Tag Archive for: nonprofit sector ireland

DEI disability equity inclusion

5 Reasons to Champion DEI – Even as Others Backtrack

Written by Sheena Horgan, Director of Advisory Services, 2into3.

Embracing Diversity, Equity and Inclusivity (DEI) in organisations has become increasingly recognised as not only a moral imperative but also a strategic advantage [1].  But don’t take my word for it, here’s five evidence-based reasons why DEI matters.

 

1. Enhanced Innovation and Creativity

Diverse teams bring diverse experiences and thinking.  Consequently, this fosters creativity and innovation, which in turn facilitates superior problem solving [2].

2. Improved Financial Performance

There’s a proven correlation between diverse leadership and financial performance as companies in the top quartile for gender and racial diversity are statistically more likely to outperform their peers on profitability [3].

3. Attraction and Retention of Talent

Organisations that commit to DEI can be more attractive to a broader range of candidates, who, particularly Millennials and Gen Z, prioritise working for employers that demonstrate a commitment to social responsibility and inclusivity.  Employees value diversity and inclusivity in their workplace, and it impacts talent attraction and retention [4].

4. Enhanced Employee Engagement and Satisfaction

Inclusivity is instrumental in employee engagement and therefore enhancing workplace satisfaction and productivity.   The sense of belonging directly translates to job satisfaction, and moreover, this in turn can positively impact productivity and loyalty, thereby increasing outputs and reducing talent churn and the cost of recruitment [5].

5. Better Decision Making

Diverse teams are shown to make better decisions because they consider a wider range of perspectives and options which can lead to improved outcomes in business strategy and operations [6].

 

The Risks of Backtracking on DEI

As an advocate of social impact, of course I’d laud that DEI is important, but for those who prefer an economic argument, as the research here shows, DEI also leads to competitive advantage with substantial benefits across various dimensions of organisational performance. 

Which is why Accenture’s recent move away from DEI is a surprising one,  ”Accenture scraps diversity and inclusion goals, memo says”.  Not just because it’s a management consultancy that depends on the strategic thinking and problem-solving competencies of its people. Or, because it relies on its people’s commitment to Accenture over the competition, so talent acquisition and retention is critical. But because it smacks of hypocrisy flying in the face of its own research, reports, manifestos and PR over the last few years. For example, Accenture (2020), “Getting to Equal 2020: How to Make Diversity and Inclusion a Reality”, Accenture (2018), “When She Rises, We All Rise: Advancing Gender Equality in the Workplace” and Accenture (2019), “The Inclusion Imperative: How to Build a Culture of Belonging”. 

I get that the rationale is a reaction to a significant State-side sentiment shift. But whilst some organisations may be benching DEI (no doubt to resurrect it sometime in the future when the winds change), there are many who remain committed – quietly or vocally – to its principles and practices.  And these organisations will need partners and advisors who can demonstrate a genuine shared commitment to these values.   

And whilst the press release announcing the move cites “… a workplace free from bias, and a culture in which all our people are respected, feel a sense of belonging and have equal opportunity”, this is actually only part of a fuller text from the 2024 360° Value Report: Delivering Value From Every Angle | Accenture that goes on to say in the next paragraph:  “We [Accenture] are committed to helping all our people thrive, which includes advancing inclusion and diversity for all genders; people of different races and ethnicities; persons with disabilities; neurodivergent individuals; lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ+) people; people from different cultures; people with different religious and faith-based traditions; and people from different age and social groups”. 

The same report is peppered with mentions of DEI’s importance, including praising its network of 143,000 Allies in Action (as at August 31, 2024) “who advocate for cross-cultural inclusion, disability inclusion, neurodiversity, gender equality, mental health and well-being, racial and ethnic inclusion, and LGBTIQ+ inclusion”. 

Championing social impact means advocating for DEI. Delivering DEI and delivering business success are not mutually exclusive – but DEI needs allies, not adversaries. 

 

Footnotes

[1] EY (January 2025) DE&I Interventions that Deliver  de-and-i-interventions-that-deliver.pdf  

[2] Page, S. E. (2007). The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Princeton University Press. This book explains how diversity leads to superior problem-solving capabilities. 

[3] McKinsey & Company (2020). Diversity wins: How inclusion matters.  

[4] Reference: Deloitte (2017). The Radical Transformation of Diversity and Inclusion: The Millennial Influence.  

[5] Gallup (2020). State of the Global Workplace: 2020 Report.  

[6] Reference: Nemeth, C. J., & Staw, B. M. (1989). The Tradeoffs of Social Control and Innovation in Groups and Organizations. Social Psychology Quarterly, 52(3), 275-284. 

Implications of the pay & benefits survey

Key Talent Challenges Facing the Sector: Pay & Benefits Survey 2024

The latest findings on compensation, HR practices, and sector trends in the nonprofit sector, outlined in The Wheel’s ‘Pay & Benefits in the Community & Voluntary Sector Report 2024‘, highlight specific challenges for CEOs, boards, and governance structures. Here, we examine these from each perspective, considering key related challenges and their implications, and proposing a suite of potential remedies.

 

Pay and benefits 2024: The CEO Conundrum

 

1. Balancing Mission and Financial Viability

Once again, this report demonstrates the need for multi-annual funding to allow charities to strategise, recruit and retain talent; with talent retention selected as a high priority by 88% of respondents, and the top two concerns focussing on accessing / increasing funding (92%) and managing costs (89%).

The tension between delivering on the mission and ensuring financial sustainability is all too familiar to most organisations in the nonprofit space. If a limited budget wasn’t restrictive enough, then the short-term funding challenge requires CEOs to calibrate the least harmful trade-off between rewarding and investing in staff, operations, and infrastructure, and delivering on budget.  With funding such a prevalent and thorny issue, exploring (and yes this may also mean investing in) organisational funding capacity can quite literally, pay dividends.

 

2. Talent Acquisition and Retention

Albeit allegedly a little more muted, the war on talent continues in 2024 and the sector still needs to face off private and public sector competition in terms of pay and benefits.  The disparity in how employees are compensated within the wider sector is a problem in itself.  When the sector is attractive to employees, the entire sector wins. Raising our game raises everyone’s game.

In particular, strong leadership is critical and the capacity of organisations to attain and retain good leadership is a hygiene factor to success. The opportunity cost of losing senior leaders is immense. Not only are there core strategic and knowledge losses, but financial ones too. Succession planning is an often overlooked but essential Board matter.

A further impact of the struggle to recruit and retain staff, is the pressure it puts on HR teams at a time when they are trying to implement a variety of significant legislative changes, including auto enrolment for pensions, gender pay gap reporting and more.

 

3. Resource Constraints Increase Burnout

Time lags for replacing and recruiting new staff mean either a stall in services, or that other members of the team pick up the slack. In some cases, it’s the CEO that is compelled to take on multiple roles, which can come at a high cost. The unsustainability of the situation, as evident in the survey, is high levels of stress and potential burnout.

Every organisation should view their labour resource as an asset and treat it accordingly. This may require being open to interim resourcing solutions whereby the obstacle is as much Boards’ and Executives’ attitudes to such hires, as it is reticence to spend money. Poor resourcing leads to poor service, outputs and ultimately weaker social impact.

 

4. Thinking Through Changing Working Conditions

It’s clear to all that the shift to flexible work arrangements is a given. Presumably, most CEOs and Boards are already re-thinking organisational and HR policies, but equally care and consideration needs to be given to technology infrastructure, team dynamics and the financial and risk implications of both. Organisations should ensure that any flexible and remote working is thoughtfully explored through an EDI (Equality, Diversion, Inclusion) lens and that employees are both included and consulted in the process to balance operational needs with employee preferences. The end goal should be a positive and productive work environment.

 

5. Rationalising Labour Costs

Public and arguably even political expectation regarding salaries and compensation in the sector is too often ‘low salaries, high morals’.  However, being purpose driven only goes so far and the charity sector is struggling to recruit and retain staff as illustrated in the turnover rates increase from 9.9% in 2022 to 12.6% in 2024.

The cost-of-living crisis is undoubtedly driving some employees out of sector and organisations need to steel themselves to advocate for, and to justify, competitive salary levels, especially for CEOs and Executives. Equally, boardroom battles that centre around CEO requests for staff wage increases are undoubtedly a regular occurrence.  Circumventing Board members’ overtly negative biases on this topic requires careful analysis which includes cashflow projections and funding forecasts, labour market trends and insights, and end user needs and service requirements. Executives should pre-empt and provide such rational arguments, and this survey can provide some of the data.

6. Benchmarking Tools

A total of 592 organisations, with a total of 10,898 employees (full time or part time), responded to the survey, making this is an excellent resource to provide a broad overview of the sector.

However, The Wheel can only analyse and publish data gathered from those who have volunteered their information and, therefore, this report is not directly reflective of, or comparable to all 32,000 plus organisations in the community and voluntary sector.

For example, from the sample gathered, the report does not include data for individuals at ‘Director of’ level and there is limited data available under ‘Head of Housing’ roles, despite the current high demand for Asset and Property Managers.

We understand that The Wheel’s report will serve as a useful benchmarking report to inform decision making for some, but others will require a more in-depth benchmarking tool, including data from directly comparable organisations. We have recently launched a salary benchmarking service which has been established to provide organisations access to directly comparable information, where required – more information here.

 

Concluding Remarks

The Pay & Benefits Survey signposts clear challenges in how the sector is resourced in terms of both finance and labour. Whilst most Boards considerably understand the financial challenges, but they also need to pay close attention to how they manage their employees – when the sector is attractive to employees, all of the sector wins.

If you’re interested in gaining support with attracting and retaining Talent, contact Shannon Barrett at shannon.barrett@2into3.com. Alternatively, if you require support with your Board’s governance, contact Sheena Horgan at sheena.horgan@2into3.com.

 

Written by Sheena Horgan, Director of Advisory Services & Shannon Barrett, Head of Talent Services at 2into3. 

4 key words to help you navigate a crisis in your nonprofit

Anyone involved in leading or managing a charity or nonprofit dreads having to deal with a crisis under their watch. Despite adequate planning, we understand that even the best-prepared organisations can face unexpected crises. Whatever the focus of the crisis – funding, financial mismanagement, governance, safeguarding or reputational – here are 4 key words to help you keep a cool head at a stressful time.

 

1. Anticipation

The best way to manage a crisis is to prevent one occurring in the first place. This is what your organisation’s risk management and oversight practices are in place for: to identify potential risks at all levels of your organisation and putting in place effective mitigation or management structures, policies and practices.

2. Leadership

Crisis management involves quick decision-making and action. Consider establishing a small team of leaders to develop and implement a crisis management plan. Make sure that their remit, responsibilities and reporting relationship to your Board is clear from the outset.

 

3. Communication

Key to your management of any crisis – and maintaining or re-building trust – will be how you communicate and engage your stakeholders. Develop a stakeholder map and communications plan that covers all your key relationships, particularly employees, volunteers, supporters and funders.

 

4. Accountability

The best way to resolve any crisis is to ensure that there is appropriate action. It’s not advisable to shy away from acknowledging and investigating the incident, how and why it happened and its impact – and demonstrate accountability by identifying the clear steps that will be taken to redress its impact and prevent it from occurring again.

 

By prioritising anticipation, leadership, communication, and accountability, you will be in a better position to navigate any crisis that may arise. Remember, a well-prepared organisation is less likely to be caught off guard.

Get in touch

If you require additional support with your crisis management, 2into3 is experienced at supporting organisations to prevent anticipated crises and manage actual crises. Our governance and strategy services can help you to identify and mitigate organisational risks. Or, if the worst should happen, we can support you to effectively navigate through a crisis. In the last year, we have worked with six charities of different sizes to handle a range of funding, financial mismanagement, governance and reputational crises.

For more information, visit our webpage or contact our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com.

ESG Social Impact

Achieving the ‘S’ in ESG: Why is it important?

With growing consumer demand for ethical business practices and increasing regulatory pressures, ESG principles are not just a compliance requirement – but a strategic approach to sustainability and social impact. In this blog, we outline the importance of a robust ESG strategy and how to achieve the Social (S) component.

What is ESG?

ESG stands for Environmental, Social, and Governance. These are called pillars in ESG frameworks and represent the 3 key areas that companies are expected to report in.

Environmental

This includes efforts to reduce carbon footprints, manage waste responsibly, and adopt renewable energy sources. Companies are assessed on their environmental sustainability practices, and those failing to meet expectations may face reputational and financial risks.

Social

This focuses on how companies manage relationships with employees, suppliers, customers, and communities. It includes labour practices, diversity and inclusion, community engagement, and broader impact on society.

Governance

This refers to the internal system of practices, controls, and procedures a company adopts to govern itself, make effective decisions, comply with legal standards, and meet the needs of external stakeholders. Good governance practices include transparent reporting, ethical leadership, and accountability.

 

The Importance of a robust ESG Strategy

Ireland has seen a significant shift in how businesses approach ESG reporting, largely influenced by European Union directives. The EU Corporate Sustainability Reporting Directive (CSRD) has now been implemented in Irish law through the European Union (Corporate Sustainability Reporting) Regulations, 2024 which came into effect on 6th July.

Furthermore, Irish consumers are increasingly choosing to support organisations which align with their values. Companies that demonstrate a commitment to environmental, social and governance responsibility are more likely to attract and retain customers, particularly in a competitive market.

Additionally, investors are now factoring ESG criteria into their decision-making processes. Sustainable investing is becoming increasingly popular, and companies with strong ESG performance are more likely to secure funding. Therefore, focusing on a robust ESG Strategy is critical to the future development and overall success of your organisation.

Achieving the ‘S’ in your ESG Strategy

The Social (S) in ESG is a critical component – strong social impact can enhance reputation, attract investment, boost employee morale, and mitigate risks. Furthermore, the Social (S) element of your ESG Strategy is more likely to be effective when strategically developed. A robust Social Impact Strategy plays a critical role in supporting businesses to achieve their broader ESG objectives.

Many organisations require external support to develop the Social (S) component of their ESG Strategy. At 2into3, we partner with your organisation, working at Board and staff level – engaging employees and members of the community to ensure that your Social Impact Strategy is a living document, owned by your organisation. By the end of this process, you will have a defined Strategy that will enable your business to create meaningful change, build stronger relationships with stakeholders and contribute positively to your community.

 

Taking the first step

If you’d like to enhance the ‘S’ in your ESG Strategy, get in touch with our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com to explore how we can provide guidance and support. For more information on our ESG service, visit here.

 

2into3 Advisory Services

5 Reasons to Conduct a Board Effectiveness Review

What comes to mind when you hear the word “review”? If you think of criticism, judgement, or inspection, you might be approaching it the wrong way. A well-conducted Board effectiveness review provides numerous benefits for both your Board and your organisation, and should be seen as a constructive process instead of a fault-finding one.

Let’s look at five reasons your Board should consider conducting a Board effectiveness review.

1. Leveraging the strengths on your Board

Boards are composed of experts in their respective fields. However, in some cases, the skillsets and experience of individual Board members may not be fully recognised and utilised. A strengths-based Board effectiveness review allows you to map the skills and expertise on your Board and ensure they’re being maximised. When Board members engage in tasks that match their experience, it adds to the Board’s overall effectiveness and contributes to broader organisational success.

 

2. Aspiring towards best practice in governance

Regular Board reviews are a core requirement in the Charity Governance Code, and as a Board effectiveness review is an indication to your stakeholders – including funders, staff, volunteers and beneficiaries, as well as the public – that your Board is dedicated to best practice, transparency and accountability.

 

3. Adapting to a period of change

Nonprofits are operating in an evolving political and social landscape. This context demands Boards to be proactive and adaptable; capable of addressing challenges as they arise and identifying potential opportunities.

A Board effectiveness review helps to strengthen Board engagement and collaboration, to ensure that its committees have the appropriate composition and established duties, and that processes and structures are consolidated. This facilitates effective decision-making, leadership, and communication when faced with change.

 

4. Identifying and addressing gaps

So maybe it isn’t all good, and we’d be lying if we said a Board effectiveness review doesn’t consider areas for improvement. By taking stock of your Board’s its structure, dynamics, processes, people, and performance, you have an opportunity to reflect on what perhaps may not be working as well as it could.

What is important here is to focus on what happens next. After hearing constructive feedback from all your Board members, you can create an actionable roadmap to address any gaps and overcome challenges.

 

5. Returning to your purpose

Let’s return to the core purpose of serving on a Board and take a moment to reflect on the reasons and motivation behind this commitment. We are reminded of the passion, interest, skills, and desire to give back. A Board effectiveness review serves to remind all Board members of these fundamentals, generating a renewed sense of purpose, clarity, and confidence moving into the future.

 

Interested in learning more?

Engaging an independent and external third-party perspective in a Board review can offer a valuable objective insight, removing any bias and allowing Board members to be honest and transparent with their feedback. We can work with you to tailor a Board evaluation that reflects the nuances and complexities of your organisation, out of which will emerge constructive recommendations that resonate with your Board members’ experiences.

If you are interested in learning more about what a Board review would look like for your Board, please contact our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com.

Organisational Review 2into3

4 Signs It’s Time For an Organisational Review

An organisational review enables you to be intentional and deliberate in how you set up your staff and organisation for success. However, making the decision to pursue a review and the changes it might entail can be a daunting proposition, especially when you are already under pressure.

If any of the 4 signs below sound familiar, it may be time for you to undertake an organisational review.

 

1. Your team is much bigger than it used to be

While efforts and energy are often focused on the day-today, significant growth or change within an organisation can often unfold organically over the space of a few months or years. It can also happen very suddenly in reaction to a new opportunity. Negative side effects can include lack of clarity around roles and responsibilities, unclear reporting lines, or too many direct reports to your CEO, or managers.

An organisational review allows you to reflect on this growth, identify challenges and bottlenecks, and take the necessary steps to move towards a stronger structure that is sustainable and scalable for future growth.

 

2. Things don’t work as smoothly as they used to

Another side effect of growth and change is that the way you use to collaborate and communicate with your colleagues, or manage your team, is no longer fit for purpose.

Organisational design is about more than just structure; it’s also about workflows and relationships. If the way you used to operate is no longer leading to the same results – or if it feels slower and more painful to do your work – it might be time to take a step back and consider if your structure and working relationships are aligned with your organisation’s strategy today.

 

3. Your team’s work is constantly behind schedule

Another way in which an organisational review can support you is by identifying where you are missing capacity and capability in the team. If your workloads have grown at a faster pace than your staff team, its only natural to then experience delays, frustration and stress.

Assuming that you have correctly identified your priorities in a strategic plan, an organisational review is the ideal opportunity to think about how you are going to deliver your work:

What capacity do you need in what areas?

What skillsets do you need?

How should each team be structured?

How will they work together and with others?

 

4. You are overspending on agency staff or consultants

Agency staff and consultants are a sticking plaster to the issues identified above. If you have more work than the people to deliver it – and don’t have the time to take a minute, assess and plan for the long-term – these expensive short-term solutions can feel like your best option. However, it’s not sustainable in the long-term.

An organisational review can be an investment that pays dividends in the medium and long-term both financially and for your team’s wellbeing and happiness at work.

 

External consultants can be valuable in an organisational review process by creating an objective and confidential environment in which everyone in your organisation feels comfortable to share their honest feedback about what is and isn’t working.

This will ensure that the final recommendations reflect the concerns and expectations of staff, and build buy-in for implementation of your new structure. We can also bring in our experience and learnings from comparable organisations.

 

Interested in finding out more?

Our team at 2into3 our experience in delivering effective organisational reviews that transform organisations for the better.

If you would like to find out more about our approach, visit our webpage here, or contact our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com.

 

 

Advisory consultants 2into3

4 Tips for Getting The Most Value From Your Consultants

For charities or nonprofits, engaging a consultant for a specific project can be a large investment and commitment. Since 2006, our consultants have worked with almost 500 social impact organisations to deliver a range of assignments from strategic planning, to governance reviews, fundraising strategies, and more.

Based on our experience of working with organisations of all sizes – whether established branded charities, to community-based organisations, to volunteer-run start ups – here are 4 key tips for making sure you get the most value out of your consultants.

 

1. Be clear on project purpose, scope and deliverables

From the outset, make sure your Board and management have a unified vision about what you want out of the project. What outcomes, or changes, do you hope to see by the end of the project? What outputs should be delivered, by who?

Clarity and alignment on this is essential to ensure that you get what you pay for, and that all parties understand their respective roles. Practically, you can define this in the terms of reference or project proposal, contract, and confirm it in the kick off meeting.

 

2. Identify a realistic timeline and allocate the resources to support the project

People within nonprofits are often stretched to the limit. That can sometimes be a motivating factor for bringing in external consultancy support.

One recurring issue when delivering assignments is slips in agreed timelines. This can sometimes lead to frustration and a loss of enthusiasm, and at worst, can harm the project.

Set out a realistic timeline from the start, with specific milestones to help maintain momentum. This will also help plan out the capacity and resources needed within your organisation and by the consultants to ensure you deliver your goals.

 

3. Embrace new perspectives

As a leader of a nonprofit organisation, you understand the complexities of your organisation and sector better than anyone else. However, close proximity can sometimes make it difficult to spot internal challenges. The benefit of engaging an independent consultant is that they can see things from a different viewpoint, or that they bring experience from other comparable situations.

The best approach is to remain open minded throughout the process of working with a consultant. There might be a new idea, lesson, or different perspective, that you might not have considered otherwise.

4. Ask for additional advice

Our consultants have a breadth of strategic knowledge on nonprofit organisations. Don’t be afraid to ask questions and gain advice on other areas. It might be outside of the scope of the work, but consultants are happy to help where they can!

Another benefit of engaging with consultants is the opportunity to connect and collaborate with contacts and organisations in our diverse and growing network.

By following these steps, your organisation will be in a greater position to gain the most value from your consultants.

Get in Touch

If your organisation requires an Advisory consultant to advance your mission, get in touch with our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com. For more information on our range of Advisory services, visit our webpage here. 

 

Matt McKerrow Governance Insights

“We’ve tried – women just don’t want to be on our board” Governance insights for your sports organisation from an international perspective

Authored by Matt McKerrow, Associate Consultant

 

As a father of toddler boy/girl twins, I am ever vigilant (and regularly reminded by my constituents) to ensure I am equitable in all dealings, particularly those that pertain to distribution of important resources – like strawberries, or marshmallows.

And OK, whilst two for the price of two does require significant extra resources (time, energy, and effort) – one of the great benefits of parenting dual small humans, beyond the constant gender equity check, is the diversity of experiences, learning, and as a result extra knowledge, that comes and will continue to come from raising a girl and boy the same age at the same time. That’s without considering what they’ll learn and gain from each other in the process. Summary: More work, tricky to balance, but increased knowledge, richer experiences, better and fairer outcomes for all, right? That’s my theory anyway.

Therefore, I can’t help but notice some parallels as the Irish sport governing body sector prepares for the pending 40% board gender balance deadline at year end. Recent media reports indicate the Football Association of Ireland (FAI) [1] [2] and the GAA [3] are among the organisations working earnestly towards change facing into the challenge of meeting the deadline – and I am sure there are others.

 

Here are some key points to consider for making progress towards balancing your board:

 

S/he got more than me

Whilst those electing sports boards may not prioritise or appreciate the benefit of the additional experience, knowledge and perspective that having a diverse board brings, it does seem implausible they could rationalise leaving 50% of the funding available to their sport on the table. Especially when this would then potentially be available to be re-distributed to other NGBs, their fellow ‘sport system siblings’. Neither of my 3-year-olds would stand for that.

 

International perspective

Having spent near equal amounts of time during my 20+ year career working in sports governance in Ireland, as in New Zealand & Australia, I am well placed to compare and contrast the Irish context with others I’ve worked in. I’ve also seen/heard some absolute clangers (refer to this article’s title quote, uttered much more recently than you’d imagine) and gathered some fascinating insights from both hemispheres as national sports systems have evolved to tackle the challenges of board gender balance and board independence.

 

Governance Principles over time

In a federated country, Australian NGBs (National Sporting Organisations or NSOs as they’re known down under) have long grappled with multiple layers of governance existing together – especially when it comes to the issue of independence.

A first version of the Australian Sports Commission (ASC) Governance Principles were published in 2002 and they have undergone several iterations since, most recently in 2023 [4]. The most recent version is explicit regarding board gender balance at 4.3: “The board (…) should be composed in a manner such that no one sex accounts for more than 60% of the total number of Directors”; and regarding independence at 4.4: “The organisation’s directors should be independent, regardless of whether elected or appointed”.

It is of note that whilst the ASC “Governance Code” has existed for decades, with prescription regarding board composition, a Women on Boards report [5] published in 2020 indicated that up to approximately 30% of funded Australian NSOs did not meet the 40% target that is currently prescribed in the ASC principles at that time. The more recently published ASC Governance Standards Benchmarking Report 2023 [6] depicts a decrease in the gender balance standard (4.4) since 2021, and highlights Diversity, Equity & Inclusion (4.2) as one of the “bottom 5” poorer performing standards where Board Independence (4.4) is among the Top 5.

 

Which country has it right?

By contrast, New Zealand, which is often compared to Ireland, in land and population size, sadly in terms of 2023 RWC performance, and notably examined in sporting system context detail at the 2018 Federation of Irish Sport Annual Conference – could be said to lead the way in board gender diversity. Sport New Zealand reported near 100% compliance (65 out of 66 funded organisations) with its 40% gender target in 2021, three years after publication of its 2018 Women & Girls Strategy and accompanying policy to impose significant penalties for those organisations not in compliance. Sport NZ report an overall improvement in governance and board dynamics as a result. [7]

 

Fiercely independent?

Speaking of New Zealand, and at the risk of again mentioning rugby, it is relevant to reference the recently published NZ Rugby (NZRU) Governance Review [8]. A highlighted summary contended the governance of the NZRU, the organisation behind the All Blacks and Black Ferns, is not currently fit for purpose, and offered some strong recommendations.

In contrast to the current issues reported in Ireland within the FAI – as they attempt to re-structure their board to meet their MOU obligations to government to have a 50/50 split of “football” and “non-football” directors [9] – the recommendation of the NZRU review is that the NZRU board be completely independent of constituent directors, instead proposing the inception of a Council structure where representatives of rugby’s stakeholder groups would feed into the governance of the organisation on select and specific terms. In that review, an independent director is defined to be one who is “four years (out of the game or) out of positions of influence within the game”. This may be viewed by some as heavy handed.

 

Rising through the ranks

For sports organisations with federal structures of governance – eg club> county>province>national, as in Ireland, there is an established practice of Presidents/Chairs/board members progressing “up the ranks”. This is often lauded as an achievement and viewed as an acknowledgement or even an entitlement based on time served within the sport. It would be common that upon election to a higher tier the director would resign from their lower tier appointment, but often one occurs directly following the other, with minimal, if any, time away from influential roles in the sport – and certainly not a four-year stand-down.

Nearly there

In late 2022, Sport Ireland indicated that if the current trajectory to that time were to continue, the target of 40% gender balance on NGB boards would be achieved in 2023 [10]. This can only be viewed as a positive development for Irish sport in terms of the greater knowledge, insight and diversity in board decision making, and overall improvement in governance of the sector.

More to come?

One wonders – if Irish sport is emulating, and close behind, our NZ counterparts in achieving board gender balance targets; our government, via their MOU with the FAI, are already seeking to ensure greater independence on sports boards; and the organisation behind arguably one of the world’s greatest sports teams appears set to be governed by a rigorously independent board – could we, and should we, expect to see the Sports Minister and Sport Ireland setting quotas and targets for board independence similar to those for gender balance in the not too distant future?

 

Insights

Insight 1

Like ‘em or loathe ‘em – quotas are here to stay

  • Target quotas are a mechanism that serve the purpose of rallying a sector and allow measurement of progress towards a broader societal aim. Their detractors might say they are crude and tokenistic or may use phrases such as “box-ticking” and “window dressing”. Based on my experience of sports governance across international contexts, they are, and continue to be a necessary tactic to ensure the advantages of board diversity and independence are promoted and achieved for the wider benefit of an organisation’s stakeholders and society at large. With a continuing societal movement towards ESG targets in Ireland and abroad, we are likely to see that measures and quotas will continue across all walks of life, not just sport. Moreover, perhaps board independence is next?

Insight 2

Targeted strategy, investment and quotas are supercharged when leveraged with penalties

  • With New Zealand as case in point, sports systems that have moved to significantly penalise non-compliance have experienced greater success than those where principles exist without meaningful consequence. It is encouraging to see the firm line taken by the Sports Minister and Sport Ireland threatening a 50% reduction in the allocation from 2024 for all non-compliant organisations, especially in relation to capital grants as well as program funding. The sports sector will wait with interest to see the ramifications for any organisations not achieving the target in the New Year.

Insight 3

S/he who pays the piper…

  • Many sporting organisations have bemoaned the loss of sovereignty that comes from a government funder dictating terms and imposing what might be seen to be heavy handed conditions upon them. “Who are they to tell us how to run our sport?” Whilst you’d expect a sport’s community are best placed to deliver that sport – it is however worth remembering that if s/he who pays the piper calls the tune, a sport seeking investment from government, sponsors, philanthropists and even from their own members and clubs – must take heed of their wishes in putting together their playlist. Furthermore, it’s not unreasonable to expect that diversity, independence and other ESG factors will feature in their requests.

Insight 4

It’s no walk in the park, but the effort is worth it.

  • A Richie McCaw quote highlighted in the NZRU Governance Review says: “If you want to be the best in the world, it is going to be hard. If you are not prepared to do that, you are in the wrong room”. Progressing the governance of your organisation so your sport can attract heightened funding and achieve great things in terms of increasing participation, connecting communities, raising profile, and delivering awe inspiring winning performances isn’t easy. But it’s a choice. The process is not glamorous, it takes time, significant effort, considerable energy and you can certainly expect detractors, hurdles, miss-steps, learning experiences, unpopularity, argument, compromise and debate along the way. But that pales in comparison with the benefits as greater knowledge, richer experiences and ultimately the achievement of inspirational outcomes are realised. The final destination is worth enduring the tantrums – just like twin parenting.

 

Get in Touch

This article is authored by: Matt McKerrow, Associate Consultant,  specialising in governance and strategy assignments for NGBs, clubs and other sports organisations within 2into3’s sports sector.

If your sports organisation is interested in gaining support in governance or strategy, contact our Associate Consultant, Matt McKerrow or our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com. For more on our work with sports organisations, visit our page here.

 

References

[1] Headache for FAI as crucial motion fails to pass

[2] Funding to FAI from Sport Ireland delayed (rte.ie)

[3] Relief as GAA votes for better gender balance on management committee

[4] Australian Sports Commission Governance Standards SGS-final.pdf (sportaus.gov.au)

[5] Women on Boards NSO Board Gender Report (womenonboards.net)

[6] Sport Governance Standards Benchmarking Report (sportaus.gov.au)

[7] Gender-equity-in-governance-sport-nz-3-11-22.pdf (sportnz.org.nz)

[8] NZRGovernance-Review-31-August-2023_web.pdf (nzrugby.co.nz)

[9] Sports minister warns FAI of ‘serious consequences’ if they fail to meet gender balance requirement (msn.com)

[10] Women in Sport Leadership Snapshot | Sport Ireland

Theory of Change 2into3

3 Reasons Why a Theory of Change Could Increase Impact

Nonprofits and charities are at the forefront of catalysing positive change for individuals, communities and society. Whether that is through the provision of frontline services, lobbying and advocacy, or the contribution to policy and research. United by a shared purpose and vision, organisations have developed unique responses to addressing some of the most pressing challenges of our time. It is increasingly important to capture and measure the effectiveness and value of such responses, but how can organisations do this in practice?

A Theory of Change (TOC) is both a process and an output which logically and rationally captures how an organisation is achieving the change they want to see. It is a practical and living tool that can be applied to define goals and encourage recognition of achievements, to enable impact measurement and strategic thinking, and to successfully communicate impact. Here are 3 reasons your organisation should develop a Theory of Change.

 

1. Understanding and Recognising Goals

A Theory Of Change allows your organisation to come together and map how your work is having the intended positive impact and addressing an identified challenge; essentially breaking down what success looks like and the steps to get there. Both the process and the final output of a TOC lead to a renewed clarity and understanding amongst stakeholders, and can contribute to increased focus, engagement, and motivation. It encourages people to work collectively to reach goals, to take ownership of the impact they are having, and to recognise the important achievements they have made.

2. Impact Measurement and Strategic Thinking

A Theory Of Change is an extremely useful tool for impact measurement, giving you a foundation to collect relevant data and feedback, and to gather insights. Your organisation can then capture the progress being made against your TOC, test your assumptions, identify areas for improvement and adapt accordingly. This cycle of continuous learning, reviewing, and improving is conducive to strategic thinking; enabling you to make impact driven decisions, prioritise and allocate resources effectively, and develop long-term plans and projections that are informed by evidence. A TOC and subsequent impact measurement allows you to be more deliberate and proactive, and ultimately do more for the people benefiting from your organisation’s work.

 

3. Communication

A Theory Of Change is as a framework that succinctly clarifies the logic and evidence driving either your work as a whole, or a specific programme/project within your organisation, By linking together your motivation, your activities, the results, and the wider impact you are creating, you are effectively condensing the story and the strategy that guides your work and capturing the contribution of your organisation to the community or a sector. In a competitive funding environment and with increased emphasis on organisational transparency, a TOC demonstrates to partners, funders, and the wider public, that you have a logical and coherent plan to achieve your goals and have gathered evidence to back it up.

 

How to develop a TOC? 

In order to build collective buy-in and be truly reflective of your organisation, a TOC requires meaningful input and collaboration from staff and other relevant stakeholders. It is most effective when developed iteratively through consultation, generating ownership from relevant stakeholders.

If you would like to hear more about how a Theory Of Change would benefit your organisation, or what our process for developing a TOC looks like, do not hesitate to contact our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com or visit our website.

 

Written by Alison McGearty, Analyst, 2into3.

What is a trustee of a charity?

What is a Trustee of a Charity?

Charity trustees are the people who ultimately exercise control over, and are legally responsible for, a charity. If the charity is a company, these people may also be known as directors or board members. The charities regulator provides this definition, and you can see the full guidance here.

Being a trustee on a successful and well governed charity board can be a very rewarding job. The charity and voluntary sector is large and growing, and this is where we can genuinely contribute to societal change and to the improvement of everyone’s lives. Giving your time and expertise to this sector allows you to follow your passions, and to genuinely help and be appreciated.

What do trustees do?

As we have seen, trustees direct and control the organisation. They are ultimately responsible for the success and the future of the organisation on whose board they serve. They normally attend one board meeting per month and perhaps one committee meeting per quarter. However, trustees are always vigilant and alert to the needs of their organisation and are always ready to take care of their organisation in a crisis, or to advise the CEO in times of difficulty.

 

What do trustees not do?

They are not executives and they do not implement strategy, their role is simply to direct and control. Sometimes, in smaller charities, trustees will carry out some executive duties. These may include assisting with the accounts production or fundraising; but these are not truly executive roles; and ultimately, as the organisation grows, these duties will be taken over by paid employees.

 

Roles and responsibilities of a trustee

The roles and responsibilities of trustees are set out by the charities regulator here and if your charity is incorporated as a company limited by guarantee or any other type of company, your duties under the companies act are set out by the Companies office here.

The main roles are clearly stated, a director of a company shall:

  1. a) act in good faith and in the interests of the company;

(b) act honestly and responsibly in relation to the conduct of the affairs of the company;

(c) act in accordance with the company’s constitution

(d) not use the company’s property, information or opportunities for his or her own or anyone else’s benefit

(e) be independent

(f) avoid any conflict between the director’s duties

(g) exercise care, skill, and diligence

(h) have regard to the interests of its employees and stakeholders

 

Is being a trustee fun?

Yes, being a trustee can be lots of fun, particularly when you are passionate about the purpose of the organisation and its mission. In many cases great charities have been set up by people who are passionate about, for example, animals or children, or the alleviation of an illness.

Being on the boards of such charities nurtures your passion, enables you to contribute to the cause and makes you  feel valued and appreciated.

Above all, great boards work well together, they are colleagues; they solve difficult problems in collaboration and ultimately theycan have wonderfully constructive and beneficial working relationships.

 

What is my next step?

  • Find your passions and interests and identify charities in this area.
  • Ask yourself how much time you might have to contribute to the charity.
  • Research charities in your area, choose the best governed and best organised charity, where you will learn and be able to contribute to the board. Ask them if they have an induction course for new board members to enable you to quickly learn about the charity.
  • Get your CV ready, with some indication of your skillset, experience and passionate interests.
  • Consider also other voluntary work that may not initially involve being a board member.

 

Some useful links for your research:

 

Contact Us

If you have any further questions on becoming a trustee, contact our Director of Advisory Services, Sheena Horgan at sheena.horgan@2into3.com.

Dublin

2into3

Huckletree in The Academy,

42 Pearse St,

Dublin 2,

D02 YX88.

Ph: 01 574 0022

Belfast

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Belfast

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Cork

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