Random Notes
Over the last few years, the board of Hockey Canada found itself facing much criticism, scrutiny, and sanctions for its record of using organizational funds to try to silence allegations of sexual assaults by some of their young, star hockey players. Current board members of Canada’s National Gallery find themselves facing intense criticism for the implementation process surrounding a new strategic direction, the organization’s selection of the gallery’s executive leadership, and the hiring and firing processes within the organization. While these are current examples of boards that have run into some significantly public moral and ethical issues, most board problems don’t make their way to the front pages of newspapers. However, it is actually shocking how frequently boards find themselves in exceedingly difficult situations that sometimes result in the financial or reputational ruin of the organizations the board members are entrusted to safeguard on behalf of their communities.
Serving on the board of a community organization should be a fulfilling and positive experience. After all, community members are using their scarce free time to help out in the community, and this contribution should be seen as the sacrifice that it is for the members of the board. However, it is easy to forget that the responsibilities and duties of board members are significant, and there are many ways that boards can deeply endanger the organizations they are there to serve.
Excellent resources are available to help boards and board members understand their roles and responsibilities. I am particularly impressed with the information available through BoardSource.org. Imagine Canada also has a very good governance standards program that can be very helpful to ensure that boards and board members are fully informed of their responsibilities and liabilities and that all the indicators and processes of good governance are in place. (This is significantly more complex than many people realize.)
Disaster lurks when adequate standards of good governance are not nurtured and strengthened within the organization. This is a very big and important job, and often boards are so caught up in the challenges of the moment that they do not pay adequate attention to issues of good governance.
Board Source has an excellent book that identifies the 10 basic responsibilities of nonprofit boards:
- Determine mission and purpose for the organization.
- Select the Chief Executive.
- Support and evaluate the Chief Executive.
- Ensure effective planning.
- Monitor and strengthen programs and services.
- Ensure adequate financial resources.
- Protect assets and provide proper financial oversight.
- Build a competent board.
- Ensure legal and ethical integrity.
- Enhance the organization’s public standing.
On the face of it, this seems very straight forward, but each one of those elements takes significant care and large amounts of time. Both board members and organizational staff members are often so overwhelmed with annual operating requirements, that many of these basic responsibilities of the board are almost ignored. Organizations ignore these responsibilities at their peril.
Many years ago, I attended a governance session at a conference at which a presenter said he was convinced that you could not have a good and healthy organization if the organization did not have a good and healthy board of directors. Over the years, I have come to recognize how very true this is. Good governance is hard earned, but it is fairly easy to maintain as long as you have good processes and schedules in place for checking and maintaining the essentials of good governance. But with board members changing regularly, and board presidents and executive members bringing different levels of governance experience and capacity to their roles, it is also very easy for a stable, well-governed organization to slip into chaos and dysfunction.
The responsibility to maintain good governance and board health is a primary responsibility of the board chair, just as the responsibility for good internal operations, processes, and organizational health falls on the chief executive. Sometimes a board chair is unable or unwilling to take on the responsibility for good governance, and in that case, the responsibility falls on each board member. If a board on which you serve seems to have some governance problems, it can be very helpful to conduct a governance review of the organization, identify areas of weakness, and start working to rectify the problems. Ask to join the governance committee, and start to address the issues.
