overview of nonprofit executive leadership

© 2014 SAGE Publications, Inc.

Chapter 5: Executive Chapter 5: Executive LeadershipLeadership


CEO ResponsibilitiesCEO Responsibilities

• Commit to the mission• Lead the staff and manage the organization• Exercise responsible financial stewardship• Lead and manage fund-raising• Follow the highest ethical standards, ensure

accountability, and comply with the law• Engage the board in planning and lead implementation• Develop future leadership• Build external relationships and serve as an advocate• Ensure the quality and effectiveness of programs• Support the board

Source: Board Source, 2006


Observations About CEO Observations About CEO ResponsibilitiesResponsibilities

• Significant overlap between CEO responsibilities and governing board responsibilities• Mission, financial stewardship, fund-raising,

accountability, planning, performance standards, and the work of the board itself

• CEO responsibilities involve both managing and leading• Management -- generally concerned with day-to-

day operations, emphasizing policies, procedures, rules, and processes

• Leadership -- more about purpose, vision, and direction: more about the “where” and “why” rather than the “how”


Managers and LeadersManagers and LeadersManagers

• Concerned with mastering routines

• Adopt impersonal or passive attitudes toward goals

• Excel in problem solving and work design

• Work with people in carefully controlled ways

• See themselves as conservators or regulators

Leaders

• Concerned with vision and judgment

• Active and visionary about the future

• Seek out opportunities and take risks

• Passionate about their work and likely to cause turbulence

• See themselves as agents of change


Leadership Theories: IntroductionLeadership Theories: Introduction

• Key questions• Are leaders born or made?• If they are made, what specific knowledge or

skills do individuals need to acquire in order to be strong leaders?

• What are there specific behaviors that are associated with effective leadership?

• Key caveats• Most of the theories are generic (i.e., intended to

apply to all types of organizations, not just nonprofits)

• There may be no one right theory of leadership that is applicable in every situation, at all times


Leadership Theories: OverviewLeadership Theories: Overview• Trait theories -- emphasis on innate characteristics of leaders• Skills theories -- emphasis on specific skills leaders possess• Technical skills – knowledge of the job/profession/task• Human skills – ability to work with people• Conceptual skills – ability to understand ideas and

principles• Behavior theories -- emphasis on behavior or actions• Task behaviors – actions that relate to the work to be

done• Relationship behaviors – actions that focus on the feelings

of subordinates• Managerial grid (Blake and Mouton, 1985)

• Contingency theories -- emphasis on the situation• Servant leadership -- emphasis on values and commitment


Transformational LeadershipTransformational Leadership

• Transactional leadership – rewards or punishment exchanged for behaviors of others

• Transformational leadership -- inspiring and empowering individuals to go beyond self-interest and pursue goals that are in the common interest• Emphasis on developing personal relationships• Appealing to shared values and ideals

• Transactional versus transformational leadership (Burns, 1978)

• Transformational leaders use transactional techniques, but should not overemphasize them (Bass, 1985; Bass and Avolio, 1994)


Charismatic LeadershipCharismatic Leadership• A leader is someone who behaves in certain ways that cause

others to see him or her as charismatic• Behaviors that cause others to see a person as charismatic

(Rainey, 2003)• Advocates a vision that is different from the status quo

but still acceptable to followers• Acts in unconventional ways in pursuit of the vision• Engages in self-sacrifice and risk taking in pursuit of the

vision• Displays confidence in his or her own ideas and proposals• Uses visioning and persuasive appeals to influence

followers, rather than relying mainly on formal authority• Uses the capacity to assess context and locate

opportunities for novel strategies• Need for social distance (Fisher, 1984)


Effective Nonprofit CEO Effective Nonprofit CEO BehaviorsBehaviors

• Focus on mission• Focus on the board• Focus on external relationships• Share leadership and empower others• Focus on key roles and priorities• Use the “political frame”• Right person, right place, right time• Alignment model (Dym & Hutson, 2005)• Founder syndrome and life-cycle theories• Executive transitions and leading change


Right Person, Right Place, Right TimeRight Person, Right Place, Right TimeAlignment Model• Seeks to integrate the major leadership theories• The leader’s fit with the organization involves traits, skills,

leadership style and situation• Alignment must be achieved between the leader, the

organization, and the community

Founder Syndrome• Organization’s need for leadership may change over time due to

nature of nonprofit life-cycle theories• Can pose challenge and even crisis for a nonprofit

Executive Transitions• Preparation should take place before a transition is needed• Viable plan and procedure to be proactive vs. reactive


Leading ChangeLeading Change

Eight-step change process to ensure momentum and provide for real and permanent change:1.Establish a sense of urgency2.Create a guiding coalition3.Develop a vision and strategy4.Communicate the change vision5.Empower broad-based action6.Generate short-term wins7.Consolidate gains and produce more change8.Anchor new approaches in the culture

(Kotter 1996)

overview of nonprofit executive leadership

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