The document summarizes a presentation on building an exceptional nonprofit board. It discusses principles of good governance, finding and engaging the right board members, and ensuring boards are effective. Effective boards are aligned with the organization's mission, hold the CEO and organization accountable, and engage in practices like self-assessment, term limits, and focusing on competencies like understanding context and facilitating board learning. Building an exceptional board requires the right recruitment, onboarding, engagement, and evaluation processes.
How to Build an Exceptional Board: Recruitment, Orientation, Training and Evaluation
1. Texas Nonprofit Summit
“Building an Exceptional Board”
CYNTHIA B. NUNN, PRESIDENT
CENTER FOR NONPROFIT MANAGEMENT
T H U R S D AY, S E P T E M B E R 2 0 , 2 0 1 2 , 1 : 3 0 – 3 : 0 0 P. M .
cnmdallas.org | Main: 214.826.3470
3. Principles of Good Governance and
Changing Times Ethical Practice (Independent Sector ‘07)
Findings: Core strengths
Ineffective Board Alignment around mission
Oversight
No aligned with mission, say “no “
Deferring to CEO; CEO
setting policy and Positioned to capture new opportunities
direction
when timing is right
Not asking for
information to make
Accountability and transparency
decisions Legal and public disclosure
Lost sight of its role as Processes and structures to
protector of
organization and inform, direct, manage and monitor
mission activities toward objectives
Asleep at the wheel
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4. Finding the Looking for Individuals Who…
Right Board
Members
Understand the benefits of service
Most individuals serving
need no justification for Know their skills are needed
being a member; they
know perfectly well what Have ability to affect change
they are doing and why
they want to continue Want to have an impact
doing it.
Enjoy collaborating with interesting
However, Others too shy people with same interests
to join or need someone
else to tell them why it Feel good by doing good
makes sense.
Want to give back
(Board Source 2010)
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5. Problem Statement:
How Do You Find the Right Board Members?
Focused and targeted plan
Dedicated Governance Committee
Application process
Serious cultivation and information sharing
Willing body +
Genuine interest
Diverse representation
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6. Problem Statement:
Where Do You Find the Right Board Members?
Professional Networks
Board Committees
Agency Volunteers
Leadership Programs
Chambers of Commerce
Other Board Members
Civic, Government and Business Leaders
Corporate Community Engagement
Officers
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7. Starting on the Right Foot
On-Boarding Process Getting Engaged
Orientations that Work Keep them informed;
Board manuals with stimulate participation
useful information Decision Information
Monitoring Information
No overwhelming data
Incidental Information
Introduction to staff and
A place to work
board leadership
Committees that matter
Committees with effective
structures
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8. Problem Statement: How Do You Keep Them
Engaged and Moving in the Right Direction?
Who’s Guiding Whom? What Are They Doing?
Leading leaders Understanding the
The art of influence board’s role
Clearly defined roles for Legal & Fiduciary oversight
board leader and CEO Fundraising strategy
Building consensus
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9. Building Great Handing Challenging People
Relationships: Ensure all opinions on issues are welcome
Nobody outside a board can Stop negative personal comments or
ever fully understand its
complexities and its insinuations; steer back to issues
involvements with its executive
and staff. Inherent in its very Hold private discussion with disturbing
nature are several seeming
contradictions; delicate balances members and find cause for the behavior;
must constantly be achieved if it
is to succeed. Boards might
explain effects of behavior
seem unworkable, if it were not
for the fact that they are at
Give disgruntled member a meaningful
work everywhere. assignment and expect results
-- Cyril Houle in Governing
Boards: Their Nature and If behavior continues, ask the member to
Nurture.
resign or make the situation a full board
"Board members are part-time
amateurs overseeing the work issue and discuss removal decision
of full-time
professionals, which, by
definition, takes a certain
amount of hubris."
--Richard Chait
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10. Engage in Self Assessment
Measuring Too comprehensive for every year
Impact Useful just before strategic planning or
52% of survey major campaigns
respondents indicated
that their boards formally Great tool just after a crisis
assess their own
performance. Invigorating when complacency has set in
52% of boards engaged A step back from routine governance; time
in self-assessment during to reflect on how well the board meets its
the last 12 months
responsibilities
Discovers areas for improvement; platform
for setting and attaining priorities
2012 BoardSource
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11. Term Limits
Time to Move On
Makes diversity easier
Not the right reason to Built-in balance of continuity and turnover
be a member Better rotation of committee assignments
Infusion of fresh ideas and perspectives
Objectives not in
Brings awareness of changing group dynamics
alignment
Advantages:
To make room for Less stagnation
enthusiasm and the Less concentration of power within a small group
desire to learn Less intimidation of occasional new members
Less tiredness, boredom and loss of commitment
Not just a single
collective – behavior of
individuals members Disadvantages:
attributes to the board Loss of expertise and memory
as a whole (Board Source, More time spent on recruitment
Herman & Renz, 2002
Continue to work on group cohesiveness
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12. Proving it Up!
Evidence supports a positive relationship between board
and organizational effectiveness (BoardSource: Herman and
Renz, 2000)
Practices that result in effectiveness:
Effective governance is a function of the CEOs capacity to facilitate
member’s involvement – use of skills, strengths and community
connections
Success – not perfection – rests with the CEO who facilitates board
operations, task assignments and involvement
Effective organizations have effective boards and effective boards
use more recommended board practices
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14. Proving it Up!
Practices that result in effectiveness:
There appears to be substantial evidence that more effective boards
are differentiated from less effective ones in six distinct areas of
competence –
Understanding and valuing institutional history and context
Building the capacity for board learning
Nurturing the development of the board as a cohesive group
Recognizing the complexities and nuances of issues before them
Respecting and guarding the integrity of the governance process
Envisioning and sharing the future institutional directions
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