As Nonprofit Organizations Evolve, So Must the Boards and Their Leaders

Over the past month, I’ve spoken with two CEOs about their boards. Their questions and concerns were about roles and responsibilities, who should do what, and how to get the board to stay out of day-to-day work and focus on the bigger picture. Calls like this happen regularly and usually when the CEO is considering resigning. Since I know exactly where they are coming from, they ask for my assistance in getting the board on-track. I offer board training, policy development, and strategic planning.

When I started as a CEO, the organization was small, had minimal staff and heavily relied on volunteers to assist in completing operational tasks. There was a personnel committee to help me manage employees and a finance committee to oversee the money from budget development to approving expenditures and investments. I tell students taking the Great Supervision Training I was fortunate to have had the opportunity to grow with the organization and thankful for a supportive and progressive board of directors.  

As with many nonprofits, our services expanded exponentially through the 1990’s, so both the board and I needed to adjust. There came a point in time when the board and I felt we weren’t operating efficiently. We found ourselves wasting time at meetings, approving operational policies or expenditures (we had a $2 million operating budget at this time, yet could spend half an hour debating a $100 expense).  Activities like this were indicators that how we worked had to change. Our staff base grew so I assumed total responsibility for all employees while the directors focused on ensuring I was doing my job and had what I needed to succeed. I took on responsibility for financial management – including budget development, monitoring, spending, investments and contract negotiations. The board approved the budget, reviewed quarterly statements, and met with the auditor at year-end. They took their fiduciary responsibility seriously and scrutinized the quarterly financial reports asking any and all questions necessary to satisfy their duty. The board transitioned from a hands-on board to a policy board and onward to governance.

While moving toward a place where the board focused on governance and oversight and I led operations, we researched best practices, educated ourselves and had a facilitator help us establish our governance model. Of course, the board took the lead in this, but I was a partner since we were defining our working relationship. We found ourselves using elements from Carver’s Model of Board Governance but adapted it to meet our needs.

I am grateful that my board understood the importance of having a policy that outlined the role of the board, how it did its job, CEO expectations, and how the directors and CEO worked together. You see, without a written protocol, a CEO is vulnerable to the needs, ideas, and practices of board members — board members who act on their own and direct the CEO or staff, change the organization’s focus or priorities and involve themselves in day-to-day operations. Staff is confused, the Executive Director is frustrated and the organization is in constant flux due to reacting instead of strategically moving forward.