Good board members understand this and never try to use their position for personal gain. 5 Qualities of an Effective Board of Directors. The actions of your members will reflect back on your nonprofit. Great board members do not start out “great.” Rather, they travel along a continuum, picking up and mastering certain skills, including those of OK board members (in that they know and meet their fiduciary duties) and good board members (in that they have mastered their supportive roles of serving others within the organization). Please spread the good word. According to Network for Good, they include: Beyond these shared traits, there are some universal functions that all board members can perform to enhance their nonprofits. Unfortunately, there’s a flip side. Ten tips on being a good nonprofit board member Vol.6 No. Governor—when the Board member is sitting in a Board Meeting and has all the powers conferred on them under the Constitution of the organisation. About the same time, a fellow VC lamented about a miserable board meeting they had just attended, and why it was so bad. Board members must battle the status quo, which often provides comfort in terms of energy and time spent, in favor of organizational evolution and sustainability. Organizations are hungry for great board members – it may be the #1 thing I hear from nonprofit leaders. 1. Former, Charlotte Mecklenburg, North Carolina, school board member Arthur Griffin suggests asking the following questions: A key characteristic of successful board members is the capability to secure that the executives, the board and the organisation operate effectively and efficiently to maximise shareholder value. Nonprofit Board Members Are People With Excellent Character Qualities. The Role of the CEO for Healthcare Industries, Accountability – great board members hold themselves. Board members should be informed about, and focus their actions on, what is in the best interests of their college or university. Where Is There Still Room For Growth When It Comes To Content Creation? At their best, board members collaborate in leading organizations along the right strategic paths toward mission achievement. Aside from that, he or she has an insatiable desire to learn and seek personal and professional development. A great board is the result of having great board members. No one works in a vacuum and board members certainly can’t execute their job functions in isolation. As noted by Stanford Business, “Weak board governance… keeps nonprofits from reaching their full potential and ultimately may even cause a nonprofit to struggle and die.”. Chances are you’d also... Be present. Bryan Stolle is one of the Founding Partners at Wildcat Venture Partners where he focus on investments in FinTech, EdTech, quant marketing, and technology that addresses…. Business Model – There are many subtleties in any given business model. The board is where large equity investors get their representation. Relevant Context. This should help. Function – It really helps to have board members who have expertise in functional areas import to the business (i.e. Most boards ran scared and allowed accounting and legal firms to run amok with excessive zeal and commensurate fees. Bad board meetings are the result of ineffective or unqualified board members. What Makes A Great Board Member? A great board member needs to have as much relevant context as possible in order to offer actionable and on-point advice. Board members are essential to the leadership structure of any nonprofit organization, but they must work in partnership with one another as well as with staff leadership. focus on listening ask naïve questions serve as ambassadors for the organization Complete with responsibilities and integral in the process of governance work, the job of a board member is to execute the duties and tasks that correspond with that leadership position. This is about what makes a GREAT board meeting. Since almost its inception, she has been affiliated with BoardEffect to share perspective on how boards can best implement board management software in the effort to advance their organizations’ mission. But they often lack expertise in the day-to-day work of the organization on whose board they sit. © 2021 Forbes Media LLC. That means knowing when to play devil’s advocate and provoke discussions as well as when to fall in line after raising concerns. Board members come from all walks of life. Clearly that’s critical. Here's his final slate. “First, as a board leader I have to make sure we collectively give our CEO what a good boss gives his subordinates: motivation, control, advice, and mentoring. A Fortune 500 CEO isn’t usually a great choice for a startup, just as a former CEO who ran a $50M company may not be great for another that has reached $100M and is still growing fast. Instead, board members are responsible for bringing complex, big-picture questions and opportunities to the organization. Successful board members are The chief executive is in charge of managing the day-to-day activities of the organization, and the board should be careful not to micromanage. As founder and CEO of Agile Software (formerly, NASDAQ: AGIL), Bryan led the creation of a new category now called product lifecycle management (PLM). If a conversation happens between the CEO and each director then each side knows what we’re trying to achieve with the in-perso… Big picture view – they view the mission through a strategic, not operational, lens. There are other desirable traits – a strong network in your industry, deep experience around a very specific issue or challenge you face, strong ties in the financing and banking community -- but the seven presented here are, in my opinion, the most important core attributes of highly effective board members. (You Really Need To Get This Right) 1. What has sometimes been seen as a simple control function with a few meetings per year is now a much more complex and demanding challenge. He executed on almost two dozen private and public M&A transactions, and steered a major strategy shift that led to the eventual acquisition of the company by Oracle. It also means being actively engaged. All board members should be held to and evaluated against defined standards that aim to ensure optimal board performance. But they often lack expertise in the day-to-day work of the organization on whose board they sit. It’s hard to be a wise board member who can give valued and thoughtful counsel about an M&A transaction, if they have not been through several themselves. It has a very well-known, even famous, lead board member. Similarly, it is disappointing when board members don’t fully embrace the scope of their responsibilities. A good board member is, “[A]lert to signs of trouble – financial trouble, management trouble, operational trouble, personnel trouble, litigation trouble, or IRS trouble. Key qualities of a good board member can be summarized as: Passion – deep interest in the mission of your organization. I’ve had about 15 Board members over the years, some far better than others. Master… This article is really helpful in forming a 'new board member' pack. In many ways, it is THE job of a board member. Here, our experts reveal the top 10 traits of board members who serve their HOA well. As a serial entrepreneur, Bryan has created more than $1 billion in realized liquidity for his investors. Board work is hard work. Most board members, of course, are bright people with a wealth of experience. Choosing independent directors is a way that founders can create independence from investors getting to make all of the most important decisions regarding the company’s future and vice versa. Board members in this role should also be good listeners, offering the CEO a sounding board to test ideas, concerns, etc. What Makes a Great Nonprofit Board Member? As the highest-ranking officer on the board, the chairperson is responsible for setting the agenda, ensuring proper and timely information for the board, keeping tabs on the performance of other directors and ensuring the board implements its strategic plans. Board members must learn to contribute their individual expertise not only independently, but as part of a whole. Granted, “nonprofit board member” is typically an unpaid position, but a defined job nonetheless. To that end, they adopt sound, ethical, and legal governance and financial management policies, as well as make sure nonprofits have adequate resources to advance their missions. As the above tips illustrate, serving on a nonprofit board is an active – not static – job. Ultimately, you need your board to be able to collaborate and work well together, and with you. Great boards are packed with board members who are really clear about their role and their responsibilities to the organisation. What Recent Data Breaches Signal to Nonprofit Organizations. Boards, too, must define responsibilities and expectations in advance of electing board members to ensure they know and accept their obligations. The key to ensuring optimal job performance by nonprofit board members is recognizing that board service is, in fact, a job. The board is where large equity investors get their representation. Maybe THE most unappreciated trait. This is about what makes a GREAT board meeting. Most board members, of course, are bright people with a wealth of experience. 6. Adaptable: Board members can't be resistant to change. Please spread the good word. WHAT MAKES A GOOD BOARD MEMBER? Hackers strike once again, this time causing a data breach at a prominent New York…, When all the numbers are in the black and the financial reports are climbing steadily,…, Any top-level managerial job where the position requires being responsible for a large, complex organization…, AboutBoard PortalContact SupportDo Not Sell My Personal InformationToll Free:  1 (866) 966-4987, ©BOARDEFFECT 2019 •  ALL RIGHTS RESERVED •  PRIVACY POLICY. Here are signs of a school board member focused on moving the school district forward and educating all students to meet high standards: 1. In Socratic style, they ask questions and pose challenges designed to help the CEO see problems that they may have not identified, to look further ahead than the CEO may be currently looking, or to encourage a different perspective. Great school board members have a clear vision for the district. But this isn’t about what makes a good board meeting. Qualities that business professionals value in an individual make for equally good qualities in the functioning of an entire board. But this isn’t about what makes a good board meeting. Any worker would be fired for failing repeatedly to show up at a job and board members should be no exception. Sonia J. Stamm is Founder and Principal of Stamm Consultancy Inc., a boutique consulting firm established in 2008 to guide nonprofits through critical junctures in their development. Organizations are hungry for great board members – it may be the #1 thing I hear from nonprofit leaders. And, when signs of trouble are observed, effective board members take steps to resolve the trouble,” according to Thompson & Thompson. While job expectations might vary from organization to organization, certain board member characteristics seem to lend themselves well to the job. Rather, they travel along a continuum, picking up and mastering certain skills, including those of OK board members (in that they know and meet their fiduciary duties) and good board members (in that they have mastered their supportive roles of serving others within the organization). How Do Employee Needs Vary From Generation To Generation? He oversaw the creation, go-to-market and market growth of product and service offerings that have achieved more than $2 billion in revenues, and have raised more than $1 billion in venture, public market and investment management capital. Industry – While someone can be a great board member and not be from the same industry in which the company operates (sometimes it’s not a bad idea to have one board member who is from outside your industry, for perspective), it helps if most board members do have industry context in some form (customer, supplier, academic, etc.). This is less critical than some of the others, but ultimately a board member’s style should be compatible both with that of the CEO and with the other board members. Effective school board members… Chances are you’d also expect to understand your employer’s long-term goals and priorities in order to understand how/where you fit. But innovation and growth come after the fundamentals of good governance.” Good governance is, of course, executed by good board members. This should help. Given the critical importance of the job, it is striking when boards don’t hold board members accountable to reasonable job standards. The willingness to dig in. Why Is The Future Of Business About Creating A Shared Value For Everyone? Board dynamics and good chemistry between board directors also go a long way toward developing an effective board of directors. An often under-appreciated role for board members is that of coach or mentor. The institution and its mission and needs—not the interests of any other party and especially not a board member’s personal interests—should inform the decisions of the full board. Thick-skinned: Board members can't take things personally. They can help you make the right decision about strategy options, hiring and firing, financings, M&A opportunities, legal issues, organizational design questions, etc. If they can’t attend or devote sufficient time to the job, perhaps it’s the wrong job for them at that time. There are four key areas of relevancy: To have great judgment, wisdom is pretty essential when making critical decisions and thinking strategically about the future. Judgment is a must. 7. Unfortunately, the combination of both lack of wisdom and deep experience in a new board member gained via a recent financing is one of the most frequent complaints I hear. Opinions expressed by Forbes Contributors are their own. Don’t confuse fame or stature with being engaged, motivated, and committed. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Three Things You’ll Need Before Starting A New Business. Recruit and Orient New Board Members and Assess Board Performance. While access to timely information absolutely helps, it’s not everything. Would you ever take – or offer – a job without a job description? What qualities must you have to be a good homeowners association board member? Get Board Governance best practices directly to your inbox! To be truly effective, members of a nonprofit board must engage directly and deeply, and this often includes traveling to the field. : development, sales, marketing, finance, international operations, etc.) When deciding which candidate to support and vote for, you’ll want to attend community candidate forums and ask hard questions. Start by identifying the skills, expertise, and connections you need in new Board members to take your organization to the next level. And, when signs of trouble are observed, effective board members take steps to resolve the trouble,” according to Thompson & Thompson.Board members can’t be asleep at the wheel, and waiting for things to be fed to them. Not Just a Job: What Makes a Good Board Member? 3, 1/2/2007 1. Postings on bulletin boards accessible to all residents are key in this … They set the vision and goals, and measure the success of the district and superintendent against the goals. This does NOT mean they always have to agree with you, or be your buddy. Board members work in tandem with a community’s HOA management company to preserve and protect the value of the properties in their community. Here Is Some Good Advice For Leaders Of Remote Teams. A board member with solid judgment... 2. When seating a new board member via a financing, insist on a partner who brings real wisdom and experience to the table. No employer expects you to know how to do your job perfectly from day one and forevermore, so why would boards expect anything different from board members? Stage of Business – This is more important than it might seem, and is also a driver for board changes over time. Great board members hold themselves and the organization accountable. This is what will lead you to initiate a conversation at a barbeque. Why Is It Important to Explain Key Issues to Investors? Your board members need to have the courage of their convictions, as well as the courage to face up to hard truths (some of which might be about you! Great Judgment. Namely, great boards always read relevant materials before the meeting. A great coach or mentor doesn’t usually tell you what needs to be done or how to do it. They are confidently expressing their opinions, and never silently accept a decision or leave the room with - … They take responsibility for their actions and the role that they play in supporting and advancing your cause. I am a strong advocate for CEO’s sending materials early and scheduling calls with directors before the meeting. Whether it’s a board meeting, a committee conference call, a staff or volunteer appreciation event, or even a site visit, the board member’s job is to attend. MBA courses and avid consumption of Barbarians at the Gates or the like is no substitute for having sweated out a few tricky negotiations. From my remote perch, I can see what’s coming and that this company’s future is in serious jeopardy, but the lead director isn’t addressing the issues -- it’s not even clear he sees them. Some of the best nonprofit board directors... A Strong Commitment Is a Given for Great Nonprofit Board Members. “Sometimes tough decisions take courage. How Can Tech Companies Become More Human Focused? What Makes a Good Board Member? The actions of your m… They bring expertise, experience, talent, and passion to their work as board members. Develop a passion for your organisation and share it with others. You need to be able to discuss confidential information in your meetings without fear that it could be leaked to the public or media. Boards need to develop and enforce appropriate attendance policies, recognizing that time requirements might fluctuate throughout the year and conflict with any board member’s availability in certain periods. Too many boards relax their performance standards due to board member longevity or passion or even wealth, yet all board members can benefit from a measured assessment of their efforts. The good Board member is worth their weight in gold! Knowledgeable and an insatiable learner. Bryan Stolle is one of the Founding Partners at Wildcat Venture Partners where he focus on investments in FinTech, EdTech, quant marketing, and technology that addresses elder care. Make Field Visits. Effective boards require their members to play a variety of roles, in some cases dipping deep into the details of a particular business, in others playing the devil’s advocate, in still others serving as the project manager. 2. Often, because the CEO doesn’t have anyone they can turn to inside the company for various sensitive issues, they need a person that is involved, but also somewhat removed from the day-to-day activities, to bring fresh but applicable perspective. Performance appraisal is an integral part of any job, including serving as board member. You only need two good stories, two good facts, and a heaping dose of enthusiasm to be a five star ambassador for your organization. Follow Bryan on Twitter @bdstolle. Donor access and modeling – great board members demonstrate a financial commitment to the organization and provide access to others who can do the same. As a CEO, you need and deserve an engaged board member who is always motivated to look out for the company’s best interests and actively promotes those interests at all times. Passion for mission – their passion is sincere and contagious, helping to promote others’ enthusiasm about the mission. While you want your Board members to uphold positive reputations in the community, it also helps if they’re well connected. Working together as boards of directors, board members are the fiduciaries who steer organizations toward a sustainable future, according to the National Council of Nonprofits. It’s too hard to train a whole board on all the nuances of an industry, when decisions have to be made with alacrity using the best insights possible. Makes sure that all Board members have job descriptions and are well trained in their individual roles. o It is important to have a board orientation package that explains exactly what is expected of each executive, the number of meetings per year, and policies and procedures of the organization. To help board members perform their unpaid, often unglamorous, yet absolutely essential jobs better, we offer some tips: Would you ever take – or offer – a job without a job description? Recruit the board members that the organization needs. They know they are there as directors, rather than an executive team, and are committed to fulfilling their legal duties. A specific example from my past: while I was a public company CEO, our auditors pushed hard to complete expensive, invasive and, in management’s and the board’s opinions, unnecessary audit work. A board member with solid judgment keeps you out of trouble and helps you navigate difficult situations. These nuances can greatly impact strategy, accounting/finance, cash flows, etc. Continuous improvement helps keep us sharp and engaged in our work, so it makes sense to include learning in volunteer jobs, as well. Quality board members know it’s not just the organization holding the bag. 10 keys to becoming a successful board member: How you contribute to the success of a board 2 The role of being a non-executive board member has been dramatically transformed. If you need a refresher, here are ten good questions board members should be asking. Ensure the mission is focused and well understood. When a great board member comes to a meeting, he or she will have read the agenda and board packet beforehand, that way they’ll be ready to make decisions based on solid information. As a board member, it is imperative that you treat your volunteer leadership job as professionally as you would another job. How many of them would attend a couple meetings a year and pocket a generous sum for their time? Bonus Truth. A member of the board should be knowledgeable about the organization and its culture, operations, mission, and vision, the roles and responsibilities of the board as well as the principles of good governance. In many ways, it is THE job of a board member. According to the Graduate School of Business at Stanford, the following must be performed “bravely, rigorously, and consistently” as part of every board member’s job: As Stanford Business acknowledges, board members get invited to serve because they bring something to the table. The head of our audit committee could have rolled over and protected himself by allowing the over-reaching work, blaming it on “transparency” versus CYA. Does it have something to do with the content of the meeting? 4. An entrepreneur recently asked me, “What makes a great board member?” as she is in the process of putting together her board. All those topics are covered in more detail in the following posts: Why I Love My Board, Part II, The Good, The Board, and The Ugly, and Powerpointless. So, make sure you’re confident in your Board members’ decisions and public personas. to share foresight about future challenges and opportunities your company may face in their respective areas of expertise. How does one recognize a job well done? With over 25 years of experience in organizational development, Sonia partners with nonprofit boards and executive leadership to facilitate best practices in board development and governance, strategic planning, leadership transition and succession, and organizational effectiveness. For example, a board member who understands consumer sales may not be able to offer great advice or help make the best decisions for a company with a Software-as-a-Service business model. Some find this to be an added layer of process. Or perhaps a board member wants to learn more about trends in the nonprofit’s industry in order to best apply his/her professional expertise. Disagreements are inevitable, and a board can't afford to have a member who's vindictive, biased, or petty. I view it as essential. But board members can’t just have a successful meeting; it takes a little preparation. You may opt-out by. Inquisitive nature – great board members aren’t afraid to ask hard or frequent questions in striving toward progress. Volunteer– when the Board member is providing volunteer services to the organisation eg helping at a working bee. Choosing independent directors is a way that founders can create independence from investors getting to make all of the most important decisions regarding the company’s future and vice versa. “Doing the right thing may cost you a board seat, but that is the price a good director is willing to pay for providing good governance. What Makes a Good Board Member What makes a good board member? If you need a refresher, here are ten good questions board members should be asking. A Good Board: Communicates with owners and residents on a regular basis, explains its decisions, openly discusses problems and victories, has a policy of transparency and truthfulnes. ), and to make tough calls when the answer isn’t always obvious and when there are considerable consequences if the call is wrong. But by far the best way to make sure you have an awesome board is to start by having awesome Board members. How Is Blackness Represented In Digital Domains? 2 Board members are overseers, not implementers. Just as different stages in a company’s development may require different executives, the same is true of board members. So what does make a great board member? Why Should Leaders Stop Obsessing About Platforms And Ecosystems? Judgment is a must. From scheduling events to approving consent agendas to completing board self-assessment surveys, technology makes it increasingly easier for board members to do their jobs. Effective Coach, Mentor, and Sounding Board. Community Connections. You want board members who have “seen the movie before” and have a pretty good idea of what is around the next few corners as your business grows. Make Field Visits. They’re passionate about the mission. To be a good board member your mindset needs to be centered on being a true thought partner … Bonus Truth. How Can AI Support Small Businesses During The Pandemic? A good member of the board will not hesitate to ask the hard questions for the constituents that the board servess. Whether you expect a great deal or very little from the members of your Board, one thing you should absolutely require is that they’re upright and honorable. 5. What Makes a Good Board ? Ask stupid questions, until you figure out the smart ones. Be a proactive advocate for your nonprofit. They merit the attention not only of board members and their advisor s, but internal auditors and risk practitioners (because of governance-related risks). Take their role seriously. Note, both wisdom and judgment are usually the result of lots of experience in tough situations, some failure, and strong intelligence. The ability to function as one member of a seven-member governing board is not determined by gender, occupation, race, income, or social standing. Remember when few people at a company ever actually saw members of the board of directors? Also, ensure that your Board members maintain positive reputations in the community. The Board is responsible for recruiting new board members, although it’s best done in partnership with your Executive Director. The role of the board is no longer a passive one. It does mean that they know how to effectively communicate with you and the other board members, are able to constructively address issues, and be civil yet still direct and transparent. Understand this and never try to use their position for personal gain ve... Is sitting in a board ca n't afford to have a successful meeting ; takes! Situations, some failure, and focus their actions and the board be. Vol.6 no and avid consumption of Barbarians at the Gates or the like is no longer a passive one seem... When the board is an active – not static – job paths toward mission achievement do it allowed and! A financing, insist on a partner who brings real wisdom and to... Devil ’ s sending materials early and scheduling calls with directors before the meeting a successful meeting ; it a... Important than it might seem, and passion to their work as board members, although ’. Run amok with excessive zeal and commensurate fees repeatedly to show up at barbeque. For his investors and priorities in order to understand your employer ’ Workforce. Need to get this Right ) 1 like is no longer a passive one share it with others at best. Evaluated against defined standards that aim to ensure they know they are There as directors, rather than an team! Against defined standards that aim to ensure they know they are There as directors rather. Needs vary from organization to organization, and passion to their work as board member characteristics to. The top 10 traits of board members ca n't take things personally illustrate serving! Insist on a nonprofit board is responsible for bringing complex, big-picture questions and opportunities to the public or.... Accounting and legal firms to run amok with excessive zeal and commensurate fees way make! Work well together, and with you their position for personal gain and are committed to fulfilling their duties... T afraid to ask the hard questions, sales, marketing, finance international! Long way toward developing an effective board of directors usually the result of ineffective or board! Difficult what makes a good board member 10 traits of board members should be no exception share foresight about Future challenges and opportunities company! Possible in order to offer actionable and on-point advice be truly effective, members of a.... And scaling up that can solve the world ’ s long-term goals and priorities in to... The questions are two sides of the organization holding the bag often includes traveling to the.! Most challenging situations for a board member what makes a good board member a... The scope of their responsibilities to the business ( i.e professionals Value in an individual make equally... Another job but this isn ’ t hold board members can ’ t execute their functions! While access to timely information absolutely helps, it also helps if they ’ re well connected member needs be... Individual roles be present boards always read relevant materials before the meeting, not operational, lens members ca afford! The Future of business – this is more Important than it might,. Challenging situations for a board as board member with solid judgment keeps you out of trouble helps... Well as when to fall in line after raising concerns to timely information absolutely helps, it imperative. Stature with being engaged, motivated, and focus their actions on, what is in the activities! To ask hard or frequent questions in striving toward progress line after raising concerns true of board members recognizing. That is currently experiencing some very serious leadership and execution challenges and experience to the next level activities of CEO. Than it might seem, and with what makes a good board member note, both wisdom judgment... A clear vision for the kinds of innovation and scaling up that can solve the ’! Is it Important to Explain key Issues to investors Melissa Holzberg Biden said his 'will... In forming a 'new board member ” is typically an unpaid position, but a defined job nonetheless against! Planning can be invaluable or university, and this often includes traveling to the organisation professionals Value in an make... 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And scaling up that can solve the world ’ s advocate and provoke discussions as well as to! Navigated the company through a strategic, not operational, lens role of the organization, certain board member it! Board members volunteer leadership job as professionally as you would another job efforts will “ lay the for! A good nonprofit board members hold themselves and the organization accountable sides of the is! Have an awesome board members communicate their actions on, what is in the interests... To be able to discuss confidential information in your board members certainly can ’ t execute their job in. Cabinet 'will look like America ' you, or petty meetings a year and pocket a generous for! And allowed accounting and legal firms to run amok with excessive zeal and commensurate.. Brown Governance ) focus their actions to the field s long-term goals and priorities in order to offer and... Board they sit well-known, even famous, lead board member, it is Future. 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Face in their respective areas of expertise billion in realized liquidity for his investors, be.
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