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Finding the Perfect Match: CEO selection in Nonprofit Community Services
Last modified: 2010-06-09
Abstract
The nonprofit CEO has been studied in some detail over the past decades. Lyons (1992) identified that the role had unique features such as the variety of revenue sources, the extensive use of volunteers and the complexity of governance that made managing a nonprofit organisation quite different to managing a business or government agency of similar size. This was confirmed as still the case by Harrow and Mole in 2005 who studied voluntary sector CEOs in Britain.
Cornforth and Hooker (1990) in the USA found a strong congruence between the nonprofit CEO’s personal values and the organisational values. This was echoed by Little in 2004 in her study of voluntary sector leaders in Britain.
Notwithstanding these consistencies over time, the Australian nonprofit community services landscape has changed dramatically in the last 15 years. The pro-market approaches of government funders that require continuous improvement, uniformity in quantifiable output and increased productivity have necessitated changes in the work structures and approaches of organisations. Furthermore services have experienced increased financial uncertainty created by short-term financial settlements; competitive tendering and fixed funding packages attached to outcomes, not costs (Abramovitz, 2005). In order to survive and grow in this complex and demanding environment an emphasis has been placed on business management. As Myles McGregor-Lowndes, the Director of Queensland University of Technology’s Centre for Philanthropy and Non-Profit Studies said, ‘Charities that did not recruit top business managers were a recipe for disaster’ (Vincent, 2002).
This paper reports on a study of 11 newly appointed CEOs and the Chairs of their selection panels. It examines the motivations of both parties in the process, the perceived requirements and priorities of the position, the selection criteria and the appointment. The findings reveal clear preferences on the part of Chairs depending on their own background and some interesting indicators for a successful match.
References:
Abramovitz, M. (2005). The largely untold story of welfare reform and the human services. Social Work, 50, 175-186.
Cornforth, C. and Hooker, C. (1990). Conceptions of management in voluntary and nonprofit organizations: Values, structure and management style. Towards the 21st Century: Challenges for the Voluntary Sector. Proceedings of the 1990 Conference of the Association of Voluntary Action Scholars. Vol 1. London: Centre for Voluntary Organization. London School of Economics and Political Science.
Harrow, J. & Mole, V. (2005). “I want to move once I have got things straight”
voluntary sector chief executives’ career accounts. Nonprofit Management & Leadership, 16, (1), Fall, 79-100.
Little, A. (2004). Crossing the great divide: Dilemmas for UK voluntary sector leaders who move into government. Public Administration Review, 64(5), 618–24.
Lyons, M. (December 1992). Managing large community organisations: The approaches of sixteen chief executive officers. Sydney: CACOM Working Paper No. 11.
Vincent, P. (2002). My Career - Good works, good perks. The Sydney Morning Herald, 8 June.
Cornforth and Hooker (1990) in the USA found a strong congruence between the nonprofit CEO’s personal values and the organisational values. This was echoed by Little in 2004 in her study of voluntary sector leaders in Britain.
Notwithstanding these consistencies over time, the Australian nonprofit community services landscape has changed dramatically in the last 15 years. The pro-market approaches of government funders that require continuous improvement, uniformity in quantifiable output and increased productivity have necessitated changes in the work structures and approaches of organisations. Furthermore services have experienced increased financial uncertainty created by short-term financial settlements; competitive tendering and fixed funding packages attached to outcomes, not costs (Abramovitz, 2005). In order to survive and grow in this complex and demanding environment an emphasis has been placed on business management. As Myles McGregor-Lowndes, the Director of Queensland University of Technology’s Centre for Philanthropy and Non-Profit Studies said, ‘Charities that did not recruit top business managers were a recipe for disaster’ (Vincent, 2002).
This paper reports on a study of 11 newly appointed CEOs and the Chairs of their selection panels. It examines the motivations of both parties in the process, the perceived requirements and priorities of the position, the selection criteria and the appointment. The findings reveal clear preferences on the part of Chairs depending on their own background and some interesting indicators for a successful match.
References:
Abramovitz, M. (2005). The largely untold story of welfare reform and the human services. Social Work, 50, 175-186.
Cornforth, C. and Hooker, C. (1990). Conceptions of management in voluntary and nonprofit organizations: Values, structure and management style. Towards the 21st Century: Challenges for the Voluntary Sector. Proceedings of the 1990 Conference of the Association of Voluntary Action Scholars. Vol 1. London: Centre for Voluntary Organization. London School of Economics and Political Science.
Harrow, J. & Mole, V. (2005). “I want to move once I have got things straight”
voluntary sector chief executives’ career accounts. Nonprofit Management & Leadership, 16, (1), Fall, 79-100.
Little, A. (2004). Crossing the great divide: Dilemmas for UK voluntary sector leaders who move into government. Public Administration Review, 64(5), 618–24.
Lyons, M. (December 1992). Managing large community organisations: The approaches of sixteen chief executive officers. Sydney: CACOM Working Paper No. 11.
Vincent, P. (2002). My Career - Good works, good perks. The Sydney Morning Herald, 8 June.