Nonprofit Board Performance Problems and How to Overcome Them
Many nonprofit boards have performance issues. Some are under pressure to improve due to legal scrutiny, others want to improve their standing in the eyes of donors or the community, while others must address specific issues of board governance. It is essential for every board, regardless of the demands, to conduct some type of assessment. However, a performance assessment can be a daunting endeavor especially if the procedure is not something that the board has experienced before. Fortunately the proper guidance and tools can assist any board to overcome its challenges and succeed.
The first step is to understand the problem. The majority of the time, the board is viewed as a rubber stamp for management decisions or becomes involved in operational details which should be left to the CEO and management team. Additionally, the board might not be aware of its legal liabilities and the best way to defend itself from them.
In these cases the board must define and clarify its role as well as provide clear lines of communication between the board and management team. The board must also make sure that it has structures in place to fulfill its obligations. These may include committees or officer positions, whose responsibilities include gathering and analyzing data on board performance. It is also crucial that any agreed-upon actions resulting of a board’s assessment are followed up on and regularly monitored. The momentum that was built through the evaluation may be lost.