Ask an Expert - Social Venture Partners
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Question One What best practice processes should be used for board evaluation and do you have a form or format you particularly find useful? Greg Harms, Executive Director, Boulder Shelter for the Homeless
Answer Hi Greg, Ann and Leslie here from Front Range Source to answer your question. At Front Range Source (and SVP), we’re all about the plan. There’s really nothing to evaluate unless you have a roadmap in place for the board’s work. If you don’t already have a board plan, start there and then move on to effective evaluation: 1. Assess where you are right now. We suggest you refer to BoardSource’s Ten Basic Responsibilities of Nonprofit Boards (http://www.boardsource.org/Knowledge.asp?ID=3.368) as a framework for evaluation. We’ve provided a sample survey tool (http://www.svpbouldercounty.org/files/BDSampleBoardAssessmentTool.pdf) that includes the Ten Basic Responsibilities and adds a few more thought-provoking questions. Use this tool or one that you customize for your board to assess how your board is functioning as a whole and to give each board member an opportunity to rate their own work as an individual. This is an excellent exercise for a board retreat or board meeting and serves as a perfect launching point for establishing a board plan for the year ahead. You can send an online survey in advance of the retreat and ask board members to rate their performance in each of the ten areas. Another method is to write each of the Ten Basic Responsibilities on large newsprint and let board members “vote” with stickers…green stickers for “we’re doing well,” yellow for “we could do better,” and of course red stickers for “we need to fix this!” The most important thing is that the board is having the discussion. Remember, this is not an evaluation performed by the executive director or staff! A facilitator is a good idea for ensuring the group evaluation exercise stays on track and focused on moving forward as a team. 2. Revisit or create job descriptions and individual board commitment forms for each member. Just as staff have job descriptions, so should each board officer and board member have a clear set of responsibilities and expectations. So, if you haven’t taken this step yet, make it part of your planning process. We’ve attached a sample commitment form (http://www.svpbouldercounty.org/files/BDSampleBoardCommitmentForm.pdf) that you can adapt to your board’s work. 3. Set goals and objectives for the board’s work in the year ahead. Once the board has agreed and prioritized the areas that need work, they should establish goals and “SMART” objectives. SMART means that an objective is specific, measurable, achievable, realistic and has a timeline. This level of specificity is important so that board members can know if they accomplished their goals or not. Here is an example of a goal, an associated objective, and an associated activity: Goal: The board will help staff with year-end fundraising efforts. Objective: The board will raise $5,000 by activating their own networks for the year-end appeal. Activity: By September 15, all board members will add a minimum of ten names to the year-end appeal mailing list. By November 1, all board members will have personally signed letters to their contacts.
Board Evaluation Answer continued on page 2
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Board Evaluation Answer continued from page 1 4. Track progress along the way. Once you have a plan in place, be sure to track your progress. Often this task is assigned to a board development committee, but you could also create an ad hoc task force. The point is that this plan does not get put on a shelf. It is re-visited at every board meeting, progress is tracked and adjustments are made as needed. Bonus: The plan may also help your board to prioritize board recruitment. For example, if one of the board’s goals is to improve financial oversight, you may find yourself in need of more financial expertise on the board. 5. Conduct an annual evaluation and update. Be sure to conduct an annual evaluation of the board’s work and establish revised goals for the next year. We recommend that in addition to a session where the board evaluates its progress as a whole, the board chair has a oneon-one conversation with each board member to provide feedback on the member’s individual work, to allow the member to air any concerns, and to ensure that board service continues to be a win-win for the individual and the organization. This is also a time for the board chair to elicit feedback about his or her performance as a leader. AND: Do the exact same thing for committees if you have them. Every committee should have a plan (http:// www.svpbouldercounty.org/files/BDSampleCommitteePlanningForm.pdf) and evaluate their progress toward achieving the plan. If you don’t have committees, think about establishing some…they are a great farm team for board recruitment and also free up the board to be focused less on implementation and more on governance and leadership. 6. Celebrate success, learn, and repeat! Be sure to pause and recognize all the hard work that happens as a result of your plan. And then be sure to fold all the learning you gained into next year’s plan. Creating a strong plan and evaluation will strengthen your board and your organization. Congratulations on getting started!
Question Two What is your thinking about asking non-Board members to serve on Board committees? Lenna Kottke, Executive Director, Special Transit
Answer Dear Lenna, In our experience, the highest performing non-profits have found a way to involve many different people for many different reasons at many different levels. Any time you can apply the right human resources to the correct committee, you will find better results. Having non-board member participation on committees broadens people engagement for the organization, leverages skill sets, builds a pipeline of incredible volunteers for your board, and prevents board member burnout.
Board Committee Answer continued on page 3
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Board Committee Answer continued from page 2 One of the most successful boards we work with has taken this committee concept to a new level. They have a board of Trustees, board of Directors and board of Advisors. Each serves a different purpose. The board of Trustees is comprised of large donors. They are not asked to do much beyond financially supporting the organization. The board of Directors is full of subject matter experts whom help direct the non-profit in issues of mission and business. The board of Advisors is the largest group. Advisors are not expected to make huge financial contributions but instead to volunteer in many other areas such as fundraising or program development. There are several committees below the tri-board level. On committees it is important to have board member participation and beneficial to engage others with relevant expertise. This brings diversity that leads to more informed decisions, more reasonable workloads, and a greater roster of stakeholders. Share the love — your organization will be stronger for it. P.S. Check back into the SVP website in late September. We’ll be posting the first document in a new how-to series for non-profit leaders. Our first release is on how to run effective committees!
Question Three How do you balance the need for Board member accountability with the reality that Board members are volunteering their time? Lenna Kottke, Executive Director, Special Transit
Answer Dear Lenna, The tradeoff you describe can come into play on two levels: legal responsibilities and all other responsibilities. Since we don’t know exactly which piece is a challenge for your organization, we’ll address each separately. Everyone in your organization must understand that a board member assumes a set of responsibilities and accepts accountability upon becoming a board member. These legal responsibilities are usually described as a duty of care, duty of obedience, and duty of loyalty and are defined by law. (For more info refer to: http://managementhelp.org/ misc/Fiduciary-Responsibilities-of-NP-Board.pdf). These elements of accountability cannot be shirked… a board member must come to meetings prepared, actively participate, ensure compliance with laws, and act in good faith in supporting the mission of the organization. Because the law defines these as the basic elements of accountability for a board member there really is no option. It is your job, in partnership with the board chair, to educate board members on these responsibilities before and during their tenure and to set the standard of accountability. Your question of “balance” appears to refer to how much else can be expected of the board member without unduly infringing on their time and essentially abusing them as volunteers. The answer to this is a very individual issue. It is reasonable to expect a board member to sit on a committee, attend the annual fundraiser, and make a personally meaningful gift to the organization. But these minimal expectations should be part of the discussion in recruiting the person to join the board, and then at a formal board orientation session. And, other tasks, such as making ‘cold calls’ as part of a phone bank, should be individually suited to a board member’s skills, availability and comfort level. It is difficult for board members to be successful when we have the exact same expectations across the board.
Board Member Accountability Answer continued on page 4
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Board Member Accountability Answer continued from page 3 The key to “balance” is probably to raise questions with board members, asking them if they would have interest in and comfort with helping on a particular task or set of tasks. If you give the person the right to opt out, the “balance” you describe is up to them, but if you suggest that not helping would be shirking their board responsibilities is a strategy guaranteed for long-term failure. There is no “one size fits all” role for a board member, other than the basic responsibilities outlined at the beginning of this response. After these minimums, there can be no set formula of defining additional tasks other than those clarified initially, as they can volunteer to do more (or not), but that choice should be theirs. One shouldn’t be timid in seeking this support, but simultaneously one shouldn’t expect all board members to respond in precisely the same manner. No matter how you slice it, human beings generally need structure in order to be successful. This means setting expectations, celebrating successes, and letting people know when they aren’t meeting the mark. So, once you have come to a mutual agreement with a board member on what s/he will do, your only option is to hold her/him accountable. Holding one accountable doesn’t have to mean shaming them in front of the whole board. It is about checking in and saying this was or wasn’t done, here’s how that affects our organization, and let’s talk about how WE are going to address getting the work accomplished. Just because board members are volunteers doesn’t mean they don’t have to follow-through on their commitments and that they shouldn’t know the ramifications when they fail to do so. Set reasonable expectations together and hold the structure.
Question Four We have struggled to find board members willing to serve as Board Chair. Each year we arm-wrestle someone into the position and he or she is minimally effective. What suggestions do you have for developing board leaders? Anonymous, Executive Director
Answer Hello Anonymous, The situation you describe is not particularly unusual for non-profit organizations, but it is appropriate for a general board discussion about the by-laws and a more formal process for succession. The Board leadership of a non-profit is critical to the success of the organization, but good leadership doesn’t happen by chance. Thinking about the type of leadership desired and ways to cultivate leaders needs to be a conscious and structured process. The first step is to begin thinking about potential board leaders during board recruitment. One of the considerations in choosing future board members should at least be a passing thought as to whether or not this candidate has potential to provide leadership for the Board in a few years. While it is true that a Board Chair ultimately grows into his or her role, this process can and should be thoughtfully developed by those on the Board who are looking toward the long-term future of the organization. Instead of just hoping that a highly qualified and appropriate leader will emerge, the Board should talk about developing younger board members to assure that they could be ready to assume leadership.
Leadership Development Answer continued on page 5
Ask an Expert Page 5
Leadership Development Answer continued from page 4 The Board needs to actively identify and invest in potential leaders, giving them opportunities to develop the necessary perspectives and skills to assume future leadership positions. One needs to be careful of not falling into the trap of looking for perfection, as every leader will undoubtedly have weaknesses as well as strengths. The challenge for the Board is to try to help the individual work on these weaknesses while allowing them to further strengthen their skills. The Board can make committee assignments and provide committee leadership opportunities in a manner that will allow the person to grow and learn about different facets of the organization. This also provides the opportunity to test and prove their leadership. Volunteer opportunities and activities can highlight folks who really are committed to the organization, keeping an eye open for those that eagerly take on new assignments, report their outcomes in a timely manner, are constructive in their suggestions, and who draw out the best in others. The goal is not to identify an anointed leader early, but rather to have several board members in the leadership pipeline at all times. The Board may want to consider investing in training opportunities for potential leaders, and should try to mentor them with the current leadership and other established and respected members of the Board. One structural way to avoid the challenge you describe is to review the by-laws of your organization, consider having Board leadership roles include a Chair and Chair-elect, and past-Chair, so that succession is clearly defined. Having the chair potentially serve a two or three year term is another way to avoid the repeated scampering around to twist someone’s arm. Normally, the minimum planned service as a Board Chair is two years (although they may need to be re-elected annually, according to the by-laws), and the maximum is three years. Exceptions can be made to this norm, but the goal is to allow consistent leadership over time while avoiding “institutionalized” leadership. You want to make sure the Board stays vital, but at the same time consistency of board leadership is a stabilizing factor, and it also avoids the last minute problem described in the question. Furthermore, having a chair -elect role allows a new person to essentially apprentice under an established chair for a year, so it isn’t a dramatic change, and reduces a board member’s reticence to take on a huge role change. This also allows the whole board to move forward in a systematic an orderly fashion.
Question One What best practice processes should be used for board evaluation and do you have a form or format you particularly find useful? Greg Harms, Executive Director, Boulder Shelter for the Homeless
Answer Hi Greg, Ann and Leslie here from Front Range Source to answer your question. At Front Range Source (and SVP), we’re all about the plan. There’s really nothing to evaluate unless you have a roadmap in place for the board’s work. If you don’t already have a board plan, start there and then move on to effective evaluation: 1. Assess where you are right now. We suggest you refer to BoardSource’s Ten Basic Responsibilities of Nonprofit Boards (http://www.boardsource.org/Knowledge.asp?ID=3.368) as a framework for evaluation. We’ve provided a sample survey tool (http://www.svpbouldercounty.org/files/BDSampleBoardAssessmentTool.pdf) that includes the Ten Basic Responsibilities and adds a few more thought-provoking questions. Use this tool or one that you customize for your board to assess how your board is functioning as a whole and to give each board member an opportunity to rate their own work as an individual. This is an excellent exercise for a board retreat or board meeting and serves as a perfect launching point for establishing a board plan for the year ahead. You can send an online survey in advance of the retreat and ask board members to rate their performance in each of the ten areas. Another method is to write each of the Ten Basic Responsibilities on large newsprint and let board members “vote” with stickers…green stickers for “we’re doing well,” yellow for “we could do better,” and of course red stickers for “we need to fix this!” The most important thing is that the board is having the discussion. Remember, this is not an evaluation performed by the executive director or staff! A facilitator is a good idea for ensuring the group evaluation exercise stays on track and focused on moving forward as a team. 2. Revisit or create job descriptions and individual board commitment forms for each member. Just as staff have job descriptions, so should each board officer and board member have a clear set of responsibilities and expectations. So, if you haven’t taken this step yet, make it part of your planning process. We’ve attached a sample commitment form (http://www.svpbouldercounty.org/files/BDSampleBoardCommitmentForm.pdf) that you can adapt to your board’s work. 3. Set goals and objectives for the board’s work in the year ahead. Once the board has agreed and prioritized the areas that need work, they should establish goals and “SMART” objectives. SMART means that an objective is specific, measurable, achievable, realistic and has a timeline. This level of specificity is important so that board members can know if they accomplished their goals or not. Here is an example of a goal, an associated objective, and an associated activity: Goal: The board will help staff with year-end fundraising efforts. Objective: The board will raise $5,000 by activating their own networks for the year-end appeal. Activity: By September 15, all board members will add a minimum of ten names to the year-end appeal mailing list. By November 1, all board members will have personally signed letters to their contacts.
Board Evaluation Answer continued on page 2
Ask an Expert Page 2
Board Evaluation Answer continued from page 1 4. Track progress along the way. Once you have a plan in place, be sure to track your progress. Often this task is assigned to a board development committee, but you could also create an ad hoc task force. The point is that this plan does not get put on a shelf. It is re-visited at every board meeting, progress is tracked and adjustments are made as needed. Bonus: The plan may also help your board to prioritize board recruitment. For example, if one of the board’s goals is to improve financial oversight, you may find yourself in need of more financial expertise on the board. 5. Conduct an annual evaluation and update. Be sure to conduct an annual evaluation of the board’s work and establish revised goals for the next year. We recommend that in addition to a session where the board evaluates its progress as a whole, the board chair has a oneon-one conversation with each board member to provide feedback on the member’s individual work, to allow the member to air any concerns, and to ensure that board service continues to be a win-win for the individual and the organization. This is also a time for the board chair to elicit feedback about his or her performance as a leader. AND: Do the exact same thing for committees if you have them. Every committee should have a plan (http:// www.svpbouldercounty.org/files/BDSampleCommitteePlanningForm.pdf) and evaluate their progress toward achieving the plan. If you don’t have committees, think about establishing some…they are a great farm team for board recruitment and also free up the board to be focused less on implementation and more on governance and leadership. 6. Celebrate success, learn, and repeat! Be sure to pause and recognize all the hard work that happens as a result of your plan. And then be sure to fold all the learning you gained into next year’s plan. Creating a strong plan and evaluation will strengthen your board and your organization. Congratulations on getting started!
Question Two What is your thinking about asking non-Board members to serve on Board committees? Lenna Kottke, Executive Director, Special Transit
Answer Dear Lenna, In our experience, the highest performing non-profits have found a way to involve many different people for many different reasons at many different levels. Any time you can apply the right human resources to the correct committee, you will find better results. Having non-board member participation on committees broadens people engagement for the organization, leverages skill sets, builds a pipeline of incredible volunteers for your board, and prevents board member burnout.
Board Committee Answer continued on page 3
Ask an Expert Page 3
Board Committee Answer continued from page 2 One of the most successful boards we work with has taken this committee concept to a new level. They have a board of Trustees, board of Directors and board of Advisors. Each serves a different purpose. The board of Trustees is comprised of large donors. They are not asked to do much beyond financially supporting the organization. The board of Directors is full of subject matter experts whom help direct the non-profit in issues of mission and business. The board of Advisors is the largest group. Advisors are not expected to make huge financial contributions but instead to volunteer in many other areas such as fundraising or program development. There are several committees below the tri-board level. On committees it is important to have board member participation and beneficial to engage others with relevant expertise. This brings diversity that leads to more informed decisions, more reasonable workloads, and a greater roster of stakeholders. Share the love — your organization will be stronger for it. P.S. Check back into the SVP website in late September. We’ll be posting the first document in a new how-to series for non-profit leaders. Our first release is on how to run effective committees!
Question Three How do you balance the need for Board member accountability with the reality that Board members are volunteering their time? Lenna Kottke, Executive Director, Special Transit
Answer Dear Lenna, The tradeoff you describe can come into play on two levels: legal responsibilities and all other responsibilities. Since we don’t know exactly which piece is a challenge for your organization, we’ll address each separately. Everyone in your organization must understand that a board member assumes a set of responsibilities and accepts accountability upon becoming a board member. These legal responsibilities are usually described as a duty of care, duty of obedience, and duty of loyalty and are defined by law. (For more info refer to: http://managementhelp.org/ misc/Fiduciary-Responsibilities-of-NP-Board.pdf). These elements of accountability cannot be shirked… a board member must come to meetings prepared, actively participate, ensure compliance with laws, and act in good faith in supporting the mission of the organization. Because the law defines these as the basic elements of accountability for a board member there really is no option. It is your job, in partnership with the board chair, to educate board members on these responsibilities before and during their tenure and to set the standard of accountability. Your question of “balance” appears to refer to how much else can be expected of the board member without unduly infringing on their time and essentially abusing them as volunteers. The answer to this is a very individual issue. It is reasonable to expect a board member to sit on a committee, attend the annual fundraiser, and make a personally meaningful gift to the organization. But these minimal expectations should be part of the discussion in recruiting the person to join the board, and then at a formal board orientation session. And, other tasks, such as making ‘cold calls’ as part of a phone bank, should be individually suited to a board member’s skills, availability and comfort level. It is difficult for board members to be successful when we have the exact same expectations across the board.
Board Member Accountability Answer continued on page 4
Ask an Expert Page 4
Board Member Accountability Answer continued from page 3 The key to “balance” is probably to raise questions with board members, asking them if they would have interest in and comfort with helping on a particular task or set of tasks. If you give the person the right to opt out, the “balance” you describe is up to them, but if you suggest that not helping would be shirking their board responsibilities is a strategy guaranteed for long-term failure. There is no “one size fits all” role for a board member, other than the basic responsibilities outlined at the beginning of this response. After these minimums, there can be no set formula of defining additional tasks other than those clarified initially, as they can volunteer to do more (or not), but that choice should be theirs. One shouldn’t be timid in seeking this support, but simultaneously one shouldn’t expect all board members to respond in precisely the same manner. No matter how you slice it, human beings generally need structure in order to be successful. This means setting expectations, celebrating successes, and letting people know when they aren’t meeting the mark. So, once you have come to a mutual agreement with a board member on what s/he will do, your only option is to hold her/him accountable. Holding one accountable doesn’t have to mean shaming them in front of the whole board. It is about checking in and saying this was or wasn’t done, here’s how that affects our organization, and let’s talk about how WE are going to address getting the work accomplished. Just because board members are volunteers doesn’t mean they don’t have to follow-through on their commitments and that they shouldn’t know the ramifications when they fail to do so. Set reasonable expectations together and hold the structure.
Question Four We have struggled to find board members willing to serve as Board Chair. Each year we arm-wrestle someone into the position and he or she is minimally effective. What suggestions do you have for developing board leaders? Anonymous, Executive Director
Answer Hello Anonymous, The situation you describe is not particularly unusual for non-profit organizations, but it is appropriate for a general board discussion about the by-laws and a more formal process for succession. The Board leadership of a non-profit is critical to the success of the organization, but good leadership doesn’t happen by chance. Thinking about the type of leadership desired and ways to cultivate leaders needs to be a conscious and structured process. The first step is to begin thinking about potential board leaders during board recruitment. One of the considerations in choosing future board members should at least be a passing thought as to whether or not this candidate has potential to provide leadership for the Board in a few years. While it is true that a Board Chair ultimately grows into his or her role, this process can and should be thoughtfully developed by those on the Board who are looking toward the long-term future of the organization. Instead of just hoping that a highly qualified and appropriate leader will emerge, the Board should talk about developing younger board members to assure that they could be ready to assume leadership.
Leadership Development Answer continued on page 5
Ask an Expert Page 5
Leadership Development Answer continued from page 4 The Board needs to actively identify and invest in potential leaders, giving them opportunities to develop the necessary perspectives and skills to assume future leadership positions. One needs to be careful of not falling into the trap of looking for perfection, as every leader will undoubtedly have weaknesses as well as strengths. The challenge for the Board is to try to help the individual work on these weaknesses while allowing them to further strengthen their skills. The Board can make committee assignments and provide committee leadership opportunities in a manner that will allow the person to grow and learn about different facets of the organization. This also provides the opportunity to test and prove their leadership. Volunteer opportunities and activities can highlight folks who really are committed to the organization, keeping an eye open for those that eagerly take on new assignments, report their outcomes in a timely manner, are constructive in their suggestions, and who draw out the best in others. The goal is not to identify an anointed leader early, but rather to have several board members in the leadership pipeline at all times. The Board may want to consider investing in training opportunities for potential leaders, and should try to mentor them with the current leadership and other established and respected members of the Board. One structural way to avoid the challenge you describe is to review the by-laws of your organization, consider having Board leadership roles include a Chair and Chair-elect, and past-Chair, so that succession is clearly defined. Having the chair potentially serve a two or three year term is another way to avoid the repeated scampering around to twist someone’s arm. Normally, the minimum planned service as a Board Chair is two years (although they may need to be re-elected annually, according to the by-laws), and the maximum is three years. Exceptions can be made to this norm, but the goal is to allow consistent leadership over time while avoiding “institutionalized” leadership. You want to make sure the Board stays vital, but at the same time consistency of board leadership is a stabilizing factor, and it also avoids the last minute problem described in the question. Furthermore, having a chair -elect role allows a new person to essentially apprentice under an established chair for a year, so it isn’t a dramatic change, and reduces a board member’s reticence to take on a huge role change. This also allows the whole board to move forward in a systematic an orderly fashion.
