1. The Rural Collaborative Presents Effective Board Composition “How to sit on a board without getting splinters” Utah Housing Coalition September 22, 2003

2. Discussion Overview Why so much interest? Why so much interest? Is there a “secret” to effective boards? Does one size fit all? Is there a “secret” to effective boards? Does one size fit all? Practical tools for “Effective Board Composition.” Practical tools for “Effective Board Composition.” Competing Values Model Competing Values Model How can these tools help my organization? How can these tools help my organization?

3. Information Overload Abundance of information Abundance of information Is the information being used? Is the information being used? Is anything working? Is anything working? Are Boards Effective? What does being effective mean? What does being effective mean? How would you rate your board? How would you rate your board? Does one size fit all? Does one size fit all?

4. Practical Tools Skills Matrix Skills Matrix Job Descriptions Job Descriptions Board Member Agreements Board Member Agreements Board Member Evaluative Survey Board Member Evaluative Survey Trustee Manuals Trustee Manuals Competing Values Model Competing Values Model

5. Effective Board Composition What is the number one reason individuals join boards? What is the number one reason individuals join boards? Individuals usually join boards because they believe in the values the organization embodies Individuals usually join boards because they believe in the values the organization embodies Joining a board takes time and energy= commitment Joining a board takes time and energy= commitment

6. Board Composition Board Composition: Representation of community, constituents, a variety of backgrounds Skills Matrix Identifies areas of strengths and needs of the board Identifies areas of strengths and needs of the board Board may conduct exercise on what strengths and needs exist Board may conduct exercise on what strengths and needs exist

7. Board Recruitment Tools used for recruiting include: Board Member Job Descriptions Board Member Agreements Board Interviews

8. Board Recruitment Trustee Manual: clearly states expectations and responsibilities Articles of Incorporation Articles of Incorporation Bylaws Bylaws Historical Overview Historical Overview Mission Statement Mission Statement Board Member Job Description / Agreement Board Member Job Description / Agreement Minutes Minutes Committee listings, contact information Committee listings, contact information Annual Report Annual Report

9. Effective Board Composition Board Effectiveness: Board Effectiveness: Clear Expectations= Less Frustration Reduces Deadwood Ways to avoid deadwood: Ways to avoid deadwood: Limit Terms Specify Attendance Requirements Pocket Book Test Trustee Manual

10. Effective Board Composition Common Obstacles That Lead To Board Ineffectiveness Common Obstacles That Lead To Board Ineffectiveness Time on the trivia Short term bias Reactive stance Reviewing, rehashing, redoing Diffuse authority

11. Board Sustainability Board Evaluation: A constructive exercise that should take place annually Retreats Retreats Surveys Surveys Informal Discussion Informal Discussion Peer Evaluation Peer Evaluation

12. Competing Values Framework Model Robert E. Quinn Means: Management of Individuals Ends: Smooth Functioning Group OPEN SYSTEMS MODEL RATIONAL GOAL MODEL HUMAN RELATIONS MODEL INTERNAL PROCESS MODEL ORG. FOCUS INTERNAL CONTROLCONTROL FLEXIBILITYFLEXIBILITY Means: Management of Individuals Ends: Smooth Functioning Group Means: Documentation & Information Ends: Stability & Control Means: Innovation & Adaptation Ends: External legitimacy Resource acquisition Means: Planning & Goal Setting Ends: Productivity & Accomplishment ORG. FOCUS EXTERNAL

13. OPEN SYSTEMS MODEL Organization’s focus is EXTERNAL Organization’s structure is FLEXIBLE Staying abreast of changes in external environment Staying abreast of changes in external environment Fully adaptable to changes in external environment Fully adaptable to changes in external environment Means: Innovation; Ends: External Legitimacy Means: Innovation; Ends: External Legitimacy The Emphasis: Built on the basic assumption that continuous research, adaptation and innovation lead to the acquisition of external legitimacy and essential resources Built on the basic assumption that continuous research, adaptation and innovation lead to the acquisition of external legitimacy and essential resources Primary consideration for the board Primary consideration for the board

14. OPEN SYSTEMS MODEL How does a board function in this realm? Innovator and Boundary Spanner Strong role in developing vision Strong role in developing vision Intentionally works to enhance the fit between the organization and its external environment Intentionally works to enhance the fit between the organization and its external environment Board is supportive, encouraging, tolerant of risk. It may involve itself in identifying new directions, articulate unmet needs, respond to new opportunities and challenges Board is supportive, encouraging, tolerant of risk. It may involve itself in identifying new directions, articulate unmet needs, respond to new opportunities and challenges Board serves as a liaison to important constituencies Board serves as a liaison to important constituencies Ensures the org. has adequate resources to meet purposes Ensures the org. has adequate resources to meet purposes Enhances organization’s public image Enhances organization’s public image Board develops relationships with external constituencies Board develops relationships with external constituencies Board engages with staff, common committees and stakeholders Board engages with staff, common committees and stakeholders

15. RATIONAL GOAL MODEL Organization’s focus INTERNAL Organization’s structure is CONTROL Focuses on organizational accomplishment Focuses on organizational accomplishment Means: goal attainment and planning; Ends: productivity and accomplishment The Emphasis: Built on the basic assumption that clarity of direction will lead to productive outcomes Built on the basic assumption that clarity of direction will lead to productive outcomes Primary consideration of the board Primary consideration of the board

16. RATIONAL GOAL MODEL How does a board function in this realm? Director and Producer Board takes a lead in ensuring that expectations are clear and lead to mission Board takes a lead in ensuring that expectations are clear and lead to mission Board helps to develop long term strategic plans emphasizing goals and objectives and defines roles and tasks Board helps to develop long term strategic plans emphasizing goals and objectives and defines roles and tasks Board expects clear goal setting and requires reports on progress Board expects clear goal setting and requires reports on progress Accepts responsibility for the overall focus and viability of organization Accepts responsibility for the overall focus and viability of organization

17. INTERNAL PROCESS MODEL Organization’s focus is INTERNAL Organization’s structure is CONTROL Emphasizes standards of practice Emphasizes standards of practice Implicit assumption that without board oversight managers might behave in a manner of self- interest Implicit assumption that without board oversight managers might behave in a manner of self- interest Means: documentation and information management Ends: Stability and Control The Emphasis: Built on basic assumption that routine and standardization lead to stability Built on basic assumption that routine and standardization lead to stability Primary consideration of the board Primary consideration of the board

18. INTERNAL PROCESS MODEL How does a board function in this realm? Monitor and Coordinator Works to assure organizational action is aligned with budgetary restrictions and mission Works to assure organizational action is aligned with budgetary restrictions and mission Exercises fiduciary responsibility to provide oversight to budgeting, programming and planning. Exercises fiduciary responsibility to provide oversight to budgeting, programming and planning. Oversees structure and flow of system- information and work is coordinated properly within system Oversees structure and flow of system- information and work is coordinated properly within system

19. HUMAN RELATIONS MODEL Organization’s focus is INTERNAL Organization’s structure is FLEXIBLE Integration of individual and group into a whole, Integration of individual and group into a whole, well-focused organization High standard of dialogue High standard of dialogue Means: management of individuals; Ends: Smooth Functioning Group The Emphasis: Built on basic assumption that involvement results in commitment and that commitment results in excellence Built on basic assumption that involvement results in commitment and that commitment results in excellence Primary consideration of the board Primary consideration of the board

20. HUMAN RELATIONS MODEL How does a board function in this realm? Mentor and Facilitator Board has an obligation to orient new members and encourage training, skill development for board and staff Board has an obligation to orient new members and encourage training, skill development for board and staff Board sees its responsibility to build capacity by providing direction, guidance and support to ED Board sees its responsibility to build capacity by providing direction, guidance and support to ED Emphasizes group process, fosters openness, cohesiveness and a shared sense of purpose – teamwork Emphasizes group process, fosters openness, cohesiveness and a shared sense of purpose – teamwork Embrace decision making processes that encourage group norms that tolerate conflict, promote shared knowledge, value diverse perspectives- toward group cohesion Embrace decision making processes that encourage group norms that tolerate conflict, promote shared knowledge, value diverse perspectives- toward group cohesion

21. Competing Values Framework Group Breakout Group Breakout Where does your organization fit? What are the implications? Is your board balanced? Is your board balanced?

22. What can I take back to my Organization? Questions or Comments: Carol Cohen Rural Collaborative (435) 940-1687 ccohen@sisna.com

23. Supporting Sources Supporting Sources Judith L. Miller and Sue R. Faerman, Making Good Board Choices: A Competing Values Approach, The Nonprofit Quarterly Spring 2003 Competing Values Model: Robert E. Quinn, Beyond Rational Management