Dynamic nonprofit boards play three key roles: shaping mission and strategy, ensuring leadership and resources, and monitoring and improving performance. Research found that while most boards see themselves as strategically guiding their organizations, less than half of directors can accurately summarize the organization's mission and vision. To be truly dynamic, boards must prioritize their efforts based on external factors and the organization's needs, and invest in continuous self-evaluation and improvement. Dynamic board members understand their responsibilities and define a valuable role by contributing expertise, networks, and financial support while avoiding common pitfalls like failing to learn about the organization.

1. Dynamic Directors, Dynamic Nonprofit Boards Haas Alumni Weekend Discussion Outline April, 30, 2011

2. BOARD EFFECTIVENESS OFTEN ARISES AS A NONPROFIT CONCERN “The motion has been made and seconded that we stick our head in the sand” 2

4. What are they?

5. What do they do differently?

6. How do you create one?

7. Dynamic board members

8. Where do they come from?

9. What do they do?3

11. Interested in serving?

12. Have questions about being a better board or board member4

14. What are the characteristics of a high-performing board?

15. What are the best practices in building a high-performing board?5

16. THE GOVERNANCE GAP 97% said that a high-performing board was important to a high-performing nonprofit. However, only 19% said they were tapping their boards’ full potential 94% felt that their boards provide the appropriate level of strategic guidance, however… However, only 46% thought that their directors would be able to summarize both the mission and the vision of their organizations 77% of respondents indicated a desire to improve board fundraising, but … Just 21% set individual board member fundraising goals Just 38% provided fundraising training Moreover, a mere 16% reported having individual board members receive formal feedback on their performance at a regular interval Source: McKinsey survey of social services organizations 6

17. THE DYNAMIC NONPROFIT BOARD FRAMEWORK Monitor external and internal environment to highlight areas for board attention Environment Shape mission and strategic direction Ensure quality performance across 3 key board roles Ensure leadership and resources Develop set of enabling practices around board composition, size, structure, and processes Monitor and improve performance Enablers 7

19. All agree on where organization wants to be in five years

20. Staff develops strategic plan for board review

21. Plan describes specific targets and actions to achieve goals

22. Management and board agree on distinction between board-level and management-level decisionsShape mission and strategic direction Ensure leadership and resources What’s strong or missing in this approach to the shaping role? Monitor and improve performance 8

24. Board has some understanding of funding needs from discussions of annual budget

25. All board members support the organization financially and work with staff to introduce prospective donors

26. Directors participate in community outreach

27. Board members actively bring expertise to board discussions.Shape mission and strategic direction Ensure leadership and resources Monitor and improve performance What’s strong or missing in this approach to the leadership and resources role? 9

29. Board funds independent audit of financials annually and oversees regulatory compliance efforts as needed

30. Board evaluates members performance as part of bi-annual renomination process

33. Engage actively in strategic decision making and policy decisions

34. Select, evaluate and develop CEO

35. Ensure adequate financial resources

36. Lend expertise; provide access to people

38. Monitor performance, ensure accountability

39. Improve board performance11

42. Capability Source: Board surveys 12

44. Lots of ways boards, as entities and individuals, can help. Pick your spots carefully to allot valuable time where needed most

45. Recognize performance management as one of the nonprofit board's core roles

46. Invest significant time in board evaluation andcontinuous improvement

47. Good governance is execution, so sweat the little things: good meeting agendas/materials, open communication, having fun. 13

49. Understand responsibilities

50. Define a valuable role

51. Avoid the pitfalls

52. Enjoy the people, the mission and representing the institution

53. Give (or get) lots of money and leave us alone!

54. Attend and rubber stamp

55. Work, wealth or wisdom14

56. Board composition and working arrangements 4 AREAS TO CONSIDER BEFORE JOINING A BOARD Board’s expectations of you Your interests Stage and quality of organization

57. 10 THINGS YOU SHOULD KNOW ABOUT YOUR NONPROFIT Core activities, who, what, where, for how long? Mission, Theory of change Organization chart/profile of key leaders Revenue mix/trends Key cost components Board composition/committees Key peers/competitors Other stakeholders Recent events/public profile Results against mission 16

59. Attend meetings regularly

60. Seek and review necessary information

61. Exercise independent judgment

63. Where directors’ firm provides services or products to nonprofit

64. Make conflict known to board

65. Recuse yourself from discussion and voting

67. Oversee use of funds entrusted by public17

69. Checking business knowledge at the boardroom door – or - assuming business perspective is the only way to look at issues

70. Confusing the role of director with the role of volunteer

71. Failing to take into account the resource and capacity constraints that limit nonprofits ability to execute all your good ideas

72. Forgetting why they wanted you in the first place18

73. DEFINING A VALUABLE ROLE AND HAVING FUN What “business types” bring to the board? - Business skills in finance, strategy, sales and marketing - Entrepreneurial experience - Performance management mindset - Personal and corporate networks 19

74. HOW TO BUILD YOUR GOVERNANCE KNOWLEDGE Nonprofit Boards: Governance and Leadership in Nonprofit Organizations Two Saturdays 9-5: October 22, November 5, 2011

75. Q & A 21