1. New Executive Series:
Assessing Your
Organization’s Sustainability
Rachael Gibson & Melody Thomas
April 21, 2015

2. ABOUT RAFFA, P.C.
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Focuses on making the world a better place
Contributes to client’s abilities to achieve their
missions and deliver their promises to the world.
Keeps organizations compliant, effective, and
efficient with practical back office support and deeper
strategies that create sustainability
Provides expertise in consulting, accounting,
nonprofit search, and technology services that help
advance client’s organizational missions.
RAFFA, P.C.
1899 L Street, NW,
Suite 900
Washington, DC 20036
(202) 995-7245

3. LEARNING OBJECTIVES
•Discuss Raffa’s sustainability model and the four core
elements of sustainability planning
•Explore strategies for working with the Board of
Directors and Senior Leadership team to advance your
organization’s sustainability
•Discover strategies (specifically bench strength review)
to implement a leader development culture at all levels
in the organization
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4. 4
WHAT IS SUSTAINABILITY?
Sustainability involves having strong organization or
“business” fundamentals in place that enable the agency
to become or continue to be a high-value community
asset over the long-term.
REMEMBER….
“Sustainability is an orientation, NOT a destination.”
Zimmerman, Bell, Masaoka
Excerpt from Essential Guides to Sustainability, Succession, and Transition Planning:
Part 1 – Organizational Sustainability Planning Guide.

5. Business
Model &
Strategy
LeadershipResources
SUSTAINABILITY PLANNING
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Culture
THE
FOUR
ELEMENTS

6. FOUR CORE ELEMENTS OF SUSTAINABILITY:
BUSINESS MODEL/STRATEGY
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Business Model:
How the organization
creates and delivers value,
and finances the value-
creation process.
• Has at least 5-7 years of life
in front of it.
• Built on quality services.
Needed by clients. Valued by
donors/funders.
Business Strategy:
A coordinated set of
actions aimed at creating
and sustaining a market
position in order to carry
out your nonprofit’s
mission. (Competitive
advantage.)
• Is there a written strategy
in place?
• Does it position the
organization to meet future
needs and demands?
• Are the board and staff
aligned around it?

7. FOUR CORE ELEMENTS OF SUSTAINABILITY:
LEADERSHIP
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Leadership in place to meet current and future needs
Succession plans for top leadership
The Board is a high-value asset to the organization
The Board’s work adequately covers its three core roles:
• Shaping mission and direction
• Ensuring leadership and resources
• Monitoring and improving performance, including its own
Strong, positive relationship between Board and executive
Diversity plus cultural and intergenerational competence

8. FOUR CORE ELEMENTS OF SUSTAINABILITY:
RESOURCES
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Financial resources: sufficient, diverse, well-managed
Physical assets (facilities, campus, etc.) are maintained
Human resources (staff, volunteers) are sufficient, stable, engaged
Technology aligns with the business model
Reputation/brand: understands its reputation in the community
Proactive resource development strategy in place
Good stewardship of hard assets AND building soft assets

9. FOUR CORE ELEMENTS OF SUSTAINABILITY:
CULTURE
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“Sacred values” clear to board and staff
Decision-making authority defined
Agile and resilient
Agreement on commitment to diversity and inclusion
Culture and future direction aligned

10. 10
The
Sustainability
Mini
Assessment

11. RISK MANAGEMENT: SUSTAINABILITY PLANNING
Management of Sustainability Planning Risk
Proactive assessment of the organization’s ability to
accomplish its mission with present and future leadership
with longevity, strength, and success in meeting the needs
of those within the organization and with those served.
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Planning Does Planning Does NOT
• Builds capacity for mission impact
• Prepares proactively for executive
transition 1-5 years in advance
• Reviews organizational business
model/strategy, leadership,
culture, and resources to increase
effectiveness and longevity.
• Aligned with the strategic plans of
the organization
• Only focus on financial
stability

12. APPLICATION FOR BOARDS & CEOS
Social Contracting is an ongoing dialog or
agreement-building process for continuous clarity
about:
• Goals and priorities
• Roles, responsibilities, and expectations
• How to manage overlap between executive and
governance roles
• How and when performance is monitored
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13. BOARD AND EXECUTIVE RELATIONSHIP
1.Establish clear priorities
2. Clarify roles & expectations
• Executive’s expectations for the board
• Board’s expectations for the executive
• Touch points & overlaps (can be sources of tension)
3. Have a plan for ongoing monitoring & periodic
evaluation of performance
• Executive’s performance
• Board’s performance
3
Success
Factors
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14. 1. Connect to overall organization strategy
2. Enlist CEO and board support
3. Design as a process, not an event
4. Organize organizationally, not just top level
5. Align with HR practices to support it
6. Approach with discipline and implement
7. Measure and evaluate
8. Give it the time it needs
9. Communicate often
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LEADER DEVELOPMENT BEST PRACTICES:

15. WHAT IS RAFFA’S BENCH STRENGTH REVIEW?
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• Helps leverage the management team for overall
sustainability, leadership continuity, and retention
• Advances attention to leadership and management
development
• Provides contingency planning for planned and unplanned
absences
• Ensures continuity of mission impact through the
development of critical competencies and functions.
• Realigns position duties and/or
the management structure.

16. WHY REVIEW YOUR MANAGEMENT TEAM’S
BENCH?
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• Refreshes and updates management position descriptions
• Identifies internal potential and backup designees for key
personnel
• Identifies perceived gaps in support of key functions
• Identifies professional development (cross-training) needs to
expand core competencies and prepare designated
backups
• Identifies key relationships held by individuals to mitigate
risks to the organization.
• Identifies leader development opportunities for key
personnel
For new CEOs
Provides a
review of the
management
team structure
and options for
achieving
organizational
goals

17. LEADER DEVELOPMENT
BENEFIT:
Broadens
and
Sustains
Leadership
Capacity
&
Builds
Bench
Strength
Builds
Bench
strength
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Strategic Talent Management Component
Investing /
Positioning
Strategizing /
Planning
Aligning /
Assessing
Developing /
Retaining
Reviewing /
Recruiting
Timing /
Implementing

18. WHERE TO START?
• What from this discussion would add value to your
organization?
• Who would need to be convinced of the value and importance
given other competing priorities?
• Who might you see as an advocate or champion?
• What would help make the case clear and compelling to act
now or at a later date?
• What is the biggest barrier to action?
• What is your next action?
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19. Organizational Sustainability Mini-Assessment
Please read the following questions and note your response. As it applies to your organization, is this
statement completely true (yes), partially true (part), not at all true (no), or you don't know (DK)?
BusinessModel/Strategy
Our organization has a solid business model (what we do and how we pay for it) that
has at least 5-7 years of life in front of it and is built on quality services/products that
are needed by clients and valued by donors/funders.
Yes Part No DK
Our strategic or long-range plan (or business/organization strategy) is current and
relevant to today's and tomorrow's market conditions. Progress toward the plan is
frequently reviewed and is the subject of priority-setting discussions.
Yes Part No DK
Among the board, executive and management team there’s a high degree of
alignment about the direction and strategy.
Yes Part No DK
Leadership
We have the staff and board leadership in place who meet our present and near-
term future leadership needs.
Yes Part No DK
We have written succession plans in place for all key employees that include cross
training plans. We have a strategy in place to recruit, develop and deploy new
leaders, both staff and board.
Yes Part No DK
Our chief executive could go on a six-month sabbatical tomorrow and the
organization would not miss a beat.
Yes Part No DK
Our board is a high-value asset to the organization. Processes are in place and
followed for orientation of new board members and we have a pipeline of leaders
and a process for board officer succession.
Yes Part No DK
Resources
Our organization has sufficient financial resources to meet its commitments in the
short to mid-term.
Yes Part No DK
Our organization’s funding or revenue streams have longevity – the majority are
likely to continue beyond the current year's budget or current grant cycle. We have
an appropriate degree of diversification of revenue streams.
Yes Part No DK
A proactive resource development strategy is in place that is tuned to our
organization’s particular market – the present market as well as future market. There
is a clear logical link between our revenue development strategy and our overall
business/organization strategy.
Yes Part No DK
We are good stewards of ALL of the organization’s assets, financial assets as well as
“soft and social capital,” the strengths that underpin the organization’s work, such as
community reputation, human capital, team capital, systems and processes,
intellectual property, etc.
Yes Part No DK
Culture
Our organization’s culture could be described as resilient, forward-focused, results-
oriented and action-based.
Yes Part No DK
The value and worth of the organization is widely understood throughout the board,
staff and volunteers. Virtually anyone on the team could make a compelling case for
supporting the organization.
Yes Part No DK
©Raffa, 2014. | www.raffa.com

20. Organization
Leadership Agenda
Goals
Assumptions
Executive’s/Staff’s Role Board’s Role
Success Measures
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21. Melody Thomas
Senior Coordinator
mthomas@raffa.com
202.955.7242
Rachael Gibson
Senior Consultant
rgibson@raffa.com
202.955.7221