Last week I attended the NYSAE Special Interest Group meeting for Women in Nonprofits. It is a great group of dynamic women from associations and nonprofits who gather monthly to share industry best practices. This week’s topic was Cultivating Board Leadership. A “smart talk” discussion was led by Linda Ferm, CAE, president, Ferm Strategies. What can organizational leaders do to get the most value out of their Board of Directors? Following are key takeaways.
Build boards around key recommendations such as:
- Careful board member selection
- Proper staff training in board of directors support
- Strategic orientation: According to Ferm, boards that expend even a moderate amount of time on strategic thinking and planning perform better than those that do not.
- Culture of learning and accountability: the board's commitment to a process of self-evaluation is more important than what technique is used. There is a case to be made for investing in the training and orientation of both boards and of staffs.
There are three ways of looking at the role of the board: fiduciary, strategic and generative. Boards often work best when they practice fiduciary, strategic and generative roles simultaneously. Generative thinking provides a context for understanding problems and opportunities. This approach can jumpstart the purposes, strategies and ideas, which drive an organization forward.
Reflecting on recent and past agendas, successes and failures can help to focus the board's attention on fiduciary, strategic or generative tasks.
Orientation
Strongly encourage the new board member to participate in a virtual or in-person orientation. This sets the stage for their service by outlining participation rules and responsibilities. When board members know what their contributions are supposed to be up front, this establishes a positive relationship with the executive director or president. It can also prevent "rubber stamp" syndrome or disengagement down the line.
An orientation should include a clear explanation of term limits so individual board members understand the time frame in which to deliver results and set up a succession plan when their term comes to an end. After all, smooth board transitions and continuity keep an organization on track and moving forward.
Proactive, Generous Engagement
Effective board members should be proactive in their contributions and engaged with other board members, before, during and after official meetings. That means when board members reach out to another by email or phone, they receive an expeditious, positive response. Board members who generously share their resources actively contribute to the association/nonprofit's success by extending its reach and introducing potential members, donors, sponsors or strategic partners.
Strategic Direction
A majority of women around the table said that an effective board member provides ongoing strategic direction to help improve the organizations' stature. This may include business improvements, suggestions to impact the bottom line or viable connections to profitable alliances and partnerships. A board member's outside perspective is definitely one of his/her most valuable assets.
Communication and Participation
There are so many communications options both in person and virtual, for a board to convene, yet everyone agreed that nothing replaces in person communication. It is best to outline what's required of board members in terms of in person vs. virtual meetings attended in the by laws.
Looking for more information? The following books are excellent resources:
What Makes High-Performing Boards: Effective Governance Practices in Member-serving Associations by B.Gazley and A. Bowers
Governance as Leadership: Reframing the Work on Nonprofit Boards by R.P. Chaite and B.E. Taylor