867e49 e002fdeec3194da69fcc32fc727c1d62

Developing a high-functioning team

We all know too well the frustration and despair that comes with trying to lead a team that just doesn’t jive well together. People’s motivation, dedication and skill-sets vary, they’re not on board with your strategic vision for the department, or they just flat-out don’t like each other. As the leader, you may end up doing much of their work yourself, not including them in strategic brainstorming sessions, or stopping team meetings altogether, just to avoid your motley crew of a team.

When I think about a great team, I remember a cold winter evening at a corner booth in an Indian restaurant. The five of us had just finished a big project together and as we sat sipping our cocktails, chatting and laughing, I sat back and thought, I really love this team!

867e49_e002fdeec3194da69fcc32fc727c1d62

But why?Since then, I’ve tried to figure out how to recreate that team, but since cloning isn’t readily available, I thought of some characteristics and best practices for developing a high-functioning team.

Scrap the resume and look for culture fit. I think I just heard an audible gasp from my HR colleagues, so maybe we don’t want to entirely ignore the resume. But once you’ve determined that they have the basic qualifications, look for culture fit. How will they interact with the other team members, the CEO, or the program staff? Are they passionate about the mission (yes, even the finance team should be passionate about the mission!)? Does their attitude and outlook on life fit in with the organization? I’ve seen time and time again where candidates were hired based on the top school, big name work experience or fancy volunteering on their CV but they flopped within weeks at the new place because they just weren’t a culture fit. Please get to know your candidates and ask them what they’re looking for in their next employer’s culture.

Give them a voice. Most  organizations go through an annual strategic planning process with the leadership team and board of directors. CFOs: do you include your staff, even the entry-level accountants? If you want a high-functioning team who’s ready to execute that plan, you must get their input and buy-in from the beginning. I share the prior year’s plan with the group and ask that they come to our next meeting ready to brainstorm and discuss next year. As a finance team, we are so detail-oriented that we don’t often get the opportunity to think big, but in this session we share ideas that contribute to the final draft. Once it’s approved, they already recognize it as part of their work and take ownership over its execution. It is a simple technique that is so often neglected.

Turn them off. No, don’t repulse them by being the smelly lunch eater, but make sure they’re taking vacation or comp time, shutting down computers at a reasonable hour each night, limiting overtime and not checking emails at all hours. Let’s face it – they work at a nonprofit whose cause they’re passionate about so they probably would work 80 hours a week if you asked them. But we should all know by now that productivity will decrease and unhappiness will increase unless our team gets regular breaks from all things nonprofit. As leaders, we need to set the example and the expectations by turning our team (and ourselves!) off at a reasonable time each night. That email will still be there for you in the morning.

Get personal. I love learning people’s stories – their hobbies, families and outside-of-work passions – and in order to build trust I share my story with my team. When I know that Rachel is starting an herb garden or Matt is planning a trip to Sedona or Tom plays in a cover band on the weekends, however irrelevant to our mission as a team, I feel just the tiniest bit more connected to them and our team’s work. We’re not robots, people. Get to know your team.

What was your favorite team like? Were you BFFs or high-efficiency robots or somewhere in between?

 

867e49 acae492a467f4ee8806257330e4011b2 scaled

Seeing around the corner

When I was interviewing for my first CFO role, I had the honor of interviewing with the retired CFO of a Fortune 10 company. I was incredibly nervous and felt so very out of my element – how could I ever stack up to his expectations of a CFO? I ended up getting the job and worked closely with him for several years, almost completely forgetting the anxiety of that first meeting.

One thing I did not forget, however, was his answer to my question: What makes a good CFO? This guy was responsible for the financial health of a major (very successful!) global corporation so if anyone could answer this question, he could. He said:

A good CFO helps the organization see around the corner. This has stuck with me for years. Every time I’m involved in any type of strategic conversation, I imagine myself peering around that metaphorical corner, striving to plan for what’s ahead. Now, I’m no psychic. I don’t have supernatural powers to help me see the future (although, sometimes I think that would be nice – that’s why they say hindsight is 20/20, I suppose). But there are a few practices that can help CFOs lead their organization by seeing around the corner:

Stay Connected. At nonprofits, we wear a lot of hats which can mean CFOs are also doing bookkeeping, HR and IT, plus trying to stay on top of the financials. It can feel nearly impossible to think strategically while you’re completely immersed in the daily operations of the finance department. But to see around the corner, you must stay connected to all parts of the agency. Have lunch with the program staff, meet the development director for a quick update on the annual campaign, go visit a program site and connect with your clients. Staying connected to everyone your organization touches will help you see the big picture of where you are and where you’re going.

Use Your Numbers. We prepare the income statement and balance sheet each month, we explain variances and make adjustments but we’re often only comparing budget to actual, or last year to this year. Two points of comparison don’t often tell a rich enough story. Use your numbers to dig deeper, create 5-year historical analyses and forecast beyond next month. Set aside time on your calendar after each month-end close to dig deep into those Excel spreadsheets and play with your data and I promise you will see farther around that corner than you ever have before.

Be Open to Change. Especially for agencies that have been around for a decade or two, we tend to fall into the same practices, procedures and programs that we’ve always done. When we ask a staffer why we’re doing it that way, they will probably shrug and say, that’s how we’ve always done it. To see around the corner, we have to open our minds to new possibilities. Maybe we need to close an unsuccessful program – take a step back – in order to free up resources to expand another program threefold – take two steps forward. A traditional CFO may try and reallocate resources to make the unsuccessful program better but a seeing-around-the-corner CFO is open to change and can see the bigger picture.

867e49_acae492a467f4ee8806257330e4011b2

What do you think? How do you see around the corner?Organizations still need help seeing around the corner?

Contact us!

 

867e49 2ad1b01de7564be5ac48a2e88285348e

Transparency: How to Share Financial Info the RIGHT Way

Even if you’re not the one in your household who pays the electric bill, checks your bank statements or transfers the money into savings, you are still invested in the financial health of the family. How money is spent affects you and you’re therefore conscious of the financial impact your actions make. These new suede boots for fall fit into the budget, right?

The same mentality needs to apply in the nonprofit world. Oftentimes, program staff feel so far removed from the budget, the balance sheet, the income statement, that they may have no clue how the organization is doing. They’re likely devoting every bit of energy to their clients that there’s no time left to dig deeper and do the research on their agency’s financial health.

That’s where we come in. As the financial leadership of the organization, it’s our duty to be transparent and share the balance sheet and income statement with everyone from entry-level program staff to the Board Chair. Many organizations face the who/what/when/how challenges with openly sharing their financials which I will address.

Who to share financial info with?

Everyone! Staff, board, donors, volunteers. Financial information about your agency is relevant for all stakeholders. We’ll talk more about what information and how you present it below.

What to share?

For the sake of understandability, I would recommend sharing different types of information and presentations to different groups of people (using the same set of financials as your base, of course).

Board: High-level dashboard – a birds’ eye view – of the quarterly financials and forecasts plus a full balance sheet and income statement for those who want more details

Staff: High-level dashboard with highlights that are relevant for them (i.e. share about a new grant or program, or the fundraising results from last month’s gala). The more graphical the presentation, the better!

Volunteers/donors/public: High-level and/or public information such as the 990, annual report and audited financials

When to share it?

  • Annually: Annual report, 990, audited financials on website
  • Quarterly: Board meetings and staff meetings
  • Monthly: Board Treasurer and leadership team

How do we make the information interesting and readable?

PowerPoint. Graphs and charts. Bulleted talking points. Simplicity can be powerful!

867e49_2918cd63b0154e1ba4f5a73e04bb06da
867e49_5de075be540745b892e86e6ad4257c54

Put yourself in your audience’s shoes. Do they know what accrued expenses or current liabilities mean? Probably not. Take five seconds to explain it and you’ll see a lot more head nods than heads buried in smartphones. Again, Excel graphs and charts are your friend. They’re super simple to create and for those of us who don’t get their kicks from black and white spreadsheets full of numbers, they help tell a much richer story of your organization’s financial health.

I encourage you to be transparent about your financials because transparency breeds ownership and ownership breeds engagement and engagement by all stakeholders will take your agency to the next level.

867e49_2ad1b01de7564be5ac48a2e88285348e

How does your organization share financial information?

Are you ready to put it all out there? Grab our Transparency Tip Sheet to help you determine the Who, What, Where, When, and How of sharing your numbers!

 

867e49 6f0b319afb68451ea1ae4f08734a172a

Welcome to my (online) home!

Come on in – can I get you something to drink? Make yourself at home!

867e49_6f0b319afb68451ea1ae4f08734a172a

I’m so excited to continue my journey along the nonprofit financial consulting path. Nonprofit financial consulting? Not exactly glamorous sounding but exactly what I do and love.

In better words, I am pumped to work with world-changers, people with radical ideas, ambitious goals and gritty spirits to help them maximize their resources and potential, serve more people and make the biggest difference possible. Talk about rewarding!

Finance isn’t everyone’s thing. And it doesn’t have to be. But it IS my thing. I help CEOs and EDs “see around the corner” and keep my eyes on the numbers so you can focus on program execution. I’m your on demand CFO who provides best-in-class financial leadership at a fraction of the price but all the reliability of a full-time CFO.

I’ve happily spent nearly a decade in the nonprofit world, leading organizations through radical growth, ensuring their limited resources were used to the maximum potential, helping provide access to education and changing lives around the world. I got my Master’s in Public Administration from New York University to back up my hands-on, real world experience and now I’m sharing this with as many nonprofits as possible.

867e49_69b240b35de6475ea087086e473bfeb6

I’ve had the incredible pleasure of spending time in Afghanistan, Malawi, Nepal, Haiti, Mali, Senegal, Nicaragua and others and hope to share some of my experiences and pictures with you on this blog. I also hope to share advice, lessons and random thoughts as I continue along the journey of consulting.

I hope you’ll join me for the ride!

I’d love to get to know you! Who are you? How’d you get here? Are you a world-changer with a gritty spirit?