JUNE 10 — As an executive recruiter and leadership coach, I have regular conversations with senior leaders on how to advance their performance or careers.

One of my favourite questions is: “What is your purpose in life?” More often than not, I am greeted with a long pause. Many admit they had never thought about it, while some would say “to be the next CEO” or “to make as much money as possible” — which, technically, are goals, not purposes.

To guide them, my next question would be: “What did you do in the past that gave you inner fulfilment and joy?” I get answers such as “cooking” and “time spent in school camp with children”.

When I press further to find out why these activities made them happy, the answers lead to the same conclusion — people are fulfilled when they contribute something positive to someone else or society at large. When leaders are able to reframe their minds and lead with the purpose of contributing positively to people around them, they generally become better leaders.

Yet surprisingly, this may not be the case in the non-profit sector. While many leaders of non-profit organisations (NPOs) have clarity on purpose and mission and are deeply passionate about what they do, they face daunting day-to-day challenges and lack the skills and resources to execute strategies well.

Helping current leaders

A typical NPO leader must produce tangible outcomes supporting the organisation’s mission statements, advocate the cause to raise donations and boost its volunteer pool, as well as ensure a high level of transparency and governance.

Essentially, NPO leaders are held to the same standards — if not higher — as those in the corporate world. But it is a well-known fact that NPO leaders are paid significantly less than their peers in business. I have often wondered whether this lack of equity is sustainable in the long run.

How do we keep NPO leaders fully engaged and incentivise new talents to move to the sector?

Just as the private sector offers development opportunities to its leaders, so must NPOs. Leaders must be developed via a process of goal setting, coaching and feedback. Cross- and continuous learning would help them better understand how to draw on their strengths, improve their weaknesses and sharpen their motivations. If they have the capacity to pick up functional skills such as impact tracking and measurement, fund-raising, advocacy and volunteer and donor management, that would be great. If not, the finer skills of recruiting talents to execute these functions well would come in very handy.

Attracting new talents

For new talents entering the social sector, an open assessment of their motivations by the organisation and the candidate is important. Only when there is clarity on personal mission and values fit does it make sense for him or her to undergo an induction process into the sector, possibly by joining the NPO as a volunteer member of the board or committee.

A well-developed CEO needs a well-governed board to draw out his or her best. Anecdotal data has suggested that a high percentage of CEOs leave their jobs because they cannot get along with their board members. Therefore, it is important for NPO boards to find a good balance between directing, nudging the CEO and supporting and coaching him.

For this to happen, boards must regularly assess themselves in the areas of mission clarity, effective communication with the CEO and diversity in composition. Board members must be committed and prepared to roll up their sleeves, open doors and create opportunities for the leadership to excel.

An NPO with a clear strategy can effect change if it has the right leaders in place. In the long term, the rewards system in the social sector must change to attract talents. Donors also need to reframe their expectations of hiring discounted leaders and boards need to be brave to justify well-benchmarked rewards.

At the Centre for Non-Profit Leadership, it is our belief that when strong leaders serve the sector, they will drive strong organisations that, in turn, achieve better outcomes. — Today

*Theresa Goh is president of the Centre for Non-Profit Leadership and founder and partner of ThreeSixty Partnership, a talent management consultancy firm.

**This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online.