Not-for-profit boards are one way that volunteers contribute their time, energy and leadership skills to support organizations that help create a more complete social safety net in our communities. Currently, I devote my spare time to supporting bereaved parents and coaching immigrant women.

While I have enjoyed being a not-for-profit board director, I have occasionally witnessed instances of some bad behavior that derails the overall performance of the board of directors, including the following examples:

A passive board chair who was an exuberant cheerleader but weak at decision-making and follow-through;
Directors who consistently say, “I’ll do whatever you need me to do” but never do;
Directors who are consistently “missing in action” at meetings and/or events;
Cranky directors who nit-pick on single words within motions and threaten to resign if challenged; and,
Directors who overstay their welcome because directorship looks good on their resume.

Fortunately, I have also experienced great boards and great board chairs. I am blessed to be consulting with a board chair now who is smart, proactive, responsive when needed, and engaged with the organization without swooping in and micro-managing.

So how does a board become high functioning? Here are some ways to encourage board chairs and members to respond to their “better angels”.

First, be explicit about the role of the board chair. And choose wisely. A chair should be able to step back and forever hold the best interests of the organization – not personal interests – at heart. They should have a steely core and yet be compassionate. A steely core means they have the wisdom and courage to have difficult conversations. After considering all factors they should be decisive, able to move the board forward, and hold their board colleagues accountable.

Clearly define the expectations of board members. This should include expectations of their performance, the length of their term, and especially the criteria for a renewal of that term. While board members may consider renewal of their positions automatic, performance also matters. What percentage of board meetings have they attended? Which special projects have they assumed? Upfront “contracting” about expectations will help depersonalize the conversation. There should be no surprises if the director’s continuation on the board is up for discussion.

Board evaluations should be “news you can use.” Boards should assess themselves annually against what I believe are the 7 factors of successful boards:

Role clarity:
What is expected at and in between board meetings, and on committees?
Effective process management:
Is the right information provided to board members in a timely way?
Alignment and agreement on organizational strategy:
Is the board focused on the “right stuff” instead of defaulting to lesser or tactical matters?
Team dynamics:
Are directors able to speak freely without fear of colleagues who dominate discussions and stifle input?
Board composition:
Are the right skills at the table? If not, is there a recruitment plan to complement existing board members’ strengths and weaknesses?
Board size:
Is the number of directors manageable so discussions are productive, and all members have an opportunity for input?
Individual engagement:
Does each director feel they can contribute their unique skill?

Matt Blumberg has 20+ years of entrepreneurship experience, leading four companies and serving on eight boards. While his experience has been with for-profit businesses, I find his perspective is equally valuable for not-for-profit organizations. He writes:

“I’ve learned that strong boards can help propel a company forward and I’ve also witnessed how weak and ineffective boards can hold companies back. Mediocre or mismanaged advice, plus lack of accountability, can do long-term damage to a business as well.”

Mr. Blumberg continues, “Boards should be viewed as a CEO’s second team (along with their management team), as a strategic weapon that helps the company succeed and as an opportunity to bring new voices and perspectives.” He says the best boards are those that have “intellectually honest discussions.” As he wrote in “Entrepreneur.com” published on April 15, 2022,

“While it may be tempting to look for board members with softer dispositions, it can be more beneficial to have tough, direct board members who aren’t afraid to express their opinions, but who are also good listeners and learners. My favourite discussions are conversations where I’m pushed to consider a different direction. It helps get more done, surfaces better ideas and increases the effectiveness.”

Sometimes, not-for-profit boards may be perceived to be more relaxed due to less pressure to generate profits, volunteer-based membership, and fewer regulatory requirements. But at the end of the day, the ultimate goals are the same – future sustainability and growth. Shouldn’t not-for-profit boards be no less rigorous in ensuring there are formal structures, processes, and accountabilities, and a culture of good governance driven by a laser focus on social impact? We owe it to our volunteers, donors, and community to deliver the greatest positive impact.

Judy Fantham is a principal with The Osborne Group. If you need support ensuring your board can excel, Judy and her colleagues at The Osborne Group can support your efforts to improve governance on your for-profit or not-for-profit board.