NONPROFIT BOARDS: TWO COMMON BARRIERS TO REAL EFFECTIVENESS

My consulting services have grown out of a career in the not-for-profit world, having spent nearly 18 years as an executive director who reported to a board of directors and, simultaneously, serving on a board of directors. These opposing perspectives opened my eyes to the alchemy of quality governance, well-defined executive functions and great missions.

Heartfelt thanks to the numerous community leaders who served on the board of directors of Hospice of the Red River Valley during my tenure. They had the foresight and commitment to evolve the governance structure to meet the growth of the organization, giving me the opportunity to learn and grow along with them.

Not-for-profit missions make our world a better place; over 300 of them in the greater F-M area help make this an exceptionally great place to live. Small or large, they are dedicated to social services, arts, children, health care, sports, animal welfare, people with special needs and more. For all of this diversity, they have an essential element in common: boards of directors.

Generally comprised of community minded women and men (like you, perhaps), notfor-profit boards have very serious fiduciary responsibilities to their communities, clients, donors, foundations, the government… But, who teaches us to be good members of a board of directors?

Most of us, I believe, learn by experience. We accept an invitation to serve, we observe and we say, “Well, this must be the way it works.” And that is the primary way in which common dysfunctions of boards and their relationships to their executive directors are perpetuated and how MISSIONS are shortchanged.

Here are some common indicators of this role confusion:

• Board meetings are dominated by detailed, essentially pointless operational discussions;

• Standing committees, with all good intentions, are either doing the work that belongs to staff or are simply reviewing reports of activity that has already occurred (such as finances);

• Board meeting agendas are full of reports from these committees;

• Individual board members give direction/ orders to the executive director and staff, intending to be helpful (the marketing department is a great target);

• Board members are disengaged;

• Frustrated executive directors aren’t clear about their authority;

• There is no effective evaluation processes for the executive director, and

• No one is having much fun. Yes, I said, “Not much fun.”

No governance model is perfect. However, I believe there are elements of sheer genius in the formal policy governance model.* My version is considerably simpler and more practical, and certainly not perfect, either. But, as I work alongside boardsestablishing board policies, metrics for monitoring essential business functions, executive evaluations that are related to an organization’s overall performance, coaching in actual board meetings - I hear comments such as, “What a difference it makes to have a clear approach to the board’s work.” Or, “The way we were doing things before just didn’t make any sense.” “I felt like my time was being wasted.” “This change in our governance has impacted the entire organization.” And, even, “Now we are making a real contribution to the mission… and having fun, in the process.” Yes, fun.

So, what are some indicators of an effective governance model? An effective governance model guides both a board and an executive director towards mission-driven work that includes:

• Necessary fiduciary monitoring;

• Support and evaluation of an executive director;

• A focus on the future.

The board acts and speaks as one; the president’s primary role is simply to preside over the meetings and keep them on track. Standing committees are not utilized; only issue-specific task forces are used to occasionally streamline board work/research. Most of the meeting agendas are focused on the future, i.e. where the organization is going and what it will take to get there. In the process, a good model significantly enhances an organization’s strategic direction and strategic planning processes.

Operational work belongs to the executive director and staff, freeing the board to focus on the mission and the future without being bogged down in administrative details. When executive responsibilities and authority are clearly defined, organizational effectiveness increases exponentially. The difference is tremendous –and the mission can flourish.

I believe this because I see its impact every day. Visit my website: www.susanjfuglie.com and answer a short questionnaire to see if your organization may benefit from changes in your governance model. If so, perhaps we should talk. The coffee is on me.