6 Tips For A Better-Performing BoardThe heightened atmosphere of accountability facing nonprofits and the difficult operating climate of recent years have combined to raise the stakes for board service. Boards are more visible than ever before and face higher expectations. In this environment, it’s important that boards operate as soundly as possible. This means eliminating counterproductive practices and weak resources. To ensure your board is functioning as sell as it could be, consider these six tips for achieving optimal performance. Focus on mission, not process. Boards have limited time to perform their governance and oversight duties. That’s why they need a laser-like focus on carrying out the nonprofit’s mission, rather than becoming mired in process-oriented details best handled at the staff or committee level. By using the organization’s mission as an ever-present touchstone, decisions about drafting strategy, setting agendas and allocating meeting time become relatively straightforward. Find out how our expertise in tax services can add value to your business. Email us or call us at 1 (888) 875-9770. Develop board members early on. Too often, board members don’t reach their potential until late in their tenure. Aim to shorten the learning curve by offering formalized orientation processes, mentoring, immersion experiences and opportunities for new members to assume responsible roles on committees that allow them to quickly develop experience. Take charge of the agenda. The board, not the executive director or staff, should set the agenda. Structure it around annually established strategic goals, rather than allowing valuable meeting time to be eroded by show-and-tell sessions and endless staff or committee reports. The board is there to provide leadership, not act as an audience for the executive director or staff. Weed out ineffective members. On an optimally functional board, all members contribute their time and talents (and, yes, usually financial support, too). Adopt attendance policies and term limits if you don’t already have them. It’s also a good idea to ask board members to perform an annual self-assessment in which they reflect on their contributions. This serves as a gentle reminder that there are expectations associated with service. As part of this annual exercise, offer members an option to resign from board service if they no longer have the time or desire to do what’s expected of them. Respond to change rather than resisting it. As strategy setters, the board bears responsibility to assessing and responding to internal and external changed occurring around the nonprofit. Many boards conduct a so-called “SWOT analysis” - that is, an evaluation of strengths, weaknesses, opportunities and threats. Armed with this information, boards are prepared to respond to - even capitalize on - change. Re-evaluate structure and effectiveness. Boards need to occasionally make time to examine their effectiveness as a whole. Are you using resources wisely, or do internal or external factors require changes in board or committee structure? Consider, for instance, whether all members are productively engaged. If not, you may want to reduce the size of the board. Conversely, the need to tap into new bases of support might require a larger, more representative board. Many organizations find it helpful to periodically restructure their committees as well. One approach is to appoint only committees that align with major strategic goals. Establishing job descriptions, charters, and roles and responsibilities for individual board members and committees will also increase board effectiveness. When financial resources are limited, is it possible for an organization to pursue new opportunities that foster growth? How do organizations react to demands for more services and address growth opportunities? Change is inevitable and many times uncontrollable. Take control of your future by building a clear vision of it. A strategic business plan provides a road map to help you navigate through future challenges and opportunities. Decisions about growth and resource commitments must be deliberate and carefully considered. A strategic business plan will help you:
Planning is essential, especially as you embark on new ventures motivated primarily by funding pressures, demand for services and the need to find additional revenue sources. An organization’s strategic business plan must be strongly aligned with its mission and vision. Areas commonly addressed in a strategic business plan include: Service delivery. Ask what, when, who and how much. How is success measured? How is quality defined? Are services in demand? Are you the sole provider, or do you have competition? How do you market your services? Financial stability/sustainability. Identify profit/loss expectations. What will your initial investment be, and will it involve financing or other debt? When will the program be self-sufficient, if that is the goal? What about start-up costs? How will the program(s) be funded? Are fund-development initiatives needed? Human resources. Will the staffing and organizational structure evolve or change? What skills are needed? Will additional staff and/or volunteers be needed? Research & development. What research is needed to assess the plan’s feasibility, the demand for services, competition? Can your partner collaborate with other organizations? Technology. What is the role of technology? Are new systems or other technology investments needed to implement the business plan? How will you measure outcomes? Economic modeling. Business plans should include comprehensive economic modeling to address new program services and their impact on existing programs. Building a plan & who should participate? Building a successful business plan requires:
A strategic business plan’s success depends on a shared vision for the future. Therefore, to build a workable plan, it’s critical to gain the perspective of senior management, staff and other stakeholders. related links |
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