Community Consultation: are you doing it?

A recent article on the internet piqued my interest as I was searching for governance related news articles and blogs. It was titled “Hope in Rwanda” and I wondered how it had come to appear in my search results – surely google could not lead me astray!

The paragraph that caught my attention – and obviously the search engine’s attention - was the following:

“In fifteen years, the government and people of Rwanda have written a constitution, established free education for all children, and are rebuilding their economy. They can boast that they have more women in Parliament than any other country in the world. Perhaps the most remarkable changes in political structures and authority have occurred at the local level. In only fifteen years, central control has evolved into devolution of power to the lowest levels. Exclusion has become inclusion; voices are heard from the weakest, poorest and most vulnerable. It is far from perfect but it is building a culture of democracy and accountability."

The article went on to outline the nature of this new form of governance, which can be briefly summarised as:

• A set of goals is established through consultation with the wider community, for what is valued and needed by these communities;
• These goals become a contract that is signed by the local Mayor and the President;
• The contract has measurable performance indicators; and
• At every level, leaders are being held accountable for their actions and achievements.

Now, for the most part this is similar to the running of many organisations. But what caught my attention was the emphasis put on the goals of the leadership being determined by the communities themselves.

“…Rwanda is implementing a system that asks poor people to express their needs, which are then developed into a compact with their leaders -- who are held accountable, by being removed from office by citizens if these needs are not met.”

It’s an interesting concept – asking the stakeholders what they actually want and/or need – and then making sure you deliver it to them.

And this may be the perfect time for us all to assess our goals and objectives, and make sure we’re attuned to the needs of our constituents. It certainly couldn’t hurt.

Click here to read the article “Hope in Rwanda”.

Alicia Semple
Communications Manager

Employee Worth ………. Is this the time to have a National CEO Award?

What are you worth? Is worth for the person different from the position itself? In fact should we solely base any calculation upon making a distinction between the person and the position?

Is it fair to link an employee’s value to the organisation’s performance? For we all know of examples where there are so many external matters that influence the performance to make this meaningless.

Now what is our view about bonuses? Are they inherently beneficial or disastrous? When should a bonus be paid? And should there be an opportunity for a Board to ask a CEO to “hand back” money?

All of these questions are now very timely in the current climate.

Of course given the previous experience around setting remuneration, for many people there is not a lot of confidence that this current storm will deliver a good outcome. Can anyone see if regulating this area will improve how, when and what remuneration will be determined for them?

If it is not regulated, then should the power rest with the stakeholders to decide? Of course if the stakeholders are involved, will this be any better, or is the only real answer the establishment of a CEO National Award?

It is not so silly to suggest that at least a National CEO Award would offer a public benchmark or standard for remuneration. Perhaps even implement a policy where if someone is paid above this benchmark standard, then the directors must provide a written statement of justification for why this is so.

Do you think this could work, and if not what are the alternatives?

Damien Smith
Managing Director

Three hints for helping your organisation through the financial crisis

The current economic climate is forcing both commercial and NFP organisations to rethink existing strategies and look at ways of cutting costs and/or increasing efficiency. Here are a few tips we have learnt over our 20 years that may help your organisation through these difficult times.

Collaborate with other kindred organisations to:

• investigate joint funding opportunities;
• make use of bulk purchasing discounts;
• meet with other executives and learn valuable lessons about their experiences;
• join together to increase your lobbying power to influence policy; and
• undertake joint projects to divide and/or reduce costs.

Look at your organisation's effectiveness and efficiency

Examine your organisation’s income. If your income is diverse and doesn’t rely solely on donations or membership fees, you will find it easier to ride out the storm. One of the first places both corporates and individuals can look to cut back in an economic downturn are on donations and membership fees.

Investigate what other ways your organisation can look at providing goods and services to your constituents. What are you doing that could be done better? What could be expanded? Are there any (potentially very costly) things you’re doing just because you’ve always done them? Can an investment in technology save you valuable staff time?

Examine your relationships closely. Now may be a good time to survey your stakeholders on what they actually want from your relationship. Conduct a member / stakeholder / donor survey to rate your current performance and discover any perceived gaps in the market. Electronic survey software is readily available on the internet at competitive prices.

Make better use of volunteer resources

A recent survey by the Stanford Social Innovation Review found that many American NFP organisations were not making adequate use of their volunteer resources. The review found that organisations which took the time to match volunteers to appropriate tasks had happier volunteers, and got better value from those volunteers, than those which allocated tasks randomly.

Take the time to talk to your volunteers and find out where their skills and interests lie. A volunteer who enjoys their work will be more likely to return, and will contribute more to your organisation.

Many corporations are now also initiating social responsibility programs to attract the socially conscious Generation Y employees. Approach businesses to see if they will offer their employees time pro-bono and take advantage of these skills.

You may also like to consider taking on a student. Students will find the experience your organisation offers invaluable for their training, and they may just teach you something new!

For more resources on improving the performance of your organisation, visit the Enterprise Care website at http://www.enterprisecare.com.au/.