THE BOARD MAKEOVER: WHAT HR & MARKETING PROFESSIONALS CAN BRING TO THE TABLE

1. THE BOARD MAKEOVER: WHAT HR & MARKETING PROFESSIONALS CAN BRING TO THE TABLE sponsored by

2. Overview of Project • Key Research Findings • 10 ways to engage Marketing professionals on your board • 10 ways to engage HR professionals on your board • Tools/Resources • Questions/Feedback

3. THE INSPIRATION “What if every board had a treasurer of human capital?” “What if nonprofit boards had a CMO or VP of marketing to serve as treasurer of an organization’s brand and social capital?” “Do you think of finding an HR or marketing professional when you start talking about strengthening your board?” - Aaron Hurst, President & Founder of Taproot, 2009 BoardSource Leadership Forum Keynote Speech

4. HOW CAN BUSINESS PROFESSIONALS HELP YOUR NONPROFIT?

5. WHAT IS “LITERACY” RELATIVE TO A BOARD? • LITERACY is enough familiarity with an area to understand issues and challenges to aid decision making • Boards often focus on Financial Literacy • Other kinds of literacy are highly relevant to board service • HR Literacy • Marketing Literacy

6. PROJECT GOAL & RESEARCH METHODOLOGY • PROJECT OVERVIEW • META GOAL: To identify new opportunities for board leadership that will: 1. Create tangible entry points for board service 2. Provide practical tools for organizations to identify, recruit, orient and engage new board leadership • DELIVERABLES: • Recommended “roles” for marketing and HR professionals within the board • Handbooks and how to guide for engaging new board leaders • Training modules (workshops, webinars) • METHODOLOGY INTERVIEWS 24 interviews with Marketing & HR professionals (both on and not on boards) and nonprofit Executive Directors SURVEY 261 responses from Marketing & HR professionals (both on and not on boards)

7. THE OPPORTUNITY 87% of surveyed HR professionals are interested in board service • 560,490 Marketing Professionals (U.S.) • 1,081,520 HR Professionals (U.S.)

8. PROFESSIONALS WHO SERVE ON BOARDS 95% said it’s important to share their expertise with the organization • TOP THREE REASONS TO JOIN A BOARD • A positive volunteer experience with the • organization • To use professional skills to help a nonprofit • Professional networking

9. PROFESSIONALS WHO DON’T SERVE ON BOARDS 9 in 10 expressed some interest in serving on a nonprofit board • BARRIERS TO BOARD SERVICE • Don’t know where to start or who to approach • Time commitment • Reluctance to fundraise • Uncertain about what role to play

10. WHY DON’T MORE PROFESSIONALS SERVE ON BOARDS? Consistent Finding: LACK OF AWARENESS on both sides • HR and Marketing • Professionals want • information on • Need for board service • How to get started • How to leverage their • specific skill set, • once engaged • Nonprofits need education about • HR & Marketing in general • How to articulate what they NEED to these professionals • What these professionals can do for their boards Point

11. 10 WAYS HR PROFESSIONALS CAN DRIVE IMPACT FOR A NONPROFIT BOARD

12. 1 Preach the gospel of talent management plans “Many nonprofits lack the financial resources and knowledge to optimize the capabilities of both staff and board members. An HR executive could provide the perspective and tools to guide the nonprofit to improved performance.”

13. 2 Find access to pro bono resources “Human capital is a horrible thing to waste. Too often nonprofits struggle with limited or no access to technicians that can enable their cause.”

14. 3 Counsel the Chief Executive during personnel crisis situations • “I assisted in an emergency board meeting and helped investigate a sexual harassment case between an employee and program manager.”

15. 4 Change management “I could help [the board] to understand the impact of change and how to drive desired change in the organization.”

16. 5 Serve on the Governance Committee “I’ve found my work on the governance committee very rewarding. Being a seasoned organizational development professional, I feel I have been utilized in the organization’s efforts to transcend its business as usual and to create a sustainable legacy.”

17. 6 Leverage the talents and skills of board members • “Companies are now recognizing the importance of HR, how well companies engage their talent; at nonprofits, you have the ability to demonstrate the differences between passive HR policies and proactive HR policies.”

18. 7 Help with hiring, and when necessary, firing the chief executive “[The board member with human resources expertise] was on my search committee and was very integral in the process. Our most valuable resource is human capital and this person puts us in a position to attract other leaders with competency and strategic direction.”

19. 8 Help with management and regular assessment of the chief executive “The board recognized that the executive director’s performance wasn’t where it needed to be...[but if] performance expectations are not clearly outlined [it is] impossible to approach [the] individual to assess [his or her] performance.”

20. Help develop compensation philosophies and policies, and determine chief executive compensation 9 “I was able to help with researching best practices, contribute to developing a contract for [the executive director] and also look at salary levels to inform the appropriate level of compensation. I wanted to make sure that we had good retention strategies in place. It would be devastating to lose her for a lack of proper policies or noncompetitive salary.”

21. 10 Help lead the board through a self-assessment process “Because of the very nature of HR, you’re always thinking about what else needs to be done — what could I do to improve this process, what can I bring to the table? I don’t know if other people, besides HR professionals, come to the board with that mind-set.”

22. STORY: HR • THE PROFESSIONAL • Stacy Proctor, VP of Human Resources, Associated Third Party Administrators • THE NONPROFIT • The Arc of San Francisco • THE NEED & FIT • “I was recruited specifically for my HR background. They were looking for board members with specific skill sets.” • Helping the board go through structural changes • Evolution and eventual dissolution of the HR committee • Hiring an HR director • “There should be an HR person on the board – where the analysis of the board leadership happens. The board president calls me a lot.”

23. 10 WAYS MARKETING PROFESSIONALS CAN DRIVE IMPACT FOR A NONPROFIT BOARD

24. 1 “Manage” the organization’s reputation “Organizational reputation is very important, especially in the nonprofit space, where there is so much competition. Organizations are constantly bombarding people for time, attention, and resources. A strong reputation is essential to stand out.”

25. Help articulate and refresh the organization’s mission, vision, and values 2 “Particularly with newer nonprofits, I see a great need to really set up a solid mission and goals, and then have monthly reviews to ensure that they’re following these. It’s way too easy for nonprofits to go off on different tangents that don’t really move their organization forward. As well, having a succinct mission makes development of a marketing plan or branding much easier and more beneficial to the organization.”

26. 3 Serve on the fundraising or development committee and/or help develop fundraising messaging “I happen to be a ‘connector’ so I want to use my capabilities to help connect my nonprofit with companies, individuals, and other organizations that can move it forward.”

27. 4 Take part in a branding exercise “Branding is not just for external reasons — it pulls the organization together — like a North Star.”

28. 5 Participate in strategic planning “If you think of a nonprofit like any other type of organization, with the need to attract funding, clients, and volunteers…and if you have a budget of a certain level, you are at the scale at which marketing expertise would be very valuable. Through a strategy lens, you review whether or not you are engaged in the right activities, using your resources in the best possible way, how you are aligning your mission back to the way your resources are deployed — are they in the best places?”

29. 6 Provide access to pro bono marketing resources “There’s always a need for pro bono. I’ve never met a nonprofit organization that isn’t stretched beyond full capacity. Two pieces that are needed: 1) a compelling case made for pro bono service to be provided to the nonprofit organization and 2) both parties need to be clear in contracting — what are the roles each side needs to play to have a successful outcome. Nonprofit readiness is key.”

30. 7 Lead board communications training “Few nonprofits have marketing staff, and as a result, very few have a clear understanding of what marketing is (and is not). They also do not understand what's involved (time, resources, discipline, focus) in embarking on a marketing effort. It is important for board members with marketing expertise to understand and anticipate those factors. A large part of what they will have to do is explain, persuade, and advocate for a market-driven point of view.”

31. Develop and review an organizational crisis management plan 8 “A crisis plan should be simple and unencumbered so that it can be activated should a crisis occur. It must be approved by everyone, and reviewed on a regular basis. You can’t simply put it on a shelf and never review it again. I recommend a review on a quarterly basis, so that preparedness becomes inculcated into the organization’s culture.”

32. 9 Provide access to media through public relations “A marketer needs to make sure nonprofits are representing their brand correctly — everything from making sure sound bites are the correct ones, to notifying the right people, etc. Sometimes folks get daunted by a “PR” program, but it’s just a normal part of a marketing plan; for example — rebranding? — notify the media.”

33. 10 Increase organizational awareness of emerging networking technology “Nonprofits need more integrated marketing strategies that utilize social media, new media, product placement, and creative media partnerships….move beyond traditional methods and explore innovative ways of marketing and communicating their brand to a broader audience.”

34. CASE STUDY: MARKETING THE PROFESSIONAL Tammy Brown, Marketing Director, Technicolor THE NONPROFIT LA Commons THE NEED & FIT • “I just knew exactly what the Executive Director was looking for. They wanted somebody who lived and breathed their new marketing strategy, really giving the rest of the board a repository of knowledge.” • Working board • Oversees branding & marketing strategy • “Marketing is the one thing people think they can do, but they can’t. Most nonprofits would kill for marketing experts to be on their board to guide the perception of the organization and build PR strategy; it’s just a matter of making the marketing professionals aware of the need.”

35. HOW TO CONNECT WITH PROFESSIONALS MAKING THE CASE FOR PRO BONO MAKING THE CASE FOR PRO BONO

36. 1 DETERMINE YOUR NEEDS • MARKETING • advertising • branding • sales • research • public relations • HR • generalist • organizational design • recruitment • talent development • benefits & compensation

37. 2 CONNECT PROFESSIONAL ASSOCIATIONS • Society for Human Resource Management (SHRM) www.shrm.org • American Marketing Association (AMA) www.marketingpower.com CORPORATIONS • Public affairs / Community Involvement departments • HR department • Marketing department BOARD MATCHING PROGRAMS • Bridgestar: www.bridgestar.org • Corporation for National and Community Service: www.serve.gov ; www.allforgood.org • VolunteerMatch: www.volunteermatch.org • Boardnet USA: www.boardnetusa.org PRO BONO VOLUNTEERING Taproot Foundation: www.taprootfoundation.org Catchafire: www.catchafire.org Sparked: www.sparked.org

38. 3 RECRUIT • CONSIDERATIONS WHEN RECRUITING NEW MEMBERS • 1. Proven interest in our mission • 2. Knowledge and understanding of our work • 3. Professional knowledge and skills needed by the board • Connections in the community • 5. Fundraising experience and willingness to participate • 6. Ability to make a substantial financial contribution • 7. Experience in working with people from other ethnic backgrounds • 8. Ability to listen well • 9. Ability to express ideas and opinions clearly • Ability to participate effectively in a conversation (neither monopolizing • nor hanging back) • 11. Sense of humor, positive presence • 12. Ability to ask appropriate questions • 13. Ability to participate on a regular basis in the board’s work

39. TOOLS & RESOURCES • FREE HANDBOOKS AVAILABLE FOR DOWNLOAD • www.taprootfoundation.org/leadprobono/board_service.php • www.boardsource.org/Workshops.asp?ID=147.528 • SHARE YOUR STORY! externalaffairs@taprootfoundation.org

40. QUESTIONS & CONTACT INFO Vice President DEBORAH DAVIDSON Vice President for Governance Research and Publications Deborah.Davidson@boardsource.org AMANDA PAPE LENAGHAN Senior Manager, Development & Strategic Initiatives amanda@taprootfoundation.org