What role does leadership play in your charity’s fortunes?

Louise Beales, Consultant in our Charities Practice, asks whether external forces are the only factors affecting charity performance. Could ineffective leadership and inadequate governance be important too?

I feel very privileged in my role because it affords me the opportunity to gain deep insights into the strategy and operation of organisations through the eyes of its leaders and boards. This enables me to witness the impact of both external and internal influences on charities.

Clearly, many external factors are currently affecting charities’ performance, including tough economic conditions, a reduction in government funding and a downturn in donations.  

However, I wonder if that’s the full story. Is it possible that internal factors also have a bearing on how well a charity is doing?

The role of strong leadership and governance

Leadership and governance play a huge role in a charity’s success or failure. As well as looking to counter the impact of external factors, it is essential that charities take a closer look at the effectiveness of their leadership and board.

In my experience, the charities that are best placed to thrive have brave, confident leaders and strong, knowledgeable, representative boards.

How does your board measure up?

Good governance is crucial, but what does that mean? Trustees need to bring relevant, expert skills to the table and to reflect the diversity of the community the  charity serves.

The Charity Governance Code is a practical tool to help charities and their trustees develop high standards of governance. Whilst the trustee board is responsible for the governance of the charity and its own performance through self-assessment, an external interim consultant or third party can provide independent advice and a fresh perspective. There are obvious benefits to having an outsider asking some of those difficult questions to ensure rigour and objectivity.

A trusting, productive relationship between Chair and Chief Executive provides the foundation for excellent delivery and, when the timely recruitment of new Board members occurs, a dynamic new energy emerges.

Bold leadership serves beneficiaries

In today’s challenging climate, charities need brave, confident leaders. These are people who are there to serve, determined to ensure that the charity provides the greatest impact to as many beneficiaries as possible.

Take the example of a charity that’s doing great work, but where both costs and the demand for its services are rising. A bold leader will make tough decisions so that the organisation not only remains financially sustainable, but allocates its money where it is most needed. Cost reductions and restructuring might be necessary, as well as a revised strategy to re-set the organisation for the future.

However, as the turnaround progresses and the fortunes of the organisation improve, the charity will be able to have more influence on its audience.

Leading with purpose

There is an abundance of excellent charity leaders who are able to steer organisations effectively through testing times. Very often, they achieve this thanks to a good relationship with the board and their team.

Authentic, values-led leaders take people with them. They build trust by leading with purpose and empathy, whilst setting out a clear vision, identifying opportunities for change and addressing any weaknesses in the system with decisiveness. 

How an interim leader can help

How do you want your charity to perform in six or nine months’ time? An interim leader is the ideal person to help you get there.

With our excellent track record in supporting clients in the charity sector, we can find you a highly skilled interim executive who can take a fresh view of your organisation. They will outline what’s working well and what needs to change, in addition to identifying opportunities for growth and development. An interim executive can have difficult conversations and make tough decisions on your behalf.

As well as providing strategic input, they can lead on operational improvement, team assessment and systems effectiveness. An interim executive can do the heavy lifting,  paving the way for their permanent successor to lead the organisation to greater success. They can make the vital changes that will leave your charity in better shape, ready to face the future.

To find out more about the benefits of recruiting an interim, please do get in touch.