4.8
REVITALIZING THE BOARD OF DIRECTORS
IN A NONPROFIT ORGANIZATION
Inspired by John Carver.Leaders in nonprofit organizations benefit considerably when their Board of Directors is well
designed, has a clear role and process for governing, and has a clearly defined relationship with
the management team. It’s a mistake to think that a strong Board will get in your way as a lead-
er. It’s most often the weak Boards that meddle in operations. Strong leaders need strong
Boards. Organizational success starts with clear roles and accountabilities for both. This tool
outlines a systematic approach to Board design, and emphasizes the central role of the Board
in developing and overseeing policy in the four areas listed.
SECTION 4 TOOLS FORDESIGNINGPRODUCTIVEPROCESSES ANDORGANIZATIONS 129
- Define a clear mission.
- Clarify the relationship between the Board and the Chief Executive Officer (CEO).
Things to clarify:- Power that is passed to the CEO (or Executive Director) in the form of expectations, limitations, and
accountabilities. - How the CEO’s use of that power is evaluated; what will be evaluated and how.
Key elements of the Board’s role: - The Board is responsible for its own development, job design, discipline, and performance.
- One of the most important tasks of a Board is the choice of CEO.
- The CEO has a right to expect the Board to be clear about its expectations and limitations, and to speak with one
voice.
Key elements of the CEO’s role: - The CEO is responsible to the Board for achievement of organizational goals and for following Board policies.
- The CEO needs a strong Board, strategic direction and goals, but a free hand for managing operations, within
policies and parameters. - The CEO must influence the organization’s culture, must set a high level of ethics and prudence, and must achieve
results. [☛4.5 Culture]
Potential pitfalls: - Ensure there is no overlap of tasks for which management is accountable. Shared accountability is often shirked.
[☛13.3 Accountability] - If boundaries aren’t defined, the Board will likely forage in whatever individual interests and fears occur to them.
What is a clear mission?- A mission is the organization’s contribution to the world. What products and services are provided and to what
customers? - The mission statement is brief and worded in terms of results, not activities. It drives all goals and activities. [☛2.3
Directional Statements]
Some tips and pitfalls: - Aim for practical and cost-effective measures of success. However, the fact that results are measurable doesn’t make
them valuable. Imprecise measures of the right things beat highly precise measures of the wrong things. - The Board should focus on the why,not the how; on ends (mission and high-level goals), not on means (operational
activities). Boards that meddle in means disempower their CEO and management team.