Evaluating & Improving Your Board’s Performance

© Copyright 2011, NorthSky Nonprofit Network All rights reserved

AcknowledgementsGovernance as LeadershipBoardSourceNorthSky’s work & shared learning

Goals for today• Review a few governance models

• Discuss transformational governance

• Discuss options for evaluating Board performance

• Introducing change

•Discuss how to develop a performance improvement plan

“A good Board is a necessity not a gift.”

Cyril O. HouleGoverning Boards

Why is transformational governance essential?

The Board of Directors is responsible! But..

1. So many how-to-govern books yet widespread disappointment with board performance

2. Nonprofits go to great lengths to recruit best and brightest directors yet report they are under-utilized

3. Boards asked to better do their work yet frequently performing management functions while

executive, or perhaps no one, performing leadership functions

What is transformational governance?

Governance as Leadership Richard Chait, William Ryan, Barbara Taylor A BoardSource Publication

Reframes the work of nonprofit boards From To think/govern like managers think/govern like leaders

What is Governance as Leadership?Boards of Directors provide leadership by engaging in three types of thinking Fiduciary Strategic Generative

Type IFiduciary

Type IIStrategic

Governance as Leadership

Type IIIGenerative

Source: Board Source

Organizational Life Cycle Stage Characteristics

Conception/ Infancy Voluntarily coming together to solve a problem; high energy & enthusiasm

Infancy Founder in charge; work expands beyond what the founder can do

Puberty Org. expands but is awkward in dealing with coordination & external affairs; professional management emerges

Young Adulthood More formal management, policies, and procedures; emerging politics

Adulthood Mastering environment; serving clients; established management;

New ideas contemplated; high energy; risk- trying to be everything

Organizational Life Cycle Stage CharacteristicsLate Adulthood Excitement beginning to wane;

Past valued over innovation;

Complacency; no sense of urgency or need

Old Age Diminishing ability to serve others;

Lack of cohesion among leaders;

Little energy available for renewal and reversal of situation

Revitalization Revitalization of mission; re-defining service niche

Shared understanding

Identify the gap between perceived & actual

Means to start the discuss/ engagethe Board

Any other reasons?

The Board Self Assessment: Why?

• Led by Board (Board chair or Governance Committee)

• Establish a process that collects honest input

• Customize for your Board

• Repeat annually

• The goal is continuous improvement; use the results

The Board Self Assessment

What questions would you ask? What information would you collect?

The Board Self Assessment

The Board Development Plan • Review board assessment results together

• Identify other identified board practice needs (example: execute strategic plan; hire new ED)

• Discuss the desired culture and practices for the board

• Set goals for the year (examples: training, practices- reports, new members)

• Check in regularly about progress against goals

• Build team dynamics – spend time together socially, engage every board member in an assignment

What are a few change management principles?

• Most people resist change

• Change is resource intensive

• The case for change needs to be made strongly and clearly

• Involve people in planning for the change

• Don’t over promise

• You can’t communicate enough

Performance Improvement: Behind the Scenes Activities

Individual meetings

Individual or select training

Technical support

Fact finding: meetings with other Boards

What are key elements of performance improvement?

• Clear role descriptions

• Shared strategic direction/ plan

• Agreed upon performance goals

• Track and report

• Celebrate

Source: Board Source

Thank YouContact NorthSky at:www.northskynonprofitnetwork.org

231.929.3934, x 208Pam Evanspevans@northskynonprofitnetwork.org

NorthSky Nonprofit Network, a program of