BUILDING AN EFFECTIVE BOARD OF DIRECTORS. RATIONALE FOR A “NEW BOARD” PROFIT VS. NON-PROFIT...

BUILDING AN EFFECTIVE

BOARD OF DIRECTORS

RATIONALE FOR A “NEW BOARD”

PROFIT VS. NON-PROFIT FORCES FOR VALUING

• LACK OF MARKET FORCES • MARKET DETERMINES IN FOR PROFIT• BOARD OWNS VALUATION PROCESS

FLAWS OF GOVERNANCE

• TIME SPENT ON TRIVIAL• SHORT TERM BIAS• REACTIVE STANCE• REVIEWING, REHASHING & REDOING• LEAKY ACCOUNTABILITY• DIFFUSE AUTHORITY

RATIONALE FOR A “NEW BOARD”

• APPROVAL OF MINUTES

• BUDGET & CONTROL (TREASURER’S REPORT)

• STATUS REPORT

• FUND DEVELOPMENT REPORT

• BFKS REPORT

• RECRUITMENT REPORT

• PUBLIC RELATIONS REPORT

• BOARD DEVELOPMENT REPORT

• STRATEGIC INITIATIVES

AGENDA -BOARD OF DIRECTORS BBBS

BIG BROTHERS BIG SISTERS OF NORTHERN NEW MEXICOBOARD OF DIRECTORS MEETING

JUNE 17, 2002, 6:00 PMSTATE PERSONNEL OFFICE

1. CALL TO ORDER

2. APPROVAL OF MINUTES FROM MAY – ENCLOSED

3. EXECUTIVE DIRECTOR & CASE WORKER REPORTS – ENCLOSED

4. TREASURER REPORT – MAY FINANCIALS – ENCLOSED

APPROVAL OF FY 2003 BUDGET – ENCLOSED

5. COMMITTEE REPORTS

BOARD DEVELOPMENT

• ELECTION OF FY 2003 OFFICERS

• BOARD MEMBER SELF – EVALUATION (TO BE DISTRIBUTED)

• OTHER INITIATIVES

6. OLD BUSINESS

• TIERRA CONTENTA

7. NEW BUSINESS

8. ADJOURNMENT

THINGS TO CONSIDER

• 1) CONSENT AGENDA• 2) TIMED AGENDA• 3) MOVE IMPORTANT ITEMS UP• 4) SEND WRITTEN REPORTS IN ADVANCE• 5) REMIND BOARD “WHY WE’RE HERE” -

BRING A MATCH TO EACH BOARD MEETING

ROLE OF AN EFFECTIVE BOARD

BOARD AS A POLICY MAKER

• LACK OF CLEAR POLICIES IN MOST (ALL) BBBS AGENCIES

BY SETTING POLICY

SET PARAMETERS - AVOID DETAILS

– FOR STAFF

BOARD AS A DRIVER/OWNERDO YOU

• DETERMINE ORGANIZATIONAL PRIORITIES– LOOK FORWARD NOT BACKWARD– WHO OWNS – WHO IS DRIVING THE BUS

DO YOU ( THE BOARD)• SET AGENDAS

– WHO SETS?– HOW CAN IT BE YOURS IF YOU DON’T SET– HOW MANY AGENCIES STRATEGIC GOALS/PLANS ARE

SET BY E.D./CEO AND ARE MERELY RATIFIED?

LET’S RECOGNIZE• NATURAL CONFLICT OF INTEREST - RUBBER STAMP VS.

OWNER

ROLE OF AN EFFECTIVE BOARD

BOARD DEVELOPMENT PROCESS

BOARD DEVELOPMENT PLANNING CYCLE 1. Evaluate Agency

5. Board Development Plan 2. Evaluate

Board

4. Gap Analysis

3. Agency Strategic Planning


EVALUATE YOUR BOARD• BOARD PROFILING

– DEMOGRAPHICS– SPHERES OF INFLUENCE – SKILL SETS– PROFESSIONS


BOARD PERFORMANCE EVALUATION

• EFFECTIVENESS, EFFICIENCY & SIGNIFICANCE OF MEETINGS

• CLEAR GOALS & ACTIONS RESULTING FROM RELEVANT STRATEGIC PLANNING

• SETS FUNDRAISING GOALS AND IS ACTIVE IN ACHIEVING

• TRAINS & ORIENTS NEW MEMBERS


BOARD RECRUITMENT

• COMPACTS

– RESPONSIBILITY - AUTHORITY - RECRUITING

• CLEARLY EXPLAINED DEFINED EXPECTATIONS

– GIVING

– FUND RAISING

– ATTENDANCE

• INDIVIDUALIZED EXPECTATIONS

• DON’T DO COOKIE CUTTER - EXPLAIN C.E.O. - PRINCIPAL


INDIVIDUAL BOARD MEMBER EVALUATION

• KNOWLEDGE OF PROGRAMS AND SERVICES• ACTIVE IN FUND RAISING• PERSONAL GIFT TO AGENCY BASED ON

ABILITY• PREPARES FOR AND PARTICIPATES IN

BOARD & COMMITTEE MEETINGS• RESPECTS LINES OF AUTHORITY AND

COMMUNICATION BETWEEN BOARD & STAFF

POLICY – THE NEW WORK OF THE BOARD

FOCUS ON BEGINNINGS NOT ENDINGS

1) LOOK OUTWARD NOT INWARD

2) BIGGEST DISTRACTIONS ARE INTERNAL1) PERSONNEL2) BUDGET3) LOGISTICS

3) QUESTIONS FOR BOARD ARE :1) HOW DO WE IMPACT THE OUTSIDE WORLD?2) HOW DO WE SERVE MORE CHILDREN?3) HOW DO WE RAISE MORE MONEY?

4) BOARD TEST1) SHOULD ASK ITSELF WHAT GOOD SHALL WE ACCOMPLISH?2) FOR WHICH PEOPLE (BBBS IS ASKING THIS NOW)?3) AT WHAT COST?

1. INDEBTEDNESS

2. COMPENSATION & BENEFITS

3. GROWTH

4. BUDGETING

5. PERSONNEL

6. GRIEVANCE

7. CUSTOMER SERVICE• VOLUNTEER

• DONOR

8. CONFLICT OF INTEREST

TYPICAL TOPICS


BOARD - EXECUTIVE RELATIONSHIP

• STRONG BOARDS NEED STRONG EXECUTIVES

• SEPARATE AND COMPLIMENTARY ROLES

• BOARD HAS ONLY 1 EMPLOYEE

• EVALUATION QUESTIONS SHOULD BE :

1) WHAT DID WE CHARGE THE CEO TO DO?

2) WHAT DID WE PROHIBIT HIM OR HER FROM DOING?


BOARD RESPONSIBILITIES :

1) LINK TO OWNERSHIP

2) EXPLICIT GOVERNANCE POLICIES

• ALL VALUES AND PERSPECTIVE ARE ENCOMPASSED BY BOARDS PROPER STATING OF BOARDS POLICIES.

3) ASSURANCE OF EXECUTIVE PERFORMANCE

• MUST INSURE THAT STAFF MEET THE CRITERIA IT HAS SET.

4) GOVERNANCE/POLICY/STRATEGY

5) FIDUCIARY

6) FUND RAISING

7) ADVOCACY

THE CHALLENGE

• PROJECT VISION

• INFUSE MISSION

• CHALLENGE STAFF

• GROWTH ITSELF

BUILDING AN EFFECTIVE BOARD OF DIRECTORS. RATIONALE FOR A “NEW BOARD” PROFIT VS. NON-PROFIT...

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