This information is provided for illustration and education purposes only. Wells Fargo & Company and its affiliates do not provide legal advice. Please.

This information is provided for illustration and education purposes only. Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared.

Board Member Engagement – The Missing Piece of the PuzzleUnderstanding and improving board engagement through Clarity, Connections, and Commitment.

Dan HarrisWells Fargo Philanthropic ServicesEmail: [email protected]: 720-947-6775

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Board Members’ Vital Role

“If an institution is having trouble raising money, don’t look to the development office; don’t look to the chief executive; first check out the board of Trustees.”

- Fisher Howe, The Board Member’s Guide to Fundraising, 1991

“Board leadership and participation are essential to successful fundraising. Raising money is also a great deal of work and a true partnership between board members and key staff.”

- G. Worth George, Fearless Fundraising for Nonprofit Boards, 2003

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Characters You Might Meet on a Board

Avoidus Riski Allis Welli Divertus Attenti Heidi Agenda Spaci Cadetus Lookus Smarti Bendi Windi Pompus Meani

Buy In, Saving Your Good Idea from Getting Shot Down, by John P. Kotter and Lorne A. Whitehead.

4

Defining Strong Engagement?

Engaged Directors…

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Defining Strong Engagement?

Engaged Directors…1. Are eager to participate 2. Rarely miss meetings, show up prepared, are respectful3. Take ownership4. Are reliable & responsible5. Know everyone’s name6. Volunteer beyond the board7. Happily share their time and talent8. Contribute at a “significant” level9. Drink the Kool-Aid10. Share the Kool-Aid11. Actively champion our cause

by telling everyone about us by making introductions by participating with fundraisers…

6

ENGAGEMENT:Happiness /Confidence/Satisfaction / Optimism

Positive

NegativeProspect

DOES NOTBecome

Board Member

Departure path

Retention path

Honeymoon!

Time

The Board Member Experience

Recruiting Phase

Orientation Champion!

Get the Work Done! Phase

7

Relationship Building Takes Time

How to measure the connection

Level 1: Awareness

Level 2: Uniqueness

Level 3: Acceptance

Level 4: AffiliationLevel 5: Champion

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Benefits for the Board of Strong Engagement?

9

Benefits for the Board of Strong Engagement?

1. Efficiency2. Improved governance3. Help more clients4. More friendly environment5. Raise more money6. Fewer disagreements?

• Or, more respectful disagreements?7. Get more done8. Less “work”9. Have more fun

10

Why Become a Board Member?

11

Why Become a Board Member?

1. Passion for the Cause2. To be part of something bigger than

themselves3. The Seven Faces of Philanthropy*4. Asked by someone they respect5. Self-esteem6. Feeling of Purpose7. Social Acceptance / Social Influence8. Social Currency / Bragging rights9. Resume-padding10.Business development11.?

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Why Become a Board Member?

1. 26%: Communitarians

2. 21%: The Devout

3. 15%: Investors

4. 11%: Socialites

5. 10%: Repayers

6. 9%: Altruists

7. 8%: Dynasts*The Seven Faces of Philanthropy

- Prince, Russ A. and Karen M. File

Self Actualization

Self Esteem

Love / Belonging

Safety

Physiological

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The Seven Faces of Philanthropy

*The Seven Faces of Philanthropy

- Prince, Russ A. and Karen M. File, 1994

Communitarians give because of their sense of belonging to a social community. They support cultural, human service, religious, and educational organizations.

The Devout do good because it is God’s will. Giving is a moral obligation.

Investors see philanthropy as good business, and are motivated by personal tax and estate benefits. They look for organizations that are business-like and are well-run.

Socialites do good work or give because it is fun. They are often members of a social class or group for which fundraising includes some form of socializing and entertainment.

Altruists focus on social causes and giving that provide a sense of purpose and personal fulfillment. They believe that giving promotes spiritual growth (in this case, not religious). Giving is a moral imperative and everyone’s responsibility. They see themselves as true philanthropists, unfettered and untainted by business considerations or personal gain.

Repayers give because of what they have received in life, which could involve gratitude for medical or educational benefits that they have received. They insist on cost-effectiveness and want nonprofit organizations to focus on client needs.

Dynasts see philanthropy as a family tradition. Their giving results from childhood socialization by parents or other relatives as to the importance of philanthropy. Philanthropy is part of their self-concept and their rewards from giving include a positive self-identity and strengthened family values.

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Why Would a Board Member Choose To Be Highly Engaged?

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Why Would a Board Member Choose To Be Highly Engaged?

1. Passion for the Cause2. Clarity on Mission / Need3. Commitment to the Cause4. Commitment to Fellow Board Members5. Commitment to Staff Members6. Commitment to Clients / Beneficiaries7. Desire to accomplish more, more quickly8. Sense of responsibility9. Sense of obligation10.Networking / Business Opportunities?

WIIFM?

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Why Leave a Board?

1. Term Limits2. Higher priorities / Lack of time3. Competing Interests / Conflict of Interest

Other Reasons?

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Why Leave a Board?

1. Term Limits2. Higher priorities / Lack of time3. Competing Interests / Conflict of Interest4. Loss of feeling of contribution5. Loss of belief that opinions count6. Loss of optimism / loss of purpose7. Loss of clarity (on role, mission)8. Loss of shared values9. Loss of friends / fun10.Lack of appreciation for involvement11.Loss of commitment 12.Negativity / Disrespect / Dysfunction

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Causes of Board Dysfunction?

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Causes of Board Dysfunction?

1. Loss of Mutual Respect / Disrespect2. Competing values*3. Competing interests*4. Self-Interest*5. Loss of shared commitment6. Loss of connection within the group7. Personality conflicts8. Founder’s Syndrome9. ?

*Fiduciary Duties:CareLoyaltyObedience

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Care Good FaithBusiness Judgment

Rule

Pay Attention

Loyalty No HarmNo

Personal Benefit

Interest of Organizatio

n First

Obedience

Follow Applicable

Laws

Carryout Nonprofit Purpose

Don’t go Beyond Scope

Fiduciary Duties

21200906092 TPB-AB21039 (09/09)

Many Factors Influence Engagement…

Engagement

Time Required

Size of Board

Board Diversity

Term Limits

Recruiting/ Orientation

Meeting Structure

Board Leadership

Clarity on Mission /Vision

Sense of Shared Values

Clarity on Role

Sense of Commitment

Public Recognition

Networking Opportunitie

s

Stru

ctur

alCom

munication

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Structural Influences

Time Required?(frequency, duration of board and committee meetings)

Size of Board?

Positive Influences vs. Negative?

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Diversity: Influence on Engagement?

Relationships: Influence? Networking?

Areas of Expertise: Finance, Marketing, etc.

GenderEthnicityAgeCommittee

Positive Influences vs. Negative?

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Term Limits: Influence on Engagement?

200906092 TPB-AB21039 (09/09)

1. Positives?• New people, new ideas, new connections…

• New friends, new commitments• Solid sense of time commitment• Planned opportunity to step away• Create adaptability within the organization

2. Negatives?• Creates a group of insiders

• “This is the way we’ve always done it…”• Difficult for outsiders to enter• Sometimes, complexity of organization

means “getting up to speed” takes time• Required departure of good partners

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The Five Most Important Questions You Will Ever Ask About Your Organization

- Peter Drucker (with others)

Step 1: Debate Your Mission

What is our

mission?

Who is our

customer?

What does our customer

value?

What are our

results?

What is our plan

?

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The Points of Clarity

1. Who Do We Serve?

2. What Is Our Core Strength?

3. What Is Our Core Score?

4. What Actions Can We Take Today?

The One Thing You Need to Know …About Great Managing, Great Leading, and Sustained Individual Success

- Marcus Buckingham

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Through the lens of your mission…

What would this organization be doing, that it’s not doing already,

if money were no object? - Pamela Jones Davidson

What if we disappeared tonight?What will the world / the community /

individuals regret having lost? - Tom Ahern

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Contribution to Mission LOW HIGH

LOW Use of

Resources

I s this really

a good fit for us?

Keep or Expand these

Programs

HIGH Use of

Resources

Reconfigure or Eliminate

these Programs?

CORE Can we do it

differently with fewer or different

resources?

Source: Kate Barr, Nonprofits Assistance Fund

Mission in Mind: Program Review

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Step 2: Define Your Values

Empowerment Personal Responsibility

Compassion

OptimismHappinessHealth

Do Your Personal Values Align with those of the Organization?

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1. Acceptance2. Accountability3. Achievement4. Adventure 5. Affordability6. Ambition7. Animal rights8. Appearance9. Approval10. Artistry11. Authentic12. Autonomy13. Balance14. Beauty 15. Belonging16. Boldness17. Career 18. Challenge19. Charm20. Clarity21. Collaboration22. Commitment23. Communication24. Community25. Compassion26. Competence27. Completion28. Confidence29. Conformity30. Connection31. Connectivity32. Consistency33. Conflict Resolution34. Control35. Courage

36. Creativity37. Culture38. Curiosity39. Dignity40. Diligence41. Determination42. Education43. Empowerment44. Enjoyment45. Environment46. Ethical47. Excellence48. Expertise49. Expression50. Fairness51. Faith52. Family53. Financial Security54. Forgiveness55. Freedom (personal?)56. Friendship57. Frugality58. Fun59. Future60. Generosity61. Growth (personal?)62. Happiness63. Harmony64. Healing65. Health (physical /

emotional)66. Helping67. Honesty68. Honor69. Hope

70. Humor71. Imagination72. Independence73. Influence74. Ingenuity75. Innocence76. Integrity77. Joy78. Knowledge79. Laughter80. Leadership81. Learning82. Love83. Loyalty84. Making a Difference85. Mobility86. Moderation87. Modest88. Objective89. Open Mindedness90. Opportunity91. Optimism92. Originality93. Partnership94. Passion95. Peace96. Persistence97. Play98. Pleasure99. Power100. Privacy101. Prosperity102. Purity103. Rebellion104. Recognition

105. Relaxation106. Respect107. Responsibility108. Safety109. Security110. Service111. Simplicity112. Sincerity 113. Social Responsibility114. Solitude115. Spirituality116. Spontaneity117. Stability118. Status119. Stewardship120. Strength121. Surprise122. Support123. Sustainability124. Teaching125. Thoughtfulness126. Thought leadership127. Tolerance128. Tradition129. Transformation130. Trust131. Uniqueness 132. Vision133. Wealth134. Wisdom135. Winning136. Wholesome137. Work-Life Balance138. __________________139. __________________

Values: Organizationally, Personally?

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For more information on planning with values, see Dennis Jaffe’s The Values Edge (SM) card system: www.dennisjaffe.com. Using a deck of 56 cards, each with a separate value, The Values Edge (SM) system allows a user to sort and prioritize their values.

Values Past, Present, Future?

32

What are “Governance Values?”

200906092 TPB-AB21039 (09/09)

1. Commitment to the Fiduciary Duties• Care• Loyalty• Obedience

2. Respect for differing opinions3. Mutual respect among staff and board4. Board – Staff Partnership5. Healthy debate

• 100% agreement is not required

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Stories show us how to behave

Available Choices

Available Time

Stories Have Amazing Power

Stories:

• Help us make decisions

• Help us define our own identities

• Help us make sense of the world

• Carry information

• Aide Memory

• Communicate values

• Convey emotion

• Inspire / Motivate

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Step 3: Share Your Stories

Primary Story for Board Members?

Why am I on this board?

Getting to the emotional core:

Ask: Why is this important? (3 times)

(Emotion sharing: social glue, maintaining and strengthening relationships)

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1. Who are we? (What makes us unique?)

2. Why were we founded?

3. What is our vision?

4. What are our accomplishments?

5. I can guess what you’re thinking…

Step 3: Share Your Stories

Also: Why am I optimistic for the future of this organization?

36200906092 TPB-AB21039 (09/09)

Storytelling ExerciseBoard Members:

Why am I on this board?Why am I optimistic?

Staff Members:

Why do I do what I do?What do we do? Why do we do it?

Students:

Why am I studying ____?

Why? Why? Why?

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Step 3: Share Your Stories

Where to share?

• Recruiting Process

• Orientations

• Board Meetings

• Committee Meetings

• Staff Meetings

• Fundraisers (obviously)

• Story banking?

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Step 4: Build Board Connections:

With Each Other & With Staff

a)Recruitingi. Everyone on the Recruiting Committeeii. Clarity on Expectationsiii. Diversity

b)Orientationsi. Job Descriptions / Committee Chartersii. Current Members Attendiii. Mentorsiv. Significant others /spouses involved

(at some level)

The Service Club Model?

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c) Make sure they have something meaningful to do

d)Networking at Board MeetingsAll work and no play…

e)Small group meals

f) Leadership tracks

Step 4: Build Board Connections:

…With Each Other & With Staff

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Step 4: Build Board Connections:

g)“Board Member Emeritus” designations

h)Open Board Meetings / Transparency

i) Committees as “farm teams”

j) Involving significant others / spouses / Family

…With Each Other & With Staff

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Step 4: Build Connections:

k)Hands-on volunteering

l) Opportunities for Small Group Interaction

Other ideas?

Part 2: Between Board and Clients

42

Strong Engagement Review

Essential Elements:Passion for the MissionClarity of MissionClarity of RoleOptimism for the Future of OrgCommitment to BoardCommitment to StaffCommitment to ClientsSense of AccomplishmentSense of PurposeSense of Shared ValuesSense that Opinions CountSense of ResponsibilityObligationSupport of FamilyFriendsFunNetworking Opportunities

Activities:1: Debate Your Mission 2: Define or Clarify Your Values3: Share Your Stories4(a): Build Connections: Board and Staff• Recruiting process enhancements• Orientations• Networking• Small group meals• Leadership tracks• Emeritus designations• Open board meetings• Committees as farm teams• Involving significant others / family4(b): Build Connections: Board and Clients• Hands-on volunteering• Small group interaction

Clarity + Personal Connections lead to CommitmentCommitment leads to Engagement

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5. Accomplish Mission

4. Connect Board to Each Other, to Staff

& to Clients

3. Share Your Stories

2. Define Your Values

1. Debate Your Mission

Roadmap to Board Member Engagement

Five QuestionsWhat if We Disappeared?Core Strength? Core Score?

Clarity, Connections, Commitment

Recruiting, orientations, networking, leadership tracks, diversity, public recognition, involving family…

Why am I here?Why am I optimistic?

Values ExerciseStrong Governance

44200906092 TPB-AB21039 (09/09)

Four Simple Steps to Strong Board EngagementUnderstanding and improving board engagement through Clarity, Connections, and Commitment Highly engaged board members have a number of things in common: Passion for their cause Clarity on their organization’s mission and vision Commitment to their cause Commitment to their fellow board members, staff members, and clients /

beneficiaries 1. Debate Your Mission

See 2-Page Handout

45200906092 TPB-AB21039 (09/09)

Many Factors Influence Engagement…

Engagement

Time Required

Size of Board

Board Diversity

Term Limits

Recruiting/ Orientation

Meeting Structure

Board Leadership

Clarity on Mission /Vision

Sense of Shared Values

Clarity on Role

Sense of Commitment

Public Recognition

Networking Opportunitie

s

Stru

ctur

alCom

munication

46

Board Member EngagementClarity, Connections, Commitment “mind map”

Self ActualizationSelf Esteem

Love / BelongingSafety

Physiological

Happiness /Confidence/Satisfaction/Optimism

+

-Prospect Declines

Departure path

Retention path

Honeym

oon! Time

Recruiting

Ori

enta

tion

Champion?

Affiliation

WHY JOIN?WHY ENGAGE?

WHY LEAVE?Causes of Dysfunction?

Mission!Acco

mplish

Engagement

To clientsTo staff, &

To each other,

Five Questions?What if we

disappeared?Program Review?

Why am I on this board?Why am I optimistic?

Share stories & values: 1.) Recruiting process 2.) Orientations 3.) Board meetings 4.) Committee meetings 5.) Staff meetings

The “Service Club” Modela) Recruiting: everyone on committee /

clarity on expectations / diversityb) Orientations: job descriptions / committee

charters / mentors / family involvedc) Networkingd) Small group mealse) Leadership tracksf) “Emeritus” designationg) Hands-on Volunteering (clients)h) Small group interaction (clients)

Top three values

Also:• Open board meetings• Committees as farm

teams• Involving family• Diversity: relationships,

expertise, gender, ethnicity, age, committee

What’s in it

for me?

Debate Mission

Share Stories

Define Values

Build Strong Connections

Past vs. Future?

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