Wednesday, January 18, 2012

What Drains Your Board Members?

This subject arrested my attention when a good friend, Jim Galvin, asked in a recent eNewsletter, “What’s Your Kryptonite?”

“Superman could do many things well,” my organizational consultant colleague wrote, “but he became powerless around Kryptonite.”

He added, “So what is your Kryptonite? What drains you? What situations and tasks suck the life right out of you? We all have unique strengths and weaknesses. When we are operating in our strengths we are energized. When we are operating in areas of weakness we tend to feel drained.”

Effective board chairs and nonprofit ministry CEOs and senior pastors are students of their colleagues in what I call the “3 Powerful S’s” – Strengths, Spiritual Gifts and Social Styles (Driving, Analytical, Amiable and Expressive; or some prefer using the Myers-Briggs or DiSC systems).

An effective leader will understand how God has wired and gifted each individual board member and will ensure that committee assignments, for example, align with each individual’s strengths.  (For help, many boards are now using the Gallup Organization’s StrengthsFinder assessment.)

Caution! Governance work will drain the very life and passion out of unsuspecting board members who say yes to assignments out of loyalty, not out of competence.

It’s interesting that in Galvin’s list of seven items that drain him, including “traveling with people who talk incessantly,” he includes “recruiting new board members.”  So—even people who get paid to help boards get drained by certain segments of governance work.  Jim’s candor is refreshing and is a model for all of us.

The good news: Galvin also listed five solutions for addressing issues that drain you.

Question for Your Board Members: What part of your governance work drains you—and how can we better leverage your 3 Powerful S’s?

Tuesday, January 10, 2012

When Bad Boards Happen to Good People

Do CEOs get the boards they deserve?  Here are two scenarios to consider:

Scenario #1. Intentional Coaching and Encouragement.  In this scenario, the CEO (or senior pastor) helps the board recruit the right people onto the board bus.  Throughout the year, the board chair and/or the CEO provide board members with a steady flow of governance enrichment opportunities (articles, books, webinars, workshops, consultants, etc.).

Recognizing that every board member brings a certain amount of dysfunction (from prior board experiences) into their current board roles, astute board chairs and CEOs are disciplined at creating a symphony out of one-time soloists.

The problem: this is really hard work. It takes an enormous amount of relational time with schedules that are already overloaded.

The payoff: intentionality is worth the investment. Healthy boards are God-honoring. Joy and grace abound!

Scenario #2: Hopeful Neglect and Frequent Firefighting.  This second scenario is more common to all of us.  Because we don’t have the time to build a great board, we hope and pray (probably—more hoping) that everything will just work out.

Yet, without intentionality, we often settle for second tier board members whose greatest credentials are availability. So they stumble onto the board bus with inferior experience levels and often mixed motives.

Because we haven’t discerned God’s direction in recruiting board talent (an outcome of Scenario #1), we accept “good,” when “better” or “best” could be realized. When the people around the board table don’t have a deep sense of “Holy Ground” in their decision-making, the inevitable verbal fist fights break out—and frequent firefighting becomes the norm.

The problem: in search of solutions, we focus on symptoms.  “If Hank just had more data. If Julie would just attend all the meetings. If Ernesto would just stop micro-managing.”

The payoff: ultimately, this scenario has no payoff. Ultimately, when you eliminate board development opportunities, there is no time or money saved.

“Bad boards” happen to good people frequently, but it doesn’t have to be that way. Choose Scenario #1!

Question: How much does it cost a ministry (time, money, reputation and morale) when the board operates in Scenario #2?

Friday, December 30, 2011

It Takes a Village to Raise a Board’s Effectiveness

Almost 1,100 CEOs, board chairs and board members participated in the 2011 Governance Survey of ECFA members.  A question on board effectiveness asked, “Give your board a grade for their board work in the last 12 to 18 months.” On a scale of 1.00 to 5.00 (an F equaled 1.00; an A equaled 5.00), CEOs gave an average rating of 3.84 for board effectiveness.

The good news: almost 67 percent of boards were rated “Good” to “Excellent.” The bad news: 27 percent were rated “Average.” Just four boards received “Failing” grades by their CEOs while 19 boards received a “D” (“Danger Zone”).  Bottom line: 33 percent of boards were lackluster at best, according to their CEOs.

Max De Pree, the board chair for many years at Fuller Seminary, says that “the first responsibility of a leader is to define reality.”
 
So what is reality for your board? How effective is your board? And how clear is it that your board sees their work as Christ-centered? While 81 percent of board members said it was “crystal clear” their work was Christ-centered (the best description of five options), only 65 percent of CEOs checked the “crystal clear” box.

There’s no one silver bullet for raising your board’s effectiveness. It takes a village—a thoughtful array of integrated action steps that cover the four arenas of board work: cultivation, recruitment, orientation and engagement.
 
Don’t let board work overwhelm you or ignore the kingdom implications of mediocre governance. Ask your governance committee to define reality today and then recommend next steps on board effectiveness. Create a life-long learning plan for your board members.  Action steps might include a book-of-the-quarter, governance articles, webinars, video resources, workshops, retreats or self-assessment surveys.

Elton Trueblood said that “pious shoddy is still shoddy.” Ministry effectiveness, however, honors God.

Thursday, December 22, 2011

10 Most Common Board Shortcomings

Only 10?  The December issue of Board Member® magazine from BoardSource (you do subscribe to it, right?) features a quick-reading one-pager on “The Top 10 Most Common Board Shortcomings.”

Pour a cup of coffee for three or more Christian organization CEOs, board chairs, senior pastors or church board members—and, without asking, you’ll certainly have your own list of the Top 50 board shortcomings.

Here’s the problem: we all bring our delightful dysfunctions into the board room—often based solely on our prior board experiences in other organizations and churches.  If the last board I served on did it “this way,” I may incorrectly assume that the next board will operate the same way. Not!

That’s why the cultivation and recruitment phase (dating before the wedding) is so critical when inviting new people to join the board.  After the “wedding” it’s too late to discern if your new recruit is a good fit.

Here’s the BoardSource list of shortcomings. The magazine article includes a short paragraph on the prescription for each shortcoming.
  1. Veering off mission
  2. Complacency
  3. Misguided motivations
  4. Multiple voices
  5. Micromanagement
  6. Limitless terms
  7. Lawless governance
  8. No self-assessment
  9. Lack of self-improvement
  10. Knotted purse strings
What additional governance shortcomings have you discerned in Christ-centered organizations and churches?

Friday, December 16, 2011

10 Questions to Ask Before Joining a Board

In board self-assessment surveys I’ve conducted recently, I’ve noticed that both CEOs and board members are asking for more help on board member recruitment strategies. So you might appreciate the interview checklist suggested in The Wall Street Journal’s six-page philanthropy report on Nov. 28, 2011.

“Before You Join That Board…” listed 10 questions a prospective board member should ask:
  1. Can I see the organization’s annual report?
  2. Can I see the most recent audited financial report?
  3. Can I see the long-range program and financial plan?
  4. Can I see a list of current board members, titles and all affiliations?
  5. Can I see a description of board members’ responsibilities?
  6. Can I see a board organization chart?
  7. Can I see a staff organization chart?
  8. How much is each board member expected to give? Is there a minimum?
  9. How many board meetings are there per year?
  10. Can I go on a program site visit?
However, instead of waiting for a board member prospect to ask you for this information, provide it up front. I encourage Christian organization and church governance committees to prepare a 31-tab Board Nominee Orientation Binder with the above information and a whole lot more. Potential nominees will not read everything, but they’ll appreciate your heart for transparency and due diligence.

What questions are your board prospects asking you—and how do you package that information for them?

Wednesday, May 4, 2011

When A Leader Comes Of Age

Maturity in leadership comes at a personal price. Sooner or later, every CEO of a Christ-centered ministry will have to make a moral decision that will define his or her legacy of leadership. We call this moment a “critical incident.” It comes as a surprise, poses a moral conflict, requires a risky decision with the possibility of failure, and results in long-term, even eternal consequences. President Barack Obama made that kind of decision in his executive order to assault the compound of Osama Bin Laden. Whatever our politics, we recognize the weighty consequences of leadership at any level and in any context. The news of the day should drive us to our knees. Only the Spirit of God can help us sort out the differences between our self-interest, the common good, and the will of God. Christian leadership is affirmed, compromised or denied in this defining moment.

Thursday, April 21, 2011

Our Biblical Model For Succession

CEO succession, a dormant subject just a few years ago, has come fully alive. Boards are thinking about succession, not only when their CEO is ready to retire or under threat of dismissal, but as a working principle of good governance. For Christ-centered ministries, Elijah’s transfer of prophetic authority to Elisha is our succession model. Follow the sequence. Elijah, aware that his leadership is coming to completion, is told by God to anoint Elisha as a man of unquestioned integrity and youthful energy. So, in an irreversible act, Elijah takes off his mantle and puts it on the shoulders of Elisha, never to take it back. The newly ordained prophet responds in kind. Elisha sells all of his equipment, slaughters all of his oxen, and feeds the poor to let everyone know that he will never turn back from his calling. Then, in a mentoring moment, Elisha follows Elijah to be his servant and learn from the master.

Dare we follow this model? If so, we need CEOs of Christ-centered ministries who are not threatened by the reality of succession. We need CEOs who are actively cultivating potential successors to their position. We need CEOs who pass the mantle of leadership without reservation. We need successors who cut all of the lines of the past in order to give themselves unreservedly, and even sacrificially, to CEO leadership. And then, we need senior statesmen who will make mentoring of the next generation the lasting legacy of their leadership.