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What’s Research Got to Do with It?

What’s Research Got to Do with It?

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What’s Research Got to Do with It?

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  1. What’s Research Got to Do with It? Katherine Mandusic Finley, CAE, CFRE ISAE Annual Convention July 16, 2003

  2. Types of Research • Applied or internal – done by association or done for a specific association • Academic – done by professional researcher examining issues related to all associations or nonprofits

  3. Benefits of Applied Research • Provides an association with information about its members’ needs and wants • Helps an association design effective programs and services • Helps an association provide assessment of marketplace trends • Provides an assessment of image • Limited use beyond one association

  4. Benefits of Academic Research • Many academic centers, universities, and students studying this area • Not all of this research is useful, but… • Some research can give credence to various theories of leadership and governance • Can provide insight into various problems so we can better manage our association

  5. Benefits of Academic Research • Contributes to better understanding of a particular topic • Can help an association institute a program or form of governance • Gives the entire field credence

  6. What is Being Studied? • In one word – EVERYTHING! • 460 papers at one conference alone • Over 245 programs in nonprofit management (either degree or certificate) • Numerous “think tanks” devoted exclusively to this • Doctoral program in association mgt.

  7. Sampling of Research

  8. Effectiveness of Board Training or Development Programs • Study by Thomas P. Holland and Douglas K. Jackson of University of Ga. • Study of 10 boards that had three-year developmental programs • Identified these board competencies: contextual, interpersonal, analytical and strategic • Boards that employed developmental training improved effectiveness significantly

  9. Effectiveness of Board Training or Development Programs, cont. • Competencies that improved most were ones specifically targeted for attention • Boards will not change if change is imposed; must want to develop • Board development has to be considered a long-term investment

  10. Why Do Nonprofits Fail? • Study by Mark Hager, Urban Institute: Wolfgang Bielefeld, IU; and Joe Galaskiewicz, University of Arizona • Studied Minneapolis area from 1984-94 to see why nonprofits failed • Found that size and age related to organizational survival. The older, larger and more established organizations were more likely to survive

  11. Why Do Nonprofits Fail, cont. • Reasons for closure were: organization too small; too young; instability (personnel loss or goal changes); lack of managerial acumen (financial difficulties, personnel capabilities, conflict among staff, power struggles on board, unclear mission); and success (mission completed)

  12. Why Do Nonprofits Fail, cont. • Under managerial acumen, financial difficulties and personnel loss were major reasons for closing • Some closed because executive director died or left; founder left or died

  13. Effectiveness of the Carver Governance Model • Study by Patricia Dautel Nobbie, University of Georgia • Carver model – board drives organization through policies related to ends, executive limitations, and governance policies • CEO allowed to advance ends without violating means

  14. Effectiveness of the Carver Governance Model, cont. • Data collected from 234 board members of 32 organizations using model; control groups of those not using any model and those using another model • Those studied were those that totally implemented and understood model • Study found that perception by board was that they did operate more effectively

  15. Effectiveness of the Carver Governance Model • However, there was no evidence to support that performance is actually higher under this model as compared to other models • The effectiveness really depends on training of board members and length of using the model

  16. How Well Do Boards Approach Executive Transitions? • 1998 a study conducted by CompassPointe in San Francisco Bay area. • Looked at 28 organizations • Executive directors in 501-c-3 stayed three years; most first-timers (Leadership Lost study)

  17. How Well Do Boards Approach Executive Transitions, cont. • Study found that boards underestimate risk of bad hires • Also, boards are woefully unprepared for task • Moreover, board does not use transition as an opportunity

  18. “Weird Management” Techniques that Work • Robert Sutton of Stanford University, School of Business and Engineering • Research on what techniques spark innovation within organizations and companies • Wrote book outlining 11 ½ techniques that work in companies; found three work in nonprofit setting

  19. “Weird Management” Techniques that Work, cont. • Hire people who make you uncomfortable. Seek competent people with different beliefs and skills. This tends to spark innovation • Find happy people and get them to fight. Conflict over ideas is good, especially in creative organizations. Study showed that when fighting over conflicting ideas, employees provoked to weave ideas together to come up with best idea

  20. “Weird Management” Techniques that Work, cont. • Reward success and failure, punish inaction. Study found that you cannot generate good ideas without bad ones. Reward smart failures not dumb ones.

  21. Is a Merit Pay System Always Good? • Study by John R. Deckop, Temple University and Carol C. Cirka, Urisinus College • Study of a private northeastern college that is religiously affiliated • 126 responses to questionnaire • Implemented a merit pay system in mission-based organization

  22. Is a Merit Pay System Always Good?, cont. • Study found that implementing a merit pay system in a mission-based organization can cause a decline in intrinsic motivation • Plan to implement this must be communicated • If organization cannot continue merit pay increases, this poses a danger to organization

  23. Are Nonprofit Organizations Ready for Downsizing? • Study by Russ Cargo and Deborah Barfield of Nonprofit Enterprise Institute at Virginia Commonwealth University • Study found nonprofits unprepared for downsizing • Nonprofits need strategy to address structure (staffing), communications and to assist affected employees • Nonprofits particularly lack legal knowledge to make right decisions

  24. Is There a Tie Between Strategy and Financial Performance? • Study by William Crittendon of Northeastern University; study done over three-year time period of 31 organizations • There is a definite correlation between success of organizations and degree to which they engage in strategic planning • There is a definite correlation between success of organization and those that have financial orientation

  25. Is There a Tie Between Strategy and Financial Performance?, cont. • There is a correlation between success of organization and degree to which organization has a marketing orientation • Unsuccessful organizations are basically unfocused

  26. Do Organizations Engaged in Formal Strategic Planning Perform Better than Others? • Study by Julie I. Siciliano of Western New England College in Springfield, MA • Based on 240 questionnaires from YMCAs and 66 telephone interviews • Factors identified with more formal strategic planning – strategic planning committee of board takes responsibility, use of consultants and financial performance

  27. Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?, cont. • Findings: The more formal the strategic planning process, the higher the organization’s performance • In particular, activity of setting goals, objectives, action plans and monitoring linked to better performance • Formalizing analysis of environmental trends associated with better social performance

  28. Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?, cont. • Formalizing competitive analysis was associated with better financial performance • Development of a unique mission statement was not associated with any performance measure • Less formal strategic planning done when an executive committee involved rather than a strategic planning committee

  29. Do Organizations Engaged in Formal Strategic Planning Perform Better than Others?, cont. • No evidence that use of outside consultant resulted in more formal planning process • More financially stable organizations are more likely to engage in formal process, rather than those in financial crisis who need planning the most

  30. Philanthropy - 2002 • American Association of Fund Raising Counsel (AAFRC) prepares Giving USA each year • Giving is at record $240.9 billion, an increase of 1 percent. Adjusted for inflation, this represents a decrease of .5 percent • Giving by individuals increased slightly • Bequests increased to $18.1 billion • Giving by foundations decreased • Giving by corporations increased

  31. Philanthropy – 2002, cont. • Most giving comes from individuals (76.3%), foundations (11.2%), and corporations (5.1%) • Most giving goes to religion (35%), followed by education (13.1%), foundations (9.1%), health (7.8%) and human services (7.7%) • Environmental/animal rights, arts & culture and public-society-benefit get least

  32. New Studies • Executive transitions in associations (Union Institute Doctoral Program) • Diversity in associations (Union Institute Doctoral Program) • Best practices for small associations (Union Institute Doctoral Program) • Volunteers – the cost of hiring – UPS Foundation and Urban Institute • Indiana nonprofit database study (all nonprofits, economic impact – mapping the sector; IU study) • MORE

  33. Social Science Innovation Review (Stanford University) The Nonprofit Quarterly (Third Sector New England) ARNOVA News, E-News and abstract database Snapshots, Aspen Institute Nonprofit Management & Leadership Center for Association Leadership – launching a new journal Chronicle of Philanthropy NonProfit Times Philanthropy (AFP) Nonprofit World Board Member (BoardSource) Voluntas Nonprofit and Voluntary Sector Quarterly Journals and Magazines with Latest Research

  34. William B. Werther, Jr and Evan M. Berman, Third Sector Management: The Art of Managing Nonprofit Organizations (Georgetown Univ. Press, 2001) Robert B. Denhardt, Janet Vinzant Denhardt, and Maria P. Aristigueta, Managing Human Behavior in Nonprofit Organizations (Sage Publications, 2002) Ronald A. Landskroner, The Nonprofit Manager’s Resource Directory, 2nd ed. (John Wiley & Sons, 2002) Paul C. Light, Pathways to Nonprofit Excellence (Brookings Institution, 2002) Byron L. Tweeten, Transformational Boards (Jossey Bass, 2002) New Books

  35. Lester M. Salamon, The Resilient Sector: The State of Nonprofit America (Brookings Institution, 2002) Bruce R. Hopkins, The Law of Intermediate Sanctions (John Wiley & Sons, 2003) Michael O’Nell, Nonprofit Nation: A New Look at the Third America (Jossey Bass, 2002) John Carver, John Carver on Board Leadership (Jossey-Bass, 2002) Robert I. Sutton, Weird Ideas That Work (Free Press, 2002) Peter Frumkin, On Being Nonprofit: A Conceptual and Policy Primer (Harvard, 2002) New Books, cont.

  36. AFP Research Council Center on Philanthropy at IU Aspen Institute Urban Institute Brookings Institution BoardSource Institute for Nonprofit Organization Management, San Francisco Center for Association Leadership ASAE Independent Sector Amherst Wilder Foundation Mandel Center Hauser Center for Nonprofit Organizations, Harvard Research-Related Organizations

  37. Mandel Center for Nonprofit Organizations ARNOVA International Society for Third-Sector Research National Alliance for Nonprofit Management National Center on Nonprofit Management Academy of Management Research-Related Organizations, Cont.

  38. THANK YOU! Any questions?