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November, 2006 -by Peter C. Brinckerhoff

This Month's topic: When Boards Fail in their Role


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This Month's Topic: When Boards Fail in their Role
Each month, this area provides with a number of my favorite and most helpful sites regarding the topic of the month.

Management Tip of the Month

Each issue, I start with a discussion of my management perspective on the month's topic, and give you a few hands-on ideas to consider.

Recommended Publications

Here, I provide you with my recommendations on the  materials available that can help you become more mission-capable in the area of When Boards Fail in their Role.

Technology

I provide you with some good ideas for uses of tech to better your organization in the area of When Boards Fail in their Role.

Marketing Tip

So much to say, so little space to say it.....

Next Issue

In December, we'll close out 2006 with examine an issue that is very important issue of Conflict of Interest.


Websites of the Month

Here are my recommendations for websites of interest on this month's topic: When Boards Fail in Their Role

www.onphilanthropy.com/ Good set of warning signs from On Philanthropy
www.mncn.org/ Board failure in the financial realm, from the Minnesota Council on Nonprofits

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Management Tip of the Month
When Boards Fail  in Their Role
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This topic is a bit amorphous; it was suggested by a reader, and I really liked the concept, but it's hard to get your hands around. How can boards fail? Lots of ways. Here are some of the most common.
1. They don't come to meetings: You don't have a quorum, you don't get stuff done.
2. They don't do their homework: Board members who come not having done their preparation are not ready to set policy or act as a check and balance on staff.
3. They focus on management rather than policy: This is pretty common, and happens a lot when staff members don't give smart, talented board members anything meaningful to do at meetings....they'll find something to fill their time, even if it means stepping over the line. Keep board members focused on policy by engaging them on key issues, and keeping them informed of new developments, in person, or online.
4. They dis the organization (or other board members) in public: This is like the black plague for an organization that needs public support and acceptance. It most often happens when their is not good leadership on the board itself. People feel that they are not getting their say, or that meetings are ineffective and the go outside to gripe.
5. They disregard standard business practices. No budget? No problem! The resources we need will show up. No insurance? Well, we're a nonprofit, no one will sue us. No audit? Hey, we can't afford one, and our staff and board are all such good people....
I've heard all of these. Just because you are mission-based does not mean you can ignore standard common business sense decisions.
6. They ignore their own priorities or polices: What's the point of having a strategic plan or financial policies if they are going to be ignored? This kind of waffling makes staff crazy, since they don't know what the board really wants. Note to boards who do this....you are even more liable as a fiduciary if you ignore your own policies, plans and priorities.

So, what can you do as a manager or board member to reduce this kind of behavior. Try these actions.

1. Have job descriptions, including attendance expectations, for board members. Enforce these requirements.
2. Have a board mentoring program. This will help get new board members on (pardon) board with the organizational culture and take their jobs seriously. Warning: pick your mentors carefully!
3. Include non-board members on committees to evaluate potential board members. This brings new skills and lets you make sure a potential board member is serious about meeting the organization's expectations.
4. Send board leadership to leadership training. Strong board leadership is key to strong, vibrant boards. Pay to have your leadership go. United Ways, MSO's, Community Foundations and often law and CPA firms have this kind of training.
5. Mix your board: Half advocates for what you do, half business people with business skills. the first group keeps you honest to my first rule of nonprofits: "Mission-Mission-Mission!". The second group keeps you honest to the second rule:"No Money, No Mission!"

Finally, and from personal experience, if you feel your board is failing, go talk to them, or get a consultant who will evaluate the situation and talk to them for you. DON'T let the situation continue! Your mission is too important to be sabotaged.

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

And, remember to take a look at the Mission-Based Management Blog.

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Print Resources

My recommendations for texts on When Boards Fail are shown below.  The listing below has the best books in this area.

How are We Doing? A 1-Hour Guide to Evaluating Your Performance as a Nonprofit Board, by Gayle Gifford.

Governance as Leadership, By Richard Chait, et al

Nonprofit Boards that Work: The End of One Size Fits All Governance, by Maureen Robinson

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Technology Tip 
How can Tech help when the Board Fails
In my list of problems I listed in the Management Tip, I noted that one method of board failure was board members not coming prepared, and another was board meddling in management rather than policy. In both of these cases, more information is part of the solution, and tech can help.

As regular readers know, I am a big advocate of a section of your website just for board members. Password the area, and include everything you can think of related to your board. Names, addresses, phone and email. Committee information including members, meeting dates and locations, minutes of past meetings, etc. Bylaws, budgets, audits, links to interesting articles on issues in your mission area....and then ask your board members what they want. Finally, make sure you have a live training session to show them what's on the site and how to access it.

The idea here is to keep them informed, keep them in touch, and to let them investigate issues at their own speed, at work or at home. They'll be better prepared, and feel more involved, both of which is great for a more functional board.

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Training Schedule for Peter Brinckerhoff

Below you'll see the date, location, and topics of public training I'm scheduled to do in the next few months. For more information on a particular speaking engagement, get in touch with the contact person listed in the right hand column, or email me.

For more information on my availability throughout the next 12-18 months, available topics, sample agendas, and fees go to www.missionbased.com/training.htm

Date City Topic Contact
11/01/06 Lake Tahoe Trends in Nonprofits IACCA
Mary Quinn
quinn.mk@gmail.com
11/03/06 Hilton Head, SC Ethics in Nonprofits NISH SE Regional Meeting
Debbie Ignatz
dignatz@nish.org
11-09-10/06 Portland OR Intro to Marketing NISH
Deborah Atkinson
Datkinson@nish.org
11/15/06 Bonita Springs, FL Mission-Based Management Community Foundation of Collier County
Mary Ellen Barrett
mbarrett@cfcollier.org
11/17/06 Altoona, PA Mission-Based Management and Marketing AFP of the Allegheny Mountains
Joe Scialabba
scialaj@dioceseaj.org
11/29/06 Farmington, CT Nonprofit Stewardship Connecticut Association of Nonprofits
Julia Wilcox
jwilcox@ctnonprofits.org

Marketing Tip

When Boards Fail and Marketing

Now let's turn to a messy failure of a board: one that is public and ugly. What do you do? You use your marketing smarts to minimize the damage and move on.
First, as always, when you mess up, fess up. Talk to your staff and board about the issue, what needs to be done, and admit guilt if the organization is, in fact guilty. Talk internally before anywhere else.

Second, if the issue gets into the public through the media, and if the organization has made errors, talk to your legal counselors and then confess to what you can (you may be constrained by future liabilities somewhat).

Third, you may need to fire/eject board members, and recruit new ones. Do this carefully, and make sure that the new members know about your dirty laundry (they'll find out anyway, so let them hear it from you)

Fourth, if there is service impact, talk to service recipients directly, and assure them (to the extent you can) that things will be fine, in the short or long run.

Finally, ask staff how they are doing, and act to ameliorate whatever stress you can.

Why is this marketing? Because you are identifying your markets (board, staff, media, service recipients) finding out their needs and wants, and meeting them.

If you want to see more about this in detail, take a look at more about my book Mission-Based Marketing; Second Edition