Q&A Highlights 11/13/14
Sector Transformation and Organizational Sustainability
(Vignetta Charles)
# / Questions / Answers /1. / How would you suggest managers or other employees at ASOs not in senior management go about getting their executive directors or senior leadership on board for exploring organizational restructuring? / This comes up a lot. Middle managers may at times be more in touch with the pulse of what is happening in a community and really want their executive directors (EDs) to understand or engage in this work of sector transformation, but their EDs do not seem ready for it. One thing we have done is put EDs in touch with other EDs for peer mentorship around these issues. If middle managers are aware of EDs who have gone through sector transformation, they can encourage their ED to get in touch with them to discuss the process. Sometimes even a conversation between the middle manager and the ED itself can get the ball rolling. This can be delicate, so thinking through the hierarchical dynamics of an organization is critical, but finding non-threatening ways to bring this up to the ED can often help facilitate exploration.
2. / Do mergers require a new IRS 501(c)(3) designation? / There are a number of ways to incorporate. Some do apply for a new 501(c)(3). Others just subsume under one of the pre-existing 501(c)(3)s. In this situation, you have to file an amendment for the name change, but you do not have to go through the process of applying for a totally new 501(c)(3) designation. There are a number of ways to do this, and I would point people to the handbook I mentioned in the webcast: What do We Know About Non-profit Mergers? by Wilder Research and Map, 2011.
3. / A lot of people have made comments about the importance of including staff in the process of sector transformation. Could you speak more about how you recommend leadership go about framing or communicating the plans of restructuring to its staff in a way that does not cause too much stress but is responsible? / Be a leadership champion. It becomes problematic when leadership does not involve staff at all. It’s important that you be as transparent as you can be. It’s also good to talk about it in a way that shows excitement about the potential merger. Staff also need to know that they will be supported along the way. For example, if this partnership leads to staff having new responsibilities, then they should know that you are committed to making sure they are trained and have mastery of the skills needed for the new responsibilities. If staff are concerned about the status of their position, make it clear that one of your primary concerns is that that staff member remains employed—it may not be that they are employed at your organization, but letting them know you are committed to supporting them and have their back is critical.
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