by Jean Lobell
We all have a stake in leadership development if the nonprofit sector is to remain vibrant.
Have you ever been part of a conversation that goes something like this?
A: “Yes, I know that’s important.”
B: “So why don’t we do something about it? Besides it’s really needed.”
A: “I agree. We sure do.”
B: “Then, let’s move ahead with it.”
A: “I know, but we can’t really invest too much in it.”
Getting attention, time, and funding for leadership development can sometimes sound this way.
Now consider the following points:
• One would be hard pressed to hear any disagreement about the importance of leadership to the success and effectiveness of nonprofits.
• There is a lot of talk about the sector’s leadership pipeline being threatened by the projected retirement of baby boomers, by the lack of desire on the part of the next generation to take on the mantle of leadership, and by the rate of turnover of executive directors who are stressed out by low pay, less than effective boards, and the rigor of fundraising.
• And there is the wish for more data about effective leadership development opportunities since, in spite of the multitude of leadership development offerings, we don’t have enough data on what works and what doesn’t work.
And yet, our sector remains underinvested in leadership development. Securing investment in leadership development remains a challenge. Not only in securing funding but also in securing time commitment and focused attention. In Nonprofit Leadership Development: A Model for Identifying and Growing Leaders within the Nonprofit Sector, a research publication of the Looking Glass Institute, 2006, Bonner and Obergas report “historical undercapitalization by nonprofit organizations in professional development.” Most nonprofits have not budgeted adequately or intentionally for professional development of their staff or laid out individual potential career paths.
The literature is rife with opinion and data about leadership being the fulcrum on which lies the upward or downward trajectory of organizations and the clients they serve. For example, in the same study mentioned above, the authors report that great leaders outperform average ones in many ways, including higher productivity, lower employee turnover, better client services, and greater employee morale and motivation. In Investing In Leadership, Volume 2: Inspiration and Ideas from Philanthropy’s Latest Frontier, 2006,
a publication by Grantmakers for Effective Organizations, Enright points out that over the past year, a common theme in conversations with grantmakers is the “growing understanding,” a “dawning realization” or an “increased appreciation” of how leadership makes a difference. Equally important, many talked about the importance of connecting leadership development and organizational performance. In Daring to Lead 2006: A National Study of Nonprofit Executive Leadership, Bell, Moyers, and Wolfred talk about an increasing number of grantmakers who believe that strong executive leadership is essential to the effectiveness of their grantees and are searching for ways to strengthen and support current executive directors and to nurture new leaders.
As co-leader of CRE’s leadership development team, these research findings have real-life meaning in our work with nonprofit clients. We have seen accidental leaders turn into purposeful, competent, and results-oriented leaders because of their participation in the Leadership Caucus, an 8-month long leadership development program. A recent evaluation study of this program was published in the Nonprofit Quarterly last spring.
Given our economic landscape, I understand that we have to be smart about our investments. Grantmakers are looking more towards the connection between leadership development and beneficial outcomes for organizations, as well as the clients and causes they serve (Investing In Leadership Volume 1: A Grantmakers Framework for Understanding Nonprofit Leadership Development, 2006, a publication by Grantmakers for Effective Organizations, by Betsy Hubbard.)
This is what we propose. The sector needs greater investment in the following:
1. Research on what leadership development approaches are most effective in achieving individual, organizational, and community outcomes. What approaches result in improved leadership competencies? Which approaches go beyond competencies to organizational improvements? And what approaches have impact on the work that nonprofits do for their communities?
2. Creating (or further strengthening) innovative programs that build on findings about what makes for effective leadership development
experiences. This work cannot happen in the margins. It requires time, energy, and the engagement of multiple players -- nonprofit leaders, leadership development
practitioners, adult learning specialists, board members and funders.
3. Developing the sector’s appreciation for, and ability to improve, systems and processes that support leadership development. Leadership development alone will not sustain the organization’s need for strong and effective leadership. Systems and processes are needed such as:
• a high quality staff performance management system including individual staff development plans that map out activities and experiences that lead to high performance,
• smart hiring practices to ensure that potential leaders are brought into the organization, and
• successful retention strategies so that leadership talent remains and is nurtured in the organization.
Whether you are a nonprofit leader, a potential leader, a Board member, a funder, a leadership development practitioner, a policy maker or a client, we all have a stake in leadership development if our sector is to remain vibrant.



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