ESC - June Executive Insights    
 

July 2010

Giving Priority to Finding
the Right Board Members

     
By ESC Consultant Charles Lindahl, former Associate Vice Chancellor, Academic Affairs, California State University system

It is often said that the three most important responsibilities of a nonprofit board of directors are to (1) articulate a clear mission, (2) ensure adequate resources to achieve the mission, and (3) hire and evaluate an executive director who leads the organization in pursuit of the mission.  As important as these responsibilities are, I suggest there is a responsibility that is fundamental to the ability to carry out those three, and that is to choose effective board members.  The board is the foundation on which the organization rests, and the organization is only as sound as its foundation.

The quality of the board of directors is directly related to the effectiveness of a nonprofit organization.  A mediocre board is unlikely to keep the mission clear and on target.  It is probably not closely monitoring the finances and making sure needed resources are available.  It is also less inclined to ensure there is an effective chief executive.  In the absence of a good board, the board may be only approving what is brought to it by the staff.

Importance of Maintaining a Strong Board

The importance of identifying and enlisting strong board members may seem obvious but it is often addressed erratically and superficially. One reason may be that it is easy to assume that this responsibility is the sole province of the Nominating/Governance or Executive Committee.  Another reason is that the importance of strong board members is not fully appreciated and is often considered a given. When it is included in lists of board responsibilities it is frequently at the bottom and described primarily in terms of the importance of a “balanced” board composition.  If included on a board meeting agenda, it is often found near the end.

It is not enough to raise this critical issue occasionally and delegate most responsibility to committees.  This task merits the same systematic, focused, consistent attention devoted to any other top priority.  Dealing with such immediate needs as financial instability, program issues, and staff problems is certainly important, but the capacity to deal with them effectively is heavily dependent on the quality of the board.   Therefore, ensuring board capability should be considered a basic obligation of a board and chief executive.

Board unity and morale also suffer when the composition of a board is uneven.  Resentment can develop when stronger board members and the chief executive realize they are carrying a disproportionate share of the load.  This can compound the problem because they may become less likely to recommend their talented friends and associates for board membership, and prospective members may be hesitant to join a troubled board.

Assigning High Priority to Board Building

To make finding and maintaining strong board members a high priority, it must be kept in the spotlight.  It should be raised regularly by the board chair and included periodically – and prominently – on the board agenda.  Continuously looking for new board members builds a cushion for unanticipated departures and provides opportunities to involve prospects in the organization prior to their nomination. When a board maintains its size near the maximum of board members allowed, it is less likely to make hurried, expedient selections when vacancies occur.

Engaging the Full Board in Board Building

It takes a concerted effort to get broad, ongoing participation in building and sustaining a high quality board.  Keeping this issue before the board encourages and empowers board members to accept responsibility for identifying and recommending prospective board members.
 
Although a committee should be tasked with aspects of this work, many opportunities are lost if they are the only ones involved. Moreover, when the full board does not participate in board building, more responsibility falls to the chair and/or chief executive who may then more easily be suspected of “packing” the board with his/her supporters.

An effective way to urge the board to actively seek strong prospective board members and help them be appropriately selective in whom they recommend is to involve the full board in determining the qualities of ideal board members.  Although it is important to examine the board’s composition with respect to such elements as skills, gender, ethnicity, socioeconomic status, and geography, passion for the mission of the organization and chemistry with the board and the organization are equally important.  Absent such personal qualities as judgment, dedication, energy, and integrity, the full value of the needed skills and diversity may not be realized.

Revisiting this subject regularly should yield more promising candidates and help reduce the number of problem nominees.  It can also raise and reaffirm the organization’s expectations of current board members – and their expectations of themselves. 

The Payoff

It is sobering to think of our society without the essential services provided by nonprofit organizations.  Devoting systematic, focused effort, we can assemble powerful groups of compassionate, selfless, visionary, caring individuals who will serve as truly remarkable boards for these vital organizations. 

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To learn about the many ways ESC can help you with board development or other nonprofit management needs, contact Associate Director Jesus Romero by email or call 213.613.9103, x11.

 
© 2010 Executive Service Corps, Southern California. All rights reserved. www.escsc.org


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