Governing for Nonprofit Excellence

Social Enterprise Newsletter, Spring 2003

Nearly 50 nonprofit board leaders facing a range of strategic challenges came to Harvard Business School in November 2002 for the Initiative on Social Enterprise's Governing for Nonprofit Excellence (GNE) Executive Education program. Herman De Kesel, the board chair of a Venezuela-based nonprofit technology-training center for the poor, was evaluating how to most effectively oversee a nationwide replicability plan. Todd Warnock wondered how he and his fellow board leaders should manage the CEO succession process for a highly successful food bank based in Chicago. Adele Gorges, board president of a children's social services agency in Rochester, New York, was overseeing an organizational transformation during a period of mission and programmatic growth.

In May 2002, Herman C. De Kesel (MBA '70) founded Superatec in Caracas, Venezuela, with the goal of teaching computer skills to people of limited means. De Kesel, who now chairs Superatec's board of directors, is committed to a national rollout. "The case studies-particularly those that involved multi-site organizations-will prove invaluable as the board helps organize the relationship between our national office and our future local projects." He says that there are a number of organizations in Venezuela and throughout Latin America with complementary missions. "Since GNE," he adds, "as a board we have begun to explore how a strategic alliance might allow us to increase our impact in the months and years ahead."

As a board member of the Greater Chicago Food Depository (GCFD), Todd Warnock faces a very different set of strategic challenges. A key component of GCFD's success is its executive director, who has accomplished nearly all of his strategic objectives during his 12 years at the helm; he also is preparing for retirement. "Examining how other organizations have handled their CEO selection process was a program highlight," Warnock says. He also brought back to GCFD lessons about the importance of a highly engaged and committed board, especially during periods of success. "As we've seen in the for-profit world, a complacent board can lead to lapses in oversight, which in turn can precipitate disaster. Several cases in GNE reinforced the fact that nonprofits, like for-profits, are under the microscope in today's climate of heightened public scrutiny."

At Children's Institute, a nonprofit that promotes the social and emotional well-being of children, board president Adele Gorges confronts multiple pressures related to long-term growth. Over the past two decades, the Institute's activity has expanded from one core program to 20, while its budget has increased fivefold. "I came to GNE seeking insight into the appropriate role and structure of the board during this organizational transformation," Gorges says, adding that her peers provided fresh perspectives on her challenges and encouraged her to rethink her own point of view. "Coupled with the governance frameworks presented in our class discussions, I was able to formulate a plan to implement back in Rochester."

Gorges also notes that other Children's Institute staff and board leaders have attended Executive Education programs at HBS-an important component of the organization's successful growth and development. "The executive staff has sharpened its management skills, and the board has a better understanding of its oversight responsibility," she says. "We have a common language and understanding of how to best approach the challenges and opportunities ahead."

With over 400 past participants, GNE has been enhancing the capacity of nonprofit board leaders since 1997. To learn more about this and other Social Enterprise Executive Education programs offered at HBS, visit www.hbs.edu/socialenterprise.