“All problems a charity faces have their roots in the board.”
Someone wise once said this to me. Over many years working with boards and senior leadership teams, I’ve increasingly found it to be true. This can present in a number of ways:
- Has the organisation lost a sharp focus on its mission? Almost certainly the board has too.
- Is there ambiguity in the strategic direction of the organisation? The ambiguity likely lurks in the minds of the board members too; or exists because of the board’s failure to address the strategic questions.
- Is the CEO the best person to take the organisation forward? Responsibility for this appointment is one of the biggest tasks a board faces.
- Is the organisational culture unhealthy? Perhaps the board needs to examine how it keeps the executive accountable, or the information it gathers, or its own culture.
There are exceptions of course. All organisations grapple with historic issues and external macro trends that the board can do nothing to change. Nonetheless, the agility and wisdom with which the organisation responds to these issues has its roots in the board.
In the end, the buck stops with the board. A healthy and high-performing board has countless trickle-down benefits. A dysfunctional, low-performing board seeds countless troubles.
The implication is obvious: invest in the board!
Yet, for many for-purpose organisations, investing in the board of trustees is an after-thought. Often for understandable reasons: a good charity/social enterprise/not-for-profit is focused on its mission, so it’s easy to see governance as a rule-keeping exercise rather than the foundations from which a charity grows. As a result, too often…
- board members are recruited on a ‘who do we know?’ basis rather than giving serious thought to getting the best people
- boards aren’t clear on their purpose or confident in their identity
- board members don’t invest the time needed
- board members may not feel like they are making a difference
- board meetings may have little constructive debate
- board meetings are poorly chaired
- the quality of information presented in board papers is poor or lacks relevance
- the board isn’t empowered to hold the executive to account
A good start to investing in your board is to conduct a board effectiveness review. These are fairly common in the corporate world yet for many smaller to medium sized organisations, investing in the board can feel like a luxury rather than a necessity. This is especially so in the not-for-profit sector where the limited remuneration levels often make chairs wary of making additional demands on the board’s time.
A good board effectiveness review will highlight the areas where the board needs to be strengthened and provide a development plan to chart the way forward.
A healthy organisation invests in the board. Ultimately the organisation’s mission reaps the benefits.
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This piece was written by Allan, Founder and Director of Carnelian.
Other posts by Allan include: