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Management Evaluation For March 1 2017 By Ralph Bloch and Michael Reed 941 306 5222 info blochreed com
Management Evaluation For  March 1, 2017  By Ralph Bloch and Michael Reed   941  306-5222 info blochreed.com
Table of Contents Click on a line to go to the page Background 3 Objectives 3 Methodology 3 How to Read This Report 4 First Thing First The WOCN Culture 4 Summary of WOCN Volunteer Leaders Interviews and On line Survey 4 Synopsis of Feedback from Interviews 5 On line Survey Responses 6 Discussions with WOCN Staff at Association Headquarters 7 Additional Data Reviewed 7 Fiscal Considerations 8 Financial Performance 8 Management Fee 8 Association Benchmarks 8 Operating Reserve Total Net Assets Benchmark 8 Management Fee Benchmarks 9 Staffing Benchmarks 10 Fiscal Conclusions 10 Financial Performance 10 Management Fee and Staffing 10 Impact of Proposed 2017 Budget and Staffing Plan 10 Conclusions Regarding Staff Management and Volunteer Leaders 10 Recommendations Management 14 Recommendations Governance 14 Appendices 15 A Interview Guide for Interviews with Volunteer Leaders 16 B Comments From the Volunteer Leadership On line Survey 17 C Staff Retention and Staffing History 18 D Minimum Operating Reserve Ratio 20 E ASAE Operating Ratio Report Expenses as of Total Revenue 26 F ASAE Operating Ratio Report Expenses as of Total Expense 30 G ASAE Operating Ratio Report Revenue per Employee 34 H Bibliography 36
Table of Contents Click on a line to go to the page. Background .............................................................
Background Founded in 1968 the Wound Ostomy and Continence Nurses Society WOCN is a professional international nursing society of more than 5 000 health care professionals who are experts in the care of patients with wound ostomy and incontinence Since 2005 WOCN has contracted with Association Headquarters AH to provide management services The Society s Board of Directors decided to conduct a comprehensive review to determine if the AH management structure and fees are appropriate for meeting WOCN s strategic objectives and they wanted recommendations for creating greater alignment between the two organizations This decision was not based on staff performance concerns or dissatisfaction with AH s services but rather the Board s desire to conduct appropriate due diligence on WOCN s largest contractual agreement The Board engaged Bloch Reed Association Advisors to conduct a management review and assessment of the WOCN AH partnership Objectives The objectives of the engagement were as follows Examine the WOCN AH partnership CLICK HERE to return to Table of Contents Compare the cost of Association Headquarters services to association benchmarks Identify opportunities for improved organizational performance and greater alignment Report findings conclusions and recommendations to the Management Evaluation Taskforce and the Board of Directors Methodology The consultants used an Appreciative Inquiry AI approach a qualitative research methodology designed to capture the general perceptions success stories and opportunities from WOCN s key leaders Because the reason for the project was not based on service dissatisfaction the approach allowed participants to reflect on the causes and factors of the organization s success while also identifying opportunities to improve the Society and the relationship with AH In addition an anonymous online survey instrument was used to collect quantitative data on volunteer perceptions of trust communication and customer service aspects of the WOC relationship Finally the consultants reviewed documentation associated with operations goal setting and performance management To achieve the project objectives the consultants took the following steps Conducted preliminary telephone conversations with selected WOCN Officers and the Management Evaluation Taskforce to clearly frame the areas of inquiry Held preliminary conversations with Association Headquarters Nicolette Zuecca and Mike Dwyer who respectively serve as WOCN s Executive Vice President and Association Headquarters Chief Client Relationship Officer Requested obtained and reviewed over 40 documents and files pertinent to WOCN s operations governance and finances Conducted 19 in depth telephone interviews including WOCN s current officers and directors five past presidents committee chairs and contracted service providers Visited Association Headquarters office over a two day period and conducted individual in depth interviews with each staff member serving WOCN to assess AH s management of WOCN and to identify critical issues that may need to be addressed 3 CLICK HERE to return to Table of Contents
Background Founded in 1968, the Wound, Ostomy and Continence Nurses Society  WOCN  is a professional, international nursin...
Obtained and examined benchmark studies from the American Society of Association Executives ASAE for operating ratios staffing ratios and governance policies and practices and compared them to WOCN s operations and the WOCNAH relationship Participated in a WOCN Executive Committee meeting to discuss initial findings How to Read This Report The consultants present the remaining narrative in this report in the first person We have captured the most relevant data associated with the project objectives and organized it in a way that is easy to digest It helps to tell the story associated with the WOCN leadership and AH s management of the Society Because organization work is dynamic this report should be viewed as a snapshot of how things are today with data that was collected to meet the specific objectives of this project The report is broken down into a series of sections The first section summarizes the data that was collected from volunteer leaders WOCN staff and WOCN documents The second section is a review of the organization s finances and pertinent benchmarks While the WOCN Board should rely on the Society s official auditor s reports as the final word on the organization s financial health our review is designed to benchmark WOCN s financial performance management fees and staffing CLICK HERE to return to Table of Contents In the third section of this report several data driven conclusions are presented This is where the art and the science of the consulting come together The fourth section is a one page summary of our findings and recommendations While this report cannot capture all the nuances of the multifaceted relationship between WOCN and AH it does provide an evidence based narrative based on data collected from individuals with the best working knowledge of the WOCN AH relationship First Things First The WOCN Culture There is something special about your nursing specialty You are a unique group of healthcare professionals and you know it Your distinctiveness is worn as a badge of honor and the same caring and commitment you bring to your patients is reflected in the way you volunteer for WOCN The strength of the organization s culture was evident in this project As we conducted our analysis and developed our recommendations the WOCN culture was used as the framework for addressing the opportunities identified in the conclusions SECTION ONE SUMMARY OF THE DATA Summary of WOCN Volunteer Leaders Interviews and On line Survey During individual telephone interviews 19 volunteer leaders who have close working relationships with the AH staff were asked a series of questions Appendix A that paralleled the Appreciative Inquiry 4 D Model where participants are asked to Discover Dream Design and imagine a Destiny Because the intent of the management evaluation was not based on performance concerns the conversations focused on discovering the most impactful experiences for each interviewee and then examining the collaboration with the AH staff Participants genuinely appreciated the strength based approach and they were also candid in their responses when it came to identifying opportunities for improvement The longest interview was over 90 minutes the shortest was approximately 35 minutes the average length was approximately 45 minutes 4 CLICK HERE to return to Table of Contents
     Obtained and examined benchmark studies from the American Society of Association Executives  ASAE  for operating rati...
The following table contains a synopsis of what volunteer leaders said during the interviews AI 4 D Line of Questioning Discovery Identifying WOCN s strengths Dream What drives WOCN Design What priorities and opportunities exist Most Often Cited Responses from WOCN Volunteers Respected Journal member focused annual meeting new evidence based education products textbooks Strong collegial culture experienced leadership access to the specialty s foremost experts Increasingly strong in social media outreach corporate partnerships legislative influence recognition in the healthcare community and respect for specialty Improve patient care expand influence increase membership Volunteer leadership development improve WOCN Society effectiveness Expand the development of quality clinical information and evidence based tools Strategic alignment of the Regions and Affiliates How do we all work together to advance the WOCN mission Younger nurses need to be recruited into the organization and developed for future leadership roles The legislative agenda will likely be more important given the political environment in the U S Which are the most important tables for WOCN to be at and how do we get our seats Interdisciplinary opportunity Certification is a way to engage nurses who focus on WOC responsibilities but many of us see an opportunity to use WOCN body of knowledge for outreach to the broader healthcare community so that a accurate information is disseminated b positive patient outcomes are increased and c the Society grows Defining the role of the WOCN Foundation This section is beyond the scope of this project and should be addressed in a strategy development initiative Destiny Creating our future In addition to the telephone interviews an on line survey of the volunteer leadership was developed to further examine the WOCN AH partnership The survey had four areas of inquiry basic demographics shared vision and goals trust and respect and customer service The results from the survey are summarized in the following table 5 CLICK HERE to return to Table of Contents CLICK HERE to return to Table of Contents
The following table contains a synopsis of what volunteer leaders said during the interviews   AI 4-D Line of Questioning ...
Question Raw Scores Percent Scale 1 Approximately how many years have you served as a WOCN volunteer 20 years N A Average 2 In a typical month approximately how many hours do you serve as a volunteer 11 hours N A Average 3 In a typical month approximately how many hours do you interact with staff 4 hours N A Average 4 Briefly describe what you like most about volunteering for WOCN Society N A N A N A 5 Volunteers and staff are equally committed to WOCN s mission 13 14 93 Strongly Agree or Agree 6 There is a spirit of teamwork and collaboration between volunteers and staff 14 14 100 Strongly Agree or Agree 7 Volunteers and staff want to accomplish the same organizational goals 13 14 93 Strongly Agree or Agree 8 In my WOCN work I am surrounded by people who share my values 12 14 86 Strongly Agree or Agree 9 Volunteers and staff treat each other with respect 13 14 93 Strongly Agree or Agree 10 Volunteers and staff trust one another 11 14 79 Strongly Agree or Agree 11 How important does WOCN staff make you feel as a WOCN volunteer 14 14 100 Extremely Important Very Important or Moderately Important 12 WOCN s culture encourages listening to alternative points of view 9 14 64 Strongly Agree or Agree 13 How respectful of your time is staff 14 14 100 Extremely Respectful Very Respectful or Moderately Respectful 14 If required I could have candid or difficult conversations with staff that I work with 12 14 86 Strongly Agree or Agree 15 Overall communications between volunteer leaders and staff is good 12 14 86 Strongly Agree or Agree 100 Extremely Confident Very confident or Somewhat Confident 4 don t know 80 Excellent Value Above Average Value or Average Value 16 How confident are you that AH services meets WOCN s needs 17 What is your perception of the management fee in relation to the value of services 18 How likely are you to recommend AH to others 11 14 79 Extremely Likely Very Likely or Moderately Likely 19 Overall how satisfied are you with your experience with AH 14 14 100 Extremely Satisfied Very Satisfied or Somewhat Satisfied 14 14 8 10 The Management Review Taskforce identified those volunteers n 14 who had the most extensive working relationships with AH Comments from the survey are included in Appendix B 6 CLICK HERE to return to Table of Contents CLICK HERE to return to Table of Contents
Question  Raw Scores  Percent  Scale  1  Approximately how many years have you served as a WOCN volunteer   20 years  N A ...
Discussions with WOCN Staff at Association Headquarters During our two day visit to Association Headquarter s office we interviewed staff members individually to get their perspective on what it is like to work for WOCN Initially staff had some trepidation about the management review Although they felt they had been getting positive feedback from volunteer leaders they thought the review meant there was dissatisfaction with staff s performance We explained the purpose of the review and used an appreciative inquiry approach to get their perspective on what it was like to work for WOCN By the time the interviews were completed staff felt positively about the process They shared their operational responsibilities and the ways in which they support WOCN s volunteer leaders A summary of feedback and our impressions from the staff interviews follows The staff feels they work for WOCN Unlike staff we have seen working for clients at other management companies WOCN staff are fully dedicated to WOCN and are committed to the success of the organization The staff expressed strong support of Nicolette She is viewed as a consistent leader who models behaviors of volunteer support that she wants to see in her staff They also recognize Anna s contributions to the organization but several pointed out that she s not able to be a full time Executive Director because she is doing two jobs The staff was not surveyed as volunteer leaders were However when asked a similar set of questions regarding trust and communication the responses were consistent with the volunteer leaders In almost all cases they view the working relationships with volunteer leaders to be very strong and focused on the goals of the organization Similar to staff at other organizations Bloch Reed has worked with WOCN staff members lamented that at times the volunteers don t really know what it takes to get the work of the Society done Each and every staff member had ideas for organizational improvement and ways to increase the effectiveness of the organization CLICK HERE to return to Table of Contents Additional Data Reviewed We obtained and reviewed pertinent documents and additional information including WOCN AH management contract WOCN AH Partnership Survey January 2016 WOCN Bylaws WOCN Policy Manual WOCN budgets WOCN financial reports WOCN auditor s reports WOCN staff retention charts WOCN strategic planning documents WOCN Board and Executive Committee minutes CLICK HERE to return to Table of Contents An analysis of the financial information obtained and the use of it for benchmarking management fees is presented in Section Two of this report Since during interviews with some of the volunteer leaders the matter of staff turnover was mentioned we obtained information necessary to produce two analyses 1 Current Staff Retention and 2 Staffing History by Position These analyses are presented in Appendix C 7
Discussions with WOCN Staff at Association Headquarters During our two-day visit to Association Headquarter   s office, we...
SECTION TWO FINANCIAL DATA AND BENCHMARKS Fiscal Considerations FINANCIAL PERFORMANCE The following table illustrates WOCN s key financial performance indicators for the past four fiscal years Total Revenue and Total Expense include investment income loss and expense The 2016 Pre Audit figures are from unaudited financial statements prepared by management as of January 27 2017 The 2015 2014 and 2013 figures are from the auditor s reports Total Revenue Total Expense Change in Net Assets Change in Net assets as Revenue 2016 Pre Audit 4 803 587 4 396 425 407 162 8 5 2015 Audited 4 511 687 4 179 854 331 833 7 4 2014 Audited 3 961 601 4 076 453 114 852 2 9 2013 Audited 3 695 403 4 058 625 363 222 9 8 Total Net Assets Operating Reserve Net Assets as a of Expense 2 677 162 61 2 567 169 61 2 235 336 55 2 350 188 58 CLICK HERE to return to Table of Contents MANAGEMENT FEE 2016 Management Fee As shown in the 2016 unaudited year end financial statements the management fee for 2016 was as follows Operations Management Fee Annual Meeting Management Fee Total 2016 Management Fee 1 323 006 284 310 1 607 316 The 2016 management fee is 33 of the 2016 Total Revenue of 4 803 587 2017 Management Fee The 2017 budget approved by the Board during its conference call on February 7 2017 shows Total Revenue of 4 414 150 and a management fee of 1 544 106 which is 35 of Total Revenue NOTE The budget Total Revenue does not include any income or loss from investments where as investment income is included in the 2016 Total Revenue Any 2017 income from investments as well as any additional income from other sources will increase 2017 Total Revenue and decrease the 2017 management fee percentage of revenue Staff has presented the Board with a proposal to add a staff person in the professional development role as well as to have a nominal increase in the management fee If the proposal is approved the 2017 budget Total Revenue would be 4 414 150 and the management fee would be 1 779 796 which would be 40 of Total Revenue Again any additional income will increase Total Revenue and decrease the management fee percentage of revenue Association Benchmarks OPERATING RESERVE TOTAL NET ASSETS BENCHMARK Several sources including the Greater Washington Society of CPAs the Urban Institute and CBIZ Inc state that a nonprofit should have a minimum operating reserve of 25 of annual operating expense see Appendix D The Society s operating reserve Total Net Assets as of December 31 2016 was 61 of 2016 Total Operating Expense 8 CLICK HERE to return to Table of Contents
SECTION TWO  FINANCIAL DATA AND BENCHMARKS Fiscal Considerations FINANCIAL PERFORMANCE The following table illustrates WOC...
MANAGEMENT FEE BENCHMARKS A management company s fee typically covers the following expenses that an association would incur if it had its own staff and headquarters Employee salaries payroll taxes workers comp insurance and benefits Employee training and development professional dues Occupancy expense including rent utilities repairs and maintenance Property casualty and liability insurance Furnishings equipment computer hardware software expense and depreciation Ordinary office supplies and expenses The American Society of Association Executives ASAE 2016 Operating Ratio Report 15th Edition provides benchmarks for these expenses as a percentage of total revenue The data is grouped by association revenue range which for WOCN is 2 to 5 million and is presented by association geographic scope and type of membership WOCN s geographic scope is International National versus Regional State Local and its membership type is Professional Association versus Trade Association Relevant tables from the report are presented in Appendix E and pertinent median data from the tables are presented here ASAE Operating Ratios Revenue 2 to 5 million Int l National Associations Total Revenue 31 94 0 29 1 00 2 00 2 00 0 07 0 85 3 00 1 00 0 45 1 00 43 60 Personnel Salaries Personnel Training Development Pension Plan Contributions Other Employee Benefits Payroll Taxes Payroll Human Resources Expense Technology IT Hardware Software Occupancy Depreciation Amortization Property Insurance Office Expense TOTAL 33 of the Office Expense percentage in the benchmarking data Professional Associations Total Revenue 32 79 0 23 1 00 3 00 2 00 0 03 1 32 3 00 1 00 0 48 1 00 45 85 CLICK HERE to return to Table of Contents We use an average of the two totals to produce a management fee equivalent benchmark ratio of 44 7 of Total Revenue Applying the ratio of 44 7 to the 2016 actual Total Revenue of 4 803 587 equals a management fee equivalent of 2 147 203 This can be benchmarked against the WOCN 2016 management fee of 1 607 316 which is 33 of the 2016 Total Revenue of 4 803 587 Since Total Revenue including investment income is not yet available for 2017 we instead use expense as a percentage of Total Expense for benchmarking The ASAE Operating Ratio Report provides this data in a similar manner as the expense as a percentage of Total Revenue in the table above Relevant tables for the data are in Appendix F The management fee equivalent benchmark derived from the data is 45 1 of Total Expense Applying the ratio of 45 1 to the 2017 budget Total Expense of 4 256 926 equals a management fee equivalent of 1 919 874 This can be benchmarked against the approved budget 2017 management fee of 1 544 106 which is 36 3 of the 4 256 926 budgeted 2017 Total Expense The 1 919 874 management fee equivalent also can be benchmarked against the proposed 2017 management fee of 1 779 796 including a new hire and nominal fee increase which would be 39 6 of the resultant 2017 Total Expense of 4 492 616 9 CLICK HERE to return to Table of Contents
MANAGEMENT FEE BENCHMARKS A management company   s fee typically covers the following expenses that an association would i...
STAFFING BENCHMARKS The ASAE Operating Ratio Report also provides benchmarks for revenue per employee Appendix D Averaging the median benchmarks for National International and Professional Associations results in a benchmark of 216 421 revenue per employee Dividing the benchmark amount into WOCN s 2016 Total Revenue of 4 560 339 results in 21 employees Dividing the benchmark into the 2017 approved budget Total Revenue of 4 414 150 results in 20 employees SECTION THREE CONCLUSIONS Fiscal Conclusions FINANCIAL PERFORMANCE At 61 of annual operating expense WOCN far exceeds the 25 minimum benchmark for operating reserve Total Net Assets This allows the Society to consider dipping into reserves for expansion of existing programs funding new initiatives and investing in additional staff with an eye toward enhancing value for members and the potential for future revenue growth CLICK HERE to return to Table of Contents MANAGEMENT FEE AND STAFFING Although an organization managed by an association management company might expect its management fees to be less than equivalent costs for a stand alone association WOCN s 2016 management fee ratio of 33 is significantly below the 44 7 of revenue benchmark ratio The ratio for the management fee in the 2017 approved budget 36 3 and the ratio for the fee in the 2017 proposed budget is 39 6 Both of these ratios are below the 45 1 of expense benchmark ratio Currently WOCN s management has 10 full time employees assigned to directly serve WOCN Management also provides the equivalent of 1 5 full time employees to handle accounting and technology functions In addition independent contractors handle the following roles for the Society Exhibits Manager Chris Brown JWOCN Editor Dr Mikel Gray Clinical Editor Dr Phyllis Bonham and Continuing Education Accreditation role Jen Hurley which together is estimated to be the equivalent of 3 5 full time employees Altogether this would be the equivalent of 15 full time employees serving WOCN This is 25 below the 2016 and 2017 staff benchmarks of 21 and 20 respectively for an association with WOCN s Total Revenue IMPACT OF PROPOSED 2017 BUDGET AND STAFFING PLAN The proposal to add a staff person in the professional development role and to have a nominal increase in management fee if accepted would result in the currently approved 2017 budget having a 78 466 decrease in Net Assets instead of a 157 224 increase and year end operating reserves of 2 598 696 which would be 59 of 2017 Operating Expense This would be before any income or loss from investments or any additional unbudgeted income The 59 ratio is a two percentage points decrease from the 2016 year end ratio and still significantly above the 25 ratio minimum requirement benchmark Conclusions Regarding Staff Management and Volunteer Leaders Our overall assessment of the staff is that they are a highly functioning effective team They are engaged team oriented and committed to WOCN We identified several developmental opportunities for staff and will share those directly with AH executives In terms of the working relationship between staff and volunteer leaders we suggest that volunteer leaders and staff members set aside some time to informally work on communication idea sharing and relationship building 10 CLICK HERE to return to Table of Contents
STAFFING BENCHMARKS The ASAE Operating Ratio Report also provides benchmarks for revenue per employee  Appendix D . Averag...
Six conclusions were drawn from the data that was collected from the WOCN volunteer leaders and staff Feedback from the interviews and survey was synthesized into common themes which we have bolded below Our response to each conclusion follows to give the Board an outsider s perspective and a place from which to launch further discussion CONCLUSION WOCN leaders wanted to conduct a due diligence project to examine the fee structure and relationship with Association Headquarters The data strongly suggests that there is general agreement that AH is exceptional at producing meetings handling finances and managing board and taskforce activities There were a few volunteer leaders that suggested that AH is maintaining the status quo and not providing the strategic leadership that it did earlier in the partnership OUR REPONSE Our perspective is that the WOCN AH relationship is experiencing some life cycle fatigue Twelve years ago when the organization was new to AH and everyone was busy putting the house in order there was constant building and creating things may have felt more entrepreneurial and innovative As the organization created efficiencies set up systems and refined processes successful outcomes became routine and normal Because the organization struggled with its past few strategic planning meetings the freshness that normally results from those generative experiences was sorely lacking We would add that this type of fatigue is also a normal result of focusing on the work of the Society and neglecting some of the organizational self care necessary to maintain an entrepreneurial spirit CLICK HERE to return to Table of Contents The management fee benchmarks provided in this report indicate that Association Headquarters current management fee is not out of line for WOCN s budget size and may be substantially less than equivalent costs for a stand alone association of the same size This should give leaders a basis for future discussions about fees CONCLUSION WOCN s volunteer leaders experience with management has been primarily with Nicolette Zuecca They consider her to be an outstanding leader knowledgeable and dedicated to WOCN Nicolette is hands on in all aspects of managing WOCN and some leaders feel this hinders her from leading WOCN strategically Several described her as a one woman show WOCN staff members agreed that Nicolette is the driving force in the organization but they pushed back on the notion that she was driving solo The staff pointed to systems and workflows that utilized the talents and collaborations of team members OUR REPONSE Nicolette has built a solid staff team that is inspired by her leadership She has cultivated strong relationships with many volunteers When issues arise she s quick to try and solve the problem This creates the perception that if Nicolette does not do it it does not get done correctly and if something happens she s the only one that can fix it This becomes a self perpetuating negative cycle The volunteers know that she s a go to person and the staff knows that she s there to support them if something happens to fall through the cracks The problem is that this is a non sustainable situation Nicolette needs to be freed up from her operational responsibilities to drive the revenue generation and strategic initiatives that will position the organization for the future CONCLUSION WOCN leaders expressed concern that WOCN is not getting full value from Association Headquarters experience managing other organizations Additionally many of the Board members have had little or no interaction with AH s Chief Relationship Officer Mike Dwyer other than for contract negotiations and his brief visits to board meetings Some volunteers feel limited to the resources Nicolette provides and feel WOCN could benefit from lessons learned from other organizations in the AH client mix OUR REPONSE This issue is common in many professional service firms When client outcomes are being met and things seem to going well it s easy for management s executives to focus on other clients with more pressing issues This is a communication issue and should 11 CLICK HERE to return to Table of Contents
Six conclusions were drawn from the data that was collected from the WOCN volunteer leaders and staff. Feedback from the i...
be addressed by the WOCN President and Executive Vice President Nicolette directly with AH s Chief Relationship Officer Mike Dwyer Like WOCN AH has grown significantly over the past 10 years Based on our interviews with staff our perspective is that Nicolette and her staff can be tapped into the AH network of clients Stressing the importance of staff having multiple points of contact and communication within the AH organization during discussions among the President Nicolette and Mike Dwyer will ensure that new and innovative ideas come from AH CONCLUSION WOCN volunteer leaders seem to share the view that the Board s primary responsibility is to act as an instrument of accountability Volunteer leaders talked repeatedly about operational challenges that needed mending finances that needed monitoring and strategies that need implementation all traditional responsibilities of board members Several board members articulated that it was strategic planning that energized them personally However no one talked about the ongoing need for the Board to stay focused on the issues and opportunities that will shape the future of WOCN OUR REPONSE Fiduciary responsibilities are important but they are only part of the role of today s high functioning nonprofit board These traditional responsibilities keep board members committees and staff doing things right but not always doing the right things To be a highly functioning board we recommend developing and implementing a generative mindset to WOCN board responsibilities Generative thinking gives collective perspective to challenges and opportunities It begins with the cognitive process of clearly defining the problem prior to solving the problem It is this type of sense making that many board members do in their daily jobs WOCN should build the infrastructure necessary to carry that sense making skillset into the boardroom Generative thinking is how WOCN can create an ongoing culture of innovation and the strategies for driving the organization to new heights CLICK HERE to return to Table of Contents CONCLUSION WOCN leaders voiced the need for a greater focus on volunteer leadership recruitment onboarding and training Many leaders acknowledged the need to engage the next generation of nurses and several lamented that one of the difficulties in attracting younger nurses to leadership roles is that the process to get involved and become accepted by the current leaders in the organization can be intimidating OUR REPONSE Association boards often struggle with the challenges of developing the next group of leaders Associations tend to repeat the same practices over and over for years When asked Why do you do that the answer often comes down to Because we do Changing the organization norms that surround volunteering can be difficult but it can be done Involving the leaders of today in a conversation about succession planning is as critical as the development of your next education or certification product Similar thinking needs to take place on the staff side While the Board should not be directly involved in specific staffing decisions it is their responsibility to work with AH to ensure that WOCN is resourced appropriately and that a plan for the development of staff leaders has the resources to be successful CONCLUSION WOCN leaders recognize that the culture of the organization is strong The mission of the organization is relevant and the scope of the WOC nursing practice is at an exciting crossroads Several board members claimed that it s a good time to be a WOCN nurse and a volunteer leader for the Society Board members also recognize that the organization has had a string of good leaders both on the volunteer and the staff side so the organization is familiar with success However there could be an alternative picture when assessing the organization s culture OUR REPONSE The most actionable definition of organizational culture is by Edgar Schein at MIT He describes culture as a shared pattern of basic assumptions learned by a group as it solves its problems of external adaptation and internal integration Schein identifies three levels of culture artifacts those things that are visible espoused beliefs and values which appear as answers to interviews and surveys and basic underlying assumptions which answers the questions of why the artifacts and espoused beliefs are the way that they are We used this definition and model to provide our final thoughts for WOCN leaders 12 CLICK HERE to return to Table of Contents
be addressed by the WOCN President and Executive Vice President  Nicolette  directly with AH   s Chief Relationship Office...
Artifacts Relevant Mission and Vision Organization performance measurements Espoused Beliefs Staff is great But pulled in too many directions Videos on Website We re a family I can fight with my brothers and sisters but no one better mess with us Continuing Education Resources We want and need new leaders Look and feel of the Annual Conference It was exciting when we were looking at ways to be more interdisciplinary questioning who we are and where we re going Strategic plan The regions and affiliates are important A Day in the Life of a WOC Nurse Meet Lydia Erin Basic Underlying Assumptions We are the poop pee and pus nurses it takes a special person to do what we do It carries through to our organization Things have changed as AH has grown They re just not as innovative as they used to be We re a good ol girls club we need more diversity Diversity of thinking our demographics diversity We have savvy decision makers and people that make things happen in their institutions CLICK HERE to return to Table of Contents There is a lot of nepotism and recycling of leaders WOC nurses can t be wusses we are strong and opinionated and sometimes that makes it a challenge to speak with one voice While this level of analysis and feedback is not generally part of a management evaluation we could not help but sense that there are some underlying assumptions that are in conflict with the espoused beliefs of the organization This is not to suggest that you have a culture in crisis You have a great organization However if you want to have a great partnership with your management company if you want to achieve great things in the WOC community and if you want to push yourselves to be the best leaders that you can be these are the types of challenges you must accept You have to have a governance structure where people understand their roles and responsibilities and are still empowered to innovate and create the future You have to have a trusting environment one where volunteers and staff feel part of the same team that is striving for the same goals You have to develop a culture where dissenting thoughts are welcome As long as there is relevant evidence the alternative viewpoint can be considered on its merits You have to build a culture of trust Not just as an espoused value but as a core underlying belief Trust is the fundamental component of having an effective board and a relationship with AH that is effective and powerful All the elements for success seem to be in place WOCN s partnership with AH has created a strong organization It is time to refresh your commitment to one another and make great things happen After all you are the WOC community 13 CLICK HERE to return to Table of Contents
Artifacts Relevant Mission and Vision Organization performance measurements  Espoused Beliefs    Staff is great.  But pull...
SECTION FOUR RECOMMENDATIONS Recommendations Management Provide the resources required to meet WOCN s staffing needs The WOCN leadership has expressed strong support of Nicolette in her role as well as growing confidence in Anna Schnayder in her role as Executive Director However there is an underlying feeling that Nicolette often needs to jump in to support others on staff in their roles and therefore is too often embroiled in operational matters instead of focusing on development and strategic issues Anna could take on more of the operations if she did not have the dual responsibilities of operations management and professional development management Therefore we recommend approval of the 2017 proposed staffing model presented by staff which supports hiring a person to fill the professional development position and provides for a nominal increase in compensation for staff overall If this results in budgeting a decrease in net assets for the current year it should be considered an investment in the future growth of the organization which is an appropriate purpose for use of excess reserves CLICK HERE to return to Table of Contents Establish a stronger relationship with AH s executives Although Mike Dwyer attends Board meeting periodically several officers and directors feel they really don t know AH s management team We recommend that Mike Dwyer makes a scheduled check in call to the WOCN President every month This can be as brief or as long as needed Also see the governance recommendation below for officers attending AH s Leadership Forum Recommendations Governance Provide for continual volunteer leadership development This goes beyond onboarding new board members ASAE offers an excellent two day CEO Symposium for Chief Executive Chief Elected Officers several times each year Also AH conducts a Leadership Forum for its clients in the fall each year We recommend that the President elect and the Executive Vice Present attend the ASAE Symposium in the early spring of the year the President elect becomes President and again the next year as a refresher We also recommend that all officers if not the entire Board attend the AH Leadership Forum This would be an opportunity to learn about association leadership network with volunteer leaders and staff of other associations and meet and build closer relations with AH executives and WOCN staff Implement a strategic framework not just develop a strategic plan WOCN s annual strategic planning has become routine development of to do lists We recommend the development of a new strategic framework for WOCN that articulates organizational priorities and provides broad guidelines for organizational operations This type of strategy work would allow WOCN to quickly and efficiently respond to changes in healthcare and technology while still adhering to strategic priorities and goals important to members In conclusion to reiterate what was stated previously mutual trust sincere respect and continual candid communication are the building blocks of a collaborative partnership between boards and management that enable an organization to accomplish its mission and goals 14 CLICK HERE to return to Table of Contents
SECTION FOUR  RECOMMENDATIONS Recommendations  Management      Provide the resources required to meet WOCN   s staffing ne...
Appendices CLICK HERE to return to Table of Contents CLICK HERE to return to Table of Contents 15
Appendices  CLICK HERE to return to Table of Contents  CLICK HERE to return to Table of Contents  15
Appendix A Interview Guide for Interviews with Volunteer Leaders The Appreciative Inquiry AI process is explained This is a strength based approach We re conducting a management review but we re looking at the organization as a system Specifically we re looking at the ways in which the staff and the key volunteers interact support one another and do the work of WOCN We re also looking for opportunities to transform situations that are not working as well as they could Storytelling is important Tell us about yourself and your involvement with WOCN Considering the time you ve been involved with WOCN can you recall the experience when you felt most engaged about your involvement in the organization o What made it an exciting experience What gave it energy o What was it about you unique qualities that contributed to the exchange o Who were the most significant others o What were the most important factors that helped make it a meaningful experience e g structure rewards processes strategy relationships Let s consider for a moment the things you value deeply Specifically the things you value about 1 yourself 2 the nature of your work and 3 WOCN o Without being humble what do you value the most about your contributions o What is it about your organization that you personally value o What is the most important thing WOCN has contributed to your life WOCN has a history of being innovative and successful in a variety of initiatives In your opinion what is the most important achievement that demonstrates WOCN being at its best o Are there any opportunities that are available but unrealized Can you think of a time when there was an extraordinary display of volunteer leader and staff cooperation at WOCN o What made such cooperation possible e g the planning methods used communication systems or processes the leadership qualities of the individuals involved o How could these lessons be applied to your team What is the common mission or purpose that unites everyone at WOCN o How can this continue to be nurtured o What is the core factor that gives vitality and life to WOCN without it the organization would cease to exist If you could develop or transform WOCN in any way you wished what three things would you do to heighten its vitality and overall health How could these ideas be brought to the board of directors and senior staff 16 CLICK HERE to return to Table of Contents CLICK HERE to return to Table of Contents
Appendix A  Interview Guide for Interviews with Volunteer Leaders The Appreciative Inquiry  AI  process is explained.     ...
Appendix B Comments From the Volunteer Leadership On line Survey Briefly describe what you like most about volunteering with the WOCN Society It is a way to give back and prepare for the future Contributing to the sustainability of the profession and advocating for the patients I serve Opportunity to help shape our practice in ways that support our members and their patients now and in the future Professional support and growth Helping with the practice Networking contribution to education and clinical practice scholarship Collegiality service contributing to the society s mission and vision Being able to give back to the profession which has provided me with so many opportunities I find it stimulating being part of an organization that I feel passionate about I enjoy the challenges and camaraderie that volunteering provides It feels exciting to be a part of the decisions for the future Interaction with a group of professionals who share common interests yet are diverse in their demographics and viewpoints Society provides multiple opportunities to support WOC nursing opportunities for professional growth leadership and continuing education opportunities to give back to the Society for its support of WOC nursing opportunities to develop and contribute to the science and evidence base for best practices to enhance care of patients with wound ostomy and or continence needs opportunities to contribute to development of other WOC nurses opportunity to network with other colleagues opportunities to publish teach and share knowledge Involvements in the projects and other activities I have participated in have allowed me to grow professionally and personally The Society is a second family for me Feeling like I make a difference in moving our practice forward Getting to be innovative and know I am heard Having a great staff to support the work Knowing that the products and services we provide assist our members to be the best they can be that the evidence based care they provide will ultimately benefit patients with wounds ostomy and continence disorders 17 CLICK HERE to return to Table of Contents CLICK HERE to return to Table of Contents
Appendix B  Comments From the Volunteer Leadership On-line Survey Briefly describe what you like most about volunteering w...
Appendix C Page 1 of 2 Nicolette Zuecca Executive Vice President 12 years Executive Director Anna Shnayder 4 years 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Position 2016 Name 2017 WOCN Current Staff Retention New position Executive Director Professional Development CLICK HERE to return to Table of Contents Heather Martinek Assistant Executive Director 9 years Director Member Services Membership Coordinator Becky Carroll 8 years Web Publications Manager Project Coordinator Megan Grant 4 years Membership Coordinator Lois Hawk 4 years Administrative Assistant Brooke Passy 9 years Meetings Manager Assistant Meetings Manager Asssitant Meetings Coordinator Registration Manager Julianna King 2 years Meetings Coordinator Chris Charchidi 3 years Marketing Director Jenna Bertini 1 year Marketing Coordinator Chris Brown 12 years Contractor Exhibits Manager Exhibits Manager New position New position New position New position Maggie Ramierez Staff Accountant 12 years 18 CLICK HERE to return to Table of Contents
Appendix C  Page 1 of 2   Nicolette Zuecca Executive Vice President  12 years  Executive Director  Anna Shnayder  4  years...
Appendix C Page 2 of 2 Assistant Executive Director Lois Hawk Professional Development Anna Shnayder Director of Meetings Debbie Maines Meetings Manager Brooke Passy Assistant Meetings Manager Caroline Olsen Brooke Passy Meetings Coordinator Julianna King Dorita Allen 2005 2006 2007 2008 Terminated complaints from leaders Part time shared with other AH client 3 months not a fit Other AH client Heather Martinek Vince Gagemi Pete Pomillio Administrative Assistant 2009 2010 2011 Anna Schnayder Cindy Cook Sarah Gazi Tom Bramble Pete Pomillio Nicolette Zuecca 2012 Executive Director 2013 Nicolette Zuecca 2014 Executive Vice President 2015 Name 2016 Position 2017 WOCN Staffing History by Position Pursued other career CLICK HERE to return to Table of Contents New position New position Assistant Meetings Coordinator Caroline Olsen Brooke Passy Registration Coordinator Caroline Olson Brooke Passy Exhibits Manager Chris Brown Marketing Director Chris Charchidi Marketing Coordinator Jenna Bertini Web Publication Manager Becky Carroll Project Coordinator Becky Carroll Director Member Services Heather Martinek Membership Coordinator Megan Grant Tom Nagleberg Heather Martinek Leah Kaplan Staff Accountant Maggie Ramierez CLICK HERE to return to Table of Contents New position New position New position New position 19
Appendix C  Page 2 of 2   Assistant Executive Director  Lois Hawk  Professional Development  Anna Shnayder  Director of Me...
Appendix D Page 1 of 6 Nonprofit Operating Reserve1 Ratio by Nonprofit Reserves Workgroup NCCS CNP The Urban Institute 9 19 08 Operating reserve ratio operating reserves annual operating expenses As used here operating reserves means the portion of unrestricted net assets that are available for use in emergencies to sustain financial operations in the unanticipated event of significant unbudgeted increases in operating expenses and or losses in operating revenues Figure 1 Suggested balance sheet net asset terms presented in an illustration that all nonprofit CEOs and boards need to understand CLICK HERE to return to Table of Contents Unrestricted Net Assets Fixed Unrestricted Net Assets Excluded from available unrestricted net assets Available Unrestricted Net Assets Operating Reserves Board Designated Funds Board establishes minimum Set aside for nonoperating strategic purpose s and or quasi endowment Operating Reserve Ratio ___ of annual expenses Available unrestricted net assets could also exclude other non current non liquid assets such as receivables inventory prepaid expenses and deposits held by others A board approved Reserves Policy establishes a minimum Operating Reserve Ratio in terms of a percentage or number of months of the prior year annual expenses or current year expense budget The Reserves Policy can also include Board Designated funds that are set aside for non operating strategic purposes and or quasi endowment CLICK HERE to return to Table of Contents Since Board Designated Funds if any would be for non operating purposes they would not be available for operations However portions or all of Board Designated Funds can be undesignated by board action and become available for operations if financial conditions change e g the Operating Reserve Ratio falls below the minimum level set by the board 1 While reserves is a popular term for referencing financial strength it is not used with consistent meaning and is not described or found extensively in not for profit authoritative accounting literature When it is used in various articles and documents on nonprofit reserves it can refer to all available unrestricted net assets which would include all board designated funds or be limited to the portion of available unrestricted net assets designated for operating reserves Further the term reserve can also be used in an entirely different accounting context in the insurance industry for example 20 1
Appendix D  Page 1 of 6   Nonprofit Operating Reserve1 Ratio by Nonprofit Reserves Workgroup, NCCS CNP, The Urban Institut...
Appendix D Page 2 of 6 The basic premise is that many nonprofits do not have adequate operating reserves and an initiative is needed to help them improve their financial condition by increasing their reserves An organization without adequate operating reserves facing chronic cash shortages can be distracted from long range planning or prevented from taking advantage of unexpected opportunities As a general rule a minimum Operating Reserve Ratio of 25 percent or three months of annual operating expenses or budget is the Nonprofit Reserve Workgroup s suggested minimum goal However the adequacy of Operating Reserve Ratios over 25 percent is variable and depends on a number of factors such as reliability of operating revenues impact of changes in economic conditions potential for CEO turnover or need to move to new facilities in near future for example Once an adequate operating reserve as determined by each organization s board according to its particular circumstances and financial position has been acquired available unrestricted net assets in excess of this amount can be designated by the board for strategic purposes and or quasi endowment The Workgroup recommends that maintaining the minimum Operating Reserve Ratio established by the board be the first priority over potential board designations of available unrestricted net assets for non operating special purposes Operating reserves can serve as an internal line of credit when needed to cover the normal fluctuations of day to day operations temporarily bringing the Operating Reserve Ratio below the required minumum Funds borrowed from operating reserves would be repaid when for example anticipated revenues are received CLICK HERE to return to Table of Contents According to a preliminary analysis of IRS Form 990 data 2003 1 516 or nearly fifty percent of the 3 154 nonprofits located in Washington DC had operating reserve ratios below the suggested minimum of 25 percent 362 nonprofits 11 had negative reserve ratios of minus 5 percent or worse 258 nonprofits 5 had negative reserve ratios of zero to minus 5 271 nonprofits 9 had reserves of zero to 5 percent and 725 nonprofits 23 had reserves of 5 to 25 percent For a total of 1 516 nonprofits 48 with less than 25 percent Using Form 990 operating reserves consist of Line 67 Unrestricted net assets less fixed assets net of debt Fixed assets net of debt equals Lines 55 and 57 Land buildings and equipment i e fixed assets minus Lines 64b Mortgages and other notes payable Annual expenses consist of Line 44 2 Total functional expenses less Line 42 Depreciation in Column A CLICK HERE to return to Table of Contents 2 The link to the 2007 IRS Form 990 is http www irs gov pub irs pdf f990 pdf 21 2
Appendix D  Page 2 of 6   The basic premise is that many nonprofits do not have adequate operating reserves, and an initia...
Appendix D Page 3 of 6 2 8 2017 About Operating Reserves for Nonpro ts Nonpro t Accounting Basics Home Internal Reporting Financial Management Financial Management Introduction Articles Videos by Topic Search Advanced Search Reporting and Operations Audit Site Sponsor Accounting and Bookkeeping About Operating Reserves for Nonprofits Financial Management Tax and Information Filings Posted November 18 2009 Governance Topics Financial Management Reserves Resources Author Elizabeth Hamilton Foley EHF Operating Reserves What are they and why have them Fundamentals The what and why of having operating reserves are intertwined and fundamental In its very simplest conception an operating reserve is a rainy day fund and people have such funds because they provide shelter from the storm Accounting 101 Starting a Nonprofit Internal Controls Internal Reporting Financial Management Governance Policies CLICK HERE to return to Table of Contents Operating reserves are essentially the accumulation of unrestricted surpluses that are liquid as opposed to invested in fixed assets and thus available for use at the discretion of an organization s board The presence of an operating reserve increases an organization s ability to take mission related risks and to absorb or respond to temporary changes in its environment or circumstances such as the unanticipated event of significant unbudgeted increases in operating expenses and or losses in operating revenues Numerous small and midsized nonprofits are founded by entrepreneurial visionaries who are in many ways comparable to their counterpart for profit business owners Nonprofits are in fact businesses whose profits surpluses remain with the nonprofit corporation rather than going to individuals or shareholders as in the for profit business model Note not for profit does not mean no surplus allowed Just as for profit businesses need working capital to function at peak capacity so do nonprofits need the equivalent in operating reserves Other Resources Videos External Resources Upcoming Events Without an operating reserve an organization can be thrown into cash flow stress and become distracted from good long term decision making or forced to make expensive short term crisis based decisions or worse it may not have the resources to continue delivery of its programs Organizations with limited or negative working capital by necessity focus on the short term and are less likely to engage in responsible long term planning Subscribe To Our Newsletter Sponsor us What is a Board Designated Operating Reserve If you like what you see here please consider sponsoring this website Learn more By consciously and proactively setting the financial goal of building an operating reserve and potentially other specific purpose reserves an organization s staff and board take responsibility for the long term CLICK HERE financial stability of the organization preserving its continued capacity to deliver its mission programs and to return to services Videos Building and maintaining a board designated operating reserve helps to ensure that sufficient funds are available to manage cash flow on a day to day basis and maintain financial flexibility For example an operating reserve could allow an organization to accept reimbursable grants because it could handle occasional delayed grant payments Building additional purpose designated reserves based on the particular needs of the organization would position the organization to seize opportunities to enhance mission programs respond to spikes in demand for services or to sudden decreases in demand and to make planned capital purchases among many other purposes Affordable Care Act Table of Contents What level of Operating Reserves is appropriate more In spring 2008 a Nonprofit Operating Reserves Initiative Workgroup comprising experienced individuals representing multiple facets of the nonprofit sector was convened with the objective of defining an Operating Reserve Ratio and using the ratio to focus attention on the importance of nonprofit financial stability The workgroup also reached a conclusion on what constitutes adequate operating reserves Workgroup member Richard Larkin had previously concluded and written that the answer is it depends Drawing on Mr Larkin s insight and experience the workgroup concluded there is no one size fits all ratio or 22 http www nonpro taccountingbasics org reporting operations about operating reserves nonpro ts 1 2
Appendix D  Page 3 of 6   2 8 2017  About Operating Reserves for Nonpro   ts   Nonpro   t Accounting Basics  Home     Inte...
Appendix D Page 4 of 6 2 8 2017 About Operating Reserves for Nonpro ts Nonpro t Accounting Basics benchmark However the minimum operating reserve ratio at the lowest point during the year suggested by the Workgroup is 25 percent or 3 months of the annual expense budget Precisely because it depends the Nonprofit Operating Reserves Initiative Workgroup recommends that every nonprofit organization have a written Reserve Policy that defines its own adequate operating reserve level defines how its operating reserves are calculated and provides the rationale that led staff and board to this conclusion In general for calculating the Operating Reserve Ratio the Workgroup is strongly biased toward the simplest and most widely applicable formula The group also felt that operating reserves in an amount determined by an organization s board to be adequate should be accumulated in advance of other board designated funds Final note The Operating Reserve Ratio is one of a number of important and useful financial viability indicators that address various aspects of financial health For more information regarding establishing a reserve and related policies for its use and replenishment please see the Nonprofit Operating Reserves Initiative NORI Operating Reserves and Reserves Policy Toolkit released September 15 2010 and the whitepaper Maintaining Nonprofit Operating Reserves An Organizational Imperative for Nonprofit Financial Stability December 2008 by the Nonprofit Operating Reserves Initiative Workgroup a collaborative effort of the Nonprofit Operating Reserves Initiative Workgroup NCCS Center on Nonprofits and Philanthropy at The Urban Institute serves as secretariat to the CLICK HERE Workgroup to return to Table of Contents http www nccs2 org wiki index php title Nonprofit_Reserves_Workgroup See also Nonprofits Imperiled By Low Reserves In Tight Times Lack of Cushion Can Mean Failure By Megan Greenwell Washington Post Staff Writer Wednesday June 24 2009 http www washingtonpost com wp dyn content article 2009 06 23 AR2009062303405 html referrer emailarticle Policies up About Us Contact Us Terms Conditions Login Site by GJD Outsourced Services Copyright 2017 Greater Washington Society of CPAs Educational Foundation CLICK HERE to return to Table of Contents 23 http www nonpro taccountingbasics org reporting operations about operating reserves nonpro ts 2 2
Appendix D  Page 4 of 6   2 8 2017  About Operating Reserves for Nonpro   ts   Nonpro   t Accounting Basics benchmark.   H...
2 8 2017 About Us Details Appendix D Page 5 of 6 Nine Ratios to Help Measure Your Not for Pro t s Financial Health article Appendix A Email to a friend Printable version 03 30 2015 Nine Ratios to Help Measure Your Not forPro t s Financial Health article More not for pro t organizations are recognizing the bene t of nancial performance measurement as a strategy for evaluating operations programs services and nancial stability One useful measurement tool is nancial ratio analysis It involves taking data from your nancial statements using it to calculate ratios appropriate for your not for pro t and then benchmarking those ratios against past performance management objectives or other organizations Financial ratio analysis can help you assess your organization s overall nancial condition and ag nancial patterns that might be harmful or those that are successful It could be the winning strategy you need to stay ahead in the numbers game When starting out CLICK HERE to return to Table of Contents Before you begin guring out nancial ratios you should determine what you want to learn about your organization Customary questions include Are our nancial resources applied e ciently and e ectively to support our mission Is there an appropriate match between the sources from which our resources are derived and their use Are our present resources sustainable What sources of funding are available to support our mission Helpful metrics and ratios Once you state your goals for nancial ratio analysis it s time to quantify your nancial information Here are some metrics and ratios every not for pro t organization can use Viability ratio It compares expendable net assets including unrestricted and temporarily restricted net assets to long term debt This ratio indicates a not for pro t s relative liquidity or its ability to cover its debt It serves as a basic indicator of nancial strength because it measures the availability of cash and other liquid assets to meet the organization s nancial obligations Current ratio This ratio indicates your organization s ability to meet short term nancial obligations by comparing your current assets to your current liabilities Ideally you want to have a current ratio of at least 1 0 and preferably greater A current ratio under 2 0 may indicate an inability to pay current nancial obligations with a measure of safety Quick Ratio Many banks use the quick ratio comparison to gauge nancial stability It compares quick assets current assets less inventory and prepaid expenses to current liabilities Your organization s quick ratio should not be less than 1 0 CLICK HERE to return to Table of Contents Operating reserve This ratio addresses the question of whether resources are su cient and exible enough to support your mission without having to borrow externally It compares expendable net assets to total expenses It describes your organization s ability to fund programs and other expenses from expendable net assets should no additional operating revenue be available Not for pro t Appendix H organizations should aim to have an operating reserve ratio of no less than 25 percent or enough to cover at least three months of their annual expenses Change in net assets It measures nancial performance by answering the question Did your organization live within its means during the year While an organization s success shouldn t be judged by whether it had a positive or negative change in net assets for one year consecutive de cits should be cause for concern Operating margin This is an important forecasting ratio because it illustrates your not for pro t s ability to produce a potential surplus which could be drawn on if needed in future years It s determined by subtracting expenditures from revenues and dividing that sum by your revenues 24 https www cbiz com insights resources details articleid 2541 nine ratios to help measure your not for pro ts nancial health article 1 2
2 8 2017        About Us     Details  Appendix D  Page 5 of 6   Nine Ratios to Help Measure Your Not-for-Pro   t s Financi...
2 8 2017 Nine Ratios to Help Measure Your Not for Pro t s Financial Health article Appendix D Page 6 of 6 Program e ciency It compares total program expenses to total expenses Having this information can help you demonstrate to potential funders how e cient your organization is in ful lling its mission Operating reliance To show how much your not for pro t is able to pay for total expenses solely from program revenues divide program revenues by total expenses Fundraising e ciency Do you know how much you re generating from fundraising activities This ratio indicates the amount of contributions that result from fundraising expenses by dividing the former by the latter As you consider the various ratios identify which ones are relevant to your organization Then select appropriate benchmarks and determine what the comparisons might indicate Keep in mind that just as a manufacturing company and a gas station chain are in di erent businesses with di erent nancial indicators a speci c ratio will have di erent meanings to di erent nonpro ts Your not for pro t organization s type and its diversity of revenue streams peaks and valleys of expenses and susceptibility to economic downturns will have an in uence over its nancial health Get ahead Using monthly quarterly or even yearly nancial ratio analysis can help you get ahead in the numbers game by providing you with valuable insight into your organization s nancial future By using this tool you ll be able to identify strengths and weaknesses and take appropriate action to help your organization achieve its mission CLICK HERE to return to Table of Contents If you have speci c questions or concerns about nancial ratio analysis please contact your CBIZ MHM advisor Copyright 2015 CBIZ Inc All rights reserved Contents of this publication may not be reproduced without the express written consent of CBIZ This publication is distributed with the understanding that CBIZ is not rendering legal accounting or other professional advice The reader is advised to contact a tax professional prior to taking any action based upon this information CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could a ect the information contained herein CBIZ MHM is the brand name for CBIZ MHM LLC a national professional services company providing tax nancial advisory and consulting services to individuals tax exempt organizations and a wide range of publicly traded and privately held companies CBIZ MHM LLC is a fully owned subsidiary of CBIZ Inc NYSE CBZ CLICK HERE to return to Table of Contents Share This Page Find Us Zip Code Appendix B OR City Search 25 https www cbiz com insights resources details articleid 2541 nine ratios to help measure your not for pro ts nancial health article 2 2
2 8 2017  Nine Ratios to Help Measure Your Not-for-Pro   t s Financial Health  article   Appendix D  Page 6 of 6   Program...
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Appendix H Bibliography Trajkovski S Schmied V Vickers M Jackson D Using appreciative inquiry to transform health care Contemporary Nurse A Journal For The Australian Nursing Profession August 2013 45 1 95 100 Richer M Richie E J Marchionni C 2009 If we can t do more let s do it differently Using appreciative inquiry to promote innovative ideas for better health care work environments Journal Of Nursing Management December 2009 17 8 947 955 Carter C 2007 An Appreciative Inquiry Approach to Practice Improvement and Transformative Change in Health Care Settings Quality Management in Health Care Volume 16 Issue 3 2007 ISSN 1063 8628 Watkins S 2016 Appreciative Inquiry as an intervention to change nursing practice in in patient settings An integrative review International Journal of Nursing Studies 60 1 ISSN 0020 7489 CLICK HERE to return to Table of Contents CLICK HERE to return to Table of Contents 36
Appendix H  Bibliography Trajkovski S, Schmied V, Vickers M, Jackson D. Using appreciative inquiry to transform health car...