How Nonprofit Chief Executive Officers Learn their Skills

Submitted by Elizabeth B. Bolton.

John J. Sherlock, Maria L. Nathan. Nonprofit Association CEOs:  How their Context Shapes What, How, and Why They Learn.  Nonprofit Management and Leadership, vol 18. no. 1, Fall 2007: 19-39.

Introduction

Job success and the relationship to experiential learning has been primarily studied in the context of for profit managers and CEOs.  Little attention has been brought to bear on the nonprofit CEO and how on the job experiences may influence his/her career and performance success.  This research makes the argument that the rapid pace of change in the environment of nonprofit organizations and in society requires a constant learning and adaptation in order to remain viable in an administrative role.  The lack of information about how nonprofit CEOs learn leaves a void for current CEOs seeking self improvement and for future CEOs who might benefit from case studies and success stories. 

Theoretical Framework

The contextual learning theories provide the theoretical framework for this study.  The authors cite Lewin’s work  (1936)  regarding learaing as a function of the interaction between a person and the environment.  Context is used in this study to mean the unique physical and social situation in which learning occurs.  For example, a particular organization has its own learning context.  “context was operationalized in this study as serving in the position of CEO in a national membership association.” (p.20)

The CEO Role

The CEO in nonprofit national membership organizations is similar to that of the CEO in for profit organizations in that he/she reports to a board of directors who make the policies that shape the direction of the organization.  This individual has the most power among the paid staff and typically all staff persons report to the CEO.  The influence of the CEO on policy implementation is straightforward and clear.  It is the CEO who makes the decisions about how policies are carried out and what the measures of success might be.  For example, a fund raising plan may well be conducted by the development officer but the CEO is ultimately responsible for its success or failure and will report to the board of directors accordingly.  This study suggests that the relationship between the CEO and the board is even more intense than in a similar for profit relationship. 

Method

A qualitative study using a phenomenological research design was used to explore how the national membership association’s CEOs perceive and describe their learning.  Phenomenology is the science of deriving knowledge from life experiences through a method of disciplined inquiry.  Data Collection was through in-depth interviewing about each CEO’s learning experience.  Three interviews were conducted, the first  was to create a history of past learning experiences, the second delved in the current learning experiences as a CEO and the third gave the participants an opportunity to reflect on their learning experiences and derive meaning from them. 

The sample consisted of twelve national membership association CEOs who were selected from a national e mail outreach to a national membership.  The sample was limited to CEOs who had more than two years but less than seven years experience as a CEO.  Data analysis consisted of developing a composite description of the learning experiences of the twelve CEOs.  This method relies on the researcher’s reflections on his/her own experiences and setting aside an preconceived notions or prejudices that may influence the results.  Following this step, referred to as the epoch process, the researchers analyzed and synthesized the raw data of the CEO’s description of their learning.  The trustworthiness of the data was established by having the participants were asked to make corrections to the synthesis of the researcher’s observations and descriptions.  The limitation of this study is that it relies on the “willingness and ability of the participants to discuss their personal learning experiences.” (p. 24)

Results 

Five themes emerged from the CEO interview data

  1. CEO Learning about Board Relations.  The CEO role produces feelings of intense responsibility as well as vulnerability. Working with and reporting to a frequently changing board is a challenge that can change as the board members change.  The learning that occurs here is through trial and error and reflection on the experiences. 
  2. CEO Learning About Stff Relationships.  CEOs learn that they have a power over the staff and that these relationships have limits in terms of communications and expressions of trust.  They learn to be careful with words and actions.  Creating a positive environment for staff is not so easy as one might assume and the learning that takes place is through trial and error as well a cumulative experiences.
  3. Learning about Self as CEO.  This type of learning takes place as the CEO matures in his/her job and it is primarily through reflection and striving to be hones and objective with oneself.  It also means that one tries to keep the emotions from taking over and covering the instincts. 
  4. Reflections are More Important for Learning.  The absence of a peer to discuss issues in a candid way gives the CEO a sense of isolation and loneliness.  The spouse takes the place of peers in many situations and the CEO relies on their  perspective and insight in the absence of a true peer. 
  5. Learning how to Perform in the CEO Role. CEOs see reflection on events, attitudes and people as important to their own learning which they place at a premium.  The realize that learning is important to success. 

Implications for Practice

  1. The political acumen of the CEO is an important tool which must be acquired through experience and reflection.  But some of these tools can be learned and they have implications for District and County Extension Directors who for all intents and purposes function very much like a nonprofit CEO.  The authors suggest that the study of influencing tactics may be helpful and that CEOs who are more effective are those who have mastered the influencing skills with their board. 
  2. The power of good governance practices cannot be overlooked both as a practically application of CEO learning and need in the ever changing context of the organizational environment.  The CEO, and the District and County Extension Director, who understand effective governance structure and practice is far ahead of those who do not.  Many of the learning outcomes gleaned by reflection can be reinforced and strengthened by sound governance and meaningful policies.