Governance and leadership are two of the most important areas in which nonprofit organizations differ significantly from businesses and government agencies, and this part of the Handbook examines the various ways that leadership and strategic direction are provided to nonprofit organizations. In most nations of the world, governing boards (boards of directors or boards of trustees) of nonprofit organizations are legally accountable for leadership, governance, and oversight of the affairs of the nonprofit organization, and they are expected to provide effective leadership in establishing and developing their organizations' missions, visions, values, and strategic directions. No less central in providing organizational leadership are those who serve as chief executives of nonprofit organizations. They work with their governing boards to provide leadership, develop strategic direction, and manage the operations of their organizations.

The six chapters in Part Two of this volume collectively examine the leadership roles that boards, their members, and chief executives are expected to serve in nonprofit organizations, explore the challenges that sometimes hinder boards or executives from implementing their prescribed and expected roles, and discuss various strategies and techniques that have proved useful in enhancing the effectiveness of both boards and executives. The first chapter in this part, Chapter Five, explains the work of governing boards and draws on the growing body of knowledge that we have developed from research and practice to explain how boards and their members can execute their roles effectively. In Chapter Six, Robert D. Herman examines the many dimensions of the work of chief executives and discusses what it takes for executives to succeed, including their pivotal role in helping their governing boards perform effectively. In Chapter Seven, Thomas H. Jeavons discusses the work of executives and managers, with particular attention to creating and sustaining organizational cultures and practices that articulate and uphold high ethical standards.

Leading and managing strategically is essential to nonprofit success, and one of the key leadership tasks facing boards and top executives is that of organizing and managing the work of the organization to ensure it achieves its mission. In Chapter Eight, William A. Brown presents a broad and strategic overview of the work of strategic management and the key elements that compose it. Chapter Nine by John M. Bryson builds on these concepts with a very complete and thoughtful explanation of the work of executives and boards in developing organizational strategy, including a comprehensive model of the processes by which this might best be accomplished. Robert D. Herman and I, in Chapter Ten, offer a general perspective and set of insights that we have developed from the research on the elusive concept of nonprofit organizational effectiveness, how it is related to leadership and management, and discuss its implications for organization and management practice. Each of these chapters offers important insights into the processes, dynamics, and practices that have an impact on the degree to which nonprofit organizations are effectively governed and led.