Delivering Public Service for the Future Superior Engagement Managers (SEMs) in U.S. Nonprofit Organizations October 2014 Introduction “There are individuals Managers help drive organizational performance who are great business and productivity through employee engagement and operators and value development. Yet, all too often, they fall short on creators, but if they effectively engaging their employees. A 2012 Gallup can’t develop, inspire poll reported that 70 percent of U.S. employees do and lead people, they not regularly feel engaged at work.1 These unengaged are not going to make workers experience increased employee dissatisfaction, it to the very top.” higher turnover rates, decreased morale, and lowered productivity. This impact is felt more intensely in Bill Green, Accenture former Chairman and CEO resource-limited nonprofit organizations, many of which depend upon passionate individuals to overcome tight budgets. Managers that overcome these challenges raise employee engagement levels, improve overall productivity, lift employee morale, and can be classified as superior engagement managers (or SEMs). SEMs convert employee potential into organizational productivity. They heighten talent recruitment and inspire current staff by employing specific leadership traits, such as making decisions with integrity and clearly communicating their messages of improvement. Approximately 10 percent of individuals possess all of the traits that define a SEM, and when placed in mid-manager roles, these SEMs outperform their peers by up to 48 percent.2

1. Harvard Business Review. (March 13, 2014). Why Good Managers Are So Rare. Retrieved July 1, 2014 from http://blogs.hbr.org/2014/03/ why-good-managers-are-so-rare/. 2. Harvard Business Review. (March 13, 2014). Why Good Managers Are So Rare. Retrieved July 1, 2014 from http://blogs.hbr.org/2014/03/ why-good-managers-are-so-rare/.

2 Trends/Challenges An altruistic mission statement can help get talent in the door, but a compelling “[Nonprofit employees] Recruiting and retaining top talent in the purpose alone is not enough.4 In the same work for meaning, so nonprofit sector is a challenge. To mitigate survey cited above, only 10 percent of the risk of rapid turn-over, the following organizations stated they had a formal successful managers trends must be addressed: strategy for staff retention.5 Furthermore, must be able to the HR-to-employee ratio is often much • Talent Competition has led to a less among nonprofits than among top for- relate the meaning leadership shortage among nonprofits. profit companies. “With the high workloads Solely relying on volunteers to take on and flat organizational structure common and purpose of leadership roles is no longer a viable in many nonprofits, some employees nonprofit work to their option. Today, nonprofits compete for become frustrated by a perceived lack of and secure the same professional talent skill development and career advancement employees.” hired by their for-profits counterparts. opportunities.”6 Many nonprofits do not have the budget to afford an intricate Michael Conn, Senior Vice • Budget and Compensation levels are career advancement program. However President of Research, noticeably limited within nonprofits. This this paper will discuss how nonprofits can Educational Research Center is further hindered by the social taboo in recruit and develop future SEMs, despite of America the U.S. against giving high salaries to these barriers. those doing mission-driven work.3

• Diversity and Inclusion, or the lack thereof, often stems from the recruitment and hiring process. In a 2013 survey of over 580 nonprofits conducted by the firm Nonprofit HR, over 90 percent of employees believe their organization values diversity. However among those falling short of their diversity goals, only 37 percent have a formal workforce diversification strategy. Those interviewed cited this and challenges in diversity recruitment as major causes.

3. EHL Consulting. (April 4, 2013). Five Essential Challenges that Nonprofits Need to Consider. Retrieved July 1, 2014 from http://ejewishphilanthropy.com/five-essential-challenges-that-nonprofits-need-to-consider/. 4. Nonprofit HR. (April, 2013). Nonprofit Employment Trends Survey. Retrieved July 1, 2014 http://www. nonprofithr.com/wp-content/uploads/2013/03/2013-Employment-Trends-Survey-Report.pdf / 5. Nonprofit HR. (April, 2013). Nonprofit Employment Trends Survey. Retrieved July 1, 2014 http://www. nonprofithr.com/wp-content/uploads/2013/03/2013-Employment-Trends-Survey-Report.pdf / 6. Accenture. (2012). Increasing Employee Engagement in the Nonprofit Sector. Retrieved July 1, 2014 from http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Increased-Employee-Engagement-Online- View.pdf

3 Inspire: Encourage extraordinary performance and Inspire greatness in others

Build: Build high-performing teams that excel when Coach Build challenged

Decide: Make decisions with integrity, balancing risk Lead or ambiguity

Drive: Drive high-quality business results Focus Decide

Drive Focus: Prioritize and communicate areas of focus

Coach: Unlocking your team’s potential to maximize their performance

Traits of a Superior that nonprofit employees work in the field Jacqueline Hamp, Senior Director of not solely for cash compensation but for Leadership Development at Goodwill Engagement Manager the intellectual, professional, and moral Industries International says that SEMs Accenture has developed the following benefits of working for a mission-driven are able to communicate in a way Leadership Model to highlight the key organization. that inspires, versus simply demanding attributes of top performing managers. performance from their employees. She Built from leading corporate practices, this Michael Conn, Senior Vice President of believes everyone has their own vision, model, with input from nonprofit leaders, Research, Educational Research Center of but an SEM can create a space for their can also be used as a lens to better America, stated, “[Nonprofit employees] employees to align their own vision with understand management practices within work for meaning, so successful managers the organization’s vision. mission-driven organizations. must be able to relate the meaning and purpose of nonprofit work to their BUILD: Foster a Collaborative INSPIRE: Communicate the Vision employees.” Conn’s words capture the Environment In the social sector, success is not importance of a core responsibility Conn believes that SEMs should work to always measured in dollars and cents. for superior engagement mangers: foster a collaborative environment where Mission-driven work evaluates success communicating the vision of the people can easily communicate and learn with less tangible metrics. Trish Tchume, organization and linking how employees fit from each other. An Accenture white paper Executive Director of the Young Nonprofits into this overall vision. on global nonprofit leadership has found Professionals Network (YNPN), believes that the ability to communicate effectively

SEMs convert employee potential into organizational productivity

4 with diverse stakeholders is critical to one way for SEMs to engage employees is focus on the mission yet maintain their making progress and accomplishing tasks.7 by inviting them into senior management focus on engaging their employees on Strong communication skills allow for meetings to gain exposure to organization- accomplishment of the mission over time. transparency, which creates trust among wide challenges and contribute their Davis states that SEMs help to minimize employees, pushing them to act in the point of view. Providing transparency into the administrative elements of everyday best interest of the organization.8 Jennifer the decision-making of the organization work, freeing up more time for employees Davis, VP of Mission Advancement at not only fosters employee trust, but also to pursue work directly contributing to the Goodwill Industries International, believes helps tie employees to the success of the mission. A reduction in distractions also that a key role of SEMs is to challenge organization. Hamp states that SEMs also allows employees to feel more fulfilled in their employees and develop opportunities allow their employees to fail; allowing their work. for them to step into leadership roles mistakes to happen and then giving an (e.g. on special projects, in speaking or opportunity to learn and correct them COACH: Training Successful writing roles, in publically representing the gives employees a sense of autonomy Managers organization, etc.). resilience. According to Michael Conn, “Successful managers know the people they work with; In addition, managers with strong diversity DRIVE: Drive Outcomes they know their strength and weakness. awareness have the ability to “successfully The aforementioned Gallup poll also They look for qualities and development navigate encounters, dilemmas and states that superior managers who opportunities in their employees. They challenges with diverse populations” engage employees have successful track realize that people have more range than will help build and foster an employee records that demonstrate how “they the job they are hired to do. Successful workforce better equipped to handle make decisions based on productivity, not managers hold high standards and apply it 9 alternative views and adapt accordingly. politics” and have the “assertiveness to similarly across the team.” SEMs who are able to engage diverse drive outcomes.”10 At the Young Nonprofit employees will also obtain more creative Professionals Network, managers are Phyllis Wallace, the former Vice President solutions to organizational challenges, expected to ask new employees what they of the Nonprofit Leadership Alliance, which will help serve clients more require to achieve success and to follow up believes that superior engagement effectively. with any support and resources required to managers are those who set clear drive successful outcomes. expectations and then provide employees DECIDE: Delegation is Key with a roadmap to follow to achieve In the limited-resource nonprofit FOCUS: Plan Ahead While success. Their employees know what is landscape, a superior engagement Multitasking required of them and how their work will manager must also know how to In addition to engaging their teams with be evaluated. effectively delegate. A manager’s key compelling missions while focusing on to successful delegation lies in his/ individual staff needs, SEMs are also Jennifer Davis states that SEMs “know the her ability to identify and best leverage experts in change management. Lacking aspirations of their team members and their employees’ strengths by providing the ability to adapt to change is a trait know how to support their (employees’) relevant opportunities. Many managers identified as one of the top three issues growth.” They provide special projects are promoted due to their success as an facing nonprofit organizations.12 SEMs are that stretch their employees beyond their individual contributor and often tend to creative at optimizing the use of limited current roles. At Goodwill, managers who rely upon those skills versus delegating resources and effectively hire, utilize and permit an employee to supervise a summer work to others for the purpose of retain staff, all while enduring increased intern is an example of practice engaged to development. Susan Ifill, Chief Operating accountability for fundraising, talent prepare their employees for a supervisory and Financial Officer of Neighborhood shortages and other challenges facing role. Housing Services of NYC, believes that nonprofit organizations. SEMs are able to

7. Accenture. (March, 2014). Global Nonprofits: To Achieve Greater Impact, Develop an Effective Leadership Ensemble. Retrieved July 1, 2014 from http://www.accenture. com/SiteCollectionDocuments/PDF/Accenture-Global-Nonprofits-Develop-Effective-Leadership.pdf. 8. Accenture. (March, 2014). Global Nonprofits: To Achieve Greater Impact, Develop an Effective Leadership Ensemble. Retrieved July 1, 2014 from http://www.accenture. com/SiteCollectionDocuments/PDF/Accenture-Global-Nonprofits-Develop-Effective-Leadership.pdf. 9. Nonprofit Leadership Alliance. (2014). The Skills the Nonprofit Sector Requires of its Managers and Leaders. Retrieved July 1, 2014 from http://www. nonprofitleadershipalliance.org/cnp/cnprevalidation/Final%20Report.pdf 10. Harvard Business Review. (March 13, 2014). Why Good Managers Are So Rare. Retrieved July 1, 2014 from http://blogs.hbr.org/2014/03/why-good-managers-are-so- rare/. 11. Leading Effectively. (October 23, 2012. Top three Issues Facing Nonprofit Organizations. Retrieved July 1, 2014 from http://www.leadingeffectively.com/top-three- issues-facing-nonprofit-organizations-in-2012-2/.

5 Recruiting and • Demonstrate Opportunity Michael Conn observes, “Great people “SEMs are those who Developing SEMs are inspired by great opportunity.” set clear expectations Getting a superior engagement manager Organizations should convey their “on the bus and in the right seat”12 is an mission and prove that they can provide and then provide important first step. While it’s not easy— a prosperous work environment for employees with a Gallup estimates that companies miss the employees. Incoming managers should mark 82 percent of the time when it comes be convinced that available opportunities roadmap to follow to to hiring leaders who demonstrate strong align with their interests, reward people achieve success.” managerial talent13—there are several development and promote a culture of steps nonprofits can take in the hiring and employee engagement. Phyllis Wallace, the former development process: • Create an Inclusive Environment Vice President of the Nonprofit • Consider Future Potential 70 percent of employees do not believe Leadership Alliance Phyllis Wallace points out that many enough is done to create a diverse and employees dedicate themselves to inclusive work environment. Nonprofit nonprofit work as early as their first organizations should go beyond simply • Measure and Communicate year of college. Fostering an interest valuing diversity14 and create a more Performance in nonprofits and mission-driven work diverse and engaging work environment Consistent and constructive feedback allows future managers to get a head for their employees, similar to the is needed for future managers to start in developing the characteristics outreach campaigns many have for the realize their potential and areas of needed to become SEMs. While these communities they serve. Part of creating improvement. Having a formal system of candidates may not be great managers an inclusive environment is hiring SEMs measuring, recognizing and rewarding on day one, early identification helps who can help make this a reality. managers who engage their employees nonprofits create an internal talent will result in greater accountability.15 pipeline of future high performers. • Invest in Training and Knowledge Sharing Goodwill’s LDP uses formal assessments to understand strengths and weaknesses. • Targeted Hiring Developing talent and providing It also allows participants to present to a Erin Roberts (YNPN) says nonprofits growth opportunities for managers panel of CEOs to gather critical feedback should use “mindful hiring” to bring via special assignments helps people and ideas new employees into the organization hone their skills. Michael Conn states only after their potential long-term that this kind of investment can help • Avoid Over Indoctrination contributions to the organization have managers “tailor skills to the real-time Once hired, nonprofits should manage been determined. They should target needs of the organization.” Moreover, the transition of SEMs to avoid over- their hiring for managers with the most this investment creates a culture of saturating them in existing culture. likelihood of being an SEM. This type internal development where SEMs will The goal should be to help refresh of focused hiring will enable nonprofit in turn develop other staff members. the existing culture with a new hire’s organizations to optimize their resources At Goodwill, for example, Hamp has creative ideas and different perspective and build a dedicated workforce willing developed a leadership development that further organization goals. to engage based on their belief in the program that helps participants build organization’s mission and management. skills to influence up while collaborating across their peers. The program give direction and development for people that have employees counting on them for their success.

12. http://www.jimcollins.com/article_topics/articles/good-to-great.html 13. Harvard Business Review. (March 13, 2014). Why Good Managers Are So Rare. Retrieved July 1, 2014 from http://blogs.hbr.org/2014/03/why-good-managers-are-so-rare/. 14. Nonprofit HR. (April, 2013). Nonprofit Employment Trends Survey. Retrieved July 1, 2014 http://www. nonprofithr.com/wp-content/uploads/2013/03/2013-Employment-Trends-Survey-Report.pdf /. 15. Accenture. April 16, 2012. Does your Global Leadership Team have what it takes? Retrieved July 1, 2014 from http://www.accenture.com/us-en/Pages/insight-does-your-global-leadership-team-have-what-it-takes-podcast. aspx.

6 Conclusion While this paper has focused on middle managers, any individual in a managerial position—including executive leadership—can be defined as a superior engagement manager (SEM). Many executives were once mid-level SEMs themselves and continue to provide targeted attention to the improvement of their direct reports’ capacity for engaging their employees and teams. . A number of the characteristics outlined in this paper could be defined as natural talent—possessing visionary leadership, having an affinity for individual needs and being adaptable to unforeseen changes. However, SEMs can also be developed or groomed over time. In addition, nonprofit organizations must learn how to identify and retain this type of talent: they must create a formal strategy for recruitment and development, and ensure their talent pool is diverse and inclusive to keep their employees engaged. If the right managers are selected, placed and rewarded, future managers will continue to promote this culture—increasing the impact, creativity and productivity of their organizations and the nonprofit sector as a whole.

7 For More Information About Accenture To discuss this paper further, please Accenture is a global management contact: consulting, technology services and outsourcing company, with more than Sheldon Maye 305,000 people serving clients in more Manager, Accenture Strategy than 120 countries. Combining unparalleled [email protected] experience, comprehensive capabilities (703) 947-3966 across all industries and business functions, and extensive research on the world’s This paper was co-authored by Accenture most successful companies, Accenture staff: A. Jaime Hunt, Festim Malaj, Parixit collaborates with clients to help them Mehrotra, Neha Wadekar, and John Whittet become high-performance businesses and governments. The company generated net We give special acknowledgement to revenues of US$30.0 billion for the fiscal Michael Watson, former Senior Vice year ended Aug. 31, 2014. Its home page is President, Human Resources and Diversity, www.accenture.com. Girl Scouts of the USA, for originating the concept of this paper. We would also like to thank the following people who About Accenture’s contributed their expertise: Nonprofit Group • Dr. Michael K. Conn - Senior Vice Beyond our commitment to our clients is President, Research, Educational our dedication to improving the way the Research Center of America world works and lives. To learn more about • Jennifer Davis, Vice President of Strategy how Accenture can help your nonprofit and Mission Advancement, Goodwill organization connect its vision to its Industries International practice to improve outcomes and lives, contact [email protected] or • Dr. Jacquie Hamp, Senior Director of visit www.accenture.com/nonprofit. Leadership Development, Goodwill Industries International • Susan Ifill - Chief Operating Officer, Neighborhood Housing Services of NYC • Antoinette La Belle - Managing Director, Network Partnerships, Growth Philanthropy Network • Lisa Brown Morton - President & CEO, Nonprofit HR • Erin M. Roberts – Deputy Director, Strategic Development, Public Health Solutions and Co-Chair, Young Nonprofit Professionals Network in New York City • Trish Tchume - Director, Young Nonprofit Professionals Network • Phyllis Wallace - Retired Executive, Nonprofit Leadership Alliance

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