© 2012. Not to be distributed or reproduced without the express permission of BoardSource.

Creating a High Performing Board

© 2012. Not to be distributed or reproduced without the express permission of BoardSource.

1. Determine the organization’s mission and purpose.

2. Select the chief executive.3. Provide proper financial oversight.4. Ensure adequate resources.5. Ensure legal and ethical integrity

and maintain accountability

Ten Basic Board Responsibilities

Ensure effective organizational planning.

7. Recruit and orient new board members and assess board performance.

8. Enhance the organization’s public standing.

9. Determine, monitor, and strengthen the organization’s programs and services.

10.Support the chief executive and asses his/her

Responsibilities of Boards

Agenda

I. Board/Staff Partnership

• Ingredients of an Effective Partnership

• Governance v. Management

• Leadership Transitions

II. Strategic Board Building

III. Diversity Matters

To Increase our understanding of the following Characteristics of an Effective Board/Staff

Partnership The Difference Between Governance &

Management Considerations for Leadership Transitions How to Strategically Build the Board Why Diversity and Inclusion Matter

Learning Objectives

I: Board/Staff Partnership

• Elements of an Effective Partnership

• Governance vs. Management

• Leadership Transitions

The chief executive actively involves the board in leading the organization.

Choices:1. Strongly disagree2. Disagree3. Agree4. Strongly Agree

Poll: What do you think?

Putting the Partnership in Perspective

In today’s world, teamwork is key to achieving success

Achievement of the organization’s mission depends on the board-staff partnership

Key Elements of Effective Board/Staff Partnerships

1. Make Mission Matter

2. Know the Organization

3. Inform and

Communicate

4. Assess Performance

Establish expectations:Communication

stylesFrequency of

reporting and meetings

Functions where the chair is expected to participate

Shared and individual priorities

Board Chair as Partner

Governance vs. Management

• Develop a strategic plan and adhere to it.• Link the current agenda to the strategic

agenda.• Develop clear expectations and a plan of

action for the board of directors.• Prepare materials and structure meetings to

direct the board's attention to matters of policy and strategy.

• Develop and use a consent agenda.• Focus on policy objectives, organizational

strategy, and the relationship between budgets and priorities

• Assess the chief executive.

Govern More and Manage Less

Plan for Transitions

Leadership transitions are the responsibility of the board

Every CEO leaves sooner or later

Succession planning in the nonprofit sector does not equal internal grooming

13

II: Strategic Board Building

You have the right people to effectively oversee and govern the

organization.

Choices:1. Strongly agree2. Agree3. Disagree4. Strongly Disagree

Poll: What is your opinion?

Building Your Board

Steps 1, 2 and 3- Identify, Cultivate, Recruit

Board Needs 1 2 3 4 5 6 A B C D E F

Age

19-34

35-50

51+

Race/Ethnicity/Disability

African American/Black

Asian/Pacific Islander

Caucasian

Hispanic/Latino

Community Connections

Religious organizations

Corporate

Media

Political

Areas of Expertise

Financial

Fundraising

Marketing

Program focus

Current Members Prospective

Members

S A M P L E

Step 4: Orient

To the organization:

History ProgramsPressing issuesFinancesFacilitiesStructure

(organization chart)

To the board: Committee

structureBoard member

responsibilitiesList of board

members and key staff

BylawsRecent minutes

5 and 6: Involve & Educate

Involve them in committees or task forces.

Hold everyone accountable. Promote exploration of issues

facing the organization. Hold retreats and encourage board

development activities by sending board members to seminars and workshops.

Step 7: Evaluate

Steps 8 and 9:Rotate & Celebrate!!

ROTATE and CELEBRATE!

Establish term limits (and enforce them!).

Do not automatically re-elect for an additional term; consider board needs.

Develop new leadership.Appreciate individual contributions

– of the board, organization, and community.

III: Diversity Matters

Nonprofit Board Diversity Statistics

Diversity vs. Inclusion

Action Steps

Board Composition

Board Composition

Source: BoardSource Nonprofit Governance Index 2010

Under 30, 2%

30-39, 12%

40-49, 29%50-64, 43%

Over 65, 14%

In order to function at the highest level, nonprofit boards need to ensure that their members represent diverse points of view.

It is not enough however, to “diversify” a board; boards must be inclusive in their policies and practices, thereby creating a culture that encourages and nurtures diverse expression.

BoardSource Hypothesis

Diversity v Inclusion

Diversity (noun) describes a state of being, i.e. consisting of a variety.

Inclusion (from the verb include) is about behavior and action. Just because your board is diverse, does not mean that the board fosters inclusiveness.

Benefits of Valuing Diversity

Why Diversity Can Backfire…

“…diversity leads to more innovation, more outside-the-box thinking and better governance… To unlock the benefits…boards must learn to work with colleagues who were selected not because they fit in—but because they don't.

Excerpt from “Why Diversity Can Backfire on Company Boards” by Jean-Francois Manzoni, Paul Strebel, and Jean-Louis Barsoux, Wall Street Journal (January 25, 2010).

Action Steps

Assess culture & identify barriers to inclusion

Develop detailed plan of action

Commit to diversity and inclusion as an ongoing initiative

Implement policies and procedures

Assign Roles & Responsibilities

Board Chair and Chief Executive As partners in leadership

Governance Committee As conscience of the board

The Board Collectively As teammates with shared purpose,

authority, and accountability

Avoid Tokenism

2010 Governance IndexHas your organization or board done the following? Yes No

Incorporated diversity into the organization’s core values

62.9% 37.1%

Modified organizational policies and procedures to be more inclusive

55.8% 44.2%

Conducted diversity training for board members 12.1% 87.9%

Developed a detailed plan of action for the board to become inclusive

14.8% 85.2%

Resources

The Board Building Cycle, Nine Steps to Finding, Recruiting, and Engaging Nonprofit Board Members: Berit M. Lakey Ph. D.

The Governance Committee By: Berit M. Lakey Ph. D., Sandra R. Hughes Ph.D., Outi Flynn

Building the Governance Partnership: The Chief Executive's Guide to Getting the Best from the Board By: Kathleen A. McGinnis, Sherrill K. Williams

Vital Voices: Lessons Learned from Board Members of Color By: Vernetta L. Walker, Deborah J. Davidson

Diversity in Action E-Toolkit

See you next week!

Let us know how

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you and your board!

BoardSource 750 9th St NW Ste 650 Washington, DC 20001

Phone: 202-349-2500 Fax: 202-349-2599 www.boardsource.org

Presenter

Vernetta Walker, JDVice PresidentConsulting and TrainingBoardSource