CAP Mozambique - FHI 360

CAP Mozambique

Strengthening Leading Mozambican NGOs and Networks II

Training Manual on Critical Components of Effective NGO Management and Leadership

The Strengthening Leading Mozambican Organizations and Networks II Program is made possible through support provided by FHI Development 360 LLC with financing from the United States Government through the U.S. Agency for International Development (USAID) under Associate Cooperative Agreement No. 656-A-00-09-00164-00 (Reference Leader Award No. HFP-A-00-03-00020-00)

Developed by: Dr Chiku Malunga

CADECO P.O Box 1884 Blantyre Malawi Tel: 265 1 915 723 Cell: 265 8 868624 e-mail: cadeco@.mw With the support of CAP Mozambique funded by USAID (United States Agency for International Development) with funds from President?s Emergency Program for AIDS Relief (PEPFAR)

Strengthening Leading Mozambican NGOs and Networks II Training Manual on Critical Components of Effective NGO Management and Leadership

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OVERVIEW OF GOVERNANCE, LEADERSHIP AND MANAGEMENT

Exercise 1: Trends in NGO governance and leadership

1. What are your observations about the issues of governance and leadership in the world, Africa and Mozambique in the last 5 years?

2. Why is there a growing interest in issues of governance and leadership and why now?

3. How well are efforts aimed at improving governance and leadership matching improvement in actual practice? Why or why not?

Handout 1: Trends in NGO governance and leadership

Trends shaping governance, leadership and management in Africa and beyond include:

1. Enjoying public trust to having to be accountable

2. Seeking friends to finding professional colleagues

3. Large boards to right sized boards to ensure effectiveness

4. Clearly separating the roles and responsibilities of the board, leadership and management

5. Recruiting names to recruiting valuable skills

6. Orienting board and management members informally to conducting formal orientation

7. From accepting to become board members while being unclear about roles and responsibilities to committing to performance and accountability for results

8. From working without performance appraisals for managers to ensuring all managers, officers and staff are regularly appraised and that the appraisal results are consciously used to improve the effectiveness of the organization

9. From boards holding meetings on trivial issues to strategic meetings and clearly discussing what should be discussed at board and management levels

10. From need for frequent meetings to less meetings because of other improved means of communication

11. From a board working as one entity to boards being divided into sub committees with different tasks to ensure participation by everyone

Strengthening Leading Mozambican NGOs and Networks II Training Manual on Critical Components of Effective NGO Management and Leadership

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12. Financial understanding by the treasurer only to the entire board having knowledge and ability to interpret financial information

13. From ignorance to being aware of the legal implications of being board members

14. Serving for life and having to respect term limits especially for the board

15. From boards not being involved in fundraising to being actively involved through own contributions or using other means like influence or the board and management complementing each other in fundraising or financial sustainability efforts

16. Not evaluating the director to structured appraisal of the director's performance

Exercise 2: Reflecting on trends in NGO governance and leadership

1. How do the trends presented compare with practice in our partner organizations?

2. What are the key challenges for use as capacity building service providers in helping our partners to ensure that their governance and leadership are current?

Exercise 3: Understanding governance, leadership and management

1. What is your understanding of the term: governance, leadership and management?

2. In an NGO, who is responsible for governance, leadership and management?

Handout 2: An overview of governance, leadership and management

Every organization has 3 functions. These are governance, leadership and management. Governance is the work of the board. Management is the work of staff. In very simple terms governance means authority and accountability. Management means making good use of resources. Leadership means giving direction and inspiring people to follow the direction to an agreed and desired destination. It is only when the 3 components are functioning well simultaneously that can have an effective organization.

Governance has 4 main responsibilities. These are:

? Being custodians of the organization's vision, mission and values ? Financial oversight ? Performance monitoring and; ? Ensuring financial and organizational sustainability

Management has 3 main responsibilities. These are;

? Translating the vision and mission into work and results

Strengthening Leading Mozambican NGOs and Networks II Training Manual on Critical Components of Effective NGO Management and Leadership

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? Establishing the structure needed to make the work possible ? Establishing policies, systems and procedures

Leadership has 2 functions. These are:

? Formulation and communicating the vision, mission and values ? Inspiring and motivating people to work together in realizing the vision and accomplishing the mission ? this involves team building and team work.

A significant component of organization development is building the effectiveness of the organization's governance, management and leadership processes, functions and structures. Governance development involves among other things assessing the effectiveness of the board against the key responsibilities above and finding ways of bridging identified gaps. Management development involves building skills and competences in the establishment and implementation of the key management responsibilities.

Leadership development involves developing an individual's or a group's capacity to lead ? critical components include developing the individual or group's ambition, competence and integrity. In practical terms this means developing the individual or group capacity for visioning, learning and developing character.

Hand out 3: Governance/leadership and management

Governance of a non profit organization is the sum total of authority over and accountability for the organization. The governance or board authority comes from its registration under the NGO act. The accountability to the public comes through the same Act's reporting and other requirements. An NGO's constitution should clarify the specific authority of the board. It should also articulate clearly how accountability is to be achieved. The constitution should make very clear who is ultimately responsible for the organization's performance and behavior.

Management exercises its authority on behalf and as directed by the board, but not in its own right.

Leadership is the shared responsibility of the board and management. This is always a grey area that needs continuous negotiation to avoid conflicts between the board and management.

The key functions of the governance, leadership and management tasks are presented in the table below:

The Governance Custodians of the long term vision

Custodians of the mission and strategy

The Leadership Task

Establish

and

communicate the long

term vision

Formulate the mission and

strategy

The Management Task Relate the long term vision to current activities

Translate the mission and strategy into achievable objectives

Strengthening Leading Mozambican NGOs and Networks II Training Manual on Critical Components of Effective NGO Management and Leadership

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