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The Role of Your Organization’s Board of Directors

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After a year of cancellations and Zoom calls, many organizations are back in person with our boards. Now is the time for reflection and reinvigorating our organizations, and what better way to do this than going back to the basics and analyzing the board’s role in your organization?

 

  1. Recruitment: Maintaining knowledge of who is in your industry and who could best fulfill board positions will ensure that the board is always thoughtfully curated. When you are actively on the lookout for new members, you are also reaffirming what values are important in your organization. According to The Council of Nonprofits, every board member should be on the lookout for great new additions to the board.
  2. Identify risks: Board members are on the front lines of the organization and should therefore be quick to identify risks or threats to the organization. This involves being well-informed of the organization’s weaknesses and external threats. DiligentInsights recommends staying up to date on matters relating to the organization and making a habit of identifying incoming threats.
  3. Directing the organization: Harvard Business Review released an extensive article examining the importance of strategy, saying a board’s “most important function is to approve or send back for amendment management’s recommendations about the future direction of the [organization].” Unfortunately, as the article explains, this task does not often get enough attention. Two ways to do this are to set up a list of objectives to follow and to dictate a strategic philosophy that helps guide your mission as an organization.
  4. Establish a policy-based governance system and adhere to it: Every board needs a balance of structure and flexibility. The structure should come from a collection of policies that help guide the board through complex decision-making. A blog post from Iowa State University making these policies broad enough to allow for wiggle room in decision making, but not so much space that the structure fails.
  5. Anticipate crisis: 2020 proved that boards must be ready for anything that could threaten the organization. Being ready for crisis requires constantly keeping yourself up to date on the latest information relating to the organization, and continually identifying threats and weaknesses. As Diligent Insights explains, fingers point to the board of directors when things go wrong, so make sure you are in the right.

 

As a board member, you have a lot to keep track of. Revisiting the basics occasionally can help guide you to being your best self as a board member.

 

Business Meeting

7 Actions Boards Can Take in Times of Crisis

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Crisis is something no one expects, but it is something that every organization should be prepared for. In this post, Eric Ewald, Vice President, CAE lays out 7 actions that every board should consider taking in times of crisis.

1. Make sure board members are well informed

Board members should always be well informed and knowledgeable of organizational programs, projects, and services, but it is critical that they are in times of crisis. Also, assure members have a good working knowledge of the bylaws, policies and procedures and budget. It is important that meeting time is spent wisely by reacting to change and planning. Confusion over the way the organization operates and catching board members up on things they should know is not a productive use of time.

2. Be agile

Many boards have been doing things the same way for years. This is not the time to lean back on established routines. Assess what your members need during the crisis and adjust service offerings to best meet their needs. Your board must have the ability to which can foster feelings of uncertainty and discomfort. This requires good communication and patience.

3. Assess risk

Where are you vulnerable? Take time to review your annual budget for areas of potential exposure and make appropriate adjustments to the budget and operational plans. For many organizations, conferences and other in-person events bring in a significant amount of their revenue.  How will your budget be impacted and what can you do about it?  Take time to review your current strategic and operational plans and make any needed adjustments. Reviewing all of your plans: budget, strategic and operational in the light of new circumstances and assumptions is critical.

4. Evaluate meeting times and practices

Your regular cadence for board and other governance meetings should be revisited. When not in times of crisis, frequent meetings may not be necessary as things tend to operate predictably, but given the dynamics during crisis you will likely find you need more frequent meetings and check-ins.

5. Communicate well

Is everyone in the loop? Pay close attention to any gaps in communication. Communicated well between amongst volunteer leadership and staff. For many, this means increasing communication of all kinds. Assure your members, partners and other stakeholders receive good communications about organizational activities and plans.  Make it clear that leaders are available to answer questions and provide a convenient vehicle for communication and that you are open to their thoughts and suggestions.

6. Think creatively

In times of crisis, look for ways to go beyond your regular services offerings to members. Think thoughtfully about your members, listen to them and define challenges and needs. Some may be struggling more than others, such as small business owners. Your organization was formed to serve your members and other communities, so how can you be there for them right now?  During this current global pandemic, some organizations are offering gratis extensions of memberships, informal video gatherings of members to share their experiences and delivering more professional development content online. Take time to listen to particular “pain points” and consider what the organization might be able to do to help.

7. Consider sending a message to the broader public

Is your organization in a unique position to contribute to relief efforts? Do you represent an industry that has been particularly affected by the crisis and is there information the broader public should know? Craft a press release that to inform audiences and discusses any solutions you are providing or problems you are facing. Consider consistent follow-ups to keep the public and stakeholders informed.

In summary, listen and communicate more and use this opportunity to help your board become more agile and creative and learn from the experience. This is will serve as good preparation for future crisis and disruptions.

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Long Term Habits Of An Effective Board

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Harvard Law’s Forum on Corporate Governance’s article, The Long-term Habits of a Highly Effective Corporate Board, gives some excellent insight into what it takes to ensure the long-term success of a board. The article was written by Ariel Fromer Babcock, director at FCLTGlobal. Here are some takeaways:

  1. A focus on strategy
    Boards that have demonstrated long-term success spend almost twice as much time discussing strategy. This includes refining the business model, company values and evaluating risks. John Vaske, head, Americas, at Singapore’s Temasek, explained, “Boards have to be really immersed in strategy; it can’t be at a superficial level. Directors that are long-term have the time and inclination to dig into those strategy-related questions—that’s where value-creation happens.”
  2. Careful consideration of meeting materials
    The article states that about half of board members believe the agenda prevents the board from properly discussing strategy. The Harvard Business Review suggests limiting the number of items on the agenda to six at most and to only focus on items that will prompt productive conversation. This will prevent the board from getting bogged down with unnecessary discussion topics.
  3. Members are prepared
    Assigning reading outside board meetings can also significantly reduce unnecessary discussion. The article gives the example of Netflix’s board. They use an online live memo that has a forum for questions in advance of their board meetings. Maximizing time in board meetings can lead to long-term success.
  4. There is finality after discussing items appropriately
    It is key to let some things be settled. Re-opening items for discussion can be tempting, but letting some things be final can open up a significant amount of time for new items that will allow the board to move forward. The article suggests that one great way to do this is via the meeting minutes. Using language such as “the board decided…” over “the board discussed…” can demonstrate this finality.
  5. There is strategy outside board meetings
    Great board members should not stop after the board meeting is over. Members who spend some time researching competitors, talking with others in the industry or considering other ideas to discuss at board meetings are concerned for the long-term welfare of the organization.
  6. Diversity is encouraged
    Having a broad range of perspectives is crucial to the long-term wellness of the organization. This goes beyond racial diversity to include differing genders, ages and levels of experience. FCLTGlobal’s research showed that diversity is associated with lower financial risk.
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What Traits Define a Good Board Member?

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When building or assessing your board, it helps to understand what to look for in board members. Board members with the following traits help keep meetings on task and more engaging.

  1. They possess the right context
    Forbes states that there are four key areas of knowledge: industry, business model, stage of growth and a specific field of function (sales, marketing, etc.). Board members who have knowledge in each of these areas can offer better insight.
  2. They understand how to communicate
    This one may seem obvious but having the ability to communicate with others is an essential trait in a board member. This is not just having the courage to speak up when needed, but also the ability to thoughtfully listen to others and respectfully respond.
  3. They have a positive outlook
    Jay Love, the co-founder of Bloomerang, a non-profit software company, stated that the heart of the board often is not the most knowledgeable. He believes having a positive spirit is contagious and will help move your organization forward.
  4. They have a deep passion for the organization
    According to Love, passion is more important than knowledge. A board member who is constantly rooting for the organization and pondering how it can be better is far more valuable than the person who knows everything about the organization but can’t commit wholeheartedly. There is no use in recruiting a great player if they do not want to be on your team.
  5. They want to learn more
    A great board member is aware that they do not know everything. For them, working with others is an opportunity to grow and they are eager to take advantage of trainings and professional development opportunities.
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Improve Board Performance Through Role Clarity

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For a board to work effectively, it must be clear about the role of the board collectively and the roles of the individuals who comprise the board. According to the 2017 BoardSource Leading with Intent study, many boards receive average grades on understanding their roles and responsibilities. 37% of CEOs and 25% of chairs give their boards a “C” grade or below in this area. Further, boards with higher grades of “A” or “B” perform much better across many areas of board work:

Survey Results: Clarity of Board Roles

These data demonstrate a correlation between a board’s understanding of its roles and responsibilities and board performance.

To strengthen your board performance through better role clarity, consider:

  • Accurate job descriptions for officers and other board members. Assure these are read and understood by each individual and understood within the context of other members’ job descriptions;
  • Ongoing board education about the organization’s bylaws, policies and procedures. These are required reading, plain and simple, and should provide good guidance on how the organization works in addition to providing good context for how individuals work;
  • Solid understanding of the governance and staffing org chart: Who reports to whom, who is accountable for what, etc.;
  • Ongoing board education about the organization’s products and services. Individuals should not limit themselves to a good understanding of their own accountabilities but need to understand others’ as well to have functional context for their own roles;
  • Understanding of the organization’s business model. Know how the organization makes its money, spends its money and to what desired ends.

The preceding is not an exhaustive list. But before you get into deeper conversations about your board’s performance, make sure you are considering some of these fundamentals. Many organizations find these items to be low-hanging fruit when it comes to boosting board performance.

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Transition from Traditional Board Meeting Agendas

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The issue, as anyone who has served on a board or managed a board can tell you, is that most board meetings are boring and ineffective.  They tend to focus on reporting instead of using their time to discuss important matters and to make effective decisions. The International Association of Rehabilitation Professionals (IARP) is no different, with five different sections and several committees that all want to ensure their work toward ongoing objectives is shared with the other board members.  As a result, this reporting took approximately three-quarters of each meeting—leaving little time to work together to solve issues or to further develop their strategic plans.

The leadership and staff spent a great deal of time discussing how to more effectively use staff and volunteer time before, during and after board meetings; so in June 2018, they began utilizing a standard report template that each board member would upload onto their Higher Logic folder/file system.  A file system had been built within their Board of Directors folder system with a folder for each board meeting and within those, folders for an agenda, board reports, financials as well as additional items.  Each month, a reminder email would be sent to the board 5-7 days prior to the meeting that included the directions on how to upload the file.  This process has worked extremely well and has saved staff many hours working to obtain, compile and deliver board reports. This process was well received and has had very positive feedback

With the standard report process in place, the leadership decided to take things a step further and proceeded to re-organize their board agenda.  In June 2019, they eliminated reporting items and requested from board members agenda items that would drive discussions.  They worked with staff to build a new agenda template and new processes which included requiring board members to read through all of the uploaded reports prior to each meeting to be prepared. 

The first step that was implemented involved staff working with the board to establish a roll-out timeline to coincide with one of IARP’s three in-person board meetings where a full explanation of the reasoning could be shared, and a complete review of the materials and processes would be communicated.  The reason for the in-person explanation and directive was to ensure that each board member understood the purpose and the new process, which would then lead to greater participation.

The second step included developing thorough explanations and directions for the new process and tools.  Many board members were unsure about their ability to work within the new system—but with consistent messaging and patient assistance, we have been able to ease them into the new process.  We have worked closely with our volunteers for the first few months to coach them how to think differently and to establish timelines and consistent directives.

The final process included a reminder email sent by staff 5-7 days prior to each board meeting.  The reminder included directions on how to upload their reports as well as a request for discussion/decision agenda items no less than 3 days prior to the board meeting so the agenda could be uploaded with plenty of time for review. 

As a result of implementing this new agenda, the IARP board meetings now consist of meaningful dialogue and effective decision making.  We have received very positive feedback as the board has been able to focus more time on strategic plans, future objectives and necessary discussions/decisions.  They have seen less wasted time and consequently feel more involved and capable of leading others.

To manage ongoing effectiveness, the board will assess the process annually and will correct course as necessary.

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Investing in Your Board as Leaders

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When non-profit association board members are elected, they bring a variety of experience and talent to help further the organization. Some board members have risen through the ranks of volunteer leadership while others may be industry figures who elevate the stature of the organization. What can we as association executives do to not only maximize their contributions, but also provide a rewarding volunteer experience? In my 15 years working with non-profits, I have seen boards coalesce and perform as a high-level team and others finish their term feeling like they did not accomplish as much as they could have.

What is the difference between the two? While no single factor typically determines a board’s success, I will review two common challenges I have seen and some strategies to address them.

Challenge #1: It takes the board too long to get going

For the purpose of this example, let’s assume a board is seated for one year with staggered terms. At the beginning of your board year, you will add new board members; at the end, some will transition off. Even if you maintain a strong core on the board, the dynamics (and likely the performance) change.
What can you do get new board members up to speed faster? Effective board service starts with an orientation. Several models and examples are available online to use with your organization. What I find most effective is an orientation that addresses:

  • Both the history of the organization and the current state of affairs;
  • Key documents like bylaws, policies, procedures, board-staff responsibilities, list of staff with contact information, etc.;
  • Time for you ask key questions of your incoming board: What do you want to accomplish during your term? Why did you decide to run for the board?

I try to schedule at least an hour for my board member orientation to discuss the materials at a high level and allow time for Q&A. Typically, I do this soon after the election, often using a video conferencing platform so it can be recorded and referenced again later.

An effective orientation will allow for a faster start and give you information about individuals’ desires so you can better align their interests with opportunities and understand individual dynamics that are being added to the group.

Challenge #2: Leaders have different talents

When you have an effective leader or someone who was adept at managing the board, their successor may possess a different skill set.

What can you do so the organization does not lose momentum? The governance of many organizations allows for the incoming leadership to be named through succession of the chairs or elected well in advance of the beginning of their term. This is your opportunity to understand and influence the preparedness of your next leader.

Several in-person and virtual trainings are available to help you and your incoming leaders prepare for their term. ASAE has an Exceptional Boards course where the chief elected officer and chief staff officer attend together. BoardSource has an online certificate program. Perhaps there are organizations in your industry that provide training programs specific to that vertical.

Another strategy you can use is including that incoming leader in “business review” meetings with current leaders. These meetings allow the incoming leader to be involved in determining the strategy in ongoing projects, so they have the background and knowledge to bring it to conclusion during their term. Some associations do this in-person for a day, meet at an association event or in a series of meetings as their term approaches.

Start early! Several organizations publish quality thought leadership around board effectiveness. ASAE has its Guide to Volunteer Leadership, Bob Harris has a library of templates and resources available at no cost, BoardSource is a DC-based organization with a focus on effectiveness, to name a few. Check with your local SAE to see what kinds of resources they have. By sharing resources throughout the year with your leaders, you demonstrate your care for their development and also the success of the organization.

Invest in your volunteer leaders today to reap benefits tomorrow. Keep your Board’s momentum strong by developing your volunteer leaders.

What are some things you do to invest in your volunteer leaders?

Board Members

Board Member Term Limits: Pros and Cons

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Are term limits a good fit for your organization? These considerations can help you make a sound determination.

Conversation around the pros and cons of board terms is not new to the nonprofit world. While there are strong arguments both for and against term limits, a majority of organizations opt to adopt them. According to a 2017 study, Leading with Intent: 2017 Index of Nonprofit Board Practices, 72 percent of boards have set term limits — with the most common configuration being two three-year terms. Despite these findings, term limits do not work for every association; some find strength in keeping a strong core of tenured board members.

A synopsis of reasons for and against the practice of board member term limits follows:

Pros:

  • Term limits encourage new talent acquisition, which is essential for the long-term health of the organization.
  • Board composition/diversity (skillset, perspectives, networks) is strengthened to meet the current and future needs of the organization.
  • Term limits reduce the likelihood that a board or board member becomes tired and loses vigor.
  • Limited terms encourage focused participation.
  • New board members are more likely to speak up with new ideas.
  • A board with term limits helps to avoid a potential concentration of power among tenured volunteers.
  • When terms are staggered, it provides balance and continuity.
  • There is a respectful and effective system for the exit of inactive, unproductive or potentially troublesome board members.
  • As the board turns over, it cultivates a broad base of dedicated volunteers, involving more of your members.

Cons:

  • Organizations may experience a loss of institutional memory and historical knowledge.
  • Organizations may lose dedicated, highly effective, tenured volunteers.
  • Succession planning takes time (identification, recruitment, orientation, continuous development).
  • Boards need to allocate additional time to build cohesiveness among board members.
  • Network relationships that may have been tied to a specific board member may be difficult to maintain.
  • There may be disruption to the oversight and operations of an organization.
  • Some associations experience difficulty in filling open board seats.

Conclusion

Regardless of where an organization falls on the matter, it is important that leaders are familiar with best practices on term limits to ensure the longevity and relevancy of their organization.

Katie Wallstein joined Ewald Consulting in 2014 and is an Account Executive in our Association Management Department.

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