Module 4: Association Personnel

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Module 4 Association Personnel The Executive
Director

• Presented by the
• Southern Early Childhood Association

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Topics to be Presented

• Employment contracts for the Executive
• Accountability of the Executive Director
• Assessment of the Executive Director
• Relationship between the Board of Directors and
  the Executive Director

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The Executive Director is

• the person in a nonprofit corporation
• ordinarily responsible for management of the
• day-to-day affairs of the nonprofit corporation
• and responsible for the implementation of
• policies set by the Board of Directors.

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DISCUSSION

• How does your organization choose or hire its
  Executive Director?
• What are the specific job responsibilities of
  your associations Executive Director position?

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Why is it beneficial to have an employment
contract for the Executive Director?

• Serves as a quality control mechanism
• Simplifies performance evaluations
• Minimizes misunderstandings between the Director
  and association officers
• Shows a commitment to professionalism
• Help associations retain qualified executives

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Executive Director contracts include

• Names of contracting parties
• Statement of mutual agreement
• Type of association
• Title of position
• Term of agreement
• Duties of the Executive
• Boundaries of authority
• Benefits
• Termination procedure

• Impact of mergers
• Indemnification
• Renewal provision
• Nonassignability
• Arbitration procedure
• Control of association materials
• State laws
• Signatures and dates of signing

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DISCUSSION

• Does your association have a written employment
  contract with its Executive Director? If so,
  what stipulations are included in this contract?
• If your association does not maintain such a
  contract, draft a sample one now based on the
  criteria discussed in this presentation.

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Other Compensation Options for Small
Associations

• Bonuses
• Deferred compensation
• Pension plans
• Life and disability insurance
• Continuing education benefits
• Professional association memberships

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Accountability

• In most associations, the Executive is the only
  staff person directly accountable to the Board of
  Directors.
• Chain of command
• Board of Directors gt Board Chair gt Executive
• Importance of open communication

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DISCUSSION

• What does the chain of command for your
  association look like? Draw it as a diagram, and
  clearly indicate the lines of accountability in
  your organization.

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Assessment of the Executive Director

• Primary responsibility of the Board of Directors
• Board sets the standards by which the Executive
  is evaluated
• Assessment should give Board the ability to
  recognize management problems early in their
  course, and initiate corrective action

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DISCUSSION

• What is the evaluation process for your
  associations assessment of its Executive
  Director? Who performs the evaluation, on what
  standards is it based, and how is the information
  presented to both the Executive and the Board
  after the evaluation?

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Benefits of Evaluating the Executive Director

• 1. Clarifies responsibilities
• 2. Ensures Board compliance
• 3. Ensures organizational goals are being met
• 4. Continues professional development for the
  Executive
• 5. Ensures a formal and documented evaluation
  process

• 6. Encourages stability in the Executive position
• 7. Provides written record of Executive
  performance
• 8. Assists in developing Executive priorities
• 9. Provides opportunity for the Board to express
  their satisfaction!

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Tips for Conducting Evaluations

• Conduct the evaluation regularly
• Fully document the evaluation process and its
  results
• Clearly specify the staffs role in the
  evaluation
• Utilize more than one assessor
• Employ clear standards for evaluation, and avoid
  personal attacks

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Steps for Developing an Assessment System

1. Establish criteria for performance appraisal.
2. Design an appraisal form that reflects the
   performance categories to be assessed.
3. Break each main category into specific tasks on
   which the Executive can be rated.
4. Determine who will make the assessment.
5. Determine how the assessment forms will be
   compiled into a report for the Board.
6. Determine how the assessment outcomes will be
   reported to the Executive.

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Your evaluation system should answer three
questions about your Executive

1. What are the special strengths that this person
   has demonstrated in this position?
2. What are the areas for which improvement is
   indicated?
3. What are the kinds of management and/or
   organizational development activities that should
   be carried out in the future?

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Categories of Executive Competency

1. Basics in management and leadership
2. Planning
3. Organizing
4. Leading
5. Coordinating Activities and Resources

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The Role of the Executive Director in their own
Evaluation

• Initiate definition of the activities to be
  assessed
• Build on the Executives existing system
• Use self-ratings in the overall assessment
• Include reports and external indicators
• Contract with an outside firm

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DISCUSSION

• Based on all of the standards and criteria just
  presented, how would you revise your assessment
  procedures to provide a more thorough and helpful
  evaluation of the Executive Director for your
  association?

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How Can the Executive Manage Their Relationship
with the Board?

• Three methods the Executive can use to help the
  Board govern MORE and manage LESS
• Use a comprehensive strategic plan that has been
  developed in conjunction with the Board
• Provide the Board with appropriate and sufficient
  material prior to Board meetings
• Facilitate Board and Board committee discussions
  to improve focus

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DISCUSSION

• Does your organization function in the manner
  which is most effective at allowing your Board of
  Directors to govern and your Executive Director
  to manage? What could be done to improve this
  relationship for the future?

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One Final Management OptionAssociation
Management Firms

• Executive sharing among associations
• Economical for smaller associations
• Be careful to avoid conflicts of interest among
  the firms clients and protect the
  confidentiality of own associations financial
  records

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Resources consulted for this presentation

• Jerald Jacobs. Association Law Handbook. 3rd
  Edition. Washington, DC American Society of
  Association Executives, 1996.
• The Nonprofit Board Book Strategies for
  Organizational Success. Revised edition.
  Arkansas Independent Community Consultants,
  1985.
• Carter McNamara. Field Guide to Developing and
  Operating Your Nonprofit Board of Directors.
  Minneapolis, MN Authenticity Consulting, 2000.
• www.BoardSource.org 2005
• Minnesota Council of Nonprofits. www.mncn.org
  2006

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Any final thoughts or questions?