OneWorld.net (U.S.)

Non-profit organisations (NPOs) engaged in development activities work under challenging but unhelpful conditions grappling with management issues. Here, the governing board’s role is vital for effective and efficient performance of the organisation. Vijay Padaki’s latest book, co-authored by Manjulika Vaz, Management Development in Non-Profit Organisations - A Programme for Governing Boards provides insight to the functioning of governing board.

Written in a lucid and simple language, the book is interestingly presented in an FAQ format. The book comprises of six modules - Conceiving the organisation, Setting Up the Organisation, Statutory Conditions for the Organisation, The Board, Organisational Growth and Development, and Emerging Demands and Challenges. Each module consists of 20 questions. The book is first of its kind in India and draws upon the authors' broad experience in consulting to identify the needs of governing boards, and offers a programme designed to meet those needs. Although this book provides practical guidelines for board members of NPOs, it is equally relevant for people who would like to start an NGO.

However, this book could have gone a step further in helping governing boards to mainstream ICTs in the management and governance processes of the organisation. In this era of knowledge revolution, largely facilitated by information and communication technologies (ICTs), the management development processes in NPOs have undergone sea changes. NPOs are exploring the possibilities of using various ICT tools to improve the transparency and accountability of their governing boards. Still, this book is a must read for the governing board members and for the beginners as well.

In an interview with Manish Kumar of OneWorld South Asia, Vijay Padaki, co-founder and Director of The P&P Group, a Bangalore-based management research and consultancy centre, shares his thoughts about the processes which lead to conceptualisation and finally publishing of this book, besides deliberating on the need and importance of this book. This book is published by Sage Publications in India.

Your book draws largely from your experience with the corporate sector and also the non profit organisations. How effectively, do you think, NGOs are able to address the governance issues? Every organisation has its problems. Just as not every company is a crook, similarly not every NGO is a saint. It was not until the 1970s that an attenpt was made by the Management Institutes to integrate good governence practices in the functioning of NGOs. The initial reaction of the management was that of hostility. But this attitute changed during 1980’s when funding began to be linked with good project management practices. Gradually governance became the buzz word.

I think the weakest link in management of NGOs is its governing board. That’s the reason why after doing a lot of work on operational management, organisational development and institutional development aspects, we thought, why not tackle this issue? That’s how we got into this field.

What was your idea behind writing a book on this topic? Our idea of publishing this book came from the overwhelming response of the participants in the second phase of our research on Management of NPOs. So we decided to put it together in the form of a book. One thing is clear that this book is an outcome of peoples need and is not bombarding with academic jargons. It has kept in mind the likes of the board members. What is prescribed in this book has sound academic bases.

How can the process described in your book have more impact in actual practice? If you see the book, it is written in the format of a trainer’s guide. Anyone who wants to start an organisation will find it relevant and handy. So we can hope that it will have some impact and more people become conscious of the need of good governance at the board level. What we keep on pressing is the strategic function at the board level which is often neglected but is important. Hopefully more and more supporters of development programme, whether it is the government or funding agencies, will also start tightening the screw.

Why is there a lack of clarity about the governance processes in Non-profit Organisations (NPOs)? Our work in this area can be better understood if it is seen side by side with our work on Institutional Development. The discipline of organisational development (OD) is well developed. A lot is known about how to strengthen an organisation but the focus of organisational development is on a single organisation. The methodology works for one organisation and it is preferable for smaller organisations and problems crop up during the scaling up process in OD. Therefore, the emphasis should be on institutional development.We use the term institutional development(ID) to refer to transn-organisational processes. How do you get collaboration? How do you get colloborative process in development? One cannot do ID without a strategic position. For this one needs a strong board.

Many a times it is driven by individual and group interests rather than organisational interests. Why is a strong board lacking in many NPOs? It may be intentional. However, I think that the position is not going to be as comfortable in the years to come. There was an era in which development funding was relatively easy but not any more. Today one has to prove ones worth.

Is it because the donors have now become more accountable to their own constituencies? Absolutely! I have a fairly good understanding of the different donor systems world wide. In the Indian context, one of the major category of donor aid is church based, particulary from Europe. Typically church funds that come into poor developing countries are based on the principle and sentiments of charity. So there was no or minimal monitoring and accountability of the usage of these funds in development programmes for a long time. They are now,however, tightening up the funding processes. The church based donors are also looking for management, evaluation, performance indicators, etc., so things are changing rapidly.

Is this book only for governing board members or is it also useful for people who want to start NPOs? Well it is also particulary useful for people who want to start an NGO. A lot of people say that the head of the NGOs become power centres in themselves and resist sharing power. Much of this is true and it is a problem. But I tend to look at it sympathetically because when a person decides to start an NGO, they display some extraordinary abilities at that point of time, to take an initiative. It is a fantasitc combination of motivation, dedication and commitment. They feel about a prolem and decide that they want to do something about it. We should admire them for this. We should understand their situation and help them get out of such situations. We can help them directly or through the board.

Do you think this book is relevant for social entrepreneurs as well? It’s a good question. Often what starts as social enterprenuership devlops as a NGO. A case in the point is the kind of initiative the Ashoka Foundation supports. Even at the time of starting an indvidiual or even an organisation has to grapple with management and organisational issues. Sooner or later the Foundation support for the individual would stop and the person has to metamorphosise into an organisational entity. So here this book would come handy .

Finally, what is the next project you are working on? We are helping Swiss Agency for Development and Cooperation in network development, paricularly on habitat issues.