1. Boards Can Help with Organizational Accountability and Growth
Similar to habit changes or personal growth goals, boards serve an important role in holding executive leaders accountable for performance and growth measures. They serve as the manager of the executive director/CEO and hold direct authority to hire, fire, and discipline this person if necessary. Having a well-functioning board that is able and willing to do this can support the organization in ensuring commitments are met, both in the short-term as well as the long-term (i.e., in a strategic plan).
In order to achieve this, the board itself must have clear governance structures and bylaws in place. These rules of process and decorum dictate what’s allowed and what’s not allowed, but more importantly, ensure that things get done. Understanding these bylaws and potential conflicts of interest can help reduce the occurrence of unproductive conflict and mismanagement. However, knowing the process is only part of the solution. Having the right people is also important.
2. Having the Right Board Members Can Help with Governance and Credibility
Over the past decade, there’s been a larger shift for boards to be more diverse and representative of the communities the organization serves. While this is important for a multitude of reasons (diversity of thought, credibility of experience, etc.), a board with diverse skill sets can be even more effective. Being able to look at the structure and direction of an organization from the lens of different functional lenses can make sure nothing is missed. For example, viewing a potential growth strategy from the lens of a lawyer, an executive, a CPA, and an economist can help ensure nothing is overlooked and/or plan for any potential barriers.
To achieve this, board recruitment should be intentional in identifying the skills and knowledge gaps in addition to any ethnic/gender considerations. Once these folks are identified, having a strong onboarding and alignment process will give them the tools to truly act as stewards of these elements. Often, they come with their own networks, and being able to tap into them can exponentially increase the organization’s impact.
3. Boards Can Help Plan and Build for the Future
While it’s not their role, executives at nonprofits often have to play the role of firefighter and focus on day-to-day emergencies. At times, this is crucial, as there can be situations that require a higher level of oversight and intervention. A well-functioning and effective board of directors can help support the CEO/ED in keeping their focus on the big picture and thinking towards the future. This includes encouraging/guiding the leader to start thinking about succession planning and building a bench of future leaders. The sooner organizations begin this process, the stronger the skill sets of leaders and employees at all levels.
To achieve this, boards should have mechanisms in place to objectively rate the performance of the CEO/ED, as well as a process to obtain objective data. It’s encouraged that boards should look beyond organizational metrics such as growth and revenue, but include data around leadership ability and culture setting. While harder to track, this has a profound impact on the organization’s ability to achieve its goals. An organization with high turnover will constantly be in crisis mode and have difficulty setting its sights on the future.
Where to Go from Here
Success is a team effort – meaning that high-performing organizations have boards that are not just providing oversight, but rather give appropriate support, accountability, and diverse perspectives. Similar to the analogy at the beginning around habit change, effective boards of directors have a powerful capacity and responsibility to steer nonprofits towards growth and stability.
Two questions for you to consider in your work:
- How can your organization enhance Board effectiveness for greater impact?
- In what ways can you contribute to or learn from the strategic vision provided by Boards?
The strength of nonprofits is not just their mission but in the strategic guidance, accountability, and vision provided by the board.
