The business models of nonprofit organizations are changing fast, however the board of director's level of governance to match this shifting landscape is far behind the curve.
In this Nonprofit Strategy Report and several to follow, we will deliver insight into our 5 Steps for Building Breakthrough Boards. The 5 steps are:
- Explore: Finding the right board candidates
- Enroll: Ensuring a good match
- Orient: Harnessing passion and commitment
- Engage: Leading fun and exciting meetings
- Evaluate: Understanding how to succeed and produce
Step 1: Explore
One of a CEO’s most important responsibilities is to ensure a partnership with the board for the purpose of consistently strengthening and growing the board. To achieve this, the focus should be on constantly exploring potential board candidates who could serve as catalysts for moving beyond the existing status quo. The concept that “water seeks its own level” aptly defines the importance of building breakthrough boards. To achieve the next level of growth, impact, and success, you don’t just want people who can settle in at your current level and maintain what you’re doing now, but people who can go up a notch, raising past performance levels to new heights.
For example: If a CEO of an organization with a $10 million budget whose operations are spread regionally across several cities and towns wants to break through to higher levels, then that CEO would want to explore potential board candidates who have experience in leading companies with budgets of $20+ million and geographic footprints at a state level or greater. The reason for doing so is that, to achieve this breakthrough, the nonprofit will need leaders who are experienced with higher levels of productivity and organization. The ability to achieve higher levels of success will come from the advice, resources, social connections, financial ability, and previous experience of those candidates who have “been there, done that.”
The process may not be very complex, but it does require the board to commit to these three points:
- The existing board must understand and accept the need to change and evolve, so that they are committed to and engaged in the process of change.
- Board development must be a key area of focus of all board meeting agendas, with a dedicated governance or nominating committee leading the charge. This will ensure a consistent, organized, and disciplined approach.
- The board should have a clear understanding of where the organization is and where it wants to go in terms of its size and scope. This is the single most important issue in building a breakthrough board. With this road map in hand, the experience and expertise of the new board candidates can raise the entire organization to new levels.
The exploration process can begin today for any board of directors. The only prerequisite is commitment and urgency from the entire board. Having a transformational strategic plan can help to guide board-building discussions, and a list of names can be generated using the future vision and direction contained in this plan as context.
In next month’s newsletter, we will provide insight into how to enroll new board members once you have identified potential candidates.