Nonprofit Capacity Conference How to Leverage Your Board Art Medici, Newport Board Group
Agenda 1. Two Primary Types of Boards 2. Filling the Gaps 3. Leadership/ Mentoring 4. Questions and Discussion
Your Board What type do you have? What type do you want? Traditional vs. Corporate
Board Responsibilities Setting the strategic direction Approving the strategic plan Approving the budget Setting policies Holding leadership accountable Ensuring long-time viability
Corporate Board More Professional More Flexible More Efficient
Traditional Board Agendas that seem endless Committee meetings last for hours Lengthy discussions about minor items Heated exchanges about personnel
How do They Differ?
Board Involvement and Communication CorporateTraditional Simplified board structureComplex board structure Board talent addresses policyAddresses policy and operations Board uninvolved in operationsStaff time required to educate Staff inputs on key decisionsLow value placed on staff input Clear communications linesComplex communication lines
Board Involvement and Communication CorporateTraditional Reduced time to decisionIncreased time to decision Hires only the CEOCEO and other staff Rigorous assessment of CEOInformal assessment of Mngmt
Management of the Organization CorporateTraditional Formal structureLess formal organization Responsibility and accountabilityShared responsibility and blame Builds staff professionalismStaff serves the board Management flexibilityManagers must wait for board Top Exec can be a risk takerBoard and Exec share risk Orients a strong CEOAllows for weaker top Exec
Management of the Organization CorporateTraditional More ad hoc committeesMany standing committees Reduced staff time supportingStaff time spent supporting Increased focus on productivityMore focus on “feelings” Structure for growthOperating difficulties
Financial Operations CorporateTraditional Bottom up budgetingTop Down Budgeting System of checks and balancesInformal checks and balances Uninvolved in fiscal processInvolved in many fiscal processes Cost effectiveNot cost effective
Interpersonal Relationships CorporateTraditional Trust is critical factor in cultureParent-Child relationship Exec is voting memberExec not a board member More effort required to developEasier because of involvement CEO is full-time spokespersonVolunteer president is part-time Corporate titles speak clearlyAdmin, Exec Secretary lack clarity
Interpersonal Relationships CorporateTraditional CEO can overstep boundariesTop Manager’s role well defined No “End-Runs” of staff to board“End-Runs” are accepted practice Challenges CEO to maintain commitment of members Reduces the challenge
What Gaps Need Filling? Skills Experience Money Diversity Grantsmanship Volunteer Outreach “Headliners”
Mentoring of Professional Staff Development Coaching Embedding core values Energizing change
Leadership Development Succession Planning Board Retreats One-on-one engagement Who got you here, may not get you there
Discussion Thank you
What’s the Difference? CorporateTraditional