Your board is perfectly designed to produce the results you are getting right now.
Read that again.
All too often, we hear directors or senior management lament the passing of the “good ol’ days” when their progressive board made great decisions to benefit the organization. Or complain that their board is ineffective—how could it not be, they ask, filled with “misfits” and “no-shows”?
The reality is that your present situation is a direct result of the decisions made—or not made—in the past. You have the privilege of impacting the composition of your board in the future, which in turn will change the results of your organization. If you have a productive and provocative board: Good. Let’s talk about sustaining that. If you are disappointed and disillusioned with your board, let’s take proactive steps to improve the situation.
The point is that your board is only as good as the people you recruit, and retain, at the table. Attract the right players to get the results your organization needs.
Bringing Talent to the Table
It comes down to this simple fact: Poor boards lead to poorly-run organizations. To foster a great board, one that helps build a great organization, we need members who are competent and actively involved in contributing to leadership.
Identifying and selecting new board members must be a deliberate process, not an accidental occurrence. If you’re relying on the luck of the draw, you’re putting the future of the organization in fate’s hands. This is not a sustainable path forward. Hope is not a strategy.
An effective board directs and protects the interests of “owners”—the collective of anyone who has a legal, financial, or moral ownership, whether they are members, shareholders, or community members. Clear and intentional processes ensure a solid board is in place to lead on behalf of these stakeholders. And believe us, they don’t want their organizational goals resting on the see-saw of chance.
Building a High-Performing Board
First step: Take responsibility for the future composition of your board.
No excuses. If the selection system you have in place—whether formal or informal—isn’t working, fix it. This takes leadership, and when done well, it significantly benefits the organization. You’ve heard the adage, “An ounce of prevention is worth a pound of cure”? It’s true here: Taking the time to implement a viable process will pay dividends.
Step two: Accept accountability for the current composition of the board. It is difficult to impossible to attract and retain the people you want—and need—to a dysfunctional, ineffective board. Do the work: Determine what the board’s job is and how each director will contribute. When everyone is conscious of expectations, they can be individually accountable to the board, solidifying the whole. And, if that standard is not met, they can also be asked to leave.
Getting There Is Half the Battle
Board members come to the table in a few different ways:
Selection
In privately-held companies, a few individuals have the luxury to determine who will be on the board, selecting those who will best meet the business’s specific needs. This can be very effective, but it can also backfire if owners/existing board members just ask, “Who do I know who will do this?”—and then take the first person who accepts the invitation.
If this is the case in your business, develop a more robust selection process. You know the cost of hiring a “bad fit” employee? It’s as much, or exponentially more, for an inappropriate director. Work together to clarify the role of a board member, accurately estimate the time commitment involved, and develop a profile encompassing the qualities required for an effective member.
Your list of candidates should be selective and it should be subjective. You aren’t asking for a favour, you are asking someone to actively contribute to the leadership of your organization. Treat the selection with the weight it deserves.
Appointment
In many organizations, such as agencies, commissions, and some community organizations, directors are appointed by other groups. The selection process can be subpar. We see the person who isn’t already appointed elsewhere, the one who makes the most noise requesting the posting, or, worst, the absentee meeting attendee who was “voluntold” for the job taking the seat. These types of appointments most often result in everyone being frustrated. Infrequent attendance. Lack of preparation. Failure to follow-through.
Adopting healthy appointment criteria is the antidote. Speak with the sending body and communicate your board’s role and expectations for members. Articulate where board members have felt inadequate in the past and discuss action steps for removing or replacing ineffective appointees.
Election
Most organizations hold elections to determine who will be on the board. While we should never manipulate the process, it is certainly appropriate to influence the process so that the outcome serves the interests of the owners.
Electing board members takes time, and owners need to be educated about the role of the board, as well as directors’ responsibilities. Work to create a list of possibilities and plan to speak with them regarding the opportunity. A qualifying process is important, as it helps screen out candidates who would not be effective directors—and invite further discussion with those who will be.
This is where a board subgroup like a Nominations Committee or Governance Committee can bring high value. Thoughtfully building a list of qualified candidates and methodically interviewing them to expose (to the board and to the candidates themselves) how well they suit the needs is much more responsible than hoping the electing body does any of this work. In fact, more and more boards are communicating what they learned to their voters by endorsing candidates that meet all the criteria and reporting how they fare on the most important qualifications.
Clearly communicating expectations and competencies before the election is critical. Information should be readily available and accessible to those applying and to those voting.
Once They’re on the Board, Onboard Well
Regardless of how a board member joins the team, it is crucial to implement a clear onboarding strategy. This includes:
- Orientation: Transparency is paramount. Candidates and new board members should be given a thorough orientation period, complete with further discussion of role, expectations, time commitments, etc.
- Mentoring: Pair new directors with seasoned members. Not only will they show them the ropes, this step reinforces the relational aspect of board membership.
- Personal Responsibility: Consciously plan ways to assign tasks to new board members like reporting key learnings on an agenda topic at a board meeting. Make them impactful and directed, while ensuring they are fully supported. This fosters a sense of personal responsibility and agency with the board.
- Planning: Talk about how board members are appointed to various critical roles (e.g. committee member, committee chair, board chair, etc.) and how succession works in general. Everything must be strategic and transparent.
Today’s Decisions are Tomorrow’s Board
The people you assemble, and integrate, around the table now have a direct impact on the health of your organization tomorrow. When the prospects for the board clearly understand the responsibilities and time commitments, they can make an informed decision to which they can be held accountable. With support and development, your board will be perfectly designed to produce the results you want.
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