Saturday, 29 April 2017

Project & Organisational Management


Module 1: Organisational Management

Rationale

Board and Management have distinct and separate functions in principle but in practice these often become confused, resulting in frustration and even conflict. This module aims to clarify the different functions and responsibilities of Board and Management.

Statement of Learning Outcomes:

*Understanding the different functions and responsibilities of Board and Management

* Be able to use this understanding to clarify roles and procedures in one's own organisation

Performance Criteria:

Participants will be familiar with the separate functions of Board and Management and will be able to apply this knowledge to their own organisations.

Assessment of Performance:

Questions

Lesson 1: Governance and Management Functions
NGO's are Accountable to their Communities and Members
NGO's are founded on the principle that citizens have a right to associate freely.

Therefore, NGO's pursue activities that meet a public or community need rather than private profit-making interests. By acting responsibly, an NGO shows its commitment to serving the public interest. Responsible behaviour in an organisation is also known as Good Governance. Governance is the responsibility of the Board of Trustees.

But the mere existence of a Board is not enough. It is the way that the Board functions and supports management that ensures a well-run organisation.

Board and Management are Separate

What is the difference between Board and Management?

*The Board decides mission, policy and strategy, as well as general oversight of the organisation's performance and resources such as funds, staff and assets( including offices, equipment and vehicles).

*Management(represented by the Director and senior staff) focuses on the implementation of the strategies, policies, programmes and day-to-day activities. Managers should be free to decide how they implement agreed programmes and policies.

Of course, this doesn't mean that staff has nothing to do with strategy. The Board relies on  staff for information and advise in developing strategic and policy decisions.

Why do we need separate bodies?

A basic principle of Good Governance is that Board and Management are separate. In order to understand the importance of this separation, imagine an organisation where paid staff are also Board members. In such a case the staff would be able to decide their own salaries, working hours and special benefits. There would clearly be a serious conflict of interest. A separate Board, therefore, acts as a check on Management.

In small or newer NGO's the separation of Board and Management can sometimes be difficult to put into practice. If financial and human resources(staff and volunteers) are limited, Board members often volunteer to perform the duties of staff. This can be confusing and frustrating for staff. Finding enough funds to pay for qualified staff as well as enough Board members to serve on a voluntary unpaid basis may be challenging in the early life of an NGO. But in the long run it is essential for Good Governance.

A Board can rely so heavily on the Director that a seat on the Board table may seem essential. There are many arguments for and against having the Director on the Board. The solution that some NGO's rely on is to include the Director on the Board as a non-voting member. This often referred to as 'ex officio' membership. Of course, in this case the Director will have to absent when discussions take about topics that concern him or her directly, such as salary and performance.

Under NO circumstances should the Director also serve as Chair of the Board. Such concentration of power in the hands of one individual severely undermines accountability( responsible behaviour) throughout the entire organisation.

Board and Director Responsibilities

The Board's Responsibilities
A Board's basic duties are to set policy, exercise oversight, and provide strategic direction in the following areas:

*Mission: The Board safeguards the NGO's mission by making sure there is a clear sense of mission shared throughout the organisation, a good mission statement and appropriately planned programmes and services.

* Values: The Board defines organisational values and sets the standard for professional conduct through its own behaviour as well as in the policies it establishes for others to follow.

* Resources: The Board ensures that the NGO has adequate resources-finances, staff, equipment and office space.
*Outreach: The Board promotes the NGO in the community and serves as a link with members, donors, beneficiaries, and other stakeholders.

#The Board is also responsible for hiring the Director and for defining his/her job description.
The Director's Responsibilities

Duties normally include:

* Hiring, firing, and supervising the staff.
*Identifying, acquiring, and managing resources.
*Preparing and annual budget.
*Managing, monitoring and evaluating programs and operations.

*Proposing policies and strategic initiatives to the Board.
*Communicating with stakeholders.
*Promoting the organisation in the community.

*Keeping the Board informed about the organisation's work

Board and Director Coordination
Although the Director reports to the Board's Chair, on a practical level the Board and the Director work best together when the relationship is a horizontal and cooperative one.

Each one of them plays a supporting role for the other, offering advice and encouragement when needed.

The most important key to success is good communication, for which the Director and Board Chair share equal responsibility.
Suggestions for building rapport between the Chair and the Director
1. Schedule a regular chat together, either in person or on the telephone
2. Answer each other's telephone calls and, if you have access, emails promptly. Not only is this common courtesy, but it shows that you take each other's concerns seriously.
3. The Board Chair should give regular feedback to the Director about his performance and undertake his/her performance review.
4. The Director should show his/her values the Chair's input. Asking for the Chair's advice can help you with the hardest parts of your job and let you know what your Board is thinking about.

Case Study Activity

Read the following case study and discuss whether there are similar situations that you know of. Explain how your organisation can avoid ever being in such a situation.
Case study: The Chief, the Director and the Money

Organisations such as Help International that work directly with Community Based Organisations and support their capacity building, encourage COBs to include the village leadership( the chiefs) in setting up, but not serving on the governance structure. There have been cases where chiefs were invited to serve mainly on the basis of their wisdom. This is usually done in good faith. In one of such cases' however it led to some problems.

Some time ago, Help International partnered with an established CBO from the HIV/AIDS sector in Dowa. The CBO included the chief as a member on their governing body, which they call the Steering Committee( SC). The chief and the director of the CBO were very close. The CBO received funds for an HIV/AIDS intervention, but after no implementation had taken place and stories started going around that the director and the chief had taken the money for themselves.

The community complained and Help International went to investigate. At first the director blamed the chief for taking the money, but it later turned out that the director had lied and that the chief did not take the money. The chief got drawn into the mess because he was too close to the Director. The community ended up by suspending the Director and banning him from the community. The chief acknowledged that he should not have been involved in the SC. 

The chief is powerful-the community members could not go to him and tell him that he and /or his friend the Director were taking the money. If he was not part of the SC, the people could, however, have gone to him openly and he could have sorted the situation out in his role as chief.

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  19 February 2015   Dear Mr. Simango, COSTING FOR PRODUCTION OF RADIO PROGRAM (10 MINUTES)   In reference to the above captioned ...