Assessing the efficiency and effectiveness of your organization, programs, board, individual board members, and chief executive.

1. BOARD EVALUATION
Bill Taylor, UW Area Community Development Educator

2. References
• The Handbook of Nonprofit Governance by
BoardSource, published by Jossey-Bass, 2010
• The Board Chair Handbook, Second Edition by Mindy
R. Wertheimer, published by BoardSource, 2008
• The Nonprofit Board’s Role in Mission, Planning and
Evaluation, Second Edition by Kay Sprinkel
Grace, MA; Amy McClellan, MNO; John A.
Yankey, Ph.D., 2009
• The Board Building Cycle: Nine Steps to
Finding, Recruiting, and Engaging Nonprofit Board
Members, Second Edition by Berit M. Lakey, published
by BoardSource, 2007

3. References (cont.)
• Evaluating Board Performance by Bob
Cropp, Director, University of Wisconsin Center for
Cooperatives, January 1966 at
http://www.uwcc.wisc.edu/issues/Governance/board.ht
ml
• Board Performance Evaluation; Private Sector
Opinion, Issue 9 by the International Finance
Corporation at http://www.gcgf.org
• Corporate Governance: A Primer on Board Member
Evaluation by Bill Capps and Rob Steinberg of
Jeffer, Mangels, Butler & Mitchell LP at
http://about.bloomberglaw.com/practitionercontributions/corporate-governance-a-primer-onboard-member-evaluation/

4. “Exceptional boards embrace
the qualities of a continuous
learning
organization, evaluating their
own performance and
assessing the value they add
to the organization.”
The Source: Twelve Principles of Governance That Power
Exceptional Boards

5. EXCEPTIONAL BOARDS
• Results-oriented
• Measure overall
efficiency, effectiveness, impact, outcomes
• Can’t afford complacency – keep
discovering ways to increase their value

6. EVALUATION
“Figuring out something’s worth by looking at it
carefully.”
• Assessing the effectiveness and
performance of the organization, its
programs and its services

7. POTENTIAL
• Identify issues pushed aside during normal
business
• Identify strengths & weaknesses affecting
optimal performance
• Keep the board focused, on track
• Allow board chair, members, & chief exec.
to assess growth & progress in their roles

8. POTENTIAL (cont.)
• Reinvigorate individual board members to
take responsibility as part of the team
• Reinforce that the board takes its work
seriously & models good governance

9. WHEN
• Varies with organization
• Suggested:
– Brief evaluation annually
– Extensive every 2-4 years

10. WHO
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Governance committee
Ad hoc committee
Outside consultant
Board chair and the membership in
partnership

11. LEVELS
• Organizational – extent to which the
organization has met its stated goals &
objectives & how well it performed in the
process
• Programmatic – efficiency and outcomes
of various or individual programs
• Board – how well the board as a whole is
functioning and understanding its role

12. LEVELS (cont.)
• Individual Board Member – how well each
member is fulfilling his job description
• Board Chair – is the chair a good leader
and facilitator?
• Chief Executive – how well is the chief
executive fulfilling their job description and
assisting the organization to their annual
goals?

13. LEVELS (cont.)
• Levels can be coordinated, mixed, or only
certain ones performed, according to
needs and structure of the organization

14. ORGANIZATIONAL EVALUATION
• One method – dashboard reporting
– Attached to meeting agenda
– 1-2 pages –
graphs, charts, tables, columns, limited text
• Showing progress toward goals & objectives
– Indicators to monitor:
•
•
•
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Finances
Programs
Quality control
Human resources

15. ORGANIZATIONAL EVALUATION (cont.)
– Benefits of dashboard reports:
•
•
•
•
•
Supports planning
Identifies performance drivers
Prioritizes information
Identifies problems early
Increases efficiency
*ORGANIZATIONAL
EVALUATION EXERCISE
– 15 minutes

16. PROGRAM EVALUATION
• Provides accountability to funders
• Takes subjectivity out of justifying the
organization’s existence
• 2 components
– Outcomes measurement
• How a program is working – its results
– Performance measurement
• The inputs & outputs of a program
• Quality & effectiveness of the program
implementation

17. PROGRAM EVALUATION (cont.)
• Based on qualitative & quantitative data
• Methods
– Surveys, interviews, focus groups, pre- &
post-tests, observations, assessments of
products from program participation

18. BOARD SELF-ASSESSMENT
• How well is the board meeting its
responsibilities?
– Examine:
•
•
•
•
•
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Composition
Identification & recruiting of new members
Relationship w/ constituents/stakeholders
Relationship w/ chief executive
Does committee structure work?
Are meetings well run?

19. BOARD SELF-ASSESSMENT (cont.)
• Questions:
– Is board clear about its roles &
responsibilities?
– Members familiar and in support of mission?
Is mission appropriate for organization in 2-4
years?
– Has board engaged in setting a strategic
direction? Is there a vision of the strategic
evolvement of the organization over the next
3-5 years?

20. BOARD SELF-ASSESSMENT (cont.)
• Questions (cont.)
– Is board knowledgeable about the programs? Is
there effective processes for tracking program
performance?
– Does board understand the finances & resource
strategy? Do all members participate in any
fundraising?
– Does budget reflect priorities of strategic or
annual plan? Are financial controls in place? Are
there established investment & risk management
policies?

21. BOARD SELF-ASSESSMENT (cont.)
• Benefits:
– Moving from micromanaging organization’s
work & directing focus on governance
– More engaged & higher-performing board
– Developing team-building skills & better
problem-solving structure
– Showing stakeholders board members take
responsibility seriously
– Improved board-staff relations

22. BOARD SELF-ASSESSMENT (cont.)
• Benefits (cont.):
– Clarification of division of labor
– Identification of board structures needing
improvement
– Development of an action plan

23. BOARD SELF-ASSESSMENT (cont.)
• When:
– Every 2-3 years
– Exploring roles & responsibilities
– Identifying gaps in performance
– Discovering problems
– Developing plans for the future

24. BOARD SELF-ASSESSMENT (cont.)
• When (cont.):
– Critical points:
• In early stages of the organization’s life, especially
when hiring the 1st staff
• There is confusion about which responsibilities
belong to the board and which to the staff
• During changes of leadership on the board or of
chief executive
• When doing strategic planning

25. BOARD SELF-ASSESSMENT (cont.)
• Techniques:
– Mini or complete assessment
• Easy to complete surveys
• Anonymous responses to encourage candid
comments
• Compiled in report to board
• Sample from The Handbook of Nonprofit
Governance
• Culminate w/ extended board session or retreat to
discuss & identify action steps
– Regular board training

26. BOARD SELF-ASSESSMENT (cont.)
• Techniques (cont.):
– External Audit
• Engage expert in governance
• Review articles of incorporation or establishing
resolution, bylaws, observe board & committee
meetings; interview officers, board
members, former board members, & chief
executive
• Written/oral report to board and chief executive
• BoardSource provides online and custom
evaluations
– www.boardsource.org

27. BOARD SELF-ASSESSMENT (cont.)
• Techniques (cont.):
– Evaluating board meetings
• 10-15 minute item on each agenda for discussion
– “Ideas for Improving the Board”
• Feedback form or round of comments at end of
each meeting
– 2 questions:
» “The thing I most liked about this meeting was…”
» “One thing that could have improved this meeting
was…”

28. BOARD SELF-ASSESSMENT (cont.)
• Techniques (cont.):
– Evaluating board meetings (cont.)
• Items to address:
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–
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–
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Dealt w/ issues of substance & strategic importance?
Run efficiently?
Used board member’s time wisely?
Well organized?
Background materials available in advance?
Begin & end on time?
Everyone’s voice heard or did a few dominate?
Issues were discussed & debated?
Was something achieved? *Board Meeting Evaluation Exercise
– 2 minutes

29. BOARD SELF-ASSESSMENT (cont.)
• Outcomes of a good board assessment:
– Measure progress
– Identify areas needing improvement
– Establish goals for the future
– Remind members of their responsibilities
– Reshape operations
– Build trust, facilitate communication
– Identify strategic planning initiatives

30. BOARD SELF-ASSESSMENT (cont.)
• Outcomes of a good board assessment (cont.):
– Improvements in monitoring program
effectiveness
– Enhanced board meetings & more effective use
of committees
– Improvements in process of reviewing chief
executive’s performance
– Strategies for more intentional board recruitment
– Establishment of a governance committee & and
a more thoughtful nomination process
*Full Board Evaluation
Exercise – 8 minutes

31. BOARD MEMBER EVALUATION
• Two methods
– Self-assessment
• Based on the board member job description or the
individual section of a board assessment
instrument
• Sample from The Handbook of Nonprofit
Governance

32. BOARD MEMBER EVALUATION (cont.)
• Two methods (cont.)
– Peer evaluation
• A brief anonymous survey – each board member
rates others on items such as:
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Attendance
Preparation
Follow-through on assignments
Quality of participation in discussion
Interactions w/ other board members
Interactions w/ staff
• Results tallied & shared privately w/ each board
member
* Board Member Self-Evaluation Exercise – 15 minutes

33. BOARD CHAIR EVALUATION
• Benefits:
– Clearer view of the position & its requirements
– Clarifies the work of the chair & where
improvement is desired
– Helps prevent informal mumbling & private
discussions about the chair

34. BOARD CHAIR EVALUATION (cont.)
• Focus:
– Facilitation skills
– Relationships & interactions w/ board
members
– Use of board work structures
– Use of governance practices

35. BOARD CHAIR EVALUATION (cont.)
• Handled by fellow board members (never
the chief executive)
• Anonymous survey
• Communicated directly to chair in private
discussion

36. CHIEF EXECUTIVE EVALUATION
• Job description
– Must be clear, unambiguous
– Basis for evaluation and measurement
• Expectations
– Annual expectations should be listed to
identify priorities and projected
accomplishments

37. CHIEF EXECUTIVE EVALUATION (cont.)
• When
– End of fiscal year
• What to evaluate
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Success in meeting organization’s overall goals
Strategic alignment w/ board’s directives
Accomplishment of management objectives
Programmatic & fundraising achievements
Fiscal management
Relationship w/ board, staff, community

38. CHIEF EXECUTIVE EVALUATION (cont.)
• Process
– Organized by board chair
– Should fit the culture of the organization
– Should enhance working relationship between
board & chief executive
– Determine which instruments to use, who should
be involved, how results will be communicated
– 2 components
• Self-evaluation
• Board member questionnaire
– Comments compiled, tabulated

39. CHIEF EXECUTIVE EVALUATION (cont.)
• Written report
– Shared privately with chief executive
• Placed in personnel file
– Provided to entire board