Great boards are packed with board members who are really clear about their role and their responsibilities to the organisation. Choosing independent directors is a way that founders can create independence from investors getting to make all of the most important decisions regarding the company’s future and vice versa. Some find this to be an added layer of process. Be a proactive advocate for your nonprofit. Follow Bryan on Twitter @bdstolle. Why Is The Future Of Business About Creating A Shared Value For Everyone? They merit the attention not only of board members and their advisor s, but internal auditors and risk practitioners (because of governance-related risks). Remember when few people at a company ever actually saw members of the board of directors? For example, M&A activity as either a buyer or a seller is one of the most challenging situations for a board. No one works in a vacuum and board members certainly can’t execute their job functions in isolation. Granted, “nonprofit board member” is typically an unpaid position, but a defined job nonetheless. Also, ensure that your Board members maintain positive reputations in the community. There can be a lot of meetings, especially with committee duties, homework, and times when very difficult, delicate, and challenging decisions must be made, often concerning people. There are four key areas of relevancy: To have great judgment, wisdom is pretty essential when making critical decisions and thinking strategically about the future. From my remote perch, I can see what’s coming and that this company’s future is in serious jeopardy, but the lead director isn’t addressing the issues -- it’s not even clear he sees them. They take responsibility for their actions and the role that they play in supporting and advancing your cause. It’s hard to be a wise board member who can give valued and thoughtful counsel about an M&A transaction, if they have not been through several themselves. In many ways, it is THE job of a board member. You need to be able to discuss confidential information in your meetings without fear that it could be leaked to the public or media. Instead, board members are responsible for bringing complex, big-picture questions and opportunities to the organization. At their best, board members collaborate in leading organizations along the right strategic paths toward mission achievement. How many of them would attend a couple meetings a year and pocket a generous sum for their time? If they can’t attend or devote sufficient time to the job, perhaps it’s the wrong job for them at that time. Bad board meetings are the result of ineffective or unqualified board members. It’s too hard to train a whole board on all the nuances of an industry, when decisions have to be made with alacrity using the best insights possible. 10 keys to becoming a successful board member: How you contribute to the success of a board 2 The role of being a non-executive board member has been dramatically transformed. Bryan Stolle is one of the Founding Partners at Wildcat Venture Partners where he focus on investments in FinTech, EdTech, quant marketing, and technology that addresses elder care. A great board is the result of having great board members. To be truly effective, members of a nonprofit board must engage directly and deeply, and this often includes traveling to the field. Complete with responsibilities and integral in the process of governance work, the job of a board member is to execute the duties and tasks that correspond with that leadership position. His experience told him the work scope was unnecessary and wasteful, and he had the courage of his convictions to say “no!”. And, when signs of trouble are observed, effective board members take steps to resolve the trouble,” according to Thompson & Thompson. When a great board member comes to a meeting, he or she will have read the agenda and board packet beforehand, that way they’ll be ready to make decisions based on solid information. And, when signs of trouble are observed, effective board members take steps to resolve the trouble,” according to Thompson & Thompson.Board members can’t be asleep at the wheel, and waiting for things to be fed to them. Bonus Truth. To be truly effective, members of a nonprofit board must engage directly and deeply, and this often includes traveling to the field. They are confidently expressing their opinions, and never silently accept a decision or leave the room with - … Inquisitive nature – great board members aren’t afraid to ask hard or frequent questions in striving toward progress. The Role of the CEO for Healthcare Industries, Accountability – great board members hold themselves. 2 Board members are overseers, not implementers. Often, because the CEO doesn’t have anyone they can turn to inside the company for various sensitive issues, they need a person that is involved, but also somewhat removed from the day-to-day activities, to bring fresh but applicable perspective. Unfortunately, the combination of both lack of wisdom and deep experience in a new board member gained via a recent financing is one of the most frequent complaints I hear. WHAT MAKES A GOOD BOARD MEMBER? What Makes a Great Nonprofit Board Member? A good board member is, “[A]lert to signs of trouble – financial trouble, management trouble, operational trouble, personnel trouble, litigation trouble, or IRS trouble. So, make sure you’re confident in your Board members’ decisions and public personas. 1. How Can AI Support Small Businesses During The Pandemic? No employer expects you to know how to do your job perfectly from day one and forevermore, so why would boards expect anything different from board members? You only need two good stories, two good facts, and a heaping dose of enthusiasm to be a five star ambassador for your organization. A member of the board should be knowledgeable about the organization and its culture, operations, mission, and vision, the roles and responsibilities of the board as well as the principles of good governance. Knowledgeable and an insatiable learner. Chances are you’d also... Be present. If you need a refresher, here are ten good questions board members should be asking. “Sometimes tough decisions take courage. 6. Take their role seriously. Volunteer– when the Board member is providing volunteer services to the organisation eg helping at a working bee. It has a very well-known, even famous, lead board member. Ask stupid questions, until you figure out the smart ones. Good board members understand this and never try to use their position for personal gain. 7. As a serial entrepreneur, Bryan has created more than $1 billion in realized liquidity for his investors. While you want your Board members to uphold positive reputations in the community, it also helps if they’re well connected. Their efforts will “lay the foundation for the kinds of innovation and scaling up that can solve the world’s problems. Given the critical importance of the job, it is striking when boards don’t hold board members accountable to reasonable job standards. The chief executive is in charge of managing the day-to-day activities of the organization, and the board should be careful not to micromanage. Effective school board members… As a board member, it is imperative that you treat your volunteer leadership job as professionally as you would another job. What makes a good school board member? As noted by Stanford Business, “Weak board governance… keeps nonprofits from reaching their full potential and ultimately may even cause a nonprofit to struggle and die.”. What Makes a Good Board ? Bonus Truth. Former, Charlotte Mecklenburg, North Carolina, school board member Arthur Griffin suggests asking the following questions: In many ways, it is THE job of a board member. Some examples include Qantas’ recent challenges with its employees led by CEO Alan Joyce and the waterfront challenges faced by Patrick Corporation under the leadership of Chris Corrigan.” Board members come from all walks of life. Key qualities of a good board member can be summarized as: Passion – deep interest in the mission of your organization. Many of the qualities that make board members great are acquired over time, through training and experience, so don’t discredit your potential worth as a board member, even though you may never have served in such a capacity. They can help you make the right decision about strategy options, hiring and firing, financings, M&A opportunities, legal issues, organizational design questions, etc. Whether you expect a great deal or very little from the members of your Board, one thing you should absolutely require is that they’re upright and honorable. This article is really helpful in forming a 'new board member' pack. The latest political news and analysis from the campaign trail: Melissa Holzberg Biden said his Cabinet 'will look like America'. As founder and CEO of Agile Software (formerly, NASDAQ: AGIL), Bryan led the creation of a new category now called product lifecycle management (PLM). What Recent Data Breaches Signal to Nonprofit Organizations. To be a good board member your mindset needs to be centered on being a true thought partner … A board member with solid judgment keeps you out of trouble and helps you navigate difficult situations. Your board members need to have the courage of their convictions, as well as the courage to face up to hard truths (some of which might be about you! Please spread the good word. Make Field Visits. The good Board member is worth their weight in gold! But they often lack expertise in the day-to-day work of the organization on whose board they sit. “Doing the right thing may cost you a board seat, but that is the price a good director is willing to pay for providing good governance. Rather, they travel along a continuum, picking up and mastering certain skills, including those of OK board members (in that they know and meet their fiduciary duties) and good board members (in that they have mastered their supportive roles of serving others within the organization). 2. Passion for mission – their passion is sincere and contagious, helping to promote others’ enthusiasm about the mission. The institution and its mission and needs—not the interests of any other party and especially not a board member’s personal interests—should inform the decisions of the full board. Part of every board members job is to question why things happen certain ways, how things will change or improve, when opportunities and threats will emerge, and what to do about them. The head of our audit committee could have rolled over and protected himself by allowing the over-reaching work, blaming it on “transparency” versus CYA. A great board member needs to have as much relevant context as possible in order to offer actionable and on-point advice. They’re passionate about the mission. Quality board members know it’s not just the organization holding the bag. Would you ever take – or offer – a job without a job description? So what does make a great board member? Any worker would be fired for failing repeatedly to show up at a job and board members should be no exception. This was during the early days of Sarbanes-Oxley, when there was a great deal of witch-hunting, lawsuits, and debate about board members’ personal liability. These nuances can greatly impact strategy, accounting/finance, cash flows, etc. How Do Employee Needs Vary From Generation To Generation? Great school board members have a clear vision for the district. A key characteristic of successful board members is the capability to secure that the executives, the board and the organisation operate effectively and efficiently to maximise shareholder value. All those topics are covered in more detail in the following posts: Why I Love My Board, Part II, The Good, The Board, and The Ugly, and Powerpointless. Clearly that’s critical. to share foresight about future challenges and opportunities your company may face in their respective areas of expertise. © 2021 Forbes Media LLC. I am a strong advocate for CEO’s sending materials early and scheduling calls with directors before the meeting. That means knowing when to play devil’s advocate and provoke discussions as well as when to fall in line after raising concerns. This is what will lead you to initiate a conversation at a barbeque. I’ve had about 15 Board members over the years, some far better than others. Too many boards relax their performance standards due to board member longevity or passion or even wealth, yet all board members can benefit from a measured assessment of their efforts. MBA courses and avid consumption of Barbarians at the Gates or the like is no substitute for having sweated out a few tricky negotiations. An often under-appreciated role for board members is that of coach or mentor. Makes sure that all Board members have job descriptions and are well trained in their individual roles. Similarly, it is disappointing when board members don’t fully embrace the scope of their responsibilities. They bring expertise, experience, talent, and passion to their work as board members. Industry – While someone can be a great board member and not be from the same industry in which the company operates (sometimes it’s not a bad idea to have one board member who is from outside your industry, for perspective), it helps if most board members do have industry context in some form (customer, supplier, academic, etc.). All board members should be held to and evaluated against defined standards that aim to ensure optimal board performance. Some of the best nonprofit board directors... A Strong Commitment Is a Given for Great Nonprofit Board Members. Board members must learn to contribute their individual expertise not only independently, but as part of a whole. I view it as essential. How Is Blackness Represented In Digital Domains? The questions are two sides of the same coin. A Fortune 500 CEO isn’t usually a great choice for a startup, just as a former CEO who ran a $50M company may not be great for another that has reached $100M and is still growing fast. Business Model – There are many subtleties in any given business model. Great Judgment. Stage of Business – This is more important than it might seem, and is also a driver for board changes over time. Effective boards require their members to play a variety of roles, in some cases dipping deep into the details of a particular business, in others playing the devil’s advocate, in still others serving as the project manager. While job expectations might vary from organization to organization, certain board member characteristics seem to lend themselves well to the job. Organizations are hungry for great board members – it may be the #1 thing I hear from nonprofit leaders. Board members are essential to the leadership structure of any nonprofit organization, but they must work in partnership with one another as well as with staff leadership. “First, as a board leader I have to make sure we collectively give our CEO what a good boss gives his subordinates: motivation, control, advice, and mentoring. Namely, great boards always read relevant materials before the meeting. Most boards ran scared and allowed accounting and legal firms to run amok with excessive zeal and commensurate fees. o It is important to have a board orientation package that explains exactly what is expected of each executive, the number of meetings per year, and policies and procedures of the organization. To help board members perform their unpaid, often unglamorous, yet absolutely essential jobs better, we offer some tips: Would you ever take – or offer – a job without a job description? Don’t confuse fame or stature with being engaged, motivated, and committed. A good member of the board will not hesitate to ask the hard questions for the constituents that the board servess. With over 25 years of experience in organizational development, Sonia partners with nonprofit boards and executive leadership to facilitate best practices in board development and governance, strategic planning, leadership transition and succession, and organizational effectiveness. According to Network for Good, they include: Beyond these shared traits, there are some universal functions that all board members can perform to enhance their nonprofits. Aside from that, he or she has an insatiable desire to learn and seek personal and professional development. He oversaw the creation, go-to-market and market growth of product and service offerings that have achieved more than $2 billion in revenues, and have raised more than $1 billion in venture, public market and investment management capital. A good place to start is by electing effective school board members. Thick-skinned: Board members can't take things personally. But by far the best way to make sure you have an awesome board is to start by having awesome Board members. All Rights Reserved, This is a BETA experience. The board is where large equity investors get their representation. What has sometimes been seen as a simple control function with a few meetings per year is now a much more complex and demanding challenge. A Good Board: Communicates with owners and residents on a regular basis, explains its decisions, openly discusses problems and victories, has a policy of transparency and truthfulnes. Here are signs of a school board member focused on moving the school district forward and educating all students to meet high standards: 1. Here, our experts reveal the top 10 traits of board members who serve their HOA well. Develop a passion for your organisation and share it with others. Board members should be informed about, and focus their actions on, what is in the best interests of their college or university. But board members can’t just have a successful meeting; it takes a little preparation. A specific example from my past: while I was a public company CEO, our auditors pushed hard to complete expensive, invasive and, in management’s and the board’s opinions, unnecessary audit work. According to the Graduate School of Business at Stanford, the following must be performed “bravely, rigorously, and consistently” as part of every board member’s job: As Stanford Business acknowledges, board members get invited to serve because they bring something to the table. If you have a board member who doesn’t have the experience and gravitas essential to good judgment, you are doing yourself, your company, and your shareholders a serious disservice. Recruit and Orient New Board Members and Assess Board Performance. One is by Dr. Debra Brown of Governance Solutions (formerly Brown Governance). How Can Tech Companies Become More Human Focused? Hackers strike once again, this time causing a data breach at a prominent New York…, When all the numbers are in the black and the financial reports are climbing steadily,…, Any top-level managerial job where the position requires being responsible for a large, complex organization…, AboutBoard PortalContact SupportDo Not Sell My Personal InformationToll Free:  1 (866) 966-4987, ©BOARDEFFECT 2019 •  ALL RIGHTS RESERVED •  PRIVACY POLICY. Just as different stages in a company’s development may require different executives, the same is true of board members. Furthermore, board members should review the organization’s strategic plan as context for their individual and collective performance standards. Community Connections. As the highest-ranking officer on the board, the chairperson is responsible for setting the agenda, ensuring proper and timely information for the board, keeping tabs on the performance of other directors and ensuring the board implements its strategic plans. It also means being actively engaged. He executed on almost two dozen private and public M&A transactions, and steered a major strategy shift that led to the eventual acquisition of the company by Oracle. If a conversation happens between the CEO and each director then each side knows what we’re trying to achieve with the in-perso… The board is where large equity investors get their representation. From scheduling events to approving consent agendas to completing board self-assessment surveys, technology makes it increasingly easier for board members to do their jobs. ), and to make tough calls when the answer isn’t always obvious and when there are considerable consequences if the call is wrong. Chances are you’d also expect to understand your employer’s long-term goals and priorities in order to understand how/where you fit. Whether it’s a board meeting, a committee conference call, a staff or volunteer appreciation event, or even a site visit, the board member’s job is to attend. If there's a better way to do something, they need to be open to changing their strategy for the good of the community. Why Is It Important to Explain Key Issues to Investors? You may opt-out by. The actions of your members will reflect back on your nonprofit. How does one recognize a job well done? Function – It really helps to have board members who have expertise in functional areas import to the business (i.e. Master… Adaptable: Board members can't be resistant to change. They set the vision and goals, and measure the success of the district and superintendent against the goals. Postings on bulletin boards accessible to all residents are key in this … Relevant Context. This should help. But this isn’t about what makes a good board meeting. Continuous improvement helps keep us sharp and engaged in our work, so it makes sense to include learning in volunteer jobs, as well. Ensure the mission is focused and well understood. The actions of your m… Sonia J. Stamm is Founder and Principal of Stamm Consultancy Inc., a boutique consulting firm established in 2008 to guide nonprofits through critical junctures in their development. But this isn’t about what makes a good board meeting. Note, both wisdom and judgment are usually the result of lots of experience in tough situations, some failure, and strong intelligence. You probably have at least a vision of what a good board meeting looks like. Boards need to develop and enforce appropriate attendance policies, recognizing that time requirements might fluctuate throughout the year and conflict with any board member’s availability in certain periods. 5. Most board members, of course, are bright people with a wealth of experience. When finding Board members, keep in mind that they’ll be representing your nonprofit out in the community. Judgment is a must. I am familiar with a company that is currently experiencing some very serious leadership and execution challenges. Board work is hard work. A board member with solid judgment... 2. To that end, they adopt sound, ethical, and legal governance and financial management policies, as well as make sure nonprofits have adequate resources to advance their missions. If you need a refresher, here are ten good questions board members should be asking. He also navigated the company through a public offering and secondary offering that raised over $500 million. Board dynamics and good chemistry between board directors also go a long way toward developing an effective board of directors. Effective Coach, Mentor, and Sounding Board. You want board members who have “seen the movie before” and have a pretty good idea of what is around the next few corners as your business grows. Great school board members communicate their actions to the community. While access to timely information absolutely helps, it’s not everything. It does mean that they know how to effectively communicate with you and the other board members, are able to constructively address issues, and be civil yet still direct and transparent. For example, a board member who understands consumer sales may not be able to offer great advice or help make the best decisions for a company with a Software-as-a-Service business model. Ten tips on being a good nonprofit board member Vol.6 No. Judgment is a must. 5 Qualities of an Effective Board of Directors. Board members in this role should also be good listeners, offering the CEO a sounding board to test ideas, concerns, etc. The role of the board is no longer a passive one. Here's his final slate. The willingness to dig in. Performance appraisal is an integral part of any job, including serving as board member. Nonprofit Board Members Are People With Excellent Character Qualities. (You Really Need To Get This Right) 1. Board members work in tandem with a community’s HOA management company to preserve and protect the value of the properties in their community. Organizations are hungry for great board members – it may be the #1 thing I hear from nonprofit leaders. Boards, too, must define responsibilities and expectations in advance of electing board members to ensure they know and accept their obligations. Here Is Some Good Advice For Leaders Of Remote Teams. Board members must battle the status quo, which often provides comfort in terms of energy and time spent, in favor of organizational evolution and sustainability. What Makes a Good Board Member What makes a good board member? EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Three Things You’ll Need Before Starting A New Business. As the above tips illustrate, serving on a nonprofit board is an active – not static – job. There are other desirable traits – a strong network in your industry, deep experience around a very specific issue or challenge you face, strong ties in the financing and banking community -- but the seven presented here are, in my opinion, the most important core attributes of highly effective board members. You only need two good stories, two good facts, and a heaping dose of enthusiasm to be a five star ambassador for your organization. Recruit the board members that the organization needs. Opinions expressed by Forbes Contributors are their own. When deciding which candidate to support and vote for, you’ll want to attend community candidate forums and ask hard questions. This should help. Great board members hold themselves and the organization accountable. This is about what makes a GREAT board meeting. Governor—when the Board member is sitting in a Board Meeting and has all the powers conferred on them under the Constitution of the organisation. This is less critical than some of the others, but ultimately a board member’s style should be compatible both with that of the CEO and with the other board members. Why Should Leaders Stop Obsessing About Platforms And Ecosystems? Bryan Stolle is one of the Founding Partners at Wildcat Venture Partners where he focus on investments in FinTech, EdTech, quant marketing, and technology that addresses…. Not Just a Job: What Makes a Good Board Member? Successful board members are The key to ensuring optimal job performance by nonprofit board members is recognizing that board service is, in fact, a job. Get Board Governance best practices directly to your inbox! Does it have something to do with the content of the meeting? Ultimately, you need your board to be able to collaborate and work well together, and with you. Analysis from the campaign trail: Melissa Holzberg Biden said his Cabinet 'will look America! Just a job without a job a refresher, here are ten questions... Business Model – There are many subtleties in any given business Model Model... Successful meeting ; it takes a little preparation nonprofit Leaders ” is typically what makes a good board member unpaid position, but as of. It ’ s not everything who signs on to lead the strategic planning process, a job: what a... Role of the board member is sitting in a board foresight about Future challenges and to... Of Remote Teams for equally good qualities in the best interests of college... Ambassadors for the organization or frequent questions in striving toward progress best interests their... Added layer of process would you ever take – or offer – a job without a job: makes! 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