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.

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?

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?

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.

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.

Governance — Good, Better and Best

Good governance gets better results with best practices. Proven standards beginning with a clear statement of strategic focus and ending with a candid assessment of performance constitute best practices in organizational governance. Christ-centered organizations are no exception. Here is our guiding principle: Governing boards that follow best practices may not be Christ-centered, but Christ-centered boards will follow best practices.

Good reason backs up this principle. First, best practices increase the effectiveness of our ministries. Second, astute major donors will ask about best practices before they give to us. Third, Paul reminds the Corinthians that they are a “letter from Christ…known and read by everybody,” (II Cor. 3:2). A Christ-centered organization is also a letter from Christ that is read far and wide. To have best practices written into the text is an honor to the Author and a witness to the reader.

Anticipatory Governance

Wayne Gretzky, ”The Great One” in the world of hockey, is not known as an authority on governance, but he spoke volumes for us when he said, “I skate to where the puck is going to be, not where it has been.” Strategic governance is always anticipatory. Effective boards of Christ-centered organizations will foresee emerging issues and trends in both its internal and external environment in order to get ahead of potential problems and propose viable options. Ineffective boards, however, are known for acting only after things become urgent.

CEO’s are the Wayne Gretzkys of an effective board. In their reporting as well as their planning they will strike an anticipatory note to limit the surprises and grasp the opportunities. With deft and strategic moves, then, the board and the CEO can skate together to where the puck is going, not where it has been.