (as highlighted in this post) governance for sustainability. If you'd like superior implementation in building a strong board, send me a message at kat@katbloomfield.com.

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