July 21, 2010
Listen While You Work
By Melanie Lockwood Herman
Earlier this month I had an opportunity to hear a keynote presentation on leadership by Dr. John C. Maxwell. During his thought-provoking address at the 2010 General Assembly of YMCAs, Dr. Maxwell discussed “levels” of leadership and the reasons why we follow others. He pointed out a common error made by many “Level 1” leaders (those who are leaders by virtue of their official position in an organization). According to Maxwell, employees follow a “Level 1” leader “because they have to.” Many Level 1 leaders erroneously believe that their #1 job is “to lead,” while their direct reports “listen and learn.” Dr. Maxwell explained that effective leaders do the opposite: they listen first, then learn, and finally… lead.
Reflecting on the “Listen… learn… lead” cycle led me to consider the ways in which nonprofit leaders approach risk in their organizations. Over the years I’ve spoken to many experienced executives who are eager to begin their journey by adopting “best practices” in risk management and implement the strategies and policies of leading organizations. These leaders often request time-tested samples, fully-formed risk management plans, and “ready to serve” loss prevention tools. My instinct is that the rush to implement “best practices” in risk management is putting the cart before the horse. What these well intentioned leaders should do first is
listen to the stakeholders of their organizations in order to:
- Engage the board in a conversation about the nonprofit’s risk appetite;
- Understand the worries and concerns that keep paid and volunteer staff awake at night;
- Diagnose the barriers to creating a culture that is appropriately tuned to recognize and address risk as the organization changes and matures.
Careful listening is likely to reveal a mosaic of views about the relationship between risk-taking and organizational success, as well as diverse views about what constitutes “safety” in the context of the nonprofit’s mission and services. Divergent views may also emerge about how the board and staff share responsibility for risk identification and oversight.
The next step is to learn from these conversations by incorporating the perspectives, insights and experience of stakeholders in defining the nonprofit’s appetite for risk and shaping risk response strategies. With the discipline to listen and learn
first, executives who are stewards of the risk management process will be in the best possible position to provide the truly effective leadership their organizations deserve.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your feedback on this article and questions about the Center’s resources at Melanie@nonprofitrisk.org or (202) 785-3891.
Melanie’s most recent books include Ready…or Not: A Risk Management Guide for Nonprofit Executives. Information on this book and other recent Center publications can be found at www.nonprofitrisk.org/store/hot.asp.
Summit Learning Opportunities
The 2010 Risk Management and Finance Summit for Nonprofits (October 10-12 at the Loews Philadelphia) offers numerous opportunities to listen, learn and lead. Attend fast-paced workshops presented by leading experts and leave the conference with new insights, an updated perspective and practical tools you can use in your leadership role.
Recent additions to the educational line-up for the conference include a session titled “Top 10 Client Protection Principles.” Attorney Mark E. Chopko from Stradley Ronon Stevens & Young, LLP will lead a discussion focused on managing the risks associated with serving vulnerable clients. During what is certain to be a popular
Summit workshop Chopko will explore policy development, training, screening, client and staff education, crisis response, crisis communication, learning from loss and more.
Mark Chopko is the co-author (with Melanie Lockwood Herman) of EXPOSED: A Legal Field Guide for Nonprofit Executives. Learn more about EXPOSED and order your copy at www.nonprofitrisk.org/store/hot.asp.
Additional highlights of this year’s conference include:
- Entertaining and thought-provoking keynote sessions, including a kick-off keynote by Randy Park, author of
The Prediction Trap;
- Fast-paced and informative education sessions covering topics ranging from Managing Reputation Risk to Financial Risk Management, Cyber Risk and the 10 Biggest Legal Risks Facing Nonprofit Organizations; and
- An exhibit area hosted by leading providers of insurance and financial services products. Meet representatives from firms that specialize in serving nonprofits.
To see the detailed program, click here. To reserve overnight accommodations at the Loews, click here. If you’re ready to register, click here.
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