At a gathering of ministry leaders and CEOs, the facilitator asked all participants to write down the primary challenge they face. Over 70 percent responded their greatest problem had something to do with their board. I wasn’t surprised.
Just to clarify, I have a fantastic board. They are sold out on the mission. They give generously. In no way are they a “rubber stamp” board, and they push me to think critically, provide key insights, and encourage our team. They are people I deeply respect and admire (and I’m not just saying that because my annual appraisal is coming up soon!).
From my service with HOPE, but also as a board member of Edify, LifeNet, Esperanza International, and several of our global microfinance institutions, I’ve grown in my understanding of how valuable a board can be. But I believe the challenges many executives face with their boards results from a structure where one individual reports to a group of diverse and driven people. Organizational design is notoriously complicated when there are multiple reporting relationships. We speak about “the board” in the singular sense, but it’s composed of multiple people with different perspectives.
So whether you report to a board or are a board member, I was thinking about five tips to strengthen board governance:
- Embrace debate. If there are no dissenting voices, you do not have a healthy board. Debate strengthens and clarifies the mission. There should be a few sparks when iron is sharpening iron.
- Move forward together. When decisions are made, it is critical that there is an overarching spirit of unity. Board members and staff follow the collective mandate after it has been properly discussed and decided.
- Over-communicate. After a friend stepped down as CEO of another nonprofit, he shared one of his greatest faults of leadership was he did not spend sufficient time communicating with the board. These are key relationships. And they require a healthy amount of the chief executive’s time. For me, I have weekly lunches with our board chair and participate in each committee meeting. If the board is functioning properly, there should be no surprises at a board meeting.
- Clarify process. If there is ambiguity regarding the responsibilities of the board and management, you are heading towards unnecessary conflict. Up front, it’s critical to determine the board’s role. For most boards I’m on, the board focuses on organizational identity, strategic planning, budget allocation, risk assessment, and holding the president responsible to implement the plan.
- Choose wisely. Especially with smaller and active boards, it’s crucial to have board members who are all in. Beyond capacity and heart, the right chemistry must exist between board members. This is difficult to assess and so walking slowly through the board recruitment process and ensuring multiple “interviews” with prospective board members is so important.
If you’re interested in growing as a board member, consider the following resources:
- The Fundraising Habits of Supremely Successful Boards
- Max DePree’s Leadership Is an Art
- When It’s Time to Move On…Successful Leaders Transition Well
If you’ve served on a board or reported to one, what am I missing? How else can board members become even more helpful in achieving your mission?
February 12, 2013
Love this. #5 speaks to a decision our board has made regarding the recruitment process. We go a step further than interviews. We invite a potential new member to join us for two meetings so we can “try each other on.” And for #3, I meet by Skype with our CEO weekly, and we serve together so frequently that we really feel in lock-step, even when we challenge each other to think about things differently. Healthiness, transparency and a heart for serving each other in leadership is critical to set the tone for the entire organization.
Great post, Peter!
Megan Hawkes
Board Chair, Rooftop 519
February 13, 2013
Thanks for the post, Peter. You touched on it, but I think it’s important for leaders to recognize boards as one of their greatest assets. Sure, there might be some drama along the way, but you don’t have to convince board members to be passionate about the organization – that’s why they’re serving. Helpful or not, everything board members say is because they care…and more often than not, I think they bring a fresh perspective not wrapped in day-to-day operations.