A Case Study Of Nonprofit Organization Leaders . - Baker University
A Case Study of Nonprofit Organization LeadersViewed through the Lens of Synergistic Leadership TheoryJennifer F. RinellaB.A., Rockhurst College, 1993M.I.H.E., Rockhurst University, 1998Submitted to the Graduate Department and Facultyof the School of Education of Baker Universityin partial fulfillment of the requirements for the degreeDoctor of EducationinEducational LeadershipApril 9, 2014Copyright 2014 by Jennifer F. Rinellai
Dissertation CommitteeMajor Advisori
AbstractThe purpose of this qualitative study was to examine the experiences of executivedirectors of four exemplary nonprofit human service organizations through the lens of theSynergistic Leadership Theory (SLT). A purposive sampling technique wasimplemented and data was collected through individual interviews, administration of theOrganization and Leadership Effectiveness Inventory (OLEI), and examination ofexisting documents. Participants’ leadership behaviors, organizational structures, theexternal forces impacting the organizations and leaders, and the attitudes, values, andbeliefs of executive directors, staff members, and board members were explored and werefound to be synergistically aligned. Participants were motivated by external forces tomodify their leadership behaviors, enhance their organizational structure and culture, andto embrace and embody the core values shared by their constituents to advance themissions of their respective organizations. Findings confirmed existing literature andcontributed an expanded understanding of the theory and practice of nonprofit leadership.By extending the SLT to the field of nonprofit administration, the current study provideda deeper insight into the dynamic factors of effective executive leadership of nonprofithuman service organizations. The findings of this study may assist current and futurenonprofit sector leaders who seek to improve organizational effectiveness and missionaccomplishment.iii
AcknowledgementsThe support and encouragement of many have helped me along this journey. Ioffer gratitude to my major advisor, Dr. Brad Tate, and to committee members KatieHole and Dr. Brian Posler for your guidance, wisdom, and feedback. Thank you also toDr. Stephanie Krick for agreeing to serve on my committee. To my Baker UniversityCohort 8 friends, you inspire me with your creativity, perseverance, and wit - thanks formaking Thursday nights fun!My Rockhurst University mentors encouraged me to pursue doctoral study andoffered wisdom along the way. Thank you to Dr. Jeffrey Breese, Vice President forAcademic Affairs, and Dr. Matthew Quick, Vice President for Student Development andAthletics, for supervising my Directed Field Experiences. Thank you also to Dr. JamesMillard, Interim Dean of Graduate and Professional Studies, and Dr. Michael Clump,Associate Dean, for your constant support, and to my GPS colleagues who offeredassistance as I explored research methods and data collection procedures. Special thanksto my sister and writing partner, Dr. Katie Clune, for keeping me on track through ourFriday morning coffee and writing sessions.In addition, I am blessed with a loving and supportive family. To my parents,John and Carol Fischer, my sisters, Katie, Liz, and Annie, and the entire Rinella family,thank you for your prayers and encouragement. To my amazing children, Jack, Josie, andAnne, thank you for providing me with inspiration to finish.and for your patientunderstanding as I spent countless hours working on this project. To my dearest husband,Mike, thank you for lovingly doing double duty, boosting my confidence, and celebratingeach small success.iv
Finally, I offer my deep and sincere appreciation to the executive directors,development directors, and board chairpersons who participated in this study. I amgrateful for your contributions to the Kansas City community and to the nonprofit sector,and for your willingness to openly share your experiences for this project. I am humbledby your passion, commitment, and tireless efforts to solve urgent and critical problems.Thank you for leading well.v
Table of ContentsAbstract . iiiAcknowledgements . ivTable of Contents . viList of Tables . xiiList of Figures . xiiiChapter One: Introduction .1Background .3Scope and Structure of the Nonprofit Sector .3Nonprofit Sector Leadership Needs .6Synergistic Leadership Theory .9Statement of the Problem .12Purpose of the Study .13Significance of the Study .13Delimitations .14Assumptions.15Research Questions .15Definition of Terms.15Overview of the Methodology .17Organization of the Study .18Chapter Two: Review of the Literature .19Synergistic Leadership Theory .19Previous Studies Using the Synergistic Leadership Theory .21vi
Factors of the Synergistic Leadership Theory .27Factor One: Leadership Behaviors.28Factor Two: Organizational Structure .33Factor Three: External Forces .38Factor Four: Attitudes, Values, and Beliefs .44Nonprofit Organization Effectiveness .47Outcomes-Based Assessment .49Means-Based Assessment .50Panel on the Nonprofit Sector .52Support Kansas City .53Summary .54Chapter Three: Methods .56Research Design.56Population and Sample .58Sampling Procedures .58Organization A .58Executive Director Description.59Board Chairperson Description.59Development Staff Member Description .59Organization B .59Executive Director Description.60Board Chairperson Description.60Development Staff Member Description .60vii
Organization C .60Executive Director Description.61Board Chairperson Description.61Development Staff Member Description .61Organization D .61Executive Director Description.62Board Chairperson Description.62Development Staff Member Description .62Instrumentation .62Interview Instrumentation .63Measurement .64Validity and Reliability .64OLEI Instrumentation .66Measurement .67Validity and Reliability .67Researcher Perspective .68Data Collection Procedures.69Data Analysis .70Limitations .72Summary .73Chapter Four: Results .74Factor One: Leadership Behavior .74Theme One: Mission Embodiment .75viii
Theme Two: Visioning and Strategic Focus .76Theme Three: Building Capacity .79Theme Four: Building and Supporting Strong Teams .83Theme Five: Open Communication .86Theme Six: Collaboration .90Theme Seven: Reflection and Ongoing Learning .92Factor Two: Organizational Structure .93Theme One: Flat, Broad, and Presently Appropriate .94Theme Two: Culture of Respect for the Individual .95Theme Three: Active and Effective Leadership Team .96Theme Four: Alterations to Stimulate and Accommodate Growth .98Theme Five: Engaged Governing Board .100Theme Six: Strategic Orientation.104Factor Three: External Forces .105Theme One: Ever-increasing Need for Services .106Theme Two: Constant Financial Pressure .108Theme Three: Board Engagement .112Theme Four: Public Perception and Intended Image .114Theme Five: Recruiting and Managing Volunteers .115Factor Four: Attitudes, Values, and Beliefs .118Theme One: Passion for Mission and People Served .119Theme Two: Business Mindset with Expectation of Excellence.120Theme Three: Honesty and Integrity .121ix
Theme Four: Openness .122Theme Five: Support of Staff .123Theme Six: “Can-do” Attitude.124Theme Seven: Innovation .125Theme Eight: Community Collaboration.126Summary .126Chapter Five: Interpretation and Recommendations .128Study Summary.128Overview of the Problem .128Purpose Statement and Research Questions .129Review of the Methodology.130Major Findings .130Factor One: Leadership Behavior .131Factor Two: Organizational Structure .131Factor Three: External Forces .132Factor Four: Attitudes, Values, and Beliefs .132Findings Related to the Literature.132Leadership Behaviors of Executive Directors of Exemplary NonprofitHuman Service Organizations .133Alignment of Organizational Structure with Executive Directors’Leadership Behaviors.138Alignment of Executive Directors’ Leadership Behaviors withExternal Forces .142x
Alignment of Attitudes, Values, and Beliefs of Executive Directorswith Attitudes, Values, and Beliefs of Their Respective BoardChairpersons and Development Directors .145Conclusions .148Implications for Action .149Recommendations for Future Research .150Concluding Remarks .151References .153Appendices .168Appendix A. Tetrahedral Model for the SLT .169Appendix B. Interview Questions .171Appendix C. OLEI .174Appendix D. Study Invitation .187Appendix E. Interview Consent Form .189Appendix F. Thank-you Letter to Participants .191Appendix G. OLEI Invitation and Reminder .193Appendix H. IRB Request Form .196Appendix I. IRB Approval Letter .201Appendix J. Permission to Use Tetrahedral Model for the SLT.203Appendix K. Permission to Use and Modify the OLEI .205xi
List of TablesTable 1. Characteristics of Excellence in Nonprofit Leadership Awardees (Greater than 1 Million) .5Table 2. Characteristics of Excellence in Nonprofit Leadership Awardees (Less than 1 Million) .6Table 3. Characteristics of Participating Organizations’ Boards of Directors.101xii
List of FiguresFigure 1. Method of Data Triangulation .65Figure 2. Reverse Hierarchy .96Figure 3. I’m Overhead T-Shirt Graphic .99xiii
1Chapter OneIntroductionThe nonprofit sector and the communities it serves are experiencing rapid andconstant change (Independent Sector, 2012). Post-recession organizations face acontinually widening gap between resources and needs, much like the gap between richand poor. Technological advances also have changed the ways in which nonprofitexecutives approach their work; technology has “transformed the way we ask for anddistribute funds, measure outcomes, and communicate with the people we serve” (Aviv,2012, p. 3). Additionally, recent proposals to change or limit the charitable deduction fordonors as part of the debates over government spending and overhauling the tax codemay have significant implications for the nonprofit sector (Perry, 2013). Furthermore,projected rates of executive turnover remain high and many boards of directors areunderprepared to select and support new senior managers (Cornelius, Moyers, & Bell,2011).Despite the challenges associated with their roles, a recent study of nonprofitexecutives revealed that the majority of nonprofit executives demonstrated a high level ofresolve and confidence in their ability to lead (Cornelius et al., 2011). These executivedirectors reported remaining committed and passionate about their leadership roles in thenonprofit sector, with 45% reporting being very happy in their jobs and another 46%reporting that they have more good days than bad in the leadership role (Cornelius et al.,2011). The commitment and passion expressed by these directors is not uncommon. Forexample, the majority of respondents in Whitaker’s (2012) study of nonprofit humanservice organization leaders reported a career calling and a deep desire to serve; these
2leaders believed that what they were doing was the right thing to do. In a similar vein,Twist (2011) referred to the nonprofit sector as the “social profit” sector, as thoseinvolved create social profit not just for themselves, but for all life. Twist (2011) went onto praise the “visionary, committed people working in this transformational sector” (p.573), referring to them as “social prophets” (p. 573) who are called to this work and whotake a stand and give themselves wholly to it. This passionate commitment of nonprofitleaders, combined with mounting expectations to effectively, efficiently, andenergetically meet the urgent needs of their communities while under immense financialand external pressure, led to the development of the current study.In a quest to discover what effective leadership looks like in the complexenvironment of a nonprofit human service organization, the current study was designed toexamine the experiences of executive directors of nonprofit organizations through thelens of the Synergistic Leadership Theory (SLT). The SLT assumes that it is the dynamicinteraction of four equal and interactive factors (the leader’s behavior, the organizationalstructure, external forces, and attitudes, beliefs, and values) that affects the perceivedsuccess of the leader (Irby, Brown, Duffy, & Trautman, 2002; Irby, Brown, & Yang,2013; Schlosberg, Irby, Brown, & Yang, 2010).This chapter introduces the study within the current climate of the nonprofit sectorand the framework of the Synergistic Leadership Theory, followed by a line of logicexplaining the study’s importance and timeliness. The purpose and significance of thestudy are presented within this chapter, as are delimitations and assumptions. Alsoincluded in chapter one are the study’s research questions, definitions of terms used in the
3study, an overview of the methodology, and a description of the organization of thestudy.BackgroundIn order to help the reader understand the current study in the proper context, asituational and theoretical framework follows. Background information is provided onthe scope and structure of the nonprofit sector, including data on nonprofit organizationsin the Kansas City metropolitan area. Because these organizations are essential toimproving the quality of life for individuals and communities, the need for effectiveleadership is critical. This section describes the leadership needs of the nonprofit sectorand concludes with an overview of the Synergistic Leadership Theory, which providesthe basis for the study.Scope and structure of the nonprofit sector. America’s nonprofit organizationsplay a vital role in the lives of individuals and communities across the country andaround the world (Cryer, 2008; Gaudiani, 2004; Salamon, 2012). According toIndependent Sector (2013), nearly 1.1 million 501(c)3 organizations were registered withthe IRS in 2011. The tax classification 501(c)3 is used by the Internal Revenue Code forpublic charities that are “organized and operated exclusively for one or more of thefollowing purposes: religious, charitable, scientific, testing for public safety, literary,educational, or prevention of cruelty to children or animals” (Cryer, 2008, p. 11).Locally, nonprofit public service organizations play an integral role in the GreaterKansas City metropolitan region’s economy and the health of the community. TheMidwest Center for Nonprofit Leadership (2013) reported that in 2012, there were 7,816charitable nonprofits registered with the IRS in Kansas City. Generating 13.6 million in
4revenues in 2012 (an increase of 7.3% over the year 2011), and total assets of 23 billion(an increase of 14.8% over the year 2011), the charitable nonprofit sector comprisednearly 13% of the region’s total economy.The human services subsector, the setting for this study, comprised the largestsingle segment (25.9%) of Kansas City’s nonprofit sector, yet these agencies as a groupreceived only slightly more than 10% of all revenues in 2012 (Midwest Center forNonprofit Leadership, 2013). The category of human services, according to the NationalTaxonomy of Exempt Entities (NTEE), includes organizations that are diverse in size andscope, mission, and population served; included in this category are organizations servingyouth and families, the elderly, the poor, and people with disabilities, as well as publicsafety, recreation, employment, and housing organizations (National Center forCharitable Statistics, 2013).Human service organizations and other types of nonprofit organizations oftenoperate with limited resources and staff; leaders of these organizations are expected to domore with less. Recognizing the challenges that nonprofit executives face with regard tothe mutual demands of mission fulfillment and business efficiency, Kansas Citycommunity leaders established Support Kansas City in 2001. Support Kansas City is a501(c)3 organization that provides professional and affordable administrative services inthe areas of accounting, board and strategy development, database management,fundraising and special events, general administrative support, and marketing and publicrelations.In response to increased demands for accountability, transparency, and effectiveleadership and board governance, Support Kansas City created the Excellence in
5Nonprofit Leadership Award. This award, based on the Principles for Good Governanceand Ethical Practice set forth by Independent Sector’s Panel on the Nonprofit Sector, ispresented annually to two organizations, one with an annual operating budget greaterthan 1 million and one with an annual operating budget less than 1 million. Table 1includes basic demographic information about the four organizations with annualoperating budgets greater than 1 million that received this award between 2010 and2013.Table 1Characteristics of Excellence in Nonprofit Leadership Awardees (Greater than ganizationDIncorporation date1916197819801998United Way FY14Revenue 32,203,704 5,352,824 3,268,353 2,334,633Expenses 32,228,614 5,352,824 3,268,353 2,508,855Number of paid staff167926342Number of volunteers3803000800310CEO term start2007199619921998CharacteristicBudgetNote. Adapted from “Nonprofit Search,” by the Greater Kansas City Community Foundation, 2014; andfrom “Partner Agencies,” by the United Way of Greater Kansas City, 2013.
6Basic demographic information about Excellence in Nonprofit Leadership Awardrecipient organizations during the years 2010-2013 with annual operating budgets lessthan 1 million is displayed in Table 2.Table 2Characteristics of Excellence in Nonprofit Leadership Awardees (Less than 1 anizationHIncorporation date1985198519861967United Way etFY13FY13FY14FY14 998,663 700,000 929,202 25,000 993,262 688,270 929,202 18,000Number of paid staff11490Number of volunteers263100020050CEO term Note. Adapted from “Nonprofit Search,” by the Greater Kansas City Community Foundation, 2014; andfrom “Partner Agencies,” by the United Way of Greater Kansas City, 2013.Nonprofit sector leadership needs. One of the nonprofit sector’s most valuableresources is its workforce, yet without training and adequate staff support, nonprofitemployees may experience high levels of stress and burnout (Light, 2002). Halpern(2006) asserted that “the effectiveness of nonprofit organizations and the health of ournation’s communities are dependent upon the strength of the nonprofit sector workforce”(p. 3). Effective leadership was found to be the strongest predictor of nonprofitsustainability in York’s (2009) nonprofit sustainability study, based on survey responses
7from 700 nonprofit organizations. These studies support the notion that “executiveleadership is perhaps the single most important component for understanding whynonprofits, corporations, and governments succeed or fail in achieving their goals”(Carson, 2011, p. 29).The intensified focus on leadership for the nonprofit sector came on the heels ofthe seminal Bridgespan Group research report (Tierney, 2006), which described animpending leadership deficit attributable to many factors, including the retirement of thebaby boomer generation of workers. The Bridgespan Group report conservativelyindicated that over the years 2005-2015, nonprofits would need to attract and develop330,000–640,000 new senior-level managers, and that by the year 2016, theseorganizations would need nearly 80,000 new senior-level managers annually (Tierney,2006). Along with the private and public sectors, the nonprofit sector was pressed toprepare the next generation of leadership in anticipation of fierce competition for newtalent.In reality, in addition to creating pressure for executives to do more with less, therecession required many older executives to reconsider or delay their transition timing(Cornelius et al., 2011). The recent Daring to Lead research report suggested thatalthough projected rates of executive turnover remained high and the sector had spent anumber of years paying attention to the issues of selecting and supporting new leaders,few organizations had a documented succession plan (Cornelius et al., 2011).Recognizing the importance of diverse and prepared leaders to constructively andcollaboratively address the complex challenges in American society, Independent Sector(2012) launched the Initiative for Nonprofit Talent and Leadership during the White
8House Forum on Nonprofit Leadership in November 2011. This collaborative effort wasdesigned to bring national attention to le
By extending the SLT to the field of nonprofit administration, the current study provided a deeper insight into the dynamic factors of effective executive leadership of nonprofit human service organizations. The findings of this study may assist current and future nonprofit sector leaders who seek to improve organizational effectiveness and mission
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3 Contents List of acronyms 4 Executive Summary 6 1 Introduction 16 2 Methodology 18 3 Case Studies 25 Case Study A 26 Case Study B 32 Case Study C 39 Case Study D 47 Case Study E 53 Case Study F 59 Case Study G 66 Case Study H 73 4 Findings 81 Appendix A - Literature findings 101 Appendix B - CBA framework 127 Appendix C - Stakeholder interview questionnaire 133
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