February, 2006 -by Peter C. Brinckerhoff

This Month's topic: Accountability


TO SUBSCRIBE: If you are not regularly receiving the MBM Newsletter, simply send an email to subscribe@missionbased.com. You will be added to our mailing list and begin receiving your own copy next month.

Anti-spam promise: Your email address will not be sold, lent, or passed on to any other person or organization. In addition, I don't use Microsoft Outlook or Outlook Express for my mail server, so if a worm ever gets into my computers, it won't steal your address!

TO UNSUBSCRIBE: If you no longer wish to receive this newsletter, send an email to unsubscribe@missionbased.com and you will be promptly removed from the mailing list.

This Month's Topic: Accountability
Each month, this area provides with a number of my favorite and most helpful sites regarding the topic of the month.

Management Tip of the Month

Each issue, I start with a discussion of my management perspective on the month's topic, and give you a few hands-on ideas to consider.

Recommended Publications

Here, I provide you with my recommendations on the  materials available that can help you become more mission-capable in the area of accountability.

Technology

I provide you with some good ideas for uses of tech to better your organization in the area of accountability.

Marketing Tip

So much to say, so little space to say it.....

Next Issue

In March, we'll examine an issue that is very timely:  Ethics and Management. How can you be deal with this dicey issue? We'll take a look


Websites of the Month

Here are my recommendations for websites of interest on this month's topic,  Nonprofit Accountability...

www.missionbased.com/management_links.htm The section of my website that deals with standards....
www.guidestar.org/news/features/public_confidence.jsp Great article from Guidestar on why accountability and transparency is so crucial
www.richmondfed.org/community_affairs/nonprofit.cfm An interesting view from the Federal Reserve Band of Richmond...who knew they cared?
http://www.give.org/standards/newcbbbstds.asp The Better Business Bureau Guide to Better Accountability
http://www.qual990.org/np_account.html  Interesting paper on improving 990 Reporting

Back to Top


Management Tip of the Month
Accountability
I'm not quite sure how to have a short discussion of accountability....and that concern was on my mind when I scheduled this topic. Ten years ago, accountability basically meant reporting to your board, getting an audit, and getting started on developing outcome measures. Now? A whole lot more is included in the topic, and a whole lot more is riding on your response to the issue. Without taking up your entire day, let's go through the key things you need to do.

Focus on transparency. More information to more people, more openly, more regularly, in more detail. This should be internal (sharing more information with your staff and volunteers) and external (see the set of things to post on your website in the Tech Tip below). But overall, the idea means to be open to review, questions, inquiry, and show people that not only do you have nothing to hide, but that you have lots of positive stuff to show them. TIP: Go to your listing on Guidestar and, if the data is outdated, or makes you look bad, post a rebuttal, as well as a link to your website.

Accountability means setting goals, and posting results. Budgets, strategic plans, benchmarks, all of these are goals that you need to hold yourself and your staff accountable for. Just setting the goal and then ignoring it doesn't move you forward. Worse, it causes people to lose faith in your commitment to what you say. Imagine what would happen if my teenagers were told "work hard, and we'll pay for college", and then I didn't get around to saving for it--and didn't tell them until they were ready to head off to school....that's pretty close to what some nonprofits do with their board, staff and funders....

Accountability means being compared to other organizations. Many CEO's hate this, and I agree that comparing nonprofit A with nonprofit B is fraught with danger, but it is a reality of how funders, donors, and corporate partners look at you. So work on being aware of what other organizations are doing. Spend time to stay aware. NOTE: For the record, I personally think that the near mania for looking at admin costs as a evaluation tool is, to be kind, counterproductive. I know it's quick for the reviewer, but it really doesn't measure much, and the constant hammering on admin has left us under-administered sector wide.)

Short accountability checklist:
    -Get an audit--every year, and include a management letter.  Change your auditor, or at                 least the key partner, every five years.
    -Have an audit committee that does only that: works on the audit.
    -Post your audit, your 990, and other information (see the Tech Tip) on your website, and             keep it up to date.
    -Post minutes of your board and management team meetings in paper and online for your                 staff to see.
    -Develop an "Annual Report To The Community" that gets ahead of inquiry by putting your             best foot forward. Have this available online and in print.
    -Stay aware of what the community is asking for....it's a moving target.

Finally, talk with staff and board about how to be more accountable to the community and to each other. Again, this is both an inside and outside issue to be working on.   


If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

And, remember to take a look at the Mission-Based Management Blog.

Back to Top


Print Resources

My recommendations for texts on accountability are shown below. 

Managing the Nonprofit Organization, by Peter Drucker--a classic, with lots of good stuff about accountability and openness.

Balanced Scorecard: Step By Step for Government and Nonprofit Agencies, by Paul Niven. Go, accountability!

Sarbanes-Oxley for Nonprofits, a Guide to Building Competitive Advantage, by Jackson and Fogarty.---transparency and accountability wins!

Back to Top


Technology Tip 
Can tech help your accountability efforts?
You bet. As you saw in the management tip, one of the keys to accountability is transparency, and tech can really help with this, mostly through using your website to the max.

Regular readers will recognize some of these suggestions from prior issues on different subjects, but there is a new spin here. In the fall, my Kellogg graduate students were assigned in their final paper to evaluate two international nonprofits who provided help to the tsunami victims and advise me which they found more worthy. They evaluated the organizations on all of the key issues we had discussed during the course. In reading the paper, I made a list of the items that the students expected to find on the organization websites---and that they were unhappy/surprised/appalled weren't there. Remember as you read the list, these are whip-smart very successful 24-30 year olds who are committed to the nonprofit sector--and who will be looking at your website when they consider giving time, talent, or treasure to your organization. Here is what these students felt were the minimum information that should be available freely on your website:
  • 990's for the past three years.
  • Full audited financial statements for three years.
  • Accreditation notification
  • List of board members --with their accomplishments
  • The organization's governance structure--specifically the audit committee
  • Biographical information on key staff leaders
  • The current strategic plan (all of it)
  • And, last but not least, the current mission statement
How many of these items are on your website? Not any, not many, most? And, remember this information is just the most important that the students were looking for, not all of it, and of the 20 or so agencies that would up being reviewed, more than half had all of these things posted on their website: thus this is not an unprecedented, or unreasonable list.

Some organizations are thinking about opening board meetings up to the world through streaming video, allowing people to watch their proceedings in real time. Some are making the audit committee and board meetings available in podcasts that people can download onto their mp3 players and listen to.

They key? Look at opening up and being more transparent, but do it step by step, and think through the implications of what you are planning. TIP: Make sure that whatever information you put on your website that it is EASY to find, EASY to download, and EASY to understand.

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

Back to Top


Training Schedule for Peter Brinckerhoff

Below you'll see the date, location, and topics of public training I'm scheduled to do in the next few months. For more information on a particular speaking engagement, get in touch with the contact person listed in the right hand column, or email me.

For more information on my availability throughout the next 12-18 months, available topics, sample agendas, and fees go to www.missionbased.com/training.htm

Date City Topic Contact
3/08/05 Chicago Setting Strategy in the New Environment Easter Seals, Inc.
Bob Petrosik
bpetrosik@easterseals.org
3/13/06 Battle Creek, MI Nonprofit Stewardship Ann Mavity
Fieldstone Alliance
amavity@fieldstonealliance.org
3/14/06 Detroit Nonprofit Stewardship Ann Mavity
Fieldstone Alliance
amavity@fieldstonealliance.org
3/16/06 Bloomington, IL Mission-Based Management United Way of Macon County
Gregg Cott
gcott@uwaymc.org
4/05-06/06 Baltimore Intro to Marketing NISH
Dave Wessel
dwessell@nish.org
04/07/06 Quincy, IL Mission-Based Management United Way of Adams County
Cheryl Waterman
cheryl@unitedwayadamsco.org

Marketing Tip
Marketing and Accountability

If you are a manager, you may be uncomfortable sharing your internal information, outcomes, benchmarks, plans,  and financials with the public, or even with your staff. Your question may well be, why should I share this? It's more work, people will ask dumb questions, and we'll get all kinds of flack....

OK, but if you are a marketer at heart, sharing and being accountable is a slam dunk. Why? Because the community (donors, staff, volunteers, funders, end-users) want to see what you are doing, want to know that you are being a good steward, demand (and in my mind deserve) openness. Remember, you are the steward of the community's resources. They aren't yours.

Unlike prior columns where I have advised you to ask ask ask, here the work is done.
Look at the Guidestar article linked above....people want to know more, and if you don't provide it, you and your organization look suspicious.

I know it's one more thing to manage, but it is an increasingly important one in these cynical times.

If you want to see more about this in detail, take a look at more about my book Mission-Based Marketing; Second Edition

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

Back to Top


Future Topics for the Mission-Based Management Newsletter....
March Ethics and Management
April Staff Satisfaction
May Boards who cross the
Policy/Management line
June Employee Rewards
July Saying "No" to Community Needs
August Board and non-CEO Relations
September Executive Transition
Send me your topic suggestions at peter@missionbased.com

Back to Top


You asked, so here they are: Past Single-Topic Issues of the Mission-Based Management Newsletter...
2004 2005 2006
January Business Development Strategic Planning Generation Change 
February Fund Raising Leadership
March Volunteers Core Competencies
April Financial Management Expanding to New Markets
May On-line Marketing  Endowments 
June Transparency  Tech and Mission 
July Nonprofit Start-up  Sustainability 
August Governance Ethical Benefits 
September Political Activities Entrepreneurship 
October Attracting and Retaining Younger Staff, Board, and Volunteers Internal Communications  
November Outcome Measurement Board Recruitment 
December  Lifelong Learning Better Budgeting 

 
 
 

Copyright 2006, Corporate Alternatives, inc.