Innovating Board Succession: A Look at the Potential in Agricultural Boards

A challenge many boards face, in agriculture and every industry, is positioning board membership as appealing, possible, and important. It is essential for the long-term health and effectiveness of organizations that boards keep renewing with capable people who bring fresh thinking—and to do so at a pace that provides continuity. This can be challenging when membership is declining, when an organization’s bylaws are outdated or restrictive, and when the role of board members is not clearly defined or understood.

Agricultural boards are working hard, innovating forward, and engaging change on a massive scale, which  can make the thought of joining a board—on top of everything else—daunting. These organizations carry a tremendous amount of responsibility. Their leaders care deeply about the future of their industry and have an abundance of passion for the work they do on their farms and around the board table. Not only are they required to regulate and lead their sectors, they must also engage effectively with their members and stakeholders, manage risk, and plan for the future—all while navigating increasingly complex environments and resource constraints. Doing all of this while maintaining effective board succession is no small task!

The question remains: How can current leadership help potential board recruits feel confident, excited, and ready to step up? That’s where we are happy to step in.

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The Issue of Board Succession

Succession is a universal issue for boards: 58% of not-for-profit (NFP) boards cite it as a “high-to-moderate” level challenge, yet only 29% have a succession plan in place.  A common issue? Yes. Insurmountable? Not by a long shot.

Having a clear governance framework that includes succession provides the foundation for boards to thrive. Here we’ll explore practical strategies for building your board’s leadership capacity and provide tools for you to put into practice. 

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Strategies and Tools for Effective Succession Planning

If you are on an agricultural board, you are great at getting things done. That’s the work you do in your business and as a board member. Here are a few practical strategies and tools to tackle the challenge of succession on your board and get that job done, too!

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Clarify the Board’s Role Using The Secret Formula for Organizational Effectiveness 

When roles are clear, you can really lean into your responsibility and demonstrate trust for those in other roles (e.g. the CEO) to do their best work in accomplishing the mission. The Secret Formula, as pictured here, is intentionally simple to clearly depict each role. 

As a board member, you are there to direct, not to do. Your focus is “above the line”—determining “what” the organization is doing through setting the strategic direction and governing policies. “How” the strategy and policies are implemented is the responsibility and work of the CEO and staff.

Staying above the line ensures board members don’t take on work that isn’t theirs to do and addresses a key concern for potential candidates who cannot afford to take on extra work or make a large time commitment. This can be a difficult shift (especially when the work is compelling!) but one that makes succession much easier. Your current and future board members will realize they do have the capacity, time, and energy to serve because the focus and scope of the role is crystal clear.

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Review Your Governing Regulations and Bylaws

A best practice is to regularly review your governing regulations and bylaws to ensure they are maximizing opportunities for board renewal and continuity. We recommend a review every 2-3 years to stay abreast with shifting demographics and organizational needs.

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Here are several questions to consider and elements to pay particular attention to:

1.    Governing Framework: Which aspects of your board’s governing structures are contained in bylaws or in regulation? Bylaws provide organizations with greater flexibility to adjust and adapt in response to change. If you are considering changes to your regulations or bylaws,, it is important to do due diligence through consultation  with your members and supervisory board.

2. Electoral Process: Is it based on electoral districts? Members at large? A combination of both? Consider how this structure is working and not working for board member recruitment and board continuity. What are the pros? What are the cons? What structure would be most effective for your organization going forward?

3.   Board size and composition: The number of board members should strike a balance between diversity (varied perspectives represented around the table) and efficiency in decision-making (board size should not be so large that decision making is bogged down).  Consider how your board size / composition is working and not working for diversity and efficiency in decision-making. What are the pros? What are the cons? What would be most effective for your organization going forward?

4.   Term lengths / limits: Board member terms should provide for board renewal and continuity.  Consider how your current board member terms are working and not working for board member recruitment and board continuity. What are the pros? What are the cons? What structure would be most effective for your organization going forward?

‍An effective governance structure maximizes the potential for new board member recruits and makes the role of the board more attainable. 

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Build Your Leadership Pipeline

There are many approaches that can be taken to build your leadership pipeline in a positive, proactive way. Here are a few to consider for your organization:

1. Leadership Development Training: providing leadership and governance training to your membership is an effective way to equip up-and-coming leaders with leadership skills, to build confidence in their strengths and abilities to serve as leaders in the industry, and to strengthen their understanding and appreciation for the role of the Board. 

2. Delegates or Producer Representative Positions: a number of organizations we work with have delegate or producer representative positions that can serve as a training ground for members interested in serving on the board. These non-voting positions can serve as a sounding board, providing input to the board on strategic issues facing the industry, and these positions often come with more extensive board governance and leadership training.

3. Leadership Positions: Another option is to include non board members in leadership positions within your industry. From serving as ambassadors for the industry, leading groups of volunteers, or participating in working groups, there are many ways to provide up and coming leaders with hands-on experience to hone their leadership skills. This also provides the Board with access to a broader pool of skills and experience to serve in targeted areas. 

4. Director in Training (DIT) Program: several boards we work with have successfully developed and implemented DIT programs. These programs provide an up and coming leader with the opportunity to participate on the Board as a non-voting member. Exposing them to the culture, governance and work of the board in this integrated way has been a stepping stone for board succession in many instances.

Whichever approach (or combination of approaches) you use, identifying up-and-coming leaders and exposing them to leadership roles helps to build their confidence and enthusiasm for serving on the board in the future; and it builds broader understanding of the Board’s role being “above the line”.

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Use a Board Skills Matrix

What skills and qualities does your board need to be effective in its role? Who fills which needs, and are there any gaps? What do you need to look for in your future board members? A board skills matrix is an effective tool to find the answers to these questions and to play an active, intentional role in your board’s succession. To support boards that don’t yet have a skills matrix (or aren’t finding theirs has helped them effectively), we’ve created a sample to help you answer these questions and streamline your succession planning and invitations. 

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[Download OrgHealth’s Board Skills Matrix template]

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To use a board skills matrix effectively:

1. Identify the skills the board should have in order to further the mission.
2. Assess the skills of current directors and invite input to account for bias and blind spots.
3. Compile the full board matrix.
4. Identify any gaps and shortfalls.
5. Discuss development plans to address gaps.
6. Brainstorm potential board candidates who fill the skill sets required on the board and make a plan to encourage them to run for the board.

With a well-constructed matrix and thoughtful follow-through, you can meet the sticky issue of succession head-on.

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Supporting Your Board: Next Steps

What is the biggest challenge you face when it comes to succession? Whether that is creating clarity, reviewing your by-laws and best practices, or helping build your leadership pipeline, we are eager to hear from you and happy to walk alongside you as you consider and develop your succession plans.