Building and Maintaining an Effective Nonprofit Board of Directors

Business people sitting round a desk in a meeting

Free Nonprofit Micro-eMBA Module #5: Building and Maintaining an Effective Board of Directors

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
Much of this program is based on materials adapted from the Nonprofit Capacity Building Toolkit(SM). Much of the content of this module was adapted from the guidebook, Field Guide to Develop and Operate Your Nonprofit Board of Directors.

This module is in the nonprofit organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about building and maintaining a board of directors.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

If you are an incorporated nonprofit, it’s very likely that you have already at least the beginnings of a board of directors. Theory and law dictate that the board of directors is responsible to govern your organization. Typically, new boards of directors in a new organization work hands-on, almost as partners — or as a “working board” — with the chief executive. A wise CEO will see Board members almost as strategic partners, rather than as a necessary evil that corporations must have.

It’s not uncommon, especially for new organizations, to act as if they are lucky even to have anyone on their board. Wrong! You deserve — and should always expect — to have a very participative board that, no matter how hands-on they are at first, also attend to major decisions about the organization. Completion of this module will ensure that your board has the necessary components, policies and practices in place from which to develop a healthy governing board.

Note that you, as a learner in this program, can greatly enhance the development of your board by continuing to involve board members in discussions about topics and questions posed by this program.

NOTE ABOUT THE ORDER OF MODULES (AND SOME DUPLICATION WITH PREVIOUS MODULE ON ROLE OF CHIEF EXECUTIVE OFFICER): : The modules about starting an organization and about the role of chief executives briefly mention certain activities in regard to building a preliminary board of directors — there is a little bit of necessary duplication between these two modules. This module helps the learner to round out the board of directors and ensure they are fully functioning for the organization.

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Development Committee (or Board Governance Committee) to review and help guide implementation the information in this learning module. Major activities and goals from this learning module could be incorporated in that Committee’s Sample Committee Work Plan.

NOTE ABOUT “CORPORATE” NONPROFITS: A nonprofit organization is wise to file in its state to be a corporation. The vast majority of nonprofits that get tax-exempt and/or charitable status with the Internal Revenue Service (in the United States) have corporate status. So understand that the term “corporate” on this page refers to nonprofit corporations.

Also consider
Related Library Topics

OUTCOMES

Understand Roles and Responsibilities of a Board
Adopt Board Policies
Build Board Committees
Recruit New Board Members
Ensure Strong Participation of Board Members
Prepare for Board and CEO Evaluations
Build Board Calendar to Schedule All Operations
Organize a Board Manual
Train Board Members
Assess the Health of Your Board Practices

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.
NOTE: There are many materials included for review in this section. However, you do NOT need to review all of them in detail.
a) You do not need to follow links out of the following documents
b) You do not need to follow links in “Also see” sections
c) You do not need to review any materials marked as “nonprofit”

Board Roles and Responsibilities

Board Operations

Board Operations and Systems (read introductory paragraph)
- Depiction of “System” of For-Profit Board
- Sample Board Operations Calendar (read all)

Documents — Charter/Constitution/Articles, Operating Rules, Policies, etc.

Board Roles and Responsibilities

1. Name the five duties and ten responsibilities of boards (as listed on the materials included in your materials for review). (Note that various experts might offer a different mix of duties and responsibilities. The important point here is to get a basic sense of the overall responsibilities of a board.) (See Overview of Roles and Responsibilities of Corporate Board of Directors.)

2. To whom is a board of directors responsible, that is, to whom do they “report”? (See Overview of Roles and Responsibilities of Corporate Board of Directors.)

3. What is the board chair responsible for? Vice chair? Secretary? Treasurer? (See Sample Job Descriptions for Members of Boards of Directors.)

4. Test your knowledge of the roles of board and staff by completing the table at Board and Staff Responsibilities — Test Your Knowledge. Be sure to compare your answers to the table at Board and Staff Responsibilities .

Board Operations

1. What are the recurring major activities of a board of directors? (See Sample Board Operations Calendar.)

2. What are some of the recurring yearly activities that a Board should do? (See Sample Board Operations Calendar.)

3. What are at least five ideas to generate and sustain strong participation of board members? (See Ideas to Generate Participation in Committees.)

Board Policies

1. What is the purpose of board policies? (See Board Policies.)

2. What is the purpose of board bylaws? (See Corporate Bylaws.)

3. What is a board manual? Name as many board manual contents as you can. (See Sample Contents of Board Member’s Manual.)

4. What is a board resolution? (See Board Resolutions.)

Board Staffing (Recruiting, Orienting, Training, Informing)

1. What is the most important consideration when you set out to recruit new members to your board? (See Guidelines for Recruiting New Board Members.)

2. How many guidelines can you name for orienting employees? (See Orienting New Members to Boards of Directors.) Informing them on a regular basis? (See How Do We Keep Board Members Informed?)

3. How should you train your Board members? (See Basic Guidelines and Sample Agenda for Board Training Session.)

4. What should you consider when deciding the compensation to your Board members? (See Compensating Board Members.)

5. What’s involved in removing board members? (See Removing Members.)

Board Committees

1. What is the purpose of a board committee? (See Typical Types of Board Committees.)

2. What is a standing committee? Ad hoc committee? When should each type be used? (See Typical Types of Board Committees.)

3. How many committees can you name and what is the purpose of each? (See Typical Types of Board Committees.)

4. What is an advisory group (or committee or board)? (See Guidelines to Form and Advisory Group.)

5. What is a work plan for a committee? (See Sample of a Board of Directors Committee Work Plan.)

6. Can you name at least 4 of the ideas to generate participation in committees? (See Ideas to Generate Participation in Committees.)

Board Meetings

1. What is a board meeting agenda? How are they developed? (See Sample Board of Directors Meeting Agenda.)

2. What is the purpose of board meeting minutes? What should be included in the minutes? (See Basic Sample of Board of Directors Meeting Minutes.)

Board Evaluations

1. How does the board evaluate itself? What is considered during the evaluation? How often should the board evaluate itself? (See Board of Directors Self-Evaluation and Evaluating the Board of Directors.)

2. How does the board evaluate the chief executive officer? (See Guidelines for Board of Directors Evaluation of Chief Executive and Sample Form for Board’s Evaluation of the Chief Executive.)

Special Topic — Board Liabilities

1. Is your board aware of any potential liabilities? Should your board members consider getting any certain forms of insurance? (See Some Legal Considerations for Board Members and Insurance Against Liability.)

2. What are the ramifications of the Sarbanes–Oxley Act for your company? (See Sarbanes–Oxley Act.)

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and employees, as appropriate.
Note that the roles of your board and employees will become more clear as you complete strategic planning and product planning later on in this program.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Specify Your Board’s Roles and Responsibilities

1. Clarify what your board will be doing and what your staff will be doing. Complete the Board and Staff Responsibilities — Test Your Knowledge according to the wishes of your board. You can compare your preferences to those suggested in the table at Board and Staff Responsibilities.

Authorize Up-to-Date Board Policies

1. Adopt an up-to-date and acceptable set of bylaws. Before the next meeting, the board chair and CEO should write a memo that highlights important points from the current bylaws. Or, they might make marks in the margin of the current bylaws as means to highlight important points. Include these highlights in the board packet of information that gets sent to each board member before the next meeting. Set aside 20 minutes in an upcoming board meeting to collect feedback about the current bylaws. Consider board resolutions to make any changes to the bylaws. Once changes have been made, consider a resolution to formally adopt the bylaws. (See Corporate Bylaws.)

2. What board policies will you need? Draft — and carefully enforce — a policy for board attendance. (See Board Attendance Policy (Sample).)

3. What other policies are required by Sarbanes–Oxley? Role of Audit Committee? Whistleblower? Document Retention/Destruction? (See The Sarbanes-Oxley Act and Implications for Nonprofit Organizations.)

Organizing Your Board Committees (Includes Recommendations)

1. What board committees should you have? You should have at least an executive committee that can meet between board meetings, if necessary. This committee could be comprised of chairs of other committees and/or officers of the board. To identify other needed committees, carefully consider the types of major issues that your organization faces and any strategic goals to be accomplished over the next year. What is the nature of these goals and issues, for example, audit, compensation, financial, board development and personnel? If possible, establish committees for each of the major types of issues and goals faced by our organization. (NOTE: See the following recommendations regarding board committees.) (See Typical Types of Board Committees.)

Recommendation: Establish the Following Initial Board Committees

1. Strongly consider establishing at least the following board committees. Each of the following committees can help you accomplish major sections of this Online For-Profit Organization development program. Each of the following committees should have its own work plan. The work plan should include goals to accomplish the major activities specified in the associated sections of this online program.

Strongly Suggested Standing Committees to Have:

a) Executive Committee — This committee can be comprised of chairs from other committees and/or officers of the board. (See Role of the Executive Committee.)
b) Board Governance Committee — This could be done by the executive committee for now. This committee also could include nominating, orienting and training new board members. (See Board Governance Committee.)
c) Marketing Committee — This committee helps to clarify whom programs can serve, pricing, collaborators, etc., along with getting the word out about the nonprofit.
d) Finance Committee — This committee is almost a requirement, so that board members take a strong role in understanding and approving finances.
e) Fundraising Committee — However, not all nonprofits need fundraising. (See Role of the Nonprofit Fundraising Committee.)

Other Standing Committees to Consider:
f) Personnel Committee (this committee can help with policies about volunteers, too)
g) Programs Committee (this can help with clarifying program goals and outcomes, and educating the board about programs)

Note that you will probably have much clearer idea about what committees to have when you get done with your strategic planning in an upcoming module. (See Description of Typical Committees.)

2. Quickly establish work plans for your committees. As soon as your board has approved the new organization of committees, be sure that each committee sets about to develop its own work plan. Using a work plan is one of the best ways for committees to stay effective and engaged. (See Sample of a Board of Directors Committee Work Plan.)

Staff Your Board With Needed Skills

1. Identify what skills are now needed by your board. Again, consider the nature of major issues and goals currently faced by your organization. Also reference the Sample Board of Directors Recruitment Grid. Write down what skills are needed.

2. Develop procedures for recruiting and orienting board members. Include steps to recruit members, orient members, get completed applications from board candidates and elect new members. Consider information in Guidelines for Recruiting New Board Members, Orienting New Members to Boards of Directors and Sample Board Application Form. Have the entire board review the procedures for acceptance and authorization.

3. Use your new procedures to begin recruiting new board members. (The size of the board is usually specified in the bylaws. You can recruit enough members to reach this size. If the size needs to be changed, consider a resolution to modify the bylaws.)

Ensure Strong Participation of Board Members (Board Meetings)

1. Get board packets out to members at least a week before each meeting. One of the clearest indicators to board members that the organization is not taking them seriously is if they don’t get materials in time for adequate review before board meetings. Write a procedure for your staff to always send out a packet of meeting-preparation information to board members at least one week before the next board meeting. In the packet, include at least the following:

a) agenda for the upcoming meeting
b) report from the chief executive about major accomplishments and current issues and plans over the next two months
c) financial reports, including at least a budget report and cash flow statement
d) materials that can help board members act on any major decisions expected from them in the next meeting

2. Expect nothing less than full (or excused) absence from meetings. What kind of attendance are you getting to current board meetings? Are you regularly getting at least a quorum of members? (The quorum is the minimum number of members that must be present in a meeting for that meeting and its processes to be considered official. The quorum is usually specified in the bylaws.) If you are not getting strong attendance, then be sure to enforce a Board Attendance Policy (Sample). If you don’t enforce this policy, then you have a major problem — the problem is that you aren’t taking it seriously to expect and pursue a strong board of directors.

3. The board’s worst enemy — the “numb out” factor. One of the first signs that a board is in trouble is when members have opinions that they don’t express during meetings. If you find yourself sitting in a board meeting and realize you have “numbed out”, then you’re not doing your duty as a board member. Do you need to follow any of the guidelines in Ideas to Generate Participation in Committees?

Ensure Your Board and Chief Executive are Really(!) Effective

1. Establish a procedure for regular board self-evaluations. Don’t just “go through the motions” and not evaluate whether the board is really effective or not. How does your board evaluate itself now? Do you have a procedure that has been accepted and authorized by board members? Is your board evaluating itself on a regular basis? The board should conduct evaluations on a yearly basis, or at least every two years. If the board isn’t evaluating itself on a regular basis, then make this point to discuss in an upcoming meeting. Consider information in Board of Directors Self-Evaluation and Evaluating the Board of Directors.

2. Establish a procedure to evaluate the chief executive on a regular basis — preferably once a year. Don’t just “go through the motions” and not evaluate whether the chief executive officer is really effective or not. Does your board evaluate your chief executive officer? How often? How are the results used? If you are not evaluating the chief executive on a regular basis, then why not? Make this a point to discuss in an upcoming meeting. Consider information in Guidelines for Board of Directors Evaluation of Chief Executive and Sample Form for Board’s Evaluation of the Chief Executive.

Clearly Communicate What Your Board Does (Board Operations)

1. Establish a calendar of the recurring major activities to be conducted by your board each year. The calendar should be accepted and authorized by the board. Consider information in the Sample Board Operations Calendar.

Ensure Adequate Protection from Liabilities

1. Conclude what insurance you do and don’t need for board members. Is your board aware of any potential liabilities? Should your board members consider getting any certain forms of insurance? Consider information in the Legal and Insurance Considerations for Board Members and Overview of Liability Insurance (including Directors’ and Officers’ Insurance).

Build a Board Manual for Each Board Member

1. Ensure that each board member has a policies manual that contains at least the following policies and materials. (See Sample Contents of Board Member’s Manual):

a) Description of roles and responsibilities of your board. (See Overview of Roles and Responsibilities of Corporate Board of Directors.)

b) Job descriptions for each board member and officer position. (See Sample Job Descriptions for Members of Boards of Directors.)

c) Descriptions of your board committees, their overall responsibilities and work plans. (See Typical Types of Board Committees.)

d) Policies for recruiting new members, orienting them, informing them and removing them. (See Joining, Recruiting, Orienting, Informing, Removing Board Members.)

e) Your board meeting attendance policy. (See Board Attendance Policy (Sample).)

f) Procedure for evaluating your board of directors. (See Board of Directors Self-Evaluation.)

g) Procedure for evaluating your chief executive officer. (See Guidelines for Evaluating the Chief Executive.)

h) Sample meeting agendas and board meeting minutes. (See Sample Board of Directors Meeting Agenda and Basic Sample of Board of Directors Meeting Minutes.)

i) Copies of your articles of incorporation (if applicable) and bylaws.

j) Copy of your strategic plan (if applicable).

k) Board operations calendar.

Train Board Members to Be Highly Effective (Board Training
Session)

1. Conduct a board training session to ensure each board member fully understands their role and has the necessary resources to carry out their role. Review information in the document Basic Guidelines and Sample Agenda for Board Training Session. Now draft a training session agenda that specifies the topics that will be covered in the session, who will address each topic and how. Schedule and carry out the training session.

ASSESSMENTS

Consider any or all of the following assessments as means to evaluate the health of your board of directors.

1. Board of Directors Self-Evaluation

2. Governance Indicators (Best Practices)

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

1. Are you exchanging feedback with others about what you’re learning in this program?

2. Are you sticking to your study schedule for this program?

3. Are you practicing your basic skills in management and leadership, including in problem solving and decision making, planning and meeting management?

4. Are you communicating throughout your organization by using your skills in internal communications?

5. Are you managing yourself? How many hours a week are you working? Are you noticing any signs of stress? If so, what are you doing about it?

6. Are you reflecting on learnings from past modules and how they build on the learning in this module? For example, are you seeing your organization from a systems view, as explained in the module “Starting and Understanding Your Nonprofit?”

TRACKING OPEN ACTION ITEMS

1. One of the first indicators that an organization or a person is struggling is that open action items are not tracked and reviewed. (Open action items are required actions that have not yet been completed.) Instead, people only see and react to the latest “fires” in their workplaces or their lives. Whether open action items are critical to address now or not, they should not entirely be forgotten. Therefore, update and regularly review a list of open action items (identified while proceeding through this program) that includes listing each open action item, who is responsible to complete it, when it should be completed and any associated comments. When updating the list, consider action items as identified during discussions, learning activities and assessments in this module. Share and regularly review this action item list with the appropriate peers, board, management and employees in your organization. You can use the following Action Item Planning List. (At that Web address, a box might open, asking you which software application to open the document.)

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the organization development program can return to the home page of the organization development program.)

For the Category of Boards of Directors:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022February 16, 2023

Nonprofit Board and Staff Responsibilities — Test Your Knowledge

Board and Staff Responsibilities —
Test Your Knowledge

Use the following table to test your
knowledge of the differences between the roles of the board and
staff of a nonprofit organization. Under the column titled “Responsibility”,
note if the activity is:
Board
Staff
Joint

Then compare your answers to the table
at Board and Staff Responsibilities.

Activity

Respon-
sibility

PLANNING:

Director the process of planning	\|
Provide input to long range goals	\|
Approve long range goals	\|
Formulate annual objectives	\|
Approve annual objectives	\|
Prepare performance reports on achievement of goals and objectives	\|
Monitor achievement of goals and objectives	\|

PROGRAMMING:

Assess stakeholder (customers, community) needs	\|
Train volunteer leaders (nonprofit-specific)	\|
Oversee evaluation of products, services and programs	\|
Maintain program records; prepare program reports	\|
Prepare preliminary budget	\|
Finalize and approve budget	\|
See that expenditures are within budget during the year	\|
Solicit contributions in fundraising campaigns (nonprofit-specific)	\|
Organize fundraising campaigns (nonprofit-specific)	\|
Approve expenditures outside authorized budget	\|
Insure annual audit of organization accounts	\|

PERSONNEL:

Employ Chief Executive	\|
Direct work of the staff	\|
Hire and discharge staff member	\|
Decision to add staff	\|
Settle discord among staff	\|

COMMUNITY RELATIONS:

Interpret organization to community	\|
Write news stories	\|
Provide organization linkage with other organizations	\|

BOARD COMMITTEES:

Appoint committee members	\|
Call Committee Chair to urge him/her into action	\|
Promote attendance at Board/Committee meetings	\|
Recruit new Board members	\|
Plan agenda for Board meetings	\|
Take minutes at Board meetings	\|
Plan and propose committee organization	\|
Prepare exhibits, material and proposals for Board and Committees	\|
Sign legal documents	\|
Follow-up to insure implementation of Board and Committee decisions	\|
Settle clash between Committees	\|

For the Category of Boards of Directors:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022February 8, 2023

Developing Your Strategic Plan

Free Micro-eMBA Module #6: Developing Your Strategic Plan

This module is in the organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about strategic planning and writing a strategic plan.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

Very simply put, strategic planning identifies where the organization wants to be at some point in the future and how it is going to get there. The “strategic” part of this planning process is the continual attention to current changes in the organization and its external environment, and how this affects the future of the organization. Skills in strategic planning are critical to the long-term success of your organization. This form of planning includes:

a) Taking a wide look around at what’s going on outside the organization and how it might affect the organization (an environmental scan), and identifying opportunities and threats
b) Taking a hard look at what’s going on inside the organization, including its strengths and weaknesses (perhaps doing a SWOT analysis)
c) Establishing statements of mission, vision and values (some prefer to do that as the first step in planning)
d) Establishing goals to accomplish over the next (usually) three years or so, as a result of what’s going on inside and outside the organization
e) Identifying how those goals will be reached (strategies, objectives, responsibilities and timelines)

Strategic planning determines the overall direction and goals of the organization. Consequently, strategic planning influences numerous aspects of the organization, including what:

a) Products and services will be provided by the business and how those products and services will be designed
b) Organizational design and roles will be needed by the organization
c) Performance goals should be established for positions throughout the business
d) Board committees should be developed (in the case of corporations)
e) Resources will be needed to achieve those goals, and consequently, how much money is needed to procure those resources — ultimately, the goals determine the content of various budgets

Two key points to remember while proceeding through this module are:
1) The planning process is at least as important as the planning document itself
2) The planning process is never “done” — the planning process is a continuous cycles that’s part of the management process itself

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Planning Committee (in the case of corporations) to review and help guide implementation the information in this learning module. The Planning Committee might be comprised of chairs from other board committees. Major activities and goals from this learning module could be incorporated in that Committee’s Committee Work Plan. This module includes additional recommendations for membership of the group of planners.

NOTE ABOUT OCCASIONAL REFERENCES TO NONPROFIT MATERIALS: Various links below refer to nonprofit strategic planning — there is little difference between strategic planning in for-profit and nonprofit organizations. Consequently, all of the materials referenced below can be useful to understanding strategic planning in for-profit organizations.

NOTE ABOUT STRATEGIC PLANNING PROCESS USED IN THIS MODULE:
There are many different ways to do strategic planning. The process used depends on the nature and needs of the organization, the reason for the planning (there are numerous, different reasons for doing strategic planning), the types of priorities faced by the organization, the rate of change outside and inside the organization, the ways that decisions are made in the organization, the expertise of people to do planning, the extent of external research needed to do the planning, and the personal preferences of the organization’s leaders and the facilitator(s) of the planning process. Because this module is aims to explain strategic planning to people who have no — or very little — experience in strategic planning, some basic approaches are described in this module. Other approaches are described in the Library’s Strategic Planning topic.

Also consider
Related Library Topics

OUTCOMES

Learners who complete this module will achieve the following outcomes:

Decide if You Are an Entrepreneur
Answer: You Have Right Planning and Financial Skills?
Answer: What Human Resources Will You Need?
Articulate Your First Products and Markets
Verify If Those Markets Really Exist
Identify Best Approaches to Pricing
Answer: How Much Money Will You Need?
Draft Your First Strategic and/or Business Plan

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.
NOTE: Each of the following links is to a one- to two-page overview. Read all of the following documents referenced by the following links.

Introduction to Basics of Planning (general to most planning processes)

Read all of the document referenced by the following topic.

Basic Guidelines for Successful Planning Process

Introduction to Strategic Planning

Read all of the documents referenced by the following topics.

Preparation for Strategic Planning

Read all of the documents referenced by the following topics.

Conducting Strategic Planning

Read all of the documents referenced by the following topics.

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and employees, as appropriate.
You can write a draft of your own strategic plan by filling in the Framework for a Basic Strategic Plan Document as you proceed through the activities listed below.
Learners are strongly encouraged to use a team of planners to complete the strategic plan. The following information references advice and guidelines for forming this team.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Preparation (for Organizations That Have Not Yet Done Strategic Planning) — Do a “Plan for a Plan”

Address any hesitations that planners might have before you start planning. Do you have any reservations or hesitations about the value of strategic planning? If you do not want to pursue the strategic planning process as it is described in this module, then how will you (the board, chief executive and other employees) decide what your organization will be doing over the next few years and how it will do it? (Many banks/funders, prospective board members and chief executives will want to see some form of a strategic plan document. Consider this in your decision about how your organization will do strategic planning.)
What planning model will you use? Basic? Issues-based? Organic?
How did you select the model that you’ll use? See Basic Overview of Various Strategic Planning Models.
When should your strategic planning be done? See When Should Strategic Planning Be Done?
Will you need a facilitator? If so, where might you get one?
See Need Consultant or Facilitator to Help You With Planning?
Who should be involved in your strategic planning? Be sure at least the Board Chair is involved and certainly the CEO. See Who Should Be Involved in Planning?
Will there be strong, visible support of the CEO and Board Chair to others in the organization? See How Many Planning Meetings Will We Need?
How will you ensure implementation of the plan? See How Do We Ensure Implementation of Our New Plan?

Developing Your Basic Strategic Plan Document

The following activities involve completing a Strategic Plan document. A framework, or template, is provided for you, Framework for a Basic Strategic Plan Document. However, that document is in HTML, of Web-based format. You might be better to re-create the framework, using your preferred word
-processing software.

Write Your Mission Statement. In the section labeled “Mission Statement” in the Framework for a Basic Strategic Plan Document, write a concise description of the purpose of your organization. Answer the question: “Why does our organization exist?” When answering this question, include the nature of your products and the groups of customer who buy your products. The mission statement should provide continued direction and focus to your plans and operation in your organization. See Basics of Developing Mission, Vision and Values Statements.
Write Your Vision Statement. In the section labeled “Vision Statement” in the Framework for a Basic Strategic Plan Document write your vision statement. Answer the question “What do you hope for your organization and customers?” Ideally, it should be written in a compelling, inspirational fashion. See Basics of Developing Mission, Vision and Values Statements.
Write Your Values Statement. In the section labeled “Values Statement” in the Framework for a Basic Strategic Plan Document, write down the important values from which you want your organization to operate. The values statement depicts the priorities in how the organization carries out activities with stakeholders. See Basics of Developing Mission, Vision and Values Statements.
Conduct an External Analysis. In Appendix C of the Framework for a Basic Strategic Plan Document, write down your thoughts from an external analysis. An external analysis looks at societal, technological, political, and economic trends affecting the organization, e.g., trends in the economy, recent or pending legislation, demographic trends, rate of access to trained labor, and competition. In your external analysis, don’t forget to look at stakeholders’ impressions of the organization, including bankers’, customers’, community leaders’, etc.
Conduct an Internal Analysis. In Appendix C of the Framework for a Basic Strategic Plan Document,
write down your thoughts from your internal analysis. Write down the major strengths and weaknesses of your organization. Write down the major threats and opportunities regarding your organization. Consider trends affecting the organization, e.g., strength of sales, reputation of the organization, expertise of employees, facilities, strength of finances, strength of administrative offices and operations, etc.
Identify Strategic Issues. In Appendix C of the Framework for a Basic Strategic Plan Document, write down the major immediate and near-term issues that your organization must address. New organizations, in particular, are often better off to first look at the major obstacles or issues that if faces, and next identify the more forward-looking, developmental goals to accomplish over the next few years. For example, current issues might be that sales are dropping, there is no research and development to generate new products, employee turnover rate is too high, etc. Developmental goals for a new organization might be, for example, build a board, do a strategic plan, do a market analysis to build a new product, hire employees, etc. See Basics of Identifying Strategic Issues and Goals.
Establish Strategic Goals. In the section labeled “Goals and Strategies” in the Framework for a Basic Strategic Plan Document, write down the strategic goals to address the above-identified issues and the more forward-looking, developmental goals. Consider goals over the term of your strategic plan, but look very closely at the next year especially. Design and word your goals to be “SMARTER”, that is, specific, measurable, acceptable to the people working to achieve the goals, realistic, timely,
extending the capabilities of those working to achieve the goals and rewarding to them. Don’t worry so much about having to specify goals to be exactly “correct”. Carefully consider whether the goals and strategies are closely aligned with your mission, vision and values. See Basics of Identifying Strategic Issues and Goals.
Develop Staffing Plan. In Appendix E of the Framework for a Basic Strategic Plan Document, write a rough draft of a staffing plan. To do this, reference each of the strategies to reach the goals and consider what kind of capabilities are needed to implement the strategies. This might seem like a lot of guesswork, particularly if you don’t have experience in supervision. However, don’t worry so much about being exactly correct — you will likely refine your staffing plan later on as you design and plan your products. If you are developing a new organization, you might think about including the following typical roles in your initial staffing plan (but again, consider these roles in terms of implementing the strategies in your plan): chief executive, administrative assistant and product managers for each of your major product goals. See Organizing Staff.
Conduct Action Planning. In Appendix A of the Framework for a Basic Strategic Plan Document, for each strategy, write down the objectives that must be achieved while implementing the strategy, when the objective should be completed and by whom — especially over the next year. As you identify who will accomplish each of the objectives, you might end up refining your staffing plan. See Basics of Action Planning.
Describe the Process Used to Develop the Plan, in Appendix B. It helps to describe the process now, so planners can refer to it the next time they do planning.
Document Any Strategic Goals Assigned to the Board Committees and CEO in Appendix D. One of the best ways to ensure that strategic goals are achieved is to assign them to a person or group of people.
Develop an Operating Budget for Each Year in the Plan, for Appendix F. In the table labeled “Your Budget Planning” in Appendix F of the Framework for a Basic Strategic Plan Document, list the resources you will need to achieve the goals in the strategic plan and what it will cost to obtain and use the resources. You don’t have to be exactly accurate — besides, you may end up changing your budget as you give more attention to product design and planning in the next learning module. You
should do a budget for each of the years included in the span of time covered by your strategic plan — but give particular attention to the first year of the time span.
Specify How Implementation of Plan Will Be Monitored and Evaluated. In Appendix G of the Framework for a Basic Strategic Plan Document, write down how the status of implementation will be monitored and evaluated. Consider, for example, weekly written status reports to the chief executive from employees, and monthly written reports to board members. Status will address whether goals and objectives are being met or not, current issues and any resource needed to implement the plan. See How Do We Ensure Implementation of Our New Plan?
Specify How Plan Will Be Communicated. In Appendix H of the Framework for a Basic Strategic Plan Document, write down how the plan will be communicated. Consider distributing all (or highlights from) the plan to everyone in the organization. Post your mission on the walls of your main offices. Consider giving each employee a card with the mission statement on it. Publish portions of your plan in your regular newsletter. See Writing and Communicating the Plan.
Write an Executive Summary. To complete your strategic plan document, update the following sections of the Framework for a Basic Strategic Plan Document.
a) Complete the section labeled “Executive Summary” (guidelines are provided in the framework)
b) Gain authorization from your board (in the case of corporations) (they should sign in the section labeled “Board Authorization of Strategic Plan”)
c) In the body of the plan in the section titled “Organizational Information”, include descriptions, for example, of the history of the organization, its major products and services, highlights and accomplishments during the history of the organization, etc.
Acknowledge What You’ve Done — Congratulations!

ASSESSMENTS

1. Strategic Planning Assessment for Businesses

2. The following link is to several approaches to evaluate strategic planning.
Monitoring Implementation, Evaluating Implementation

REMINDERS FOR THOSE IN THE ONLINE DEVELOPMENT PROGRAM

Reminders About You

Are you using your skills learned in previous modules? For example, as you using methodical approaches to problem solving and decision making? Are you using strong practices of meeting management? Are you communicating key information to others throughout your organization?
Are you discussing topics and materials with peers, board members and others, as appropriate? Discussion and ongoing feedback are some of the best methods to really learn new information
and materials.
Are you helping others to hold you accountable to your times that you committed to reading and study in this program?
Are you reflecting on learnings from past modules and how they build on the learning in this module? For example, are you seeing your organization from a systems view, as explained in the module “Starting and Understanding Your Organization?”

Reminders About Your Organization

The results of your strategic plan should produce updates to a variety of aspects in your organization. Consider:
a) Are your products and services directly aligned with your new strategic planning goals and strategies
b) Should any job descriptions and performance goals be updated for personnel in your organization?
c) Should your board committees be re-organized to be more aligned to contribute toward achieving your new strategic goals?
How are you ensuring that your whole board understands and contributes to achieving your strategic goals?

TRACKING OPEN ACTION ITEMS

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the organization development program can return to the home page of the organization development program.)

For the Category of Strategic Planning:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 22, 2022

Framework for a Basic Strategic Plan Document for a Business

Framework for a Basic Strategic Plan Document for a Business

Directions

The following framework will guide you through completion of your basic strategic plan document. (There are many models for strategic planning — this framework is for conducting a goals-based plan.) Each section includes directions. Many sections include examples, as well. In addition, sections includes links to related, additional information to help the reader fill out that section of the framework.

NOTE: The framework depicts a useful format, but should be duplicated into an editable version, for example, into Microsoft Word.

Readers are encouraged to work with a planning team in their organization to fill in this framework. After completing this framework, readers can move information from the framework to a more suitable document to be the final version of the strategic plan document, if desired.

(Note that there are a wide variety of perspectives and approaches regarding strategic planning. The library topic Strategic Planning provides overviews of many of these perspectives and approaches.)

Also consider
Related Library Topics

[NAME OF YOUR ORGANIZATION!!]

STRATEGIC PLANfor the period

[insert dates!!]

[insert date that plan was authorized by board by
directors (in the case of a corporation)!!]

TABLE OF CONTENTS

Executive Summary

Board Authorization of Strategic Plan [in the
case of a corporation!!]

Organizational Description

Mission, Vision and Values

Goals and Strategies

Appendices
A – Action Planning (objectives, responsibilities and time lines)
B – Description of Strategic Planning Process Used
C – Strategic Analysis Data (External Analysis, Internal Analysis
& List of Issues)
D – Goals for Board Committees and Chief Executive Officer
E – Staffing Plans
F – Operating Budgets
G- Financial Reports (Budgets, Statements, etc.)
H – Monitoring and Evaluation of Plan (Criteria, Responsibilities
and Findings)
I – Communicating the Plan

Executive Summary

(Complete this section after you have finished the other sections of the plan document. The Executive Summary describes plan highlights to bankers/funders, board members, employees and other stakeholders. The Executive Summary should be one to two pages in length at most. It should include very concise descriptions of the most important information from the strategic planning process and its results. For example, include very brief descriptions of what’s in this document and how to use the document, strategic issues and goals, when the plan will be implemented, how the implementation will be monitored and by whom, and any specific actions required by upper management.)

Board Authorization of Strategic Plan [in the
case of a corporation!!]
(Authorization designates board member’s approval of the strategic direction and action plans described in this strategic plan document.)

Name of Board Member: ___________
Date Signed: _________

Name of Board Member: ____________
Date Signed: _________

(etc.)

Organizational Description

This section should include information that will be informative, particularly to readers from outside of the organization.

Brief overview of history of organization
Description of major products and services
Overview of major accomplishments and other highlights during history of organization

Mission Statement

The mission statement is a concise description of the purpose of the organization. It answers the question: Why does our organization exist? When answering this question, include the nature of your products and services, and the various groups of customers that buy the products and services. The mission statement should provide continued direction and focus to your plans and operations. Post your mission statement throughout your organization, on all stationery, in your plan documents, etc. (For additional assistance, see Writing Mission Statements.

Your Mission Statement: ___

Vision Statement

The vision statement is an inspirational, compelling answer to the question: What do you hope for your organization and customers? Ideally, it should be written in a compelling, inspirational fashion. Post your vision statement throughout your organization. (For additional assistance, see Writing Vision Statements.)

Your Vision Statement: ___

Values Statement

The values statement depicts the priorities in how the organization carries out activities with stakeholders. The board and chief executive should regularly reference the values statement to provide guidance to the nature of how the organization should operate. (For additional assistance, see Writing Values Statements.)

Your Values Statement: ___

Goals and Strategies

Goals are identified from having taken a wide look around the outside of the organization (an external analysis) and careful look inside the organization (an internal analysis), and then identifying what are the most important issues to address. Appendix C includes information to organize this analysis. Your Goals Should Be “SMARTER” When you design and word your goals, be sure they are “SMARTER”, that is, specific, measurable, acceptable to the people working to achieve the goals, realistic, timely, extending the capabilities of those working to achieve the goals and rewarding to them. Don’t worry so much about having to specify goals to be exactly “correct”. Your goals are likely to be modified somewhat as you give more attention later on to product design.

You Will Likely Have Organization-Wide and Product/Service-Specific Goals

You will probably have organization-wide goals, for example, goals in regard to building and running your organization, for example, board development, staffing, getting a new building, etc. You also will probably have goals that directly in regard to building, producing and selling products or services to your customers.

Write Down Goals to Address Issues

Below, write down the strategic goals that must be achieved in order to address the issues listed in Appendix
C. Think about what must be achieved in order to address the issues. Consider goals over the term of your strategic plan, but look very closely at the next year especially. (For additional assistance, see Strategizing.)

Write Down Forward-Looking Goals

Next, write down more forward-looking goals. If you are developing a new organization, then you’ll probably have goals to build a board, do a strategic plan, do a market analysis to build a program, get volunteers, hire staff, etc. Consider goals over the term of your strategic plan, but look very closely at the next year especially. (For additional assistance, see Strategizing.)

Next, Associate Strategies with Each Goal

Next , under each goal, write down the major approaches (or strategies) that must be used to achieve each goal. Consider strategies over the term of the strategic plan, but especially over the next year. (For additional assistance, see Strategizing.)

Now Consider: Are the Goals and Strategies Closely Aligned with Organization’s Mission, Vision and Values?

Does each goal and its associated strategies really contribute toward the mission and vision of the organization. Will the goals be reached by using strategies that are closely aligned with the values of the organization? If not, then very closely reconsider whether you want to pursue those goals and associated strategies.

Goals and Strategies (Cont.)

(Make copies of this page as needed.)

Your Goals and Strategies
Goal # 1 (Write them to be “SMARTER”)

Strategy # 1.1

Strategy # 1.2

Goal # 2

Strategy # 2.1

Strategy # 2.2

(etc.)

Appendix A — Action Planning (objectives, responsibilities and timelines)

In the section labeled “Your Action Plans” below, write down action plans, especially for the next year. Action plans specify how the strategic goals and strategies will be carried out. Action plans often include various objectives to be reached while achieving each goal, who is responsible for achieving each objective and by when. Write objectives to be “SMARTER”. (For additional assistance, see Action Planning.)

(Make copies of this page as needed.)

Goal # 1 (Write them to be “SMARTER”)

Strategy # 1.1

Objectives for Strategy 1. 1	Date of Completion	Respon- sibility	Status and Date
\| \| \|

(etc.)

Appendix B – Description of Strategic Planning Process Used

This appendix might include, for example,

description of how the strategic plan document was developed
who was involved in the planning
any major problems and lessons learned during the planning process
etc.

Appendix C – Strategic Analysis Data — External Analysis

An external analysis looks at societal, technological, political, and economic trends effecting the organization, e.g., recent or pending legislation, demographic trends, rate of access to trained labor, and competition. In your external analysis, don’t forget to look at stakeholders’ impressions of the organization, including bankers’/funders’, customers’, community leaders’, etc. (For additional assistance, see
Taking a Wide Look Around the Outside of the Organization.)

From out external analysis, we identified the following trends and how they might effect our organization:

Political trends:

Economic trends:

Societal trends:

Technological trends:

Other trends:

Appendix C – Strategic Analysis Data — Internal Analysis

Write down the major strengths and weaknesses of your organization. Consider the quality of operations of the Board, products, staffing, finances, facilities, marketing, etc. (For additional assistance, see Looking at Organization’s Strength’s, Weaknesses, Opportunities and Threats (SWOT).)

From out internal analysis (our SWOT analysis), we identified the following factors:

Strengths of the organization:

Weaknesses of the organization:

Appendix C – Strategic Analysis Data — Listing of Strategic Issues

New businesses, in particular, are often better off to first look at the major obstacles or issues that if faces, and next identify the more forward-looking, developmental goals to accomplish over the next few years. For example, current issues might be that sales are flat, there is high employee turnover, etc. Developmental goals for a new organization might be, for example, build a board, do a strategic plan, do a market analysis to build a product, hire staff, etc.

To identify the key issues identified from your strategic analyses, consider the following guidelines:
a) From considering the effects of weaknesses and threats that you identified, what are the major issues that you see? List as many as you can. Consider issues over the term of your strategic plan, but look very closely at the next year especially. Many organizations have stumbled badly because they ended up “falling over their feet” while being focused much too far down the road.
b) Consider each of the issues. Ask whether it’s “important” or “urgent.” Often, issues seem very important when they’re only urgent, for example, changing a flat tire is an urgent issue — but you’d never put “changing a tire” in your strategic plan. Attend only to the important issues and not the urgent issues.
c) Deal with issues that you can do something about. Issues that are too narrow do not warrant planning and issues that are too broad will bog you down.
d) Issues should be clearly articulated so that someone from outside of the organization can read the description and understand the nature of the issue. (The following link may be useful at this point when identifying issues: Life Cycles of Organizations.)

Key issues that our organization must address through use of this strategic plan include:

1. ________________________

2. ________________________

3. ________________________

4. ________________________

(etc.)

Appendix D -Goals for Board Committees and Chief Executive Officer

Organize Appropriate Board Committees [in the case of corporations!!]

Board committees should be developed that associate with each of the major areas of strategic goals. For example, if a strategic goal is to build and develop the board, then consider a Board Development Committee. (Of course, you will have other types of board committees to address ongoing major activities that are not directly associated with types of strategic goals, for example, an executive committee.)

Build Board Work Plans

One of the best ways to ensure that board committees are fully participative and effective is through use of work plans for each board committee. With the board members, design work plans for each committees. Write goals and/or objectives to be “SMARTER”. A work plan is the plan that each board committee references to guide completion of their contribute to the organization’s strategic plan. For example:

Work Plans for Your Board Committees
(Make copies of this page as required.)

Board Committee _______

Committee Chair _______

Goal # 1(Write them to be “SMARTER”)

Strategy 1. 1

Objectives for Strategy 1. 1	Date of Completion	Respon- sibility	Status and Date
\| \| \|

(etc.)

Goals for the Chief Executive

The board [in the case of corporations!!] is responsible to provide ongoing governance and direction the organization. Usually, the board decides to carry out their responsibilities by including the role of a chief executive in the organization. The board is responsible to oversee the performance of the chief executive and evaluate the performance of the chief executive on a regular basis.

The chief executive should be attending to responsibilities and goals that are directly aligned with the strategic goals of the organization (as should the responsibilities and goals of everyone else in the organization). Therefore, after strategic goals have been identified, it’s timely for the board to update the performance goals of the chief executive (who, in turn, updates the performance goals of everyone else in the management and employees in the organization). (For additional information, see Performance Management, Board of Director’s Evaluation of Chief Executive and Employee Performance Management.)

Goals may need to be reworded to be more specific to the authority and resources of the chief executive role.

Goals should be designed and worded to be “SMARTER”, that is, specific, measurable, acceptable to the chief executive, realistic, timely, extending the capabilities of the chief executive and rewarding for him or her to accomplish.

Your Goals for Your Chief Executive

(Write goals to be “SMARTER”.)

1. _________________________

2. _________________________

3. _________________________

4. _________________________

(etc.)

Appendix E – Staffing Plans

Reference each of the strategies to reach the goals and consider what kind of capabilities are needed to implement the strategies. This might seem like a lot of guesswork, particularly if you don’t have experience in supervision. However, don’t worry so much about being exactly correct — you will likely refine your staffing plan later on as you design and plan your products in the development process. If you are developing a new organization, you might think about including the following typical roles in your initial staffing plan (but again, consider these roles in terms of implementing the strategies in your plan): chief executive, administrative assistant and product managers for each of your major products. However, it’s common that the chief executive is also a product manager or the first year or so. You may end up refining the staffing plan as you complete action planning, along with identifying who will accomplish each of your objectives. (The following link may help you when developing your staffing plan. See Organizing Staff.)

Note that in the following table, staffing is specified in terms of full-time equivalents (FTEs). One FTE is equal to one full-time staff position throughout the year. If staff will start half-way through a year, than include .5FTE, etc.

Staff Position	Year 1	Year 2	Year 3
*Central Administration, General Operating Activities:*
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
*Staff for Products [insert name!!]: (have a section for each product)*
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|
\| \|	\| \|	\| \|	\| \|

Appendix F – Operating Budgets

In the table labeled “Your Budget Planning” included below, list the resources you will need to achieve the goals in the strategic plan and the costs to get and use the resources — especially over the next year. You don’t have to be exactly accurate — besides, you may end up changing your budget as you give more attention to product design and planning. You should do a budget for each of the years included in the span of time covered by your strategic plan — but give particular attention to the first year of the time span.

Look at each of your products. Think about how much revenue the product might generate. Next, think about the expenses to run the program, such as human resources, facilities, equipment, special materials, marketing and promotions, etc.

Now think about what resources will be needed for central administration. Will you need a chief executive officer, assistants, etc?

(For additional information, see The Right Way to Prepare a Budget)

Example Operating Budgets

The following multi-year budget is an example to help you think about the types of resources you may need to achieve the goals in our plan and to help you think about how you’ll develop your operating budgets.

Note that the following budget includes 40% “fringe” — this is the extra amount budgeted to cover benefits, for example, medical insurance, social security taxes, retirement contributions, etc. You should find estimates of the current fringe rate for salaries — or, you can budget specific amounts for each of the specific benefits.

Also note that the following is a rather simple budget format and should be modified to suit the needs and nature of your organization.

REVENUE:	Year 1	Year 2	Year 3
Product A Sales
Product B Sales
Earned Income
TOTAL REVENUE
EXPENSES
*Central Administration — Personnel:*
Chief executive officer (include yearly salary + 40% for benefits, etc.)
Administrative assistant (include yearly salary + 40% for benefits, etc.)
Travel
Staff development
Total Central Administration — Personnel Costs:
*Central Administration — Facilities:*
Rental of office space (central offices and 4 classrooms)
Office furniture
Utilities (electricity, water, heat)
Telephone (local & long-distance)
Maintenance and janitorial
Total Central Administration Facilities Costs:
*Central Administration — Equipment:*
Copier leasing
Computer, printers, networking
Training equipment, projectors, etc.
Vans (4 for student transportation)
Total Central Administration Equipment Costs:
Central Administration — Marketing and Promotions:
Media plan (brochures, newspaper ads, etc.)
Yearly meeting
Annual report
Build and maintain mailing list
Web page development and maintenance
Total Central Admin. Marketing & Promotions Costs:
*Other Expenses:*
General office supplies
Liability insurance
Subscriptions, books, etc.
Total Central Admin. Other Expenses/Costs:
Product A (a training package) — Personnel:
Program manager (include yearly salary + 40% for benefits, etc.)
Consultant: curriculum design (3 months full-time; 9 months 2 hours per day)
Consultants: teachers (4 full time and 4 half time)
Consultants: psychologist/counselor (1 full time)
Misc.
Total Product A Personnel Costs:
*Product B — Materials:*
GED testing packets (600)
Grading services from Dept of Human Services (600 students)
600 self-study guides
Support group facilitator guides
Total Product A Materials Costs:
TOTAL EXPENSES
TOTAL SURPLUS (OR DEFICIT) (= revenue minus expenses)

Your Budget Planning

The following table may need to be modified to suit the needs and nature of your organization. (See the advice and materials suggested in the previous section.)

REVENUE:	Year 1	Year 2	Year 3
\|
\|
\|
\|
\|
\|
\|
\|
\|
\|
\|
\|
TOTAL REVENUE
EXPENSES
*Central Administration — Personnel:*
\|
\|
\|
\|
\|
\|
Total Central Administration — Personnel Costs:
*Central Administration — Facilities:*
\|
\|
\|
\|
\|
\|
\|
Total Central Administration Facilities Costs:
*Central Administration — Equipment:*
\|
\|
\|
\|
\|
\|
Total Central Administration Equipment Costs:
*Central Administration — Marketing and Promotions:*
\|
\|
\|
\|
\|
Total Central Admin. Marketing & Promotions Costs:
*Other Expenses:*
\|
\|
\|
\|
\|
\|
\|
Total Central Admin. Other Expenses/Costs:
*Product A — Personnel:*
\|
\|
\|
\|
\|
\|
Total Product A — Personnel Costs:
*Product B — Other Expenses:*
\|
\|
\|
\|
Total Product B — Other Expenses/Costs:
TOTAL EXPENSES
TOTAL SURPLUS (OR DEFICIT) (= revenue minus expenses)

Appendix
G – Monitoring and Evaluation of Plan
Responsibilities and Frequencies for
Monitoring and Evaluation

Plan’s section, goals, etc.	Completion date	Respon- sibility	Written description of results to:
\| \|
\| \|
\| \|
\| \|
\| \|
\| \|

Key Questions While Monitoring Implementation of the Plan

(The following questions should be modified to suit the nature and needs of the organization.)

Monitoring and evaluation activities will consider the following questions:

1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and communicate the progress. If not, then consider the following questions.

2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?

3. Should the deadlines for completion be changed (be careful about making these changes — know why efforts are behind schedule before times are changed)?

4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve the goals?

5. Are the goals and objectives still realistic?

6. Should priorities be changed to put more focus on achieving the goals?

7. Should the goals be changed (be careful about making these changes — know why efforts are not achieving the goals before changing the goals)?

8. What can be learned from our monitoring and evaluation in order to improve future planning activities and also to improve future monitoring and evaluation efforts?

Additional questions:

Reporting Status of Implementation

Results of monitoring and evaluation will be in writing, and will include:

1. Answers to the “Key Questions While Monitoring Implementation of the Plan”

2. Trends regarding the progress (or lack thereof) toward goals, including which goals and objectives

3. Recommendations about the status

4. Any actions needed by management

Procedure for Changing the Plan

Regarding any changes to the plan, write down answers to the questions:

1. What is causing changes to be made?

2. Why the changes should be made (the “why” is often different than “what is causing” the changes).

3. What specific changes should be made, including to goals, objectives, responsibilities and timelines?

Reminders:
Manage the various versions of the plan (including by putting a new date on each new version of the plan).

Always keep old copies of the plan.

Appendix H – Communicating the Plan

Note that certain groups of stakeholders might get complete copies of the plan, including appendices, while
other groups (usually outside of the organization) might receive only the body of the plan without its appendices.

Consider:
1. Every board member and member of management should get a copy of the plan.
2. Consider distributing all (or highlights from) the plan to everyone in the organization. It’s amazing how even the newest staff member gains quick context, appreciation, and meaning from review of the strategic plan.
3. Post your mission and vision and values statements on the walls of your main offices. Consider giving each employee a card with the statements (or highlights from them) on the card.
4. Publish portions of your plan in your regular newsletter, and advertising and marketing materials (brochures, ads, etc.).
5. Train board members and employees on portions of the plan during orientations.
6. Include portions of the plan in policies and procedures, including the employee manual.
7. Consider copies of the plan for major stakeholders, for example, funders/investors, trade associations, potential collaborators, vendors/suppliers, etc.

(For additional assistance, see Writing and Communicating the Plan.)

This plan will be widely communicated including through use of the following approaches:

1. _____________________

2. _____________________

3. _____________________

4. _____________________

(etc.)

For the Category of Strategic Planning:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 22, 2022

Starting and Understanding Your Organization

Free Micro-eMBA Module #2: Starting and Understanding Your Organization

This learning module is in the organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about starting and understanding an organization.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

This module is useful to entrepreneurs who are thinking about starting a business, or have already started their business and what to understand more about what they’re really doing. The module also will be useful to practitioners/consultants who want broader understanding about business organizations, including how they are started. This understanding for practitioners/consultants can help them provide more effective services to clients and establish stronger credibility with leaders and managers in the workplace.

Starting an organization requires careful thought and planning. However, you can’t effectively manage an organization if you can’t effectively manage yourself. So in this module, you are first guided through some careful examination about yourself as entrepreneur (and you are an entrepreneur if you are starting an organization).

Maintaining a healthy organization requires healthy practices in boards of directors (if applicable, for example, if your organization is a corporation) and management. To truly understand and be effective at these practices, it helps greatly if board members, chief executive and employees have some basic understanding of the overall organizational “system” of their organization, including its common traits, dimensions, “personality” and life cycles.

This is not just an academic exercise. Too often, people don’t really understand the overall structures in their organization. When problems occur, they only see the specific events, and not the larger structures that cause the behaviors that cause the events — this is very important for practitioners, too. To effectively resolve problems, you have to change the structures — not just react to events.

The importance of this understanding of organizations is evident when you realize that many graduate business training programs start out with an overview of the organizational system, often in a course called, for example, “Organizational Theory”.

Also consider
Related Library Topics

OUTCOMES

Learners who complete this module will achieve the following outcomes:

Decide if You Are an Entrepreneur
Is There Really a Need for Your New Organization, Product or Service?
Answer: You Have Right Planning and Financial Skills?
Answer: What Human Resources Will You Need?
Articulate Your First Products and Markets
Verify If Those Markets Really Exist
Identify Best Approaches to Pricing
Answer: How Much Money Will You Need?
Draft Your First Strategic and/or Business Plan

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.

Starting Your Organization

If your time is very limited, you can still benefit from scanning the resources and questions referenced from the following links.

Considerations About You

Many people are so excited about starting a new venture, that they forget about one of the biggest challenges — getting themselves ready first. So before undertaking the steps to start a new business, they first should think about:

There are certain traits of successful entrepreneurs. Am I really an entrepreneur?
What are my true passions? How can I retain those in my new venture?
What is my stress level now? Can I take much more?
What are my personal strengths and weaknesses. How can I use my strengths to strengthen my weaknesses?
Are there alternatives that I could do right now?
Are my personal finances in shape before I go to investors?

The following article will help you to answer each of these very important questions.
Entrepreneurs — Are You Personally Ready to Start a New Venture?

Considerations About Your Business Idea (some basic strategic and business planning)

How to Start a New Business

Understanding Your Organization

Now you will benefit from seeing the “big picture” of your organization, product or service. You need not follow links out of the following documents, but do read the content on each of the following pages.

Some readers might question why this section “Understanding Your Organization” was not included before the above section “Starting Your Organization.” The reason is that people often need to start with whatever specifics they already know about their ideas, such as the markets, customers, competitors, financing, etc., before they start thinking about the more broad — even abstract — matters in the following links. The following links help to ground and integrate the more specific information they generated in the above section.

Considerations About You

1. What are at least 3 characteristics of successful entrepreneurs? Are you an entrepreneur? How did you conclude that about yourself? See Are You Really an Entrepreneur?

2. Are your finances in shape to begin planning and starting a new organization or business? Are you sure? See Are Your Personal Finances in Shape?.

3. How will you manage the stresses involved in planning and starting a new organization, product or service? See How Will You Manage the Stresses Involved?

Considerations About Your Business Idea

1. Is there really a need for your new organization, product or service? How do you know? See Is There Really a Need for the Product or Service in Your Organization?

2. What type of organization would you start, if it’s a new organization? See What Type of New Organization, Product or Service Will You Be Starting?

3. What are at least 3 of the risk involved for you? See What Are the Risks Involved?

4. What planning and financial skills do you have? Where might you need to improve? See What Planning and Financial Skills Do You Need? (This eMBA has upcoming modules about planning and finances.)

5. So what is a summary of your plans for your new organization, product or service? See What Are Your Initial Plans?

6. What expertise, or human resources, will you need? How might they be organized? See What Human Resources Will Your New Organization, Product or Service Need?

7. How much money might you need for startup? See How Much Money Will You Need?

8. Might you draft a first-draft of a basic strategic plan or business plan now? See Write a Strategic Plan or Business Plan Document? (This eMBA has upcoming modules about strategic planning and about product and service planning.)

Understanding Your Organization

1. What is a basic definition of an organization? What is a mission? Vision? Values? See Basic Definition of Organization (which includes some optional reading about systems thinking).

2. It helps a great deal to think of organizations, products and/or services as systems, for example, when planning products or managing major changes in your organization. What is a system? (HINT: Think about inputs, processes, outputs and outcomes.) How is a system different than a pile of sand? What are some common characteristics of systems. How is an organization like a system?
(See Basic Definition of Organization (which includes some optional reading about systems thinking).

3. What metaphor do you prefer to describe organizations? Machines? Organisms? Persons? Groups? Families? Others? See Various Ways to Look at Organizations.

4. Organizations have certain dimensions and concepts in common. When designing, organizing and/or re-organizing organizations, it helps to be aware of these dimensions and concepts. Name at least three of the dimensions of organizations. Name at least three key concepts to consider when designing organizations. See Common Dimensions in Organizations and Key Concepts in the Design of an Organization.

5. The concept of culture is VERY important. Each organization has its own unique culture. When managing an organization, it’s important to acknowledge what values are really important to the organization, what behaviors typically occur and what behaviors are really treasured. Lack of understanding about culture is one of the major reasons that organizational change efforts fail. Describe the concept of organizational “culture”. See Organizational Culture — the “personality” of the organization.

6. People — like most other systems — go through life cycles. When trying to understand, manage or help a system, it’s very important to you know what life cycle the system is in. This is true for organizations as well. Organizations have life cycles. This is often forgotten when trying to work with organizations. Describe the concept of organizational life cycle. See Life Cycles of Organizations.

7. What is the “new paradigm”? What are several of the changes that might be expected in this new paradigm? What major, overall driving forces are causing this new paradigm? What are some of the characteristics of organizations in the new paradigm? What are some of the new structures that you might see in the new paradigm? See New Paradigm in Management, Characteristics of the Future Organizations and New Structures (networks, self-managed teams, learning org, self-designing org).

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and employees, as appropriate.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.
The information in the subsections “Understanding Your Organization …” is enough to give you a basic sense of your organization, including its structure and basic parts, its current (or desired) personality, and feedback among the basic parts. You’ll soon learn a great deal more about your organization as you progress through the remaining modules in this program.
If you are planning to start a new organization, it will be very helpful to obtain documents relevant to the particular rules and regulations to start a business in your state. Contact your local Secretary of State and/or Attorney General’s office and ask what documents you need to start a business. It will be very helpful if you have addressed the following activities.

Starting Your New Organization

1. Write a five- to ten-sentence description of the purpose of your organization. This is the mission statement of your new organization. What is the nature of your organization’s products and industry, e.g., services, manufacturing, wholesale, etc? For assistance, see Writing/Updating a Mission Statement.

2. If you are forming a corporation, you’ll likely need a board of directors. Find out the minimum number of people required to be on a corporate board of directors in your state. You might call, for example, your Attorney General’s office, States Attorneys office, etc. Recruit at least this number of people to join your
board. For assistance, see Overview of Board Roles and Responsibilities, Joining a Board and Recruiting Board Members.

3. Recruit expertise to help you get your organization started. A great place to start is by getting references from other small organizations. Don’t forget about finding an insurance agent. You’ll probably soon need liability and property insurance. For assistance, see Getting a Bank and Banker, Joining a Board, Hiring Consultants, Getting and Using a Lawyer and Getting and Using Accounting Services.

4. If you plan to form a corporation, then draft a set of Articles of Incorporation (or whatever other type of legal charter is required, for example, a constitution, Articles of Association, etc.). For assistance, see Articles of Incorporation.

5. Your board (if applicable) will probably need a set of bylaws (bylaws specify how your board will govern the organization and how it will be configured, for example, with a chief executive, etc.). For assistance, see Corporate Bylaws.

6. Make a draft (probably a very rough draft at this point) of a plan that includes the top 5-8 goals for the organization to accomplish over the next year. Think about what resources are needed to achieve these goals. (This is a very rough draft of a strategic plan. We’ll refine the plan later in this program.) Write down the costs for the resources and group them in major categories including: personnel, computers, office supplies, facilities (rent, utilities, etc.) and any other major groups of costs. This is a very rough draft of a yearly budget. You don’t have to go into great detail at this point. For assistance, see Basic Guidelines for Successful Planning Process and Basic Description of Strategic Planning.

7. Hold a meeting of your board of directors, if applicable. In the meeting, members should review the drafts of the Articles, bylaws, strategic plan and budget. Members should vote to approve the drafted items. Members should also vote to select officers. Your state may require that boards have certain officer roles, for example, Chair/President, Secretary and Treasurer. For assistance, see Board Meetings and Basic Sample Board of Directors Meeting Minutes.

8. Make the necessary filings for incorporation (probably to your local Secretary of State), if you are planning a corporation. That office can likely provide you continued guidance for legally registering your organization.

9. On the Action Item Planning List, make note to follow up on the following actions.
a) Contact your local city hall to identify if you need permit or license to makes sales in your locale.
b) It may be useful to obtain a employer identification number at this time, so you’re ready if and when you hire employees. You only need an EIN if you are a partnership, corporation, LLC or will be hiring employees. You can get this number by calling the Internal Revenue Service at 800-829-4933 or contacting the equivalent agency in your country.

c) Start obtaining facilities in which to operate, whether in your home, an office, etc. The link Setting Up an Office may help you.
d) Begin looking into computer equipment you may need. The link Computers, Internet & Web may help you.

Understanding Your Organization — A Systems View

1. Diagram a logic model of your organization, including its inputs, processes, outputs (tangible results) and outcomes (impacts on customers/stakeholders). Fill in the table in the Guidelines and Framework for Designing Basic Logic Model. (Note that this systems view is sometimes called an “outcomes model”, which is very useful when trying to get a clear perspective and understanding of your organizations.)

2. If possible, diagram a basic systems view of the development of each of your products in your organization, including inputs, processes, outputs (tangible results) and optionally outcomes (impacts/benefits on customers). Fill in the table in the Guidelines and Framework for Designing Basic
Logic Model. (Note that we’ll soon give more attention to products, including their design and marketing, in an upcoming learning module.)

Understanding Your Organization — Its Culture, or “Personality”

1. Write a half-page description of the culture of your organization. Include what values your organizations holds dear and what values you see reflected by the behaviors in your organization. Note that if your organization is still fairly new, you can still benefit from this activity by describing what you’d like to see as the “personality” of your organization. This activity will be useful later on during strategic planning when writing values statements. For assistance, see Organizational Culture — the “personality” of the organization.

Understanding Your Organization — Its Life Cycle

1. Write a half-page description of the life cycle of your organization. Is it in Birth? Youth? Midlife? Maturity? Include what characteristics you observe that lead you to conclude that your organization is in that life cycle. Note what life cycle will be next for your organization. Include description of any challenges that you might expect when you go through the next life cycle change. For assistance, see Basic Overview of Organizational Life Cycles.

Understanding Your Organization — Its Communications

1. In the materials for review, you learned that organizations are systems and that for systems to thrive, their needs to be continued and effective feedback (communications) between its major parts. What can you do to ensure effective communications between the key roles in your organization, including customers, board members, board committees, board chair, chief executive and employees? Effective communications requires more than good intentions. What specific structures can you use, for example, consider reports from management and employees, meeting minutes, staff meetings, etc. For assistance, see Basics of Internal Communications, Communications (Writing) and General Recommendations to Improve Communications Skills.

ASSESSMENTS

Assessments for Organizations

1. If you already have started your organization, then perhaps the following organizational assessments can help you measure the health of various aspects of your organization. If you have not started your organization, or if you just want to understand the nature and systems of organizations better, then the assessments can be helpful as well — you might give them a quick scan.
Organizational Assessment Tools

TRACKING OPEN ACTION ITEMS

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

(Learners in the organization development program can return to the home page of the organization development program.)

For the Category of Starting a Business

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 22, 2022

Staffing and Supervision of Employees

Men-working-together looking at the screen

Free eMBA Module #9: Staffing and Supervising Your Employees

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting,
LLC. Adapted from the Field Guide to Leadership and Supervision in Business
and Field Guide to Leadership and Supervision for Nonprofit Staff.

This module is in the organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about staffing and supervising employees and volunteers.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

Staffing and supervision are two of the most critical functions of a manager. Each of the functions include various other activities, as well.

Very simply, staffing is:
a) Deciding what human resources are needed, ideally in terms of knowledge, skills and abilities regarding specified roles, jobs and tasks (ideally these roles are determined on the basis of strategic planning and are defined in terms of competencies and/or on job descriptions)
b) Recruiting the necessary human resources (sourcing, placing ads, etc.)
c) Considering outsourcing to hire outside expertise
d) Screening job candidates (interviewing, testing, etc.)
e) Selecting candidates (via job offers)
f) Equipping new hires (via orienting, training, facilities, assignments, etc.)

Very simply, supervising is overseeing the progress and productivity of direct reports, often by:
a) Mutually setting goals with direct reports
b) Supporting conditions for their motivation
c) Observing performance and giving feedback and other forms of guidance
d) Conducting regular performance appraisals/reviews
e) Addressing performance problems
f) Ensuring sufficient rewards

Staffing and supervising should be carried out according to carefully designed and approved personnel policies in the workplace.

This module provides materials and guidelines to understand staffing and supervision, along with setting up basic systems and processes in the organization in order to carry out activities in a legal and effective manner.

NOTE ABOUT THE LARGE SIZE OF THIS MODULE: This module is one of the largest in the program. Learners who have very limited time schedules might first “pick and choose” which subtopics they want to review before they proceed through this module in its entirety. Learners are encouraged, though, to print out the entire Free Basic Guide to Leadership and Supervision for reference in the future.

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Personnel Committee to review and help guide implementation the information in this learning module. Major activities and goals from this learning module could be incorporated in that Committee’s Committee Work Plan.

Also consider
Related Library Topics

OUTCOMES

Learners who complete this module will achieve the following outcomes:

Supervising Staff, Including How to:

Define New Job Roles
Recruit Job Candidates
Screen Applicants
Orient New Employees
Delegate to Employees
Ensure Strong Performance
Fire Employees
Compile Personnel Policies and Samples
Evaluate Your Supervisory Practices

MATERIALS FOR REVIEW

The following materials will help you address each of the topics and learning activities in this module.

Basic Overview of Staffing and Supervision

Read Free Basic Guide to Leadership and Supervision — particularly the sections:

Introduction to Management and Supervision

Staffing

Employee Training

Employee Performance Management

Personnel Policies

Experience of a First-Time Supervisor

Introduction to Role of Supervisor

See What is “Supervision”? What Do Supervisors Do? and One Definition of Supervision.

1. What is a supervisor? How does that role differ from the general role of management?

2. What are the typical activities carried out by a supervisor?

3. What are some of the unique struggles and stresses of a first-time supervisor?

4. What are some of the roles of a supervisor?

5. Does a supervisor oversee the progress and productivity only of entry-level workers only — that is, can supervision occur at all levels of management?

Staffing

Defining Job Roles

See Defining a New Job Role.

1. How should new job roles be defined? What is the relationship between results of strategic planning and staffing?

2. What is a job description? How should it be developed? What should be included in a job description?

3. What factors are considered when determining the cost of a new hire? What is fringe?

4. How is a job description kept up-to-date?

5. What are at least two primary uses of a job description?

6. What is the relationship between a job description and a performance review?

Hiring

See Hiring (Advertising, Screening and Selecting).

1. What should be looked for when screening resumes?

2. When interviewing, should you ask different question to each candidate? Should you ask open-ended or yes/no questions — why?

3. What are some useful open-ended questions to ask?

4. What matters should be in an offer letter?

5. What is the purpose of a personnel file? What goes in it?

Building Teams

See Building Teams.

1. What is the importance of a team in the workplace — particularly in the future workplace?

2. Name at least three of the four kinds of teams.

3. What are the five stages of team development? What are the characteristics of each?

4. What is the first guideline for building a team? (HINT: Think about “SMARTER”.)

5. What are some considerations when determining the membership of a team?

6. What does the “structure” of a group mean?

7. What should be communicated to the group in its first meeting?

8. Name at least eight of the 12 guidelines for team building.

Employee Training

Orienting Employees

See Orienting New Employees.

1. What should be communicated in a welcome letter (sent to the employee before they begin employment)?

2. What are some of the activities to conduct with the employee during the first meeting after they have started employment?

3. Name at least four practices to help new hires learn about the organization.

4. What should be done with the new hire regarding the employee manual?

5. How often should the supervisor meet with the new employee during the first six weeks or so?

Job Training

See Job Training.

1. Name at least four of the six different reasons/situations to conduct employee training.

2. What are the four basic types of employee training?

3. Coaching is a common type of employee training. The process can mean many things to many people (coaching has become a major service to organizations and includes a wide variety of approaches). What the four basic steps (outlined in the reading) for conducting employee coaching?

4. What are the four common pitfalls in employee training?

5. What is a training goal? Learning objective?

6. What are some methods to ensure that the design and implementation of employee training are highly effective?

Employee Performance Management

Setting Goals

See Setting Goals.

1. What is one of the common problems that new supervisors experience regarding employee performance management?

2. What is the first step toward overcoming this problem?

3. Why do some people dislike the use of goals?

4. Name at least three of the four advantages of using goals.

5. What are the four types of gaps that goals can be used to address?

6. What is a performance gap? Growth gap? Opportunity gap? Training gap?

7. What can be done so that supervisors and employees have more “buy-in” to goals?

8. What does the acronym SMARTER mean — that is, what does each letter stand for?

Supporting Employee Motivation

See Supporting Employee Motivation.

1. Name at least four of the six myths about motivating employees.

2. What is the first step in motivating employees? (HINT: think about yourself.)

3. What must be done regarding the goals of the organization and the goals of employees?

4. Is each employee motivated by the same thing(s) as other employees?

5. Name at least eight of the 14 steps that you can take to motivate employees.

Observing and Giving Feedback

See Observing and Giving Feedback.

1. When providing feedback, focus on the ____ rather than the person.

2. Own the feedback — use __ statements.

3. Why should people be careful with giving advice?

4. Name at least six of the nine guidelines regarding observing employee behavior and giving advice.

Conducting Performance Appraisals/Reviews

See Conducting Performance Appraisals/Reviews.

1. What are some of the ill effects from not doing regular performance reviews?

2. What are some of the law-related requirements of performance reviews? (HINT: Think about the points made by Patricia King in Performance Planning and Appraisal — these points were included in your reading for this learning module.)

3. What items of information should be included in the standard performance appraisal form?

4. When should performance reviews be conducted?

5. What is the relationship between the performance review and the job description?

6. What should not be discussed in the performance review and discussion?

7. Always address employee _____, not characteristics of their personalities.

8. What is the best guideline to ensure that the guideline in question 7 is always followed?

9. What are some guidelines for carrying out the performance appraisal meeting/discussion?

10. Nothing should be a surprise for the employee in the performance review meeting when discussing employee’s performance. Why is this true?

Addressing Performance Problems

See Addressing Performance Problems.

1. When should the supervisor almost always convey to the employee that the employee’s behavior is a problem in the workplace?

2. When determining if an employee has a performance problem, consider the employee’s ____, not their ____.

3. When you first convey a performance problem to an employee, what two points should you convey at a minimum?

4. What might be some special circumstances to consider when addressing an employee’s performance problem?

5. What should you do right after the first meeting about the employee’s performance issue?

6. If a supervisor sees a performance problem soon after the first occurrence and reporting to the employee, what should the supervisor do? (HINT: Think about what should be said and what should be written down.)

7. What is the relevance of personnel policies when addressing performance problems?

Firing Employees

See Firing Employees.

1. What is the relevance of personnel policies when firing an employee?

2. You should consider firing an employee (for a performance problem) only if you have done at least four specific activities. What are they and in what sequence should they occur?

3. What should be included in a letter of termination to an employee?

4. What should be conveyed when meeting with the employee who is to be terminated?

5. What should be done right after the meeting with the employee?

Personnel Policies

Developing Personnel Policies

See Developing Personnel Policies.

1. What is a personnel policy?

2. Why is it important to develop them?

3. Why is it important to always consult a lawyer (who is well versed in current employee laws) when developing personnel policies?

4. Note that if management’s behaviors do not conform to the personnel policies, courts will consider the related policies to be superseded by the behaviors. True?

5. How might an organization train employees about its personnel policies?

Developing an Employee Manual

See Developing an Employee Manual.

1. What is an employee manual (or personnel policies handbook)?

2. What is at least one use of this type of manual?

3. In the case of a corporation and its board of directors, what is the role of the board of directors regarding the personnel policies?

4. What points should be included in description of the manual to the employee, that is, what points might be included in the wording on the cover of the manual?

Sample List of Personnel Polices

See Sample List of Personnel Policies.

1. Name at least five of the topics that might be addressed in personnel policies regarding work schedules.

2. Name at least two of the topics that might be addressed in personnel policies regarding hiring practices.

3. Name at least five of the topics that might be addressed in personnel policies regarding compensation.

4. Name at least five of the topics that might be addressed in personnel policies regarding payroll information and timekeeping procedures.

5. Name at least five of the topics that might be addressed in personnel policies regarding benefits.

6. Name at least five of the topics that might be addressed in personnel policies regarding compensation.

7. Name at least five of the topics that might be addressed in personnel policies regarding performance issues.

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and employees, as appropriate.
As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

1. Do you have job descriptions for all employees? Do they include titles, qualifications, responsibilities and whom the role reports to? Dates on the forms?

2. Do you have a personnel policies handbook for all employees, and have all employees reviewed it and signed a form indicating they’ll comply with the policies? Has the board approved the handbook with its policies?

3. How do you ensure adequate and fair compensation for each of the roles in your organization? Are your practices described in your personnel policies?

4. How do you ensure your employees are oriented to your organization when they are hired? Are these practices described in your personnel policies?

5. How do you ensure that you’re effectively delegating to employees?

6. Do you have a written policy about how you conduct regular, formal performance reviews? Are your practices described in your personnel policies?

7. How do you ensure all management personnel are completely familiar with personnel policies? (It’s critical that they be very familiar with the policies — their behavior can be interpreted as the de facto policies of the organization.)

8. Do you have a policy about how employees are fired? Are your practices described in your personnel policies?

9. Update your organization chart with all roles and their titles in the organization.

10. Make a list of any personnel policies your organization needs and write down what you’d generally like the policies to address and how. Discuss this with your board.

11. Provide your personnel handbook (and a list of any new policies you might need) to a professional (preferably a lawyer who is well-versed in employee law) for review, and arrange to have all appropriate changes made as soon as possible. Arrange board review and approval of the policies, and training to all employees about any changes to the policies.

12. Draft an action plan with specific goals needed to improve your supervisory skills. Add how you will accomplish each goal and when.

ASSESSMENTS

1. Evaluation of Human Resource Management and Supervision Practices in Businesses

TRACKING OPEN ACTION ITEMS

2. If you have questions, consider posing them in the national, free, online discussion group hr.com, which is attended by many human resource and organization development experts.

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

1. Are you exchanging feedback with others about what you’re learning in this program?

2. Are you sticking to your study schedule for this program?

3. Are you practicing your basic skills in management and leadership, including in problem solving and decision making, planning and meeting management?

4. Are you communicating throughout your organization by using your skills in internal communications?

5. Are you managing yourself? How many hours a week are you working? Are you noticing any signs of stress? If so, what are you doing about it?

6. One of the ways you might be able to tell if you’re stressed out and/or losing perspective might be whether you’re tracking details or not. Are you using the action item list referenced above?

7. Are you reflecting on learnings from past modules and how they build on the learning in this module? For example, are you seeing your organization from a systems view, as explained in the module “Starting and Understanding Your Organization?”

(Learners in the organization development program can return to the home page of the organization development program.)

For the Category of Supervision:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 21, 2022

Role of Chief Executive Officer

Side-view- of a calm-business-woman-using-tablet-device

Free Micro-eMBA Module #3: Role of Chief Executive Officer

This learning module is in the organization development program. However,
this module can also be used by anyone as a self-study exercise
to learn more about the role of the chief executive officer.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Discussion
Activities to Build Systems and Practices
Assessments
Tracking Open Action Items

INTRODUCTION

In an incorporated organization (including in a nonprofit),
the chief executive officer (CEO) is the singular organizational
position that is primarily responsible to carry out the strategic
plans and policies as established by the board of directors. The
chief executive officer reports to the board of directors. In
other types of organizations (other than corporations, eg, sole
proprietorships), the top-level officer is often called the chief
executive officer, as well.

The goal of this module is to provide sufficient overview to
gain strong, initial perspective on the role of chief executive
officer, particularly when helping to establish the board of directors.
The chief executive officer should have at least basic understanding
of all of the systems and practices conveyed across the various
learning modules in this program. Therefore, this learning
module does not go into great depth about each of the particular
systems and practices managed by the chief executive officer —
rather, this module relies on the rest of this program to provide
that depth of information.

NOTE ABOUT THE ORDER OF MODULES (AND SOME DUPLICATION WITH
UPCOMING MODULE ON BUILDING BOARDS): The board of directors in
a corporation is legally charged to govern a corporation. Therefore,
it is often common to start training programs with an overview
of the board of directors. However, in this program, this learning
module about the role of the chief executive is presented before
the learning module about boards of directors. The reason for
this order of modules is as follows. Frequently corporations are
started by someone with a strong vision for a new product. That
person often goes on to become the first chief executive officer
of the new organization. Typically, that person also takes a very
strong role (often the leading role) in the initial organization
and development of the board of directors. Therefore, modules
in this program are organized to help the founder (and often the
first chief executive officer) maintain clear perspective about
the roles of chief executive officer and board of directors before
going on to focus attention on building the board of directors.

NOTE ABOUT BOARD COMMITTEES: If you are starting a corporation
and using this program to do so, then you will soon be building
your board. When you do, consider establishing a Board Personnel
Committee to review and help guide implementation of the information
in this learning module — that Committee could be very useful
to help develop and support the CEO. Major activities and goals
from this learning module could be incorporated in that Committee’s
Committee
Work Plan.

Also consider
Related Library Topics

OUTCOMES

Learners who complete this module will achieve the following
outcomes:

Learn What a Chief Executive Officer Is
Understand Major Functions of CEO
Understand Core Knowledge and Skills for CEO Role
Be Prepared for Building Your Board
Set Basis for Strong Board-Staff Relationships
Avoid “Founder’s Syndrome”

MATERIALS FOR REVIEW

The following materials will help you address each of
the topics and learning activities in this module.

Orientation to Chief Executive Role

Chief
Executive Role — particularly the sections:
– – – What
is the “Chief Executive Officer”? (review all)
– – – What
Do Chief Executive Officers Do? (review all)
– – – – – – General
Responsibilities (review all)
– – – – – – Typical
Functions/Responsibilities (review all)
– – – – – – Sample
Job Description (study)
– – – Core
Areas of Knowledge and Skills (click on each area and scan contents)

Basic Preparation for Building a Board

Overview
of Board Roles and Responsibilities — particularly the sections:

– – – Board
Roles and Responsibilities
– – – Sample
Job Descriptions
– – – Guidelines
for Recruiting New Board Members
– – – Sample
Board Application Form
– – – Ideas
to Generate Participation of Board Members

Basic Preparation for Working With Board

Board
and Staff Responsibilities
Sustaining
High-Quality Relationship Between Board Chair and Chief Executive
Should CEO Be On the Board? (scroll down, read
several articles)
Guidelines
for Evaluating the Chief Executive
Sample
Form for Board’s Evaluation of Chief Executive

Optional: “Founder’s Syndrome”

This is a fairly long document. Still, it’s worth a careful
read because it fully describes this syndrome which occurs so
often when starting an organization.

Founder’s
Syndrome — How Organizations Suffer — and Can Recover

Orientation to Chief Executive Role

1. What is the “definition” of a chief executive
officer? See What is the “Chief Executive Officer”?

2. In a corporation, to whom does the chief executive report?
See What is the “Chief Executive Officer”?

3. What are the five major roles of a chief executive officer?
See Major Roles of the Chief Executive.

4. What are the six major functions/responsibilities of a chief
executive officer? See Major Functions/Responsibilities of Corporate
Chief Executive Officer.

Basic Preparation for Building a Board

Note that the founder of a corporation often recruits
the first board members, and supports members to grow into their
roles as board members, as well. Therefore, the founder should
initially have some very basic understanding of the roles of
a board. This understanding will soon be enhanced later on during
further development of the board and organization.

1. Name the five duties and ten responsibilities of boards
(as listed on the materials included in your materials for review)?
(Note that various experts might offer a different mix of duties
and responsibilities. The important point here is to get a basic
sense of the overall responsibilities of a board.) See Board Roles and Responsibilities.

2. To whom is the board of directors responsible? See Board
Roles and Responsibilities.

3. What are the responsibilities of the board chair? Vice chair?
Secretary? Treasurer? Board member? Be sure you understand the
role of the board chair. The chief executive officer and the board
chair work closely together to coordinate and support board activities.
See Sample Job Descriptions.

4. Of the 10 guidelines for recruiting board members, how many
can you remember? The chief executive officer often plays a key
role in recruiting the first members of the board of a new organization.
See Guidelines for Recruiting New Board Members.

5. What information is requested by the board application (as
listed in your materials for review)? (You might customize your
own application form, of course.) See Sample Board Application Form.

Basic Preparation for Working With Board

1. Test your initial knowledge of the roles of board and staff
by completing the table at Board Roles and Responsibilities — Test Your
Knowledge. Next, compare your answers to the answers depicted
in the table Board and Staff Roles.

2. Name at least five actions that chief executives and board
chair can take to ensure an ongoing, strong working relationship.
See Board and Staff Responsibilities and Sustaining High-Quality Relationship Between
Board Chair and Chief Executive.

3. Name at least five actions the chief executive and board
members can take to ensure ongoing, strong participation of board
members. See Ideas to Generate Participation of Board Members.

4. Describe the general procedure for evaluating the chief
executive. See Guidelines for Evaluating the Chief Executive
and Sample Form to Use During Evaluation of Chief
Executive.

Optional: “Founder’s Syndrome”

“Founder’s Syndrome” can easily occur, primarily
in new organizations. Organizational leaders can avoid a great
deal of pain and hardship by understanding the basics of this
syndrome and how to avoid it. When addressing the following questions,
refer to the document Founder’s Syndrome.

1. What is “Founder’s Syndrome”?

2. What causes it?

3. How can you recognize it?

4. Name at least three actions that boards can take to address
it.

5. Name at least three actions that chief executives can take
to address it.

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Learners are strongly encouraged to complete the following
activities, and share and discuss results with peers, board members,
management and employees, as appropriate.
As you proceed through the following activities, be sure
to note any incomplete actions in the Action Item Planning List.

Writing a CEO Job Description

1. Draft a job description for the position of chief executive
officer of your organization. If applicable, present the draft
to your board for review and authorization. See Sample Job Description. Note that this job
description should not merely be adopted as is, rather it should
be modified according to the nature of and needs of your organization.
)

Getting Ready to Recruit Your First Board Members

Basic Materials to Prepare

1. Draft a list of guidelines you can follow to being recruiting
members for your board. See Guidelines for Recruiting New Board Members.

2. Draft a board application form that you can use to begin
recruiting members for your board. See Sample Board Application Form.

3. One of the biggest turn-offs to potential board members
is the appearance of an organization that’s out of control, or
that’s in crises. The planning and systems you’ll glean from this
online program will help your organization to be attractive to
potential board members. For now, gather materials that will help
potential board members understand your organization, for example,
marketing brochures, your mission statement, etc. Give them job
descriptions of board members. (You’ll soon develop more useful
board materials in an upcoming module in this program.) See Sample
Contents of Board Member’s Manual.

Identify Potential Board Members — Focus on Skills Needed
by the Board (Eg, finance, marketing, personnel, etc.)

4. Make a list of what skills are needed by your organization.
Think about what skills — not just what people — are needed
on your board. If you’re just getting started with your new organization,
then you can use almost any help you can get — but there are
certain skills that are usually very useful early on, for example,
financial help, help designing organizational structures, etc.
Your needs will become more clear to you when you start and finish
strategic planning in an upcoming module in this program. (Reference
the Sample Board Recruitment Grid.)

5. Write a list of at least five people whom you will approach
to join your board. See Sample Job Descriptions and Sample Board Application Form.

Managing Your Board and Employee Relations

1. What problems might you foresee in working with a board?
It can be a major challenge for strong, visionary founders to
help organize and develop a group of people to whom he or she
reports. Write a list of the advantages and disadvantages to you.
How can you overcome the problems that you might foresee? Present
your concerns in an upcoming board meetings and ask for open discussion
around your concerns. Or, approach another appropriate source
of help — but do address your concerns. They’re likely to only
get worse if left unaddressed. See Board and Staff Responsibilities and Sustaining
High-Quality Relationship Between Board Chair and Chief Executive.

Building the Foundation for Board Evaluation of Chief Executive

1. Draft a set of preliminary performance goals for the role
of chief executive officer for your organization (this list of
goals will be refined in a later module about strategic planning).
The board of directors should evaluate the performance of the
chief executive officer on a regular basis. This evaluation should
be done on a regular basis and should include reference to the
responsibilities listed in the job description and performance
goals for the year. The performance goals should be closely aligned
with goals established during strategic planning. Performance
goals defined during this module should be updated as a result
of the strategic planning conducted in the upcoming learning module
about strategic planning. See Guidelines for Evaluating the Chief Executive,
Sample
Form to Use During Evaluation of Chief Executive and Performance Management (basics concepts).

2. Write a set of guidelines that will be followed by your
organization to evaluate the chief executive officer. Have the
board members review the guidelines. (Later on in the learning
module about boards, we will formally adopt a set of guidelines
for evaluating the chief executive officer.) See Guidelines for Evaluating the Chief Executive
and Sample Form to Use During Evaluation of Chief
Executive.

Optional: Does Your Organization Have “Founder’s Syndrome”?

1. Share copies of the Founder’s Syndrome document with board members,
if you already have them. Set aside 15 minutes in an upcoming
board or staff meeting to share reactions and ideas about what
you might do in the coming months in order to avoid the syndrome.
Write down an action plan of what you will do, who will do it
and by when. In the action plan, include actions the chief executive
officer and the board can take.

ASSESSMENTS

The next learning module will provide an overview of basic
management and leadership skills needed to start and manage an
organization. However, you might find it useful to begin thinking
about your own skills at this time. If so, consider the following
assessment.
1. Needs Assessments for Management Training and
Development

TRACKING OPEN ACTION ITEMS

1. One of the first indicators that an organization or a person
is struggling is that open action items are not tracked and reviewed.
(Open action items are required actions that have not yet been
completed.) Instead, people only see and react to the latest “fires”
in their workplaces or their lives. Whether open action items
are critical to address now or not, they should not entirely be
forgotten. Therefore, update and regularly review a list of open
action items (identified while proceeding through this program)
that includes listing each open action item, who is responsible
to complete it, when it should be completed and any associated
comments. When updating the list, consider action items as identified
during discussions, learning activities and assessments in this
module. Share and regularly review this action item list with
the appropriate peers, board, management and employees in your
organization. You can use the following Action Item Planning List. (At that Web address,
a box might open, asking you which software application to open
the document.)

2. If you have questions, consider posing them in the national,
free, online discussion group hr.com, which is attended
by many human resource and organization development experts.

(Learners in the organization development program can return
to the home page of the organization development program.)

For the Category of Leadership:

To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022September 21, 2022

The Free Micro-eMBA for Businesses

Free Micro-eMBA for Business — Program You Can Provide

Complete, Free Business Development Program

As a free, self-paced program for entrepreneurs to develop
a business organization.
As a free, self-paced program to better understand basic
systems and practices in business.
By organizations to promptly provide a business and management
development program.

If You Want to Do the Program

There is no enrollment needed. Just pick the modules that
you want to do, and start them.
If you are using the program to start a business, do all
the modules in the order listed in the program.
There is no certification or degree — the program is entirely
for your learning. See the links below.

If Your Organization Wants to Provide the Program

Organizations can provide this program. Directions are provided
below.
Those organizations might evaluate learners’ results and
issue certifications, if they choose.
For more information, see the links below.

If You Are Focusing on Nonprofits

See Free Nonprofit Micro-eMBA(SM).

Who

Who Can Benefit from Program
Results for Learners and Their Organizations
Nature of Learners Who Will — and Won’t
— Thrive in this Program

What

Program Design and Format of Learning Modules
Links to Learning Modules

How

Cost of Program and Time to Complete
It
Please Tell Others About This Program!
Providing Program Requires Little in Resources
and Expertise — Here’s How!
Program Not to Be Used Primarily to
Generate Profits
How Do I Get Started?

Who Can Benefit From Program

Highly motivated learners who:
– Wish to understand key principles, concepts and terms in business
– Have limited time and / or money
– Prefer to manage, schedule and locate their own learning experiences
– Prefer highly practical results from programs
Leaders and managers:
– Seeking guidance to understand business, start a business organization
or to firm up the foundation of an already established organization
Service providers (associations, training centers,
etc.)
– That wish to offer highly accessible and practical professional
and organization development programs in their areas
Middle managers or entry-level personnel
– Who desire highly accessible and adaptable means to professional
development for advancement in their careers
Consultants who
– Desire better understanding of business and organizations,
their systems and practices, in order to provide more effective
services to clients
– Wish to establish stronger credibility with clients by understanding
the world of managers and leaders in the workplace

Results for Learners and Their Organizations

Personal and Organizational Outcomes (knowledge, skills and
abilities)

Basic understanding and skills about:

Self-directed learning and self-management (in preparation
for completing this program)
Feasibility analysis during considerations to start a business
Common structures, systems, cultures and life cycles
Roles and functions of chief executive officer and board
of directors
Building and operating a board of directors (in the case
of corporations)
Basic, critical skills in management and leadership in order
to plan, organize, lead and coordinate activities in an organization
Strategic analysis, planning and implementation
Marketing, including market research and analysis, pricing,
competitive analysis, production, distribution, sales and customer
service
Financial management, including basics of bookkeeping, cash
management, financial reporting and analysis
Staffing and supervising employees, including job definition,
recruiting, hiring, performance management and personnel policies
Business ethics, including practical guidelines for managing
ethics, roles and responsibilities, codes of ethics, codes of
conduct, policies, resolving ethical dilemmas and training of
employees
(Outcomes from each module are listed near the top of each
module.)

Program Outputs (tangible results)

Learners in the program produce the following results:

Job description of chief executive officer
Management and leadership training plans
Complete resources to equip board members
Training plan and materials to train the board
Strategic plan
Operating budgets
Product marketing analysis
Public and media relations plan
Sales plan
Advertising and promotions plan
Financial reports and analysis
Customer service plan
Policies for staffing and supervising employees
Policies and codes to guide toward highly ethical behavior
in the workplace
Substantial cost savings from continued access to free, complete,
online materials for personal, professional and organizational
development

Note that the recurring processes that produce the above items
are at least as important — if not more important — than the
items themselves. This program carefully guides the learner through
those processes.

Nature of Learners Who Will — and Won’t — Thrive in this
Program

Who Will Thrive

This highly accessible and practical program is particularly
useful for highly motivated learners who:

Trust their own ability to manage and carry out their own
learning
Understand that in learning, you don’t always get what you
pay for — but you get out what you put in
Prefer practical results (along with powerful outcomes) from
a program, e.g., results such as plans, policies and procedures,
job descriptions, financial statements, etc.
Who cannot afford to pay the rapidly increasing costs of
tuition and materials
Who are geographically remote from educational facilities
Prefer to schedule and locate their own learning experiences
Can see the value of self-directed, “homeschooled”
learning with the support of peers in an atmosphere of trust
and confidentiality
Prefer to share ongoing ideas, materials and support among
peers
Lastly, learners will thrive in this state-of-the-art program
if they have a sense of adventure about new experiences and the
patience for learning new ways of doing things

Who Will Not Thrive

Perhaps the best way to convey the nature of people who won’t
thrive in this program is to point out certain myths about learning
that many of us have come to believe over the years. This program
will not be appealing to people who tend to believe (consciously
or unconsciously) that:

The prettier the content and materials, the more valid the
content and materials
The more expensive the program, the more learning that will
be accomplished (the fallacy of “executive-level pricing”)
The more books and binders in the program, the more learning
in the program
Program certification and diplomas represent guaranteed learning
that was accomplished by participants in the program
Learning occurs primarily in a classroom
Educators can always manage learners’ learning better than
the learners themselves

Program Design and Format of Learning Modules

Arrangement of Modules — From Building Basics to Organizational
Fitness Test

The program includes 10, online learning modules. Modules are “courses”
through which learners progress in the program. Materials and activities for
learning are tightly integrated with each other across various modules in the
program. A listing of the learning modules is included in the section Links
to Learning Modules, which directs learners through the learning modules.
Note that learners can choose to complete modules according to their own needs,
as well.

Learners Can Start Anywhere in the Program

The program can be highly useful to learners regardless of
the order in which they go through the modules in the program.
Learning modules are arranged generally in the order needed
to develop an organization from the ground up. Learners who are
going through the program primarily as a form of training and
development can proceed in a sequential fashion through the Links to Learning Modules,
and in each module address the a) topics for discussion and reflection
and the b) activities to build systems and practices.

Note that the activities required to build and manage a healthy
organization are usually very cyclical and highly integrated in nature — for example,
product planning often produces learning that, in turn, polishes
previous strategic planning activities. Therefore, learners are
guided to revisit certain portions of various learning modules
at various points in the program.

Format of Each Learning Module

Learning modules (other than the first and last) have the following
format:

Introduction — explains how the module fits into the program and
the overall process of business and organization development
Outcomes — lists the new knowledge, skills, practices and systems
that learns will accomplish from completing that module
Specific Materials for Review — references specific and free materials
for review and study; these are needed to respond to all suggested topics
for discussion and reflection and to the learning activities required to build
basic systems and practices
Specific Topics and Questions for Reflection and Discussion — highlights
key concepts to understand about the overall topic of the learning module
Specific Activities to Build Systems and Practices — guides the
learner to develop the basic systems and practices to successfully build and
manage the organization
Assessments — helps the learner measure and / or evaluate extent
of application of that topic to the learner’s organization
Tracking Open Action Items — guides the learner throughout the program
to consistently record and track any incomplete action items remaining from
the current and previous learning modules
Reminders to Learners — some modules pose miscellaneous reminders
for learners to ensure they’re using information and skills from previous
learning modules

Links to Learning Modules

NOTE: Various modules include optional sections about boards of directors.
This applies primarily to business organizations that are formed as corporations.
These sections can be skipped by learners who are not interested specifically
in boards of directors.

Each of the following modules suggests specific materials for
review, specific topics and questions for discussion and reflection,
and specific activities to develop basic systems and practices.
Various modules also include assessments and guidelines to record
and monitor action items from current and previous learning modules.

Module
1: Program Orientation — Getting the Most from This Program

Gain Guidelines for You to Get Most from Program
Learn Tips to Improve Reading and Studying Skills
Access Extensive Free, Online Resources for You
Design Your Best Approach to Program

Module
2: Starting and Understanding Your Organization

Decide if You Are an Entrepreneur
Answer: You Have Right Planning and Financial Skills?
Answer: What Human Resources Will You Need?
Articulate Your First Products and Markets
Verify If Those Markets Really Exist
Identify Best Approaches to Pricing
Answer: How Much Money Will You Need?
Draft Your First Strategic and/or Business Plan

Module
3: Role of Chief Executive Officer

Learn What a Chief Executive Officer Is
Understand Major Functions of CEO
Understand Core Knowledge and Skills for CEO Role
Be Prepared for Building Your Board
Set Basis for Strong Board-Staff Relationships
Avoid “Founder’s Syndrome”

Module
4: Building Basic Skills in Management and Leadership

Gain Basic Skills in:

Problem Solving and Decision Making
Planning
Delegation
Internal Communications
Meeting Management
Managing Yourself

Optional:

Review Advanced Topics in Management and Leadership
Design Your Management and Leadership Development Plans

Module
5: Building and Maintaining an Effective Board of Directors (for corporations)

Understand Roles and Responsibilities of a Board
Adopt Board Policies
Build Board Committees
Recruit New Board Members
Ensure Strong Participation of Board Members
Prepare for Board and CEO Evaluations
Build Board Calendar to Schedule All Operations
Organize a Board Manual
Train Board Members
Assess the Health of Your Board Practices

Module
6: Developing Your Strategic Plan

Understand the Strategic Planning Process
Draft Your Mission, Vision and Values Statements
Conduct Basic Strategic Analysis
Set Strategic Direction
Conduct Action Planning
Draft an Operating Budget
Write and Communicate Your Plan
Monitor and Evaluate Your Strategic Plan
Evaluate Your Strategic Planning Practices

Module
7: Marketing Your Products/Services and Promoting Your Organization

Conduct Basic Market Analysis for Each Product
Draft Your Public and Media Relations Plan
Draft Your Sales Plan
Draft Your Advertising and Promotions Plan
Draft Your Marketing and Promotions Plans

Module
8: Managing Finances in Your Organization

Learn Basics of Bookkeeping and Finances
Understand Budgeting and Deviation Analysis
Understand Basic Cash Management Practices
Recognize Major Financial Statements
Know Basics of Financial Analysis
Evaluate Your Financial Management Practices

Module
9: Staffing and Supervising Your Employees

Supervising Staff, Including How to:

Define New Job Roles
Recruit Job Candidates
Screen Applicants
Orient New Employees
Delegate to Employees
Ensure Strong Performance
Fire Employees
Compile Personnel Policies and Samples
Evaluate Your Supervisory Practices

Module
10: Managing Ethics in the Workplace

Set Up Systems to Manage Ethics, Including:

What is Business Ethics?
Myths About Business Ethics
10 Benefits of Managing Ethics
Ethics Management System
8 Guidelines for Managing Ethics
6 Key Roles and Responsibilities
Codes of Ethics
Codes of Conduct
Ethics Policies and Procedures
Resolving Ethical Dilemmas
Conduct Ethics Training

OPTIONAL: Module 11: Conducting Complete Fitness
Test of Your Business

Cost of Program and Time to Complete It

Program Costs

The cost of the program depends very much on how the learner
chooses to go through the program. If the learner chooses to go
through the program on their own (rather than, for example, as
part of a group of learners sponsored by a local service provider),
the program is entirely free. Otherwise, program costs are determined
by the local service provider who sponsors the program.

Time to Complete Program

Learners can go through all of the modules in the program or
they can choose their own set of modules and how those modules
will be completed. Consequently, the amount of time to complete
the program depends very much on how the learner chooses to go
through the program. The more time and energy that learners invest
in the program, the more they will learn and accomplish for their
organizations and careers.

Many of the learning activities in this program are activities
that organizational leaders and managers should do in the workplace
anyway to develop a healthy organization. Consequently, time to
conduct these learning activities in the program should not be
viewed only as “time in the program”; rather, this program
helps learners turn their organizations and careers into “learning
labs” where they get things done — and learn at the same
time.

As a very rough estimate, learners can spend anywhere from
10-40 hours in each module — again this amount of time depends
very much on how thorough learners are in reviewing learning materials
and conducting activities to deepen and enrich that learning.

Certain modules include more learning activities than others.
Therefore, the program sponsor and learners may choose to dedicate
more than one meeting for these modules. For more information,
Suggested Number of Meetings Per Learning Module
in Here’s How to Provide the Program.

Please Tell Others About This Program!

The vast majority of small- to medium-sized businesses have
very limited time and money — yet the majority of these businesses
still do not tap the vast reserve of free resources available
on the Internet and Web! Please help spread the word!
Please print out this program flyer and place copies appropriately
around your business community.
If you know of service providers who will see value in providing
this nature of program, please tell them. You might suggest they
read the program description at “https://staging.management.org/freebusinesstraining/program-description.htm
If you’re a service provider to businesses and communities,
please consider offering this program as a service in your area.

Thank you!!!

Providing the Program Requires Little in Resources and Expertise
— Here’s How!

Providing the program in your area requires little in resources
and expertise. See Here’s How to Provide the Program.

Within certain limits, I can also work with you to customize
the program to suit your needs, if needed. For example, you may
want to modify certain topics.

Program Not to Be Used Primarily to Generate Profits

This program was developed on a pro bono basis as a service
to the management, training and development communities. The study
materials for the program are contained in the Free Management Library, also developed as
a pro bono service. Because of the pro bono nature of the program
and its resources, the program should not be used primarily
to generate profits. Specifically, any fees to learners to
participate in this program should be no more than the very low
costs incurred to provide and operate the program.

How Do I Get Started?

Begin proceeding through the modules by referencing the Links to Learning Modules.

For the Category of Personal Development:

To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022September 21, 2022

Free, Micro-eMBA!

Free Online Organization
and Management Development Program!

Leaders, managers, supervisors and employees and service providers
can complete this entire 10-module, online program for free at
any time from anywhere in the world. All materials are available
on the World Wide Web!

Online, free, learning modules include:

1. Orientation to Program — and Other Free Resources for
Your Business
2. Starting and Understanding Your Business Organization
3. Understanding the Role of Chief Executive
4. Developing Your Management and Leadership Skills
5. Building and Supporting Your Board
6. Developing Your Strategic Plan
7. Developing and Marketing Your Products and Services
8. Managing Your Finances
9. Supervising Your Employees
10. Managing Ethics in the Workplace

On the World Wide Web, see

https://tinyurl.com/yym2ph2w

(Many public libraries provide free access to the Web.)

For the Category of Personal Development:

To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022September 21, 2022

Preparation for Micro-eMBA (SM) Program

Free Micro-eMBA Module #1

Preparation for Program

This module is in the organization development program. However,
this module can also be used by anyone to improve their self-directed
study habits and learn about free, online information for for-profit
organizations.

Sections of This Module Include the Following

Introduction
Outcomes
Materials for Review
Suggested Topics for Reflection and Review
Suggested Learning Activities
Assessments
Tracking Open Action Items

INTRODUCTION

This module helps you get ready for the program by providing
guidelines to get the most out of the program, along with suggesting
numerous free, online resources of which you might take advantage.

As with any learning module in this program, you’ll get the
most if you read all materials, consider each question for discussion
and reflection, discuss information and materials with others,
complete suggested activities and apply assessments as appropriate.
You should also regularly conduct action planning to record and
monitor important actions (for yourself or your business organization)
identified during the program, including what needs to be done,
who needs to do it, by when and current status on the completion
of the tasks.

Lastly, congratulations, on your own initiative and commitment
to your learning!

Also consider
Related Library Topics

OUTCOMES

Learners who complete this module will achieve the following
outcomes:

Gain Guidelines for You to Get Most from Program
Learn Tips to Improve Reading and Studying Skills
Access Extensive Free, Online Resources for You
Design Your Best Approach to Program

MATERIALS FOR REVIEW

The following materials will help you address each of
the topics and learning activities in this module.
Read the following materials according to directions in
their titles, eg, “read paragraphs till come to next title”)

Program
Design and Format of Learning Modules (read paragraphs till come
to next title)
Basics
for Learners to Get Most from Training and Development (read paragraphs
on page)
Tips
to Improve Reading Skills (read articles in “Various Perspectives”)
Tips
to Study More Effectively (read tips both for studying and concentrating)
General
Resources (be aware of the types of resources listed under that
category on the right sidebar)

SUGGESTED LEARNING ACTIVITIES

Learners are strongly encouraged to complete the following
activities, and share and discuss results with peers, board members,
management and employees, as appropriate.
As you proceed through the following activities, be sure
to note any incomplete actions in the Action Item Planning List. (At that Web
address, a box might open, asking you which software application
to open the document.)

1. Write down a schedule of when you plan to study information
and materials in the program. Share the schedule with several
people who can help you stay on track with your schedule, for
example, peers, fellow board members, management, employees, consultants,
friends, family, etc. Give them permission to pose supportive
challenges to you to help you stay on track.

2. Write and distribute a one-page memo to whomever you plan
to share feedback with (peers, board members, management and employees,
etc.) indicating your plans to complete the program and that you
plan to discuss information and materials with them (for example,
in upcoming board meetings, staff meetings, etc). Suggest the
program to them, as well.

3. Schedule regular meeting times (for example, in meetings
with peers, board members, management, employees, etc.) to discuss
information and materials from this program. Share the schedule
with others.

4. Recruit fellow learners to go through the program with you.
You could, for example:
a.) Contact local service providers to get suggestions for other
learners — or ask them if they would sponsor the program.
b.) Call several peers, for example, board members, chief executives,
managers, consultants, instructors, etc., and pose the program
to them.

5. If you have questions, consider posing them in the national,
free, online discussion group hr.com, which is attended
by many human resource and organization development experts.

6. Are there other activities that would be more suitable for
your needs and nature? Commit to undertaking these activities
— by undertaking, we mean other than thinking about or talking
about, but starting and completing the activities. Write down
your ideas and share them with whomever is going to support you
as you progress through the program.

7. Lastly, spend an hour over the coming week in which you
scan around inside the Free Management Library. There are a massive
amount of links in the Library, including about 675 topics. Get
a feel for how they are arranged.

8. OPTIONAL: The following three links are to a large amount
of free, online resources in regard to personal development, productivity
and wellness. If you have the time, you might glance around inside
the topics. If you find something that might benefit you, consider
identifying suitable actions to take. Write down these planned
actions and share them with others who can support you as you
take the actions.
Personal
Development
Personal Productivity
Personal
Wellness

ASSESSMENTS

OPTIONAL: The following self-assessments can help you
identify areas where you’d like further self-development.

Behavioral
Styles — Take a look at the following matrix of behavioral
styles. See where you fit in. How might that affect how you proceed
through the eMBA?

Be Flexible in the Face of Changing Circumstances –Are you really ready for change?
For implementing this eMBA?

Identify
Your Strengths and Weaknesses — Based on the SWOT analysis,
what did you learn about yourself? Use your strengths to take
advantage of opportunities, to strengthen weaknesses and ward
off threats. Any strategies that you should implement?

Stress Self-Evaluation — To determine how
effectively you are using your time, respond to these questions
honestly

(More self-assessments if you are interested.)

TRACKING OPEN ACTION ITEMS

1. One of the first indicators that an organization or a person
is struggling is that open action items are not tracked and reviewed.
(Open action items are required actions that have not yet been
completed.) Instead, people only see and react to the latest “fires”
in their workplaces or their lives. Whether open action items
are critical to address now or not, they should not entirely be
forgotten. Therefore, update and regularly review a list of open
action items (identified while proceeding through this program)
that includes listing each open action item, who is responsible
to complete it, when it should be completed and any associated
comments. When updating the list, consider action items as identified
during discussions, learning activities and assessments in this
module. Share and regularly review this action item list with
the appropriate peers, board, management and employees in your
organization. You can use the following Action Item Planning List. (At that Web address,
a box might open, asking you which software application to open
the document.)

2. If you have questions, consider posing them in the national,
free, online discussion group hr.com, which is attended
by many human resource and organization development experts.

(Learners in the organization development program can return
to the home page of the organization development program.)

For the Category of Personal Development:

To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

Staff Position	Year 1	Year 2	Year 3
*Central Administration, General Operating Activities:*
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*Staff for Products [insert name!!]: (have a section for each product)*
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Plan’s section, goals, etc.	Completion date	Respon- sibility	Written description of results to:
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Free Nonprofit Micro-eMBA Module #5: Building and Maintaining an Effective Board of Directors

Sections of This Module Include the Following

INTRODUCTION

OUTCOMES

MATERIALS FOR REVIEW

Board Roles and Responsibilities

Board Operations

Documents — Charter/Constitution/Articles, Operating Rules, Policies, etc.

Staffing the Board

Ensuring Successful Committees

Ensuring Successful Meetings

Evaluating the Board

Board and Staff Relations

Evaluating CEOs

SUGGESTED TOPICS FOR REFLECTION AND DISCUSSION

Board Roles and Responsibilities

Board Operations

Board Policies

Board Staffing (Recruiting, Orienting, Training, Informing)

Board Committees

Board Meetings

Board Evaluations

Special Topic — Board Liabilities

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Specify Your Board’s Roles and Responsibilities

Authorize Up-to-Date Board Policies

Organizing Your Board Committees (Includes Recommendations)

Recommendation: Establish the Following Initial Board Committees

Staff Your Board With Needed Skills

Ensure Strong Participation of Board Members (Board Meetings)

Ensure Your Board and Chief Executive are Really(!) Effective

Clearly Communicate What Your Board Does (Board Operations)

Ensure Adequate Protection from Liabilities

Build a Board Manual for Each Board Member

Train Board Members to Be Highly Effective (Board Training Session)

ASSESSMENTS

REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

TRACKING OPEN ACTION ITEMS

For the Category of Boards of Directors:

Board and Staff Responsibilities — Test Your Knowledge

For the Category of Boards of Directors:

Free Micro-eMBA Module #6: Developing Your Strategic Plan

Sections of This Module Include the Following

INTRODUCTION

OUTCOMES

MATERIALS FOR REVIEW

Introduction to Basics of Planning (general to most planning processes)

Introduction to Strategic Planning

Preparation for Strategic Planning

Conducting Strategic Planning

SUGGESTED TOPICS FOR REFLECTION AND DISCUSSION

Introduction to Planning and Strategic Planning

Preparation for Strategic Planning

Conducting Strategic Planning

ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

Preparation (for Organizations That Have Not Yet Done Strategic Planning) — Do a “Plan for a Plan”

Developing Your Basic Strategic Plan Document

ASSESSMENTS

REMINDERS FOR THOSE IN THE ONLINE DEVELOPMENT PROGRAM

Reminders About You

Reminders About Your Organization

TRACKING OPEN ACTION ITEMS

For the Category of Strategic Planning:

Framework for a Basic Strategic Plan Document for a Business

Directions

Executive Summary

Organizational Description

Mission Statement

Vision Statement

Values Statement

You Will Likely Have Organization-Wide and Product/Service-Specific Goals

Write Down Goals to Address Issues

Write Down Forward-Looking Goals

Next, Associate Strategies with Each Goal

Now Consider: Are the Goals and Strategies Closely Aligned with Organization’s Mission, Vision and Values?

Goals and Strategies (Cont.)

Appendix A — Action Planning (objectives, responsibilities and timelines)

Appendix B – Description of Strategic Planning Process Used

Appendix C – Strategic Analysis Data — External Analysis

Appendix C – Strategic Analysis Data — Internal Analysis

Train Board Members to Be Highly Effective (Board Training
Session)

Board and Staff Responsibilities —
Test Your Knowledge