Starboard’s Blog

This past weekend I worked with a board of directors and their leadership staff to put the final touches on their strategic direction.  All was going well until a board member questioned the word-choice of “customers” as a way to describe their clients.  It was one of those moments every facilitator fears…when the participants stop talking about the concepts and begin to wordsmith.  What followed, however, was a critically important strategic discussion for their organization. The gist of it is as follows: 

In our work, the individuals we serve have a choice of potential providers (our competition).  Whether the dollars they bring with them are state, federal, private insurance, or out-of-pocket, they still have a choice.  We need to treat them as valued “customers” and ensure that they get the kind of quality service we expect when we are customers of a business.  If we view them as “consumers,” we inappropriately elevate our own status in the relationship to that of equals and suggest that they are “consuming” resources, “taking” services from us, or “using up” something.

The key is ensuring that the values expressed here go beyond the words (it does in this organization). Ideally this focus on the customer, and what that means, is then reflected in the statement of organizational values, becomes part of all staff orientation and training, is evaluated on an ongoing basis (customer satisfaction surveys and the like), and is lived every day by the staff.

So ask yourself whether what you call your clients says something about how you regard and treat them. If what the name connotes doesn’t match with your values, maybe it is time for a change.  It might turn out to be much more than a bit of wordsmithing.

In an earlier posting “Be clear on the desired outcomes of merging,” I described the value of doing your homework and being very clear, before meeting with potential partners, as to why a merger might make sense. I also suggested that this discussion happen in the context of the strategic planning process, and that is what I would like to add to here. 

As a strategic planning process moves from “what we want to accomplish” (vision) to “how we plan to accomplish it” (goals and objectives), most organizations begin to bump into reality. Reality is that they don’t have the reliable funding, the necessary resources, or the staffing to accomplish all they would like to accomplish. Too often this means that plans are downscaled, implemented without the required staffing or resources, put on the back burner, or dropped altogether. While your clients are the ones most likely to be shortchanged when this happens, don’t discount the impact on your staff and volunteers as you build the case for “why we can’t” rather than “how we can.”

My advice is to incorporate into your planning process questions like the following:

One of the standard strategies facilitators use at the start of sessions is to involve the participants in setting “ground rules” for the session, the day, or for ongoing work together.  While I often dispense with this step (in favor of a streamlined set of ground rules that I set), I’m also sensitive to the reality that some boards of directors can really benefit from developing a set of “operating principles” for how they work together.

Different from the kinds of ground rules set for a retreat (use our “indoor voices,” every idea is a good idea, turn off your phones, etc.), “operating principles” help a board determine how you will treat one another and operate as a board or committee.  This can include a list of values, a code of conduct for meetings, agreement as to how you will communicate with one another, and so on. It is an opportunity to say, “this is important to me,” and “this is important to us.”There are many ways to approach the development of operating principles with your board, but any discussion should probably include a few key questions:

I’m on a board where I serve on the governance committee. While this committee has traditionally focused its attention on the nominating and recruitment functions, we are increasingly paying attention to the “health and welfare” of the board. One of issues we’ve identified as needing attention is finding ways to deepen the engagement and involvement of our board members. There is a sense that we all could be doing more to help the organization, but whether board members are ready to step-up, and what we’ll actually do, has yet to be determined.

It would be easy to hand-out the same assignment to every board member (“everyone needs to make ten fund raising calls this year”) and hope that some will do it. Instead, I’ve suggested that we go through an individual board member assessment process as a first step. I think that if we ask–and really listen–we’ll learn that some of our board members are delighted with their level of engagement and may or may not be ready to take on more. Others may be happy “flying under the radar,” where they can quietly provide help at their own pace. However, I’m betting that some other members are willing to do more if someone would just take the time to really learn what they have to offer and then provide them with some assignments that match their interests and abilities.

To begin the process, I’ve spent a bit of time looking at various models for individual board assessments. While I’ve not yet found the perfect assessment for our use (and will probably find the need to develop something unique), I believe that I’ve narrowed the process down to a few key questions:

• Do I know what is expected of me?
• Do I have what it takes?
• Do I have the necessary tools, information and instruction to succeed?
• Is what I’m doing on the board making a meaningful difference?
• Is there an opportunity here to make better use of my abilities/skills/experience/knowledge?
• Am I enjoying the experience of serving on the board?
• What would make my board experience even better?
• And (most importantly) what goals should I set for myself and my board experience?

I’m going to suggest that we put questions like these, and appropriate follow-up questions (“what additional information do you need?”) into a survey format, and ask each board member to fill it out and return it to the chair of the governance committee. From there, I anticipate that we’ll work together to respond to concerns that are raised, set-up one-on-one meetings as needed, and work together with the staff to help board members achieve their goals.

If you have experience with this kind of individual self-assessment, it would be great if you could share your experiences, suggest tools to use, and offer your insights. In return, I’ll tell you how our process turns out and share what we’ve learned.

I described in an earlier posting (Is Your Board a Dodge Dart?) my thoughts on the value of board self-assessment—it would be difficult to find a better diagnostic tool for assessing the strengths and weaknesses of your board. The self-assessment tool I use is one that I designed (so be aware of the obvious self-promotion here), and it is available through the Maine Association of Nonprofits. I also have experience in having used, several years ago, the Board Source assessment tool, and I can recommend that as well.

Whatever the tool you use, I find that the greatest value is in reviewing the results with the board and in the discussion that follows. Properly structured, this becomes a wonderful opportunity to have some very health conversations and to develop a board governance agenda for the year ahead—an agenda that the entire board plays a part in setting. Keep in mind that your goal is NOT to simply identify all the weaknesses. This is your opportunity to develop strategies and a timeline for board improvement, so don’t come out of the meeting without a substantial “to do” list.

While board self-assessment might be a very useful exercise for organizations that are having difficulties, need to reorganize, or are going through transitions, many boards conduct a self-assessment on a regular basis. According to a recent survey conducted by Grant Thornton LLP, approximately 1/3^rd of all nonprofits conduct a board self-assessment annually. That may feel like too much for some boards, but keep in mind that it doesn’t have to be a “full blown” assessment every year. For example, consider a shortened version every other year to see if you are making progress on your governance agenda.

It would be great to hear comments from those who have been through a self-assessment with their boards!

Whenever you go to a conference, a workshop, or a training session, you’ll undoubtedly be asked to fill-out an evaluation form. Good presenters and meeting organizers use this input to determine what worked, adjust what didn’t, and try to do better the next time. It is such a simple concept, but why don’t we do the same thing at the end of board meetings?

Doesn’t it make sense to ask the participants on a board meeting what went well and what didn’t? If we want to engage our board members in meaningful discussions (or just get them to attend meetings), we should be constantly evaluating and looking for ways to improve how we operate.

The meeting evaluation I pass along to people was originally developed by the governance committee of the United Way of Eastern Maine (feel free to use it as is or modify it as needed). It is short, easy to fill-out, and should be placed at each person’s seat at every meeting. While there are some standard questions you may want to ask at the end of every meeting, you’ll see on the meeting evaluation form that there is room to add agenda specific questions that will tell you whether you were successful in presenting the key agenda topics.

The board chair and the executive director can scan these after a meeting and quickly know what they need to adjust the next time around. Or, better yet, your governance committee can review them at each of their meetings and use that information to inform their work to enhance the board’s governance practices. In any case, your board members will appreciate the fact that you are asking for their input and will be deeply grateful for your efforts at ongoing improvement.

And, by the way, you don’t have to be the board chair or the executive director to launch this concept. Print-out a copy of the meeting evaluation, take it to your board chair, and suggest that it could be interesting to give it a try.

Please let me know about your own experiences in evaluating your meetings.

If your board of directors was a car, what kind of car would it be? An efficient and thrifty Toyota Prius? A high performing but finicky Porsche? A safe and reliable Volvo station-wagon? Or is it more like a Ford Pinto with a gas tank that is ready to blow? (This may be a good question to ask your board members.) Whatever the model, it is likely that your board needs a regular tune-up in order to identify problems, do some preventative maintenance, and enhance its performance.

For tuning-up your board, I think the best diagnostic tool is a board self-assessment. There are a variety of assessment tools on the market that you can use to engage the board in looking at what it does well and where there is room for improvement. This is not an organizational assessment, or a review of the executive director. The board self-assessment forces the board to ask “how are WE doing?” on the core responsibilities of governance.

Unless they’ve had prior experience with conducting a board self-assessment, the board chair or the executive director may find the prospect of self-assessment a bit worrisome: “Maybe they all think I’m doing a lousy job!” The reality is, however, that in a well-constructed self-assessment the board looks at itself, not at the leadership or any specific individual. Remember, it asks, “how are WE doing?” So, when coupled with a board retreat (ideally with a facilitator who can analyze the results and objectively lead the board through a frank discussion), the board will identify opportunities for growth, discuss strategies for improvement, and develop an agenda for strengthening your governance model.

So whether your board is a rusty Dodge Dart (with bylaws and members left over from the 1970’s), or a Lexus with some odd noises coming from under the hood, consider an annual tune-up using a board assessment.

“We want to talk about strategic issues that are more appropriate for board attention, but we never have time.”  That’s the kind of complaint I hear over and over again as I do workshops and meet with clients on board governance topics.  They know their board should be discussing more meaningful issues at meetings, but the structure of their meetings just doesn’t seem to allow time to do it.  While getting the right topics ON to the agenda takes a while to describe, getting time-wasters OFF the agenda can be relatively simple.

I described in an earlier posting the importance of putting most, if not all, reports in writing and not reading them back to the board—that’s a start.  However, to really streamline things, consider the “consent agenda.”  Municipal boards often use a consent agenda to quickly dispense with items that don’t really need discussion (especially if board members have read their materials in advance).  Done right, in a single vote, a board can cover, often in 5 minutes or less, items that might otherwise take an hour, leaving time to focus on the strategic issues that more appropriately engage your board.

Once again, Board Source (www.boardsource.org) has a variety of materials on this topic, including a very helpful white paper.  Take a look, and consider whether your board might be ready for the consent agenda.  Below is a sample consent agenda policy that is drawn from a variety of sources:

Sample Consent Agenda Policy
The Consent Agenda is intended to streamline the process for approval of regular, routine issues that come before the board, based upon the assumption that they have been dealt with by the appropriate committee or that thorough information has been provided and reviewed in advance.  There is a presumption that committee actions and reports will be placed on the consent agenda unless the committee leadership determines that the matter should be reviewed in detail by the full board.  The executive director’s report, program reports, and other staff reports may also be included as part of the consent agenda.

1. All consent agenda items must be clearly identified and included in board pre-mailing.
2. The consent agenda should state at the top of the printed sheet: “Any board member may request that any item be removed from this consent agenda and moved to the regular agenda.”
3. If one item in a committee report does not qualify as a “consent agenda” item, that item shall be moved to the regular agenda.  The rest of the items wll remain on the consent agenda and, after a motion by the board chair, will be presented to the board for their vote. 
4. The consent agenda will be reviewed after the minutes of the previous board meeting are approved.  Matters to be removed will be inserted into the regular agenda as appropriate.                                                         
5. Board members should thoroughly review the consent agenda items and other pre-mailing materials prior to the meeting and anticipate that no verbal reports will be presented.

If you are serious about improving how your board works, I am convinced that you need to assign some really good people to a governance committee.  The governance committee is not the nominating committee, though that may be one of their functions.  The governance committee is not the bylaws committee, though that is a reasonable assignment too.  What the governance committee does is stay focused on the “health” of the board (with the understanding that a “healthy” board is more likely to result in a healthy organization).  And unlike the nominating committee on a typical board, which may meet once or twice to complete their assignments, the governance committee meets throughout the year to continually work at assessing and enhancing the board experience and governance model.

This does not need to be a large committee.  In fact, I favor a small committee made-up of a few, smart, capable board members who can share a commitment to strong board governance and an engaged board of directors.  This might be a great assignment for some of your rising stars (future board officers), and consider whether it might make sense to have your vice chair be the one to chair this committee.  The key, however, is populating the committee with people who will take seriously the charge of identifying and recruiting the very best people to join your board, orienting them, educating them, and keeping them engaged in ways that maximize their abilities and their contributions. 

Here’s what I give to organizations that are looking for a “job description” for the governance committee (assembled from several sources):

The Role of the Governance Committee

• Make nominations in accordance with the bylaws for members of the Board of Directors, officers and executive committee members.
• Conduct an ongoing examination of how the Board is functioning, how board members communicate, and whether the board is fulfilling its responsibilities and living up to the organization’s objectives.
• Identify and update board member job descriptions and work to recruit a board that has the skills and expertise needed to meet the organization’s objectives.
• Identify potential board members and maintain information about candidates.
• Ensure that new board members receive appropriate orientation and have adequate materials and understanding of their roles and responsibilities.
• Evaluate board members and determine their eligibility for reelection
• Involve all board members in continuing education throughout their terms.
• Ensure that appropriate communications are taking place in order to keep board members fully apprised of activities.
• Evaluate the bylaws and propose revisions as needed.

It is hard to do justice to this topic in a blog posting like this, but some of the best guidance on forming and nurturing a governance committee can be found at Board Source (on-line as www.boardsource.org).  In fact, it may be well worth purchasing one of their booklets on the role of a board governance committee to help you get your board focused on this important best practice.

I’ve recently become convinced that we can change the world by improving how nonprofit boards work. I base this on my belief that strong, engaged boards (especially when partnered with capable staff leadership) will take their organizations to extraordinary levels. The challenge is that we need to raise the expectations of board members and give them a successful governance model within which to work.

The challenge is, as I see it, that people too often learn about “normal” board behavior by joining a board…often a small, dysfunctional board populated by other well-meaning people who don’t have prior board experience either. How that board conducts its business becomes your expectation for how a board is supposed to operate. If or when you finally leave that board, you take what you’ve learned to the next board, where, far too often, you’ll see many of those same dysfunctional behaviors exhibited again. And, if you are expecting the executive director to break this “cycle of dysfunction,” remember that many executive directors learn how boards work by attending their first board meetings as new executive directors.

I might be exaggerating this a bit, but you get the idea. The challenge to you, board member, is not to settle for board behaviors, meetings, or processes that don’t engage you, that waste your time, or that don’t take advantage of your abilities. If you are feeling like your time is being wasted, you can be confident that others feel the same. Don’t settle for, “that’s how we do it on this board,” or “we’ve always done it that way.” It may take some work on your part, and probably a bit of diplomacy, but you can create changes that will transform the board and take the organization to exciting new levels.

Keep reading. Send me your questions. With any luck, and with the comments and insights of other readers of this blog, we may be able to change your board (and maybe even the world!).