effective board leadership
DESCRIPTION
Presented by: BoardSource Building Effective Nonprofit Boards. Effective Board Leadership. Vernetta L. Walker, J.D. Relevant Experience: Senior Governance Consultant and Director of Consulting, BoardSource Associate General Counsel, State Nonprofit Association Foundation Program Officer - PowerPoint PPT PresentationTRANSCRIPT
Effective Board Leadership
Presented by:BoardSource
Building Effective Nonprofit Boards
Vernetta L. Walker, J.D.Relevant Experience:Senior Governance Consultant and
Director of Consulting, BoardSourceAssociate General Counsel, State
Nonprofit AssociationFoundation Program OfficerPracticing AttorneyBoard Member
BoardSource Enables organizations to fulfill their
missions by helping them build effective boards
Resource for practical information, tools, and best practices, as well as training and leadership development for board members of nonprofit organizations
Formerly National Center for Nonprofit Boards
What We’ll Cover TodayWhat the board is responsible for and
how to accomplish itThe three “duties” of board membersPractices to become strategically
focused and engaged as a board
Agenda
I. Board Governance RolesA. Setting Organizational DirectionB. Ensuring Necessary ResourcesC. Providing Oversight
II. Individual DutiesIII. Leading Trends & Exceptional
Practices
What is Governance?
1. Bright people using common sense and doing what comes naturally
2. Steering, controlling, and influencing from a position of authority
3. Playing a leading role in continuously answering: (1) Where are we headed? (2) What should we be now and in the near future? (3) How well is our organization performing?
4. All of the above5. 2 & 3 above
I. Board Governance RolesA. Setting Organizational Direction
B. Ensuring Necessary Resources
C. Providing Oversight
A. Setting Organizational DirectionDeveloping and maintaining a focus on:
Mission Vision Values
Strategic Thinking and Planning
Planning Questions
1. What goals must we achieve, and what strategies should we choose in order to meet these needs?
2. How are the next five years likely to be different?
3. What changes do we need to make now to adjust?
B. Ensuring Necessary Resources
Identify resources needed: 1. Capable staff
leadership 2. Adequate financial
resources3. Positive public
image
Determine how board members will participate in resource development.
Board Development Trends1. From seeking comrades to finding
colleagues2. From constituting boards in large
numbers to right-sizing to ensure effectiveness
3. From recruiting based on personal relationships to recruiting selectively based on skills and influence as they relate to strategic focus and direction
4. Informal orientation to formal orientation5. From no term limits to term limits
Board Development
Identify
Cultivate
Recruit
Orient
Involve
Educate
Rotate
EvaluateCelebrate
The Board’s Role in FundraisingDefine the mission and plan for
the futureSee that there is a development
plan and monitor its progressCreate development policies Participate
C. Providing Oversight
Financial -- establish budget guidelines and oversee financial management; risk management
Program -- plan, monitor and evaluate Fiduciary oversight -- compliance,
values, conflicts of interest, transparency and accountability
Financial Policies and Practices
Establish budget guidelinesOversee financial management
Ensure that the necessary financial policies are in place
On a regular basis, review financial statements, understand what they say, and ask questions to ensure accurate understanding
Review audit report and take action as needed Page 11
Using Dashboards
Income Expenses Net Income$0
$100,000
$200,000
$300,000
$400,000
$500,000
Operating Revenue & Expense Budget vs Actual
Year to Date February 28, 2007
BudgetActual
Oversight - What the Board Should Expect from the Head of School:
Strategic information that will assist the board in its governance roles
Proposals for policy changes Identification of issues that need board
attention No surprises
What the Head of School Should Expect from the Board:
Timely and clear decisions Board members who are informed and
prepared Mutual accountability No micro-managing A board that speaks with one voice No surprises
II. Individual Board Member Duties
Duty of Care - use the same care that an ordinarily prudent volunteer would exercise in a like position
Duty of Loyalty – undivided allegiance when making decisions
Duty of Obedience – follow the law and your mission
III. Exceptional Practices
The Source: Twelve Principles of GovernanceThat Power Exceptional Boards
1. Constructive Partnership
2. Mission Driven3. Strategic Thinking4. Culture of Inquiry5. Independent-
Mindedness
5. Ethos of Transparency
7. Compliance with Integrity
8. Sustaining Resources
9. Results-Oriented10. Intentional Board
Practices11. Continuous
Learning12. Revitalization
INTENTIONAL BOARD PRACTICESExceptional boards intentionally structure themselves to fulfill essential governance duties and to support organizational priorities.STRUCTURE + MEETINGS Board structure and Size Committees and task forces Agendas
Board Meeting Trends
Receiving and reviewing vast amounts of information to receiving targeted and strategic information related to key issues
Preparing agendas which reflect past activities to preparing highly structured agendas to address key organizational strategies
Meeting on a monthly basis to focus on key strategic issues to meeting less often and on a more ad-hoc basis
Effective Board Meetings Agendas focus on strategic issues
rather than on administrative detail or listening to reports Consent agendas covering routine issues Background information distributed in
advance Regular use of board meeting evaluations
Clearly stated objectives for each meeting
Regular use of executive sessions (unless prohibited by state “sunshine” laws)
Effective Board Meetings
Board members are prepared Information is presented clearlyBoard members have
opportunities for asking questions and discussing issues on the agenda
The chair keeps the board on task
Decisions are made and understood
Board Meeting MaterialsWhat, how much, why, when Minutes
Content and formatReports
From committees, CEOBackground materials for
discussionEducational materials
Between Board MeetingsUse of technology for information
dissemination, discussion, and routine decisions
Written guidelines for how and when to use e-mail for board business
Seek clarification or additional information as needed before the board meeting
Governance Structures TrendsMaking decisions as a committee of
the whole to organizing effective committee structures to recommend policy to the board
Focus on standing committees to increasing use of task forces and ad hoc committees
Prerequisites for Effective Committees and Task Forces
Need a clear charter: What is each group responsible for achieving? By what time?
Understand basic role: Advisory to the board or carrying out an organizational task? Accountable to whom?
Report appropriately to the board: in writing, stating purpose of the report.
Other Ideas to ConsiderExecutive Committee: Severely
limit its use or eliminateEstablish a Governance Committee
Year-round attention to board developmentTry a zero-based committee
structure Periodically consider the organization’s
strategic needs and adjust committee and task force structure accordingly
What Will You Do Differently?
Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has.”
Margaret Mead
BoardSource1828 L Street, NW
Suite 900Washington, DC 20036-5104
Phone (202) 452-6262Web site: www.boardsource.org