Introduction to Casa Ruby and Its Mission
In the wake of gender-based violence and surging discrimination and violence against lesbian, gay, bisexual, transgender, and queer (LGBTQ) individuals, organizations that provide homes and shelters for vulnerable and needy individuals have a significant positive impact on communities. In this paper, I aim to highlight the importance of performance measurement in non-profit organizations and the necessity for the board of directors to exercise strong oversight over the executive. I will focus on the Casa Ruby organization, which recently closed its doors. I believe that by focusing on Casa Ruby, I will gain insight into the role of the executive in managing non-profit organizations and the risks that may arise when such organizations have a weak executive team.
Casa Ruby is one of the organizations that has had a remarkable impact on helping LGBTQ communities in New York City. According to the information from the organization’s website, Casa Ruby was founded by Ruby Corado to serve unhoused individuals and provide direct support to vulnerable LGBTQ+ individuals. According to information available on the website, the organization was founded in 2012, and the founder has been managing the organization’s funds since then.
Casa Ruby has grown from a smaller organization to become the only multicultural and multilingual organization in New York City, providing shelter and receiving donations and grants in the city. The vision of the organization is to create a world where transgender, gender-queer, and gender-nonconforming individuals are free to share their stories and experience full life without fear of discrimination (GuideStar, n.d.).
Mismanagement and Organizational Oversight Failures
At the time of writing this paper, Casa Ruby and its founder, Ruby Corado, are trending topics on mainstream and social media platforms due to allegations of mismanagement and misappropriation of funds intended to keep the organization operational in fulfilling its mission and vision. News headlines report that the founder, who has been serving as the executive officer of the non-profit organization, has been mismanaging the organization’s funds, donations, and grants received from well-wishers.
According to the report written and shared in The Washington Post by Parks (2022), the executive has not been paying employees and has been operating and running the organization without any oversight. The report further explains that the Department of Human Services (DHS) suspended grants that it had been channeling to the organization, which further made it impossible for the non-profit organization to carry out its operations. The founder, who also served as the executive of the organization, resigned, and the FBI has been pressing for charges against the executive for mismanaging the organization, which ultimately led to its closure.
All the information highlighted in this section is available online in mainstream newspapers and other news outlets. For instance, when one types “Casa Ruby” in the Google search box, the search results focus on the organization’s case, with most of the results indicating mismanagement and misappropriation of funds intended to help marginalized groups. The latest news reports indicate recent developments about the executive. Unfortunately, one cannot access the organization’s website, likely because it is currently down. Nevertheless, the news reports provide sufficient information about the organization, the executive, the mission, and the financial challenges that have led to its closure.
Importance of Performance Measurement in Non-Profit Organizations
Performance measurement, although rooted in for-profit organizations, remains applicable in non-profit organizations due to their need to have a positive impact on individuals and communities. Most donors want to know if the donations and grants that they give are making a difference in the targeted communities. In this case, Casa Ruby should evaluate and develop a performance measurement system (PMS) that will fulfill a range of functions to facilitate the organization’s activities.
Treinta et al. (2020) defined performance measurement as a process of utilizing objectives, indicators, and information to assess the organization’s interventions and effectiveness in responding to the vision and mission statement. In this case, the goal of performance measurement is to assess the indicators of the Casa Ruby organization and determine the impact it is making on the community it serves. In the absence of performance measurement, the organization risks losing direction in pursuing its mission and vision, as seen in the case of Casa Ruby, which was forced to close its doors due to mismanagement of funds and a negative reputation associated with the executive.
Internal Indicators for Evaluating Organizational Health
The proposed project that the donor would wish is the purchase of land and construction of residential houses for victims of domestic abuse and violence, and the population of LGBTQ members experiencing torture and trauma in society due to family rejection. The proposed project will benefit the increasing number of beneficiaries while also reducing rental costs that the organization has been incurring every month. However, to demonstrate to the donor that the funds will be used for the intended purpose, a PMS is necessary. In this case, the proposed PMS takes both internal and external indicators.
The internal indicators will measure Casa Ruby’s health. These measurements will include access to funding and transparency, as well as accountability in financial management, the minutes of the executive and management boards, costs incurred in running the organization, weaknesses in expenditures, and budgeting efficiency. The goal of measuring these indicators internally is to determine whether Casa Ruby is healthy enough to manage donations or if there are weaknesses that could lead to the misuse of funds. Additionally, this measurement will assess the integrity of the executive and the board in managing funds to determine if there have been instances of mismanagement in the past.
Employees are part of the internal environment of the organization, and they are also key performance indicators. It is, therefore, important for the PMS to measure both their retention rate and satisfaction rate. Satisfied employees indicate a healthy workplace environment and can be a direct determinant for the organization’s success. It can also inform the system about the type of leadership within the organization and whether the management team has fostered a positive relationship with the organization. Hiring new employees is always expensive, and organizations should often strive to retain their workforce for as long as possible to avoid incurring such expenses.
Casa Ruby’s employee satisfaction and retention rate will inform the donor about the organization’s future and its direction, whether toward success or failure. It will also help the donor to understand and make an informed decision in the future on whether to increase the donations or not, depending on the employee satisfaction rate. The donor can easily determine if the organization is struggling or not based on the employee satisfaction rate and make an informed decision about the donation. The goal of considering this measure is to avoid channeling funds to an organization that is on the verge of collapse.
The employee satisfaction rate will be measured through an open-ended questionnaire that will be shared with all employees within the organization. The questionnaire will target employees who have been with the organization for a minimum of five years. The focus on this group of employees is that they understand the history of Casa Ruby and can provide significant insights into the past and potential future of the organization.
The retention rate will be measured by reviewing turnover rates and investigating possible causes of high turnover, both at top management levels and bottom management levels. An understanding of factors contributing to high turnover rates will help the donor comprehend the type of leadership within the organization and also predict its future direction. For instance, high turnover rates are an indication of an unhealthy workplace environment. They may be the reason for the organization’s constant struggle, which could impact its potential success in achieving its mission.
There is also a need to measure the percentage of performance goals set and met. Every organization is driven by specific goals that must be evaluated at the end of the year. The measurement system will evaluate and provide feedback on the goals that the organization has set, and determine the percentage of goals met and those that have failed. An analysis of this data will provide significant inputs on how the organization has been performing and potential future performance when allocating donations.
There will also be an analysis of the causes of failure on the goals to help the donor make an informed decision. This measure will be carried out by reviewing and analyzing past projects, their success rates, and conducting interviews with the executive and board of directors to determine how the organization is addressing failed or stalled projects. A backlog of stalled projects and goals is a liability to the organization and can hinder its success.
External Indicators and Community Impact Assessment
The second PMS indicator measures the relationship between Casa Ruby and its external environment. In this case, the external environment comprises the organization’s beneficiaries. This performance indicator is broad because it considers the impact the organization is having on achieving its mission. When measured, factors within the environment can be a direct determinant of the project’s success or failure. The direct factor within the environment that the PMS will measure is the impact on the community.
In this case, the system will determine the number of people that have benefited from Casa Ruby’s program, the positive impact on the community, employees, and local groups that have partnered with the organization, and the rate of abuse or victims within the community who can attest that, indeed, the organization has been beneficial in the past. Once this has been established and it is determined that the organization has stable programs that are beneficial to the community, the donor will be provided with a comprehensive report outlining the recommended course of action, along with assurance that the funds will be used appropriately to address their intended purposes.
Diagnosing Leadership Challenges
I have taken note of the concerns about the micromanagement of the Casa Ruby organization, particularly from the executive. I understand that it can be quite challenging working with a despotic and micromanaging executive. I am also glad that you would not wish to change the CEO of Casa Ruby, but you are more willing to improve her performance. This is a great approach, and she will become a valuable resource to the organization. I am willing to assist you in diagnosing the problem and will provide a way forward towards improving the executive, also recommending a probable leadership style that will resolve the current challenges you are facing at the organization.
In the process of diagnosing and documenting the problem in the executive, the best way is through observation. I will volunteer to attend the meetings, try to reach out and discuss the impact of the organization with the executive, and explore how they plan to fulfill the mission they have outlined. I will also meet and interview a few employees to determine their thoughts on the executive and their experience with the leader. I will review the files of resigned employees to determine the reason for their resignation and explore ways to accommodate them. The diagnosis of the problem will be documented in a note form, which I will use to brainstorm and develop a probable course of action to assist the executive.
Strategies for Addressing Despotic Leadership
The second course of action will be to approach the executive and attempt to find a way to help the leader overcome despotic leadership and adopt a democratic leadership style. This is not an easy task because toxic leaders are often poor listeners. There are three strategies that the Board Chair ought to employ here. One is to publish a burning memo that will trigger the attention of employees and the CEO of the organization. The memo should clearly communicate the need for change by highlighting the current challenges the organization is facing, including high turnover rates, financial difficulties, and employee dissatisfaction.
Data should accompany the memo on the employee satisfaction rate and the cost incurred by the organization in bringing new employees on board. Once this memo has been published, the chair can involve the CEO in sending out a questionnaire that asks for probable changes in the organization. The strategy is to get the despotic leader involved in the change process.
The advantage of taking this path is that the Board Chair will avoid conflicting with the CEO, who may feel that she is the target for change. Involving the despotic chair in the change process will help her interact with employees, read and assess their grievances, and have more time to reflect on the problems the organization is facing. The strategy will also prompt the CEO to reassess her past leadership style and acknowledge some of the mistakes she may have made in the past.
Despotic and micromanaging executives are detrimental to both employees and the organizations they lead. Jabeen and Rahim (2021) defined despotic leaders as people who are aggressive towards employees and can create fear and stress among subordinates. Getting the despotic leader involved in the change process will enable her to recognize and understand the harm she is causing to the organization. However, the board chair should be firm and ensure that they are in charge of the change process.
They should hold frequent meetings to highlight the need for change and maintain constant communication with the CEO regarding the proposed change. The chair should also organize seminars or workshops for the organization’s leaders, including the CEO, and ensure that they attend to learn about leadership in non-profit organizations and how poor leadership styles can harm the organization and the people intended to benefit from Casa Ruby’s programs. These meetings will provide the CEO with knowledge and signal the need for change in leadership and management style.
Implementing Transformational Leadership for Organizational Renewal
Different leadership styles, such as charismatic and servant leadership, can be applied to the case of Casa Ruby; however, the most effective leadership style to solve the organization’s problems is transformational leadership. Nauman et al. (2018) defined transformational leadership style as one that cultivates and nurtures followers on the values of trust and integrity. In the case of non-profit organizations such as Casa Ruby, the followers are employees and donors who have a high stake in the organization. Casa Ruby is already affected by the negative brand image in mainstream and social media platforms.
Everyone is currently aware that the organization’s funds were mismanaged, and employees have lost trust and confidence in the executive. The transformational leadership style holds potential to change and restore the confidence and trust of donors and employees. The transformational leadership style will only succeed when the board chair sets and meets specific goals that the organization seeks to fulfill. Currently, there are four primary goals that the transformational leader must fulfill:
- To restore public trust and confidence in the organization in the next five months.
- To restore the trust and confidence of donors within the shortest time possible.
- To transform the public image of the organization and reach out to new donors.
- To continuously meet the changing needs of the community served by the organization.
To meet these goals, the transformational leader will need to engage with employees and stakeholders within and outside the organization. The board chair will provide continuous support to the executive, reward success, and celebrate milestones together. This strategy is designed to drive progress in the executive area. People perform better when they are praised and motivated. It will be necessary to celebrate the small winnings together as an indication of positive progress towards achieving higher goals.
The board chair will also need to rally the remaining team of employees to support the executive and move forward from the past. Teambuilding activities and games to celebrate wins, in addition to holding frequent meetings to update members and the organizational team about progress, will also create an opportunity for the executive to connect with people and understand their aspirations and dreams for the organization. Through meetings, the leader will have sufficient time to hear what employees want, the changes they aspire to, and the type of organization they envision. It is anticipated that this level of exposure will help the despotic leader to develop new vision and dreams for the organization and its employees, while also providing employees with an opportunity to interact with the leader.
References
Guidestar (n.d.). Casa Ruby Inc.
Jabeen, R., & Rahim, N. (2021). Exploring the effects of despotic leadership on employee engagement, employee trust and task performance. Management Science Letters, 11(1), 223-232.
Nauman, S., Fatima, T., & Haq, I. U. (2018). Does despotic leadership harm employee family life: exploring the effects of emotional exhaustion and anxiety. Frontiers in psychology, 601.
Parks, C. (2022). Casa Ruby shuts down the rest of its operations, and workers go unpaid. The Washington Post.
Treinta et al. (2020). Design and implementation factors for performance measurement in non-profit organizations: A literature review. Frontiers in Psychology, 11, 1799.