Not to let the parents/memebrs/ stakeholders off the hook either

CEO's AND Boards are supposed to represent the owners of the corporation or nonprofit, acting as the owners’ (members) elected representatives to protect the investment the company (nonprofit)represents. Boards focus by adopting a reasonable-person strategy when making key decisions.

Unfortunately with business and nonprofits -When boards fail to act in the shareholders’ interests, however, these owners seldom unseat the board in a follow-up election. Letters to directors are rare, and support of shareholder initiatives is equally unusual (ie parental apathy towards mtgs, involvement et al).

Unlike most nonprofit members, shareholders in public companies can simply dump their holdings in a quick transaction and move on to greener pastures. Rather than unseat a board or CEO, they can vote with their feet, as the saying goes, by selling their shares and walking away.

Investors (members) who fail to vote their proxies, to make their opinions known to boards, to move more investment dollars to companies that adhere to good principles, and to toss less cash at the newest fad , are asking for trouble.

[ 12-21-2006, 03:23 AM: Message edited by: Shawn ]

Usually not, just a crappy month- my apologies. Thank you for the kind words even though mine were not.

</font>

• My 2 Big questions, would've been better</font>
• 1. Does the board (and business) work for the CEO, or does the CEO work for the board and members/stakeholders/shareholders?</font>
• 2. Board members or CEO shouldn’t micromanage. ie the rule of 35,000-foot view of the business</font>

goes with 1.
the CEO usually determines what questions will come to the board, what will be presented at meetings, what will be in the information packages that are sent out before board meetings, and which members of management will have contact with the board et al.

Question:
But shouldnt it be the Boards and members decision also (on programs, fundraising, etc) or should the board only be in charge of it, too??

goes with 2
On an airplane at 35,000 feet, we can look down and see roads, cars, fields, rivers, trees, and other large things, but the only reason we recognize them from the air is that we’ve seen them on the ground. From 35,000 feet, we can see things, but we can’t know what’s happening with them. From the board table, a 35,000-foot perspective says, “We have a plant in Kansas City,” but the director really has no clue about the advisability of sinking an extra $30 million into a plant expansion.

If we dont have a ground-level perspective of the business' needs, members' wants, or program ideas- ie their input (why have members??); then we cant apply the 35,000-foot vision. (or decrease maintenance costs, time spent in reception, how PBX works, etc)

Yes the board can decide on fundraisers, etc... I guess the NEVER brought out the jerk in me...

Why have members (especially paying members) if you dont include them or ask what programs and fundraisers they want in the process??

Instead of a mission statement like this

To identify curriculum and programs deemed by the membership* in its sole discretion to be vital to affect the richest educational experience possible for our children; to maximize the role of the school itself in fulfilling these objectives; and to plan, organize and execute events and programs which generate the resources and mechanisms necessary to fulfill these objectives.

the words in bold would be omitted???

[ 12-21-2006, 03:00 AM: Message edited by: Shawn ]

oh, and shawn, let me also add I was very surprised by your comments, as I have always respected and appreciated your valuable insight. You are usually very level headed and not in any way demeaning in nature.

One of the things I really like about these boards is that everyone is respectful and genuinely interested in sharing ideas and opinions.

[img]smile.gif[/img] perhaps it was holiday stress! [img]smile.gif[/img]

shawn... First of all, you are entitled to your opinion, but your screaming and total dressing down was arrogant and totally uncalled for. Perhaps " I disagree with Robin because... " would have been a much better approach. You certainly made a good point to the contrary, too bad the delivery was poor.


Perhaps it's just the school where I am, but if i asked the parents how they wanted to fundraise, I would get 500 different responses. 450 of them don't know a thing about how school fundraisers are run, what the national trends are in fundraising, and what it takes to raise that much money for the school.

No matter HOW many notices are mailed home, emailed and verbally given, these parents can't rememember one detail from the next regarding our budget, what we spend money on , or why. Sadly, most don't even care.

They are in no way, in any sort of position to make decisions as a group, on behalf of the PTO, when they never come to meetings, don't know how and why we spend money ( although it's published everywhere and is very publically accessible) and don't know a thing about what kinds of fundraisers are the most lucrative.

So, yes, I still say that in this situation, the board has the experience and authority to act on their behalf.

I look forward to reading some of the material you suggest, so that I can learn about a different perspective on this.

and as a side note, yes I am, and have been a on boards, and i am sorry to tell you we don't ask the receptionists and maintenance folks about how to manage multimillion dollar budgets.

Our fall fundraiser (merchant cards) flopped big time. Luckily we made enough to pay for them but that's it. We ran Kathryn Beich right behind it to make up the difference. We explained to reason to the parents and let it go. Worked like a dream. We made up the difference and are right back on track. We have a much smaller budget than some of the numbers above. We made $5000 and were thrilled. We supplement that with Market Day, Kemps Nickel Caps, Box Tops, and a Spirit Wear Sale. In Spring, we'll have another catalog sale to get us through the end of the year and start up for next year. We've tried other things - merchant cards, cookie dough, gourmet food - the only thing that makes real money for us is that awful catalog fundraiser with all the junk in it. We quit trying new things and now stick with what works. Makes life easier.

Originally posted by RobinD:
Kerri.. that's a tough situation.. but, the first piece of advice I would give is to NEVER ask the masses what THEY want. A CEO doesn't ask the employees how to run a business, and unfortunately for you, you learned the hard way that you probably shouldn't have asked the parents.

A CEO should if the CEO knows good business and isnt an idiot, Have you ever been PAID to be on an actual Board of Directors??? Been beholden to REAL Stakeholder/ shareholders?? That is the most ludicrous statement. The business should be run with input on how to run it from the most insignificant person to the CEO and the board.

NEVER ask what THEY want???? This IS their MONEY (THE MEMBERS???) remember them?? Your stakeholders?? the ones your resposnible TO not FOR)

Go read 'Board Room 101' by O'Reilly (not BILL)

'Changing the Board Room Culture' by same author

I'll post links to the actuall books - cant remember first name.

Wow!!!

[ 12-20-2006, 06:09 PM: Message edited by: Shawn ]