Articles

Information Flow is the New Cash Flow

Information flow is the new cash flow, quite literally, in the case of electronic funds transfer. More metaphorically, in the case of the myriad of electronic transactions collecting, storing and analysing data or those that carry conversations to plan and make decisions. In both cases, if the flow stops, the organisation stops. Yet Information and Communications Technology (ICT) governance lags far behind fiscal governance in most organisations. It begins and ends with minimising costs, fretting about social media and obtaining (often untested) assurances that the back-ups are regularly taken.

Developing the Next Generation of ‘Givers’

When I was young it was normal for our family and friends to spend time helping a friend build a shed, dig a garden for our elderly neighbours, share a feast of home grown fruit or vegetables, invite newcomers to a welcome bar-b-q and to visit others who had exciting and different foods to share – especially “exotic” Greek or Italian food. Our spare time activities revolved around community – winter and summer sports, community action and fundraising, local art groups, local theatre etc.

How I Learnt to Stop Worrying and Love the Risk

Fact: ‘My name is Trent and I take risks.’ While this may sound like a paradoxical statement given the inherent conservatism of my chosen profession I still, however, assert that this personal disclosure holds true. Fact: ‘I was not always this way.’ In my earlier years I often procrastinated when making a decision, either personally or professionally. At times this was born of irrational fear but, more often than not, it reflected a need for greater control over my life.

Mindfulness in the Australian Boardroom – Do Less and Accomplish More!

Mindfulness has made big inroads into the executive space but it’s yet to gain serious traction in the Australian boardroom. That’s not surprising, given the conservative nature of the boardroom. The main reason is that directors are generally unaware of the value proposition, personally and collectively. Meanwhile, offshore, there is a global revolution in process – Mindfulness is being advocated by high profile business leaders and adopted by elite corporate organisations, business schools and medical institutions.

The Art of Financial Management

Mr. Micawber’s famous, and oft-quoted recipe for happiness highlights the importance of strong financial management: Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery — Charles Dickens, David Copperfield It is important for boards of non-profit and community sector organisations to focus on strong financial management. These organisations typically have external stakeholders on whom they rely for funding.

Property Portfolio Dilemmas Faced by CEOs

Of the many challenges faced by a CEO, including resourcing, staff, clients, regulations, technology and finance, the property portfolio of a non-profit organisation is typically viewed as something that is static and therefore seldom proactively managed until a major issue develops. CEOs from the non-profit sector find that most issues arise from having a disparate property base accumulated through circumstance or allocation, rather than planned development. Hence, many problems stem from legacy or historic reasons that have simply not been adequately addressed in the past.

Financial Reporting to the Board

Boards are often inundated with information for their meetings. Reassessing reporting methods can enhance board performance, efficiency and help boards to meet corporate law responsibilities. This article concentrates on some ideas for financial reporting, a particularly challenging area of reporting for many boards. Two key principles are: less is more and top down. Less is more when financial reporting is well formatted and presents clear, concise and relevant information. This will usually be a mixture of numbers, text, graphical representation and detail reported by exception.

Improving Your Board’s Productivity and Performance with Neuroscience

Productive meetings are central to board effectiveness and Director satisfaction. Productivity in a board context is not just about efficiency. It should also be demonstrated through the value add the board delivers. High-performing boards know that unproductive meetings waste time and money and can adversely impact decision-making. In the non-profit sector, unproductive meetings can drain already limited resources. Common actions boards apply to improve productivity in the boardroom include: streamlining agendas, delegating to committees, prioritising issues and modifying board packs (to name a few).

Risky Business: Risk Management and the Not-for-Profit

Changes made by the Australian Charities and Not-for-profits Commission (ACNC) to increase the accountability and transparency of the NFP sector mean charities and other NFPs will now be expected to have greater ownership over their financial investments and risk management strategies. These changes are not a bad thing, in fact quite the contrary. They’ve been established to ensure that the foundations for increasing the scale and scope of Impact Investing in Australia are in place.

Reviewing Your Constitution – Food for Thought

Your constitution (or sometimes referred to as your governing rules or charter) is the document that governs how your Not-for-Profit (NFP) organisation operates. It is a legal document — a contract — and its terms must be complied with at all times. Importance of your constitution Your constitution must comply with the laws that are relevant to your NFP organisation which may be the Corporations Act 2001 (Cth), or the Associations Incorporation Act of your State or Territory.