Most Problems & Fixes For Organisations

This came up yesterday in a conversation, and while there's lots of organisation doing well or surviving with any number of different problems there are some common problems that pop up more than others.

Some think their organisation, or the leadership team or their executive are useless or do nothing.
Possibly a little more to it and most times when we've drilled down into it we've found more and were able to point to corrections they can make to not only survive but thrive.

The bad part is it's often very simple, very obvious & been missed by the alleged culprits and their accusers to the point that the common response is throw out the alleged culprits and install a new group who'll get things done. Sometimes there's big improvement, most times there's short new improvement then a return to the same negative cycle.

The problem? Not always the case but the most common faults are either an ill fitting constitution that needs a review, a constitution that isn't known and/or observed & people or members not know the precise roles in play and the rights & responsibilities.

This is what we call the fundamentals. We, well we is a small group of us who get a shoulder tap to come & help fix their floundering or toxic not for profit. More often than not its a return to the fundamentals.

Nearly always the worst NFPs (and some listed companies) have a constitution that doesn't quite match who they are and what they do and/or people within aren't really aware of their legal requirements, their rights & responsibilities within the organisation.

So far in pretty well every NFP (and some listed companies) we're all separately gone into help has ended up with some or all of the following...

1) Constitution Review and most likely a simplification that still complies with the Incorporations legislation or the Corporations Act.

2) Elected office bearers learning they ARE company directors, are legally liable under law personally, legally financially and learning their rights & responsibilities.

3) Knowing the Governance line between an organisations paid staff and elected leadership. Paid staff cannot be voting on matters affecting the NFPs membership/shareholders. They are ex-Officio.

4) That leadership team should be reporting their decisions to the members/shareholders where required. This is much easier with NFPs but it's not the day to day running of the organisation by management...they report to the board/leadership team. But the board/leadership team are answerable to the members/shareholders. Most organisations that means the AGM, but all committees, sub committees, standing committees must be regularly reporting to the board/leadership group fully and completely. That means minutes available but most importantly an Action Statement that details what decisions were made by the committees/leadership team, who is responsible for the matter and the completion date so the board can get a quick, succinct proper helicopter view and ask questions where required. If you have a team not doing that, you have a shadow board, with shadow directors. That's not only not allowed, its damn dangerous.

5) Roles definitions. These need to be sorted out, set out and delivered to new people to the role as a part of their orientation. It keeps them compliant and protects them and the organisations.

Know this, organisations need to know if they cut corners to get things done they need to be very careful.

We also need people to understand what is a Reasonable Persons Test.

If you have a Chairman/President who either alone or with his/her board has made a questionable decision...question it.

As they're explaining it apply the Reasonable Persons Test. Is what they've done what a Reasonable Person might do in the same situation? If yes, then you should be very unlikely to nail their liver to the mast. You should be more likely to set a new process in place that benefits the organisation/company, meets compliance better and keeps everyone protect.

Once everyone understand their role, everyone else's role, everyone knows the rights & responsibilities then the fundamentals fall into place. People end up sticking to their job, duplication is quashed, reporting is made sensible and once the processes are learnt & known they're generally met. It frees up more time for people to get on with what needs & should be done by them.

This is the Fundamentals Reboot.

This is what allows better compliance, better use of time & resources and stops people wanting to over throw people they deem to be doing nothing and replace them with others who don't know or comply with the fundamentals.

Those that finish the reboot seem a little stunned that it genuinely is that simple and so incredibly effective. Look at your company/NFP's problems and look at the fundamentals not those at the helm. 

Lack of fundamentals is the villain NOT those doing their best at the helm unaware of the Fundamentals. Reboot WITH them.
https://seriouslythinkforaminute.blogspot.com/2017/05/the-simplified-version-of-corporate.html