1.5 - About University

4.8R EVITALIZING THE B OARD OF D IRECTORSIN A N ONPROFIT O RGANIZATIONInspired by John Carver.Leaders in nonprofit organizations benefit considerably when their Board of Directors is welldesigned, has a clear role and process for governing, and has a clearly defined relationship withthe management team. It’s a mistake to think that a strong Board will get in your way as a leader.It’s most often the weak Boards that meddle in operations. Strong leaders need strongBoards. Organizational success starts with clear roles and accountabilities for both. This tooloutlines a systematic approach to Board design, and emphasizes the central role of the Boardin developing and overseeing policy in the four areas listed.1. Define a clear mission.What is a clear mission?• A mission is the organization’s contribution to the world. What products and services are provided and to whatcustomers?• The mission statement is brief and worded in terms of results, not activities. It drives all goals and activities. [☛ 2.3Directional Statements]Some tips and pitfalls:• Aim for practical and cost-effective measures of success. However, the fact that results are measurable doesn’t makethem 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 (operationalactivities). Boards that meddle in means disempower their CEO and management team.2. 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, andaccountabilities.• 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 onevoice.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, withinpolicies and parameters.• The CEO must influence the organization’s culture, must set a high level of ethics and prudence, and must achieveresults. [☛ 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.SECTION 4 TOOLS FOR DESIGNING PRODUCTIVE PROCESSES AND ORGANIZATIONS 129