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The Leadership Deficit: Workforce Education Needs of the U'S' Nonprofit Sector Part I: The Need

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In this session we quantify and evaluate the causes for concern. ... Executive Director Tenure and Transition in Southern New England, 2004 ... – PowerPoint PPT presentation

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Title: The Leadership Deficit: Workforce Education Needs of the U'S' Nonprofit Sector Part I: The Need


1
The Leadership Deficit Workforce Education Needs
of the U.S. Nonprofit Sector (Part I The Need)
  • Nancy Winemiller Basinger, Ph.D.
  • Assistant Professor, University of Utah
  • David Garvey, Ph.D.
  • Director, University of Connecticut
  • Nonprofit Leadership Program

2
Agenda
  • In this session we quantify and evaluate the
    causes for concern.
  • In the following session we present two
    continuing education models for addressing the
    concern.

3
Nonprofit Leadership Crisis (?)
  • The looming need for new nonprofit leaders has
    two sources
  • growth of the sector, and
  • expected retirement of baby-boomers.

4
Growth and Age of the Sector
  • GROWTH
  • The number of U.S. public charities registered
  • charities grew by 66 and the number of
  • reporting charities grew by 53 between 1995
  • to 2005
  • AGE
  • 48.8 of all reporting charities were founded
  • after 1993

5
Nonprofit Employment in the U.S.
  • According to The Urban Institute there were
    nearly 13 million nonprofit employees in
    2005over 8 of the US Workforce.
  • Earnings
  • Growth
  • Wing, Pollak, and Blackwood (2008)
  • John Hopkins Nonprofit Employment Data Project
    (2003)

6
American Nonprofit Sector Infrastructure
1.6 Million organizations 1.76 Trillion in
Assets 8 of US Workforce
6,016 organizations 59 Billion in Assets
9.4 of CT. Workforce
John Hopkins Nonprofit Employment Data Project
(2003) 13,014 registered (NCNA, 2003)
7
Retirement from the Sector
  • National studies show that baby-boomers in their
    40s and 50s now comprise 72.5 of all nonprofit
    leaders
  • Two-thirds plan to leave their current position
    within the next five years
  • source AEFC executive transition survey (2004)

8
(No Transcript)
9
The 2016 Leadership Shortage Nationally
640,000 1,250,000 Connecticut 12,288
24,000
2016
2016 Projected Management Need
2007 Current Management Size
Need for 2.4 times the number of senior leaders
currently employed.
Daring to Lead, CompassPoint, 2001,
2006 Executive Director Tenure and Transition in
Southern New England, 2004 The Nonprofit Sectors
Leadership Deficit, Bridgestar Research, 2006 The
Leadership Deficit, Stanford Social Innovation
Review, 2006 and other national and local
indicators.
10
  • 42

11
Is there a pipeline ready to meet these needs?
  • Generally requirements for ED/CEO are based on
    experience and education.
  • The case of Utah
  • Experience
  • at least 5.5 years of experience for ED/CEO
  • 7 years avg. experience of ED/CEO
  • Education
  • All require at least a Bachelors.

12
Is the next level prepared to take over?
  • Four most common positions in middle
    management in Utah charities are
  • COO
  • CFO
  • Development Director
  • Program Directors

13
Experience and Education in the Pipeline
  • COO and CFOs need 5 years experience and they
    have 5.7 and 6.4 avg. yrs. In their positions.
  • DD and PDs need at least 2 years and have 3.1
    and 2.7 years in their positions now.
  • 56 require a Bachelor and 30 want a Masters

14
Pipeline Conclusions
  • All top positions in NPs require at least a
    Bachelors but increasingly want a Masters or
    more training.
  • Senior Managers when hired are required to have
    the same minimum level of education as the 4
    senior positions.

15
Organization Size Conclusions
  • As the size of budget and number employees
    increase the degree expectations for ED/CEO
    candidates also increase.
  • For the largest NPs the next generation leaders
    average 10.5 years of experience. Medium and
    small nonprofits have less human resource
    capacity and more succession planning is needed.

16
Is the Nonprofit Sector approaching a Leadership
Crisis?
  • We will certainly need more people to lead new
    organizations and to fill gaps left by
    retirements.
  • There is definitely a pipeline that is prepared
    but there are likely not enough middle managers
    to fill all of the holes emerging at the top.

17
I think….nonprofits really rely on those
collaborative relationships quite a bit and
when there is new leadership it can have a
significant affect…. Monica
18
What can we do?
  • The pipeline can be expanded, at least in part,
    by
  • continuing education, and
  • succession planning.
  • The next session will address how continuing
    education is working to help build the human
    resource capacity in the nonprofit sector.
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