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Doing the right things, while doing things right
Michael J Nizankiewicz, CAE, executive vice president and CEO of the National Association of Mortgage Brokers, McLean, Virginia, believes that being diligent in separating growth and maintenance targets is vital to an organization's success. EVERY SUCCESSFUL ASSOCIATION FUNCTIONS EFFECTIVELY and efficiently. Many would say that leadership is more closely related to being effective, while management is more closely aligned with being efficient. Both are important: They function symbiotically in successful associations. Peter Drucker, who possesses the uncanny brilliance of reducing otherwise complex concepts to simple denominators, has said that being effective is "doing the right things" while being efficient is "doing things right." Stated another way, "doing the right things" is the ability to identify critical issues and opportunities that can change and develop an organization for the better-strategies that energize and maximize a strategic plan. "Doing things right" is important for maintaining and sustaining that growth. Effective organizations drive performance by distinguishing growth objectives from maintenance objectives. The distinctions are critical and can be reflected in committee action plans and even in individual performance targets. If the performance targets are weighted higher, the organization would likely place weighted values on change or growth objectives for more senior personnel and for the board of directors, while placing more wieght on maintenance objectives for administrative staff. Later in this article, specific examples will be offered to clarify this approach. Having said that, every association
volunteer and employee must display some degree of competency in maintenance
objectives, even if it's something as simple as using a filing system
(electronic and hard copy files) so that easy access to information is
ensured. Senior association executives (the CEO, vice presidents, and
department directors) and volunteer leaders (the board's chair and members)
must possess or develop skills to identify and implement results in both
arenas. So, how effective are your organization's volunteer and staff
leaders' abilities to identify critical change objectives and strategies
in addition to important maintenance issues? Our association's experience
may provide some ways to assess and respond to this question. Creating the plan For a number of years, NAMB's planning process was sketchy, at best, and was essentially staff-driven. National Association of Mortgage Brokers, McLean, Virginia, is a trade association composed of 12,000 members and governed by a board of 12 voting members. Forty- one federated affiliates provide two representatives each to an interim structure called the Delegate Council. The Delegate Council approves bylaw changes and provides a delegate from each of the four regions to the national Nominating Committee. However, as a result of attending ASAE's CEO Symposium (a two-day event for the chief executive officer and chief elected officer to explore priorities for the year and determine how best to work together) the National Association of Mortgage Broker's incoming president (the chief elected officer) decided to transform the board into a true governance board to ensure the implementation of NAMB's strategic plan, which was subsequently adopted by the organization in October of that year. During a strategic planning retreat designed to address organizational planning in a more formal way, an external facilitator we had selected led a group of volunteer stakeholders in a two-day process that resulted in the preliminary draft of that plan. Participants included key board leadership and several volunteer leaders from NAMB's affiliated states. As NAMB's chief executive, I also participated. At this stage, the work was volunteer-intensive and focused on major long-term strategic and visionary outcomes. The facilitator, who was familiar with the industry, limited the plan to four or five basic goals with broader objectives and strategies. Following that retreat, a comprehensive questionnaire was widely distributed to volunteers and staff throughout the organization, including the nationwide affiliates in four regions. It was at this point that the volunteer-staff partnership was engaged, with the questionnaire inviting the perceptions and visions of both groups. The results of that questionnaire played a critical role in reformulating NAMB's strategic plan through its formal adoption five months later that had broad acceptance with national and state volunteers and staff. Realizing outcomes As a result of this commitment to planning and governance, NAMB's national board meetings are now focused on key outcome areas of the strategic plan and have greatly delineated the board's role of being effective (achieving strategic outcomes) from the staff's more operational role of being efficient. However, this does not mean that the dedicated staff of NAMB work solely on maintenance items (maintaining and sustaining growth). The planning process and the clearer delineation of responsibilities have created a stronger partnership in the organization, especially through the process that now separates growth from maintenance targets. This occurred during the development of committee action plans and individual performance targets. The following is an example of the content of the formally accepted plan. This section outlines one of four strategic goals, along with its supporting objectives and strategies. GOAL: NAMB members will be the most knowledgeable source for financing needs. Objective A: Members will have access to the latest tools for real estate financing. Strategies: 1. Facilitate the latest Web site technology. 2. Partner with technology companies to enhance member access to technology (software, Internet access, and so on). 3. Encourage electronic communication as the major medium between association and member. Objective B: Members will have access to the best education for real estate financing. Strategies: 1.Investigate and initiate distance learning. 2. Review certification programs for currency and effectiveness. 3. Promote certification programs. 4. Initiate frequent and substantial education messages to members. Objective C: NAMB will be the prime information resource for members seeking to expand their financing services. Strategies: 1. Investigate business-to-business relationships that expand member capabilities. 2. Offer training for horizontal diversification. 3. Initiate technology classes through the Education Foundation. This goal, along with the three objectives and their related strategies, resulted in annual action plans for NAMB's education, communication, and certification committees. Driving the plan to a staff level to support the committees' efforts is a process I've used with my leadership team-those directors responsible for key functional areas of NAMB. The sample plan (see chart on page 70) outlines critical issues and opportunities identified in both the growth (effective management) and maintenance (efficient management) arenas. The leadership team reviews each issue or opportunity and weighs it as high, medium, or low in importance or urgency. In this model, importance is defined as the impact it will have on the overall strategic plan and urgency outlines how critical it is in the short-term (within three to six months). These attributes are specific only to the current situation of NAMB. Depending on the circumstances of your organization, the values, importance, and urgency will, of course, be different. Setting performance objectives The next steps begin with incorporating the growth and change issues into appropriate action plans. The plans build appropriate issues and opportunities of both the growth and maintenance arenas into individual performance targets, which become the basis for volunteer or staff self-management and performance evaluation. Since much has been written on action planning (who does what, by when, and at what cost), I'll move on to examples of individual performance objectives. The following are three specific examples of individual targets, with completion timeframes of one year or less, that are directly tied to the strategic goal referenced earlier and subsequent action plans. 1. Communication growth. By December 21, 2001, NAMB will enhance the image of the mortgage broker industry by producing newsworthy items for the media on a regular basis. Strategies: * Increase press materials designed to promote certification designees and best business practices. * Promote the NAMB Web site as a resource for the press. 2. Communication maintenance. By September 30, 2001, the NAMB Web site will be completely redesigned to improve its appearance and usefulness to members and potential members. Content will be updated monthly. 3. Education growth. By December 31, 2001, improve NAMB Education Committee relations with state partners. Success will be measured by the level of satisfaction of state partners with NAMB's education programs. 4. Education maintenance. Conduct and review evaluations of all courses and faculty performance. Each performance target statement is weighted on its urgency and relevance to the strategic plan, and the degree of authority and r\esponsibility the individual has to the outcome of the standard (total of the weighted goals equals 100% for each individual). One of the ever-increasing challenges of setting individual performance targets (both for committee volunteers and staff) is the growing degree of interdependency in today's workforce-especially in associations. The degree to which an individual has both the responsibility and authority in achieving a standard will influence the weight. Clearly, the more responsibility and authority vested in one person, in addition to its importance within the strategic goal context, will result in a higher weight for the performance target. Achieving the balance of blending growth targets with maintenance necessities can be challenging, yet both are important for sustained organizational growth and will ensure continuity from one leadership team to the next. Volunteers, staff, and association leaders, working in concert on these plans, create enormous synergy that accelerates the achievement of the strategic plan. Measuring progress A critical, yet often overlooked, part of the planning process is evaluation-whether it is for measuring the performance of a board, a committee, or an individual. By using the weighted approach described earlier, the performance evaluation of individual volunteers or staff members leaves little guesswork on the part of the committee chair or staff supervisor. In fact, in my experience, annual staff performance evaluations have been more of a dialogue on the outcomes and a discussion on what targets to implement in the following year. As a result of the new plan, NAMB's staff evaluation forms and processes were changed immediately. The focus is now on results achieved- especially with the higher weighted goals. In addition, staff generally come to the annual review with a draft of their individual standards for the coming year. Clearly the staff are more focused and serve as more effective (and efficient) liaisons to the committees they support. The board now does a self-assessment that is still going through its own evolution, including modifying the form that has been used for the past two years. The projects themselves must also be evaluated. Were they effective in addressing the organization's strategic plan? If so, should they be continued? If not, they should be eliminated (as Peter Drucker has referred to as "organized abandonment"), given that projects considered to be unsuccessful when measured against the progress of the strategic plan are neither effective nor efficient. GROWTH/CHANGE Since most of the current projects are a derivative of the strategic plan, NAMB hasn't eliminated any projects as of yet. However, a task force updated the plan just recently and modified several strategies that are no longer effective, such as the composition of coalition partners working on several legislative priorities. Celebrating Successes How many organizations truly celebrate their successes? How many report to their members in specific and quantifiable terms the progress the organization has made at year's end in relation to the strategic plan? Some organizations are smart enough to consistently promote their progress to their members and to the public at large. Web sites, press releases, e-mails, official organization publications, and brochures distributed at annual meetings are just a few of the ways organizations demonstrate internally and externally just how effective and efficient they have been. Not only does such communication create a strong esprit de corps, it also rejuvenates and motivates volunteers and staff to be equally, if not more, successful in the coming year. In NAMB's case, a formal document entitled "Year-In-Review" was distributed to attendees at NAMB's 2001 annual convention. The document charted key accomplishments supporting the four strategic goals focused on growth targets, but also celebrated important maintenance achievements. The document was also duplicated in NAMB's monthly publication, which has broad distribution to individuals throughout the mortgage origination industry. NAMB's accomplishments are also on the NAMB Web site (www.namb.org) and its strategic plan is posted in the members' only section. Growth or change achievements included the development and implementation of a very strong legislative program and the complete redesign and implementation of NAMB's grassroots educational programs. Maintenance achievements included the addition of interactive software that allows members to register for meetings and conventions online or update the data in their personal membership database. Of course, there were many more achievements listed with a focus on growth. Smart organizations also celebrate the successes of the individuals that made the achievements possible. Awards and recognitions programs, while virtually critical for volunteers of an organization, are just as important for the staff who make the organization and its mission their career. And how has the overall planning process, and the transition to a new governance method of board leadership, affected the NAMB board? Board orientation and committee chairs' orientation are now more focused since the strategic plan and annual plans serve as a compass. Board meeting agendas begin with important issues directly related to the strategic plan, then move to action items that address strategies. Unless committee decisions demand board action, their reports are "read only." Like many organizations, NAMB is dynamically evolving in its structure and methodologies to continually ensure continuity and ownership of the strategic plan, and thus the ultimate service for its members. Being effective and efficient are not just words. They are identifiable actions that are integrated into a plan that ultimately elevates the performance of individuals and organizations. Michael J. Nizankiewicz, CAE, holds a doctorate of philosophy in business management. He is vice president of Association Management Group, McLean, Virginia, and is the executive vice president and CEO of the National Association of Mortgage Brokers, McLean, Virginia. E- mail: mnizankiewicz@namb.org. Copyright American Society of Association Executives
Source: Association Management |
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