Why Bother to Assess Your Board?

Recent research in the nonprofit arena at the University of Kansas and in the corporate sector has been reported in the Harvard Business Review. Both conclude that boards that assess themselves regularly perform better than those that do not. No other factor is as closely correlated in its presence with good governance or in its absence with poor performance.

Much has been written about obtaining good governance: selecting the right trustees, having term limits, not having the CEO select the trustees, having clear policies, staying focused on strategic work, creating ethical standards, continuous education and training, etc. Most of these suggestions are attempts to create rules or procedures designed to prevent poor governance. In the real world, these quickly lose their effectiveness and boards routinely neglect or circumvent them.

Research proves the best boards critically examine their institution, their decisions and themselves. They operate in a climate that challenges all assumptions and ideas. No question is taboo. Respectful dissent as an obligation, not an option. This reflects a commitment to finding the truth. The best boards are not guided by being nice, polite and agreeable. To this end they regularly critique themselves. And this very activity, when done with integrity, is the single most powerful tool for the board's improvement.

Rationale

Qm² has gathered over half a dozen board assessments. Some are short and miss critical areas. Others are comprehensive and numb the mind in their detail. We have used several of these with boards and found that no one assessment is a perfect fit.

For this reason we have created a process that allows you to quickly customize an assessment for your situation. Conduct the assessment and then derive a set of follow-up actions to implement improvements. This process requires somewhere between two to six hours of board time. Longer times are needed with larger boards and boards not familiar with addressing difficult conversations. The skill of the facilitator leading the board through this process is also a critical factor to both its effectiveness and efficiency.

Step One

The Board Survey Master List (Appendix 1) contains the items derived from board surveys used in the museum field. It is comprehensive and inclusive. If you identify any missing elements, please e-mail your ideas to the author, Will Phillips, at will@Qm².com.

Review this comprehensive list of issues that other boards have utilized to evaluate them selves. All may not be relevant to your board, so select only those most relevant for your organization. What's most relevant? Those issues that, if not addressed or improved, are likely to impact the board or the organization negatively as well as those that, if improved, will leverage the board to a higher level of success and satisfaction. Place a tick mark in front of these.

Then, count the number of tick marks. If more than thirty, review the tick-marked items again and double tick those of most importance in order to narrow the list to less than thirty. Ideally, this culling process is done by the Chair of the Board and the Executive Director. Alternatively, a small group of board members could make the selections. It is critical that during the selection process items are not eliminated BECAUSE THEY WOULD BE UNCOMFORTABLE TO PROBE. An objective facilitator, familiar with boards in general who has spent some time your board, can add significant value in assisting with the selection of a small number of spot on, well-targeted items for the assessment.

Step Two

The selected items are now extracted for the actual assessment (see example provided in Appendix 2). Notice how the items are spaced with several lines between each and at the end of each section a blank item is entered. Copy the assessment for each board member. In addition, create large blow-up posters of each page - 36 inches wide and as long as required. Any good copy center can do this for a few dollars a sheet.

Step Three

During the board meeting, the board chair presents the assessment, describes the process and the anticipated outcomes. The chair should focus on the benefits of self-evaluation and request a complete, honest response from each board member. Then, each trustee is given an 8 ½ by 11 copy of the actual assessment (example provided in Appendix 3) to utilize for taking notes while performing the following:

• Read over each item and rate its significance for this board as either high (H), medium (M) or low (L). High means it is an issue for the board and it would be beneficial to proactively addressed it. If the issue is present, but there is not much benefit in addressing it, the significance would be lower. Encourage people to make a quick decision with an H, M or L. Don't agonize! They can change it later if they wish, as this is only the first step in the assessment. These notes are for their eyes only (not to be handed in or shared) so encourage 100% honesty.

• Do other issues come to mind? Add additional issues in the blank area provided in each section.

• Allow approximately five minutes for this step.

• Solicit any additional items. Discuss and ascertain correct wording.

Step Four

While the board is completing Step Three, post the blow-up posters on the wall. Then, place Avery circular colored stick-on dots in RED, GREEN and YELLOW on a table near the posters or tack a sheet of each color to each poster. Fill in any additional issues discussed to the posters.

Directions for the trustees:

• Using their personal assessment notes, paste one colored sticker under each issue on the posters that reflects their opinion of the relevance of each issue—using a RED sticker for High, a YELLOW sticker for Medium and a GREEN for Low. (This is why space is created beneath each numbered item.)

• Instruct each participant to add their initials to each dot they place. This makes them less anonymous and easier to identify later when the dialogue on the issues begins.

• Do this quickly. Do not allow participants to wait to see how others vote before they decide. Ask them to refer to their notes. If they choose to change what they originally posted they must provide a valid reason (conformity is not an acceptable reason!).

• Participants may add notations beside their stickers if they desire.

• All issues marked with RED stickers (highly relevant and important) must be addressed first.

Allow approximately ten to fifteen minutes to complete this step, then provide a brief break.

Step Five

The patterns or responses should be easy to read. What is regarded as important? Where are the areas of mutual agreement as well as very little agreement? Polarized?

Now is the time to begin a dialogue, led by the facilitator. Start with the issues marked with the largest number of RED stickers. What does this issue mean in the board? Probe for specifics. The issue, as stated, is rarely the specific issue occurring within the board. Identify items marked by several RED stickers which appear to be similar and discuss them as a group.

As the discussion moves ahead, it is the facilitator's job to test potential solutions or options for making improvements in the areas being discusses. For instance, if there is general agreement that the institution's direction is unclear, you might propose any or all of the following:

• Writing a mission statement
• Developing strategies
• Setting objectives
• Defining the areas where information is needed to make decisions regarding direction

Continue this process until there is a solid sense from the trustees that sufficient dialogue and follow-up has been done to give the board a firm self-improvement action plan for the next 12-18 months (example provided in Appendix 4). Print copies of the board's self-improvement action plan for each trustee and create a wall poster for the board meeting room.

In order to assist the trustees with adhering to their guidelines, prepare an assessment they can complete at the end of each meeting (example provided in Appendix 5).

Appendix 1: Board Survey-Master List

Review this comprehensive list of issues used by other nonprofit boards to evaluate themselves.

Not all are relevant to your board. Select the most relevant items for your board, by placing a tick next the statement. Pay particular attention to items that, if not addressed, are likely to impact the board negatively. And tick those that, if improved, will leverage the board to a higher level of success and satisfaction. Tally the number of tick marks and, if over thirty, re-assess the ticked items and double tick those of highest importance in order to narrow the list to less than thirty.

Board Composition

• Board members have the knowledge and experience pertinent to the institution's work.
• The board includes several members familiar with serious fund raising.
• The board has a broad range of skills and experience.
• They have a vigorous set of newer, younger board members.
• The board has the appropriate number of members.
• The board has and follows a term limits policy.
• They recruit new board members based on strategic criteria.
• There is a clear process for nominating new trustees.
• The board has a cultural and ethnic diversity appropriate to their mission.
• Board members represent constituencies the institution serves.
• Board members represent constituencies the institution wishes to serve.
• The board has a good balance of members representing different perspectives and skills.
• The board has its full complement of members.
• Board members are passionate about their institution.
• The vast majority of board members are committed and hard working.

Board Orientation

• A formal orientation process is in place to bring new board members up to speed.
• The board is knowledgeable about the institution's programs and services and their administration.
• Trustees prepare new members for their work on the board.
• New members are up to speed and able to contribute during their first board meeting.

Board Meetings and Board Interaction

• The board has full-time and on-time attendance by the majority of board members.
• Board members regularly challenge one another's assumptions and beliefs.
• There is a culture of open dissent on the board.
• The board is committed to a high degree of candor and trust.
• The board members respect and trust one another.
• The board meetings have concise leadership.
• Board members can disagree openly without becoming disagreeable.
• Creativity and new ideas are nurtured.
• Board members focus on the institution's needs and the needs of those they serve.
• The board has a good process to for evaluating decisions before making them.
• Board meetings are efficient and do not waste the members' time.
• There is a hesitancy to make waves until the storm is at hand.
• The board meets frequently enough and long enough to handle all issues with sufficient depth.
• The board members are well prepared when they arrive at meetings.
• Communication is open and honest during board meetings.

Board Focus

• Trustees are strong advocates for the institution in the community.
• The board spends too much time on trivia, to the detriment of the important issues.
• The board focuses on the short term and neglects what can be done now to ensure the institution's survival and health for the future.
• The board is too reactive and tends to wait until the crises is upon them before taking action.
• Board members review, rehash and micromanage.

Structure, Roles and Responsibilities

• Board members fill different roles at different times during their tenure.
• The board's structure (committees, etc.) is designed to further the mission.
• Individual members are held accountable for carrying out tasks.
• Board members are currently working in positions they feel make the most of their abilities to further the mission or plan.
• Board members are pleased with their committee assignment(s).
• The board makes good use of an executive committee.
• The board uses committees effectively.
• Trustees get involved in management issues.
• Clearly written job description set expectations for trustees.
• Board members are involved with the work they hoped to do with the organization.
• Board committees have clear tasks and appropriate authority.
• Board committees support the staff's work to achieve the strategic plan.
• Board committees stay on track.

Leadership, Direction and Planning

• The institution's mission is clearly defined, agreed upon and approved by the board.
• The board has an inspiring and focused plan for the long range future.
• The strategic plan provides clear guiding principles that enable the board and staff to make decisions.
• Major changes have been identified in long-range planning.
• There are significant changes taking place other than those in the plan.
• Board members are aware of the assumptions on which the plan is based.
• The board ensures that objectives, strategies and an appropriate mission exist.
• The board ensures that the mission, objective and strategies link into specific, annual action plans and budgets.
• The board's decisions are responsive to the changes and trends in the external world that impact the institution.

Policies

• Board policies support the mission.
• Board policies support the strategic plan
• The board has a strong code of ethics in place.

Information

• All board members have sufficient interaction with the institution, so they can make well-informed decisions during board meetings.
• The board is knowledgeable about what its members value.
• The board is knowledgeable about the dynamics of its industry and the opportunities and threats facing the industry.
• The Board solicits and receives enough input and information from community or individual stakeholders. Agenda, information and minutes are provided in a timely manner.
• The board insists that it receive adequate information about the organization.

Fund Raising

• The Board leads and participates actively in fundraising efforts for the institution.
• The Board generates adequate financing for the institution.
• The institution has an adequate endowment.
• All trustees make significant financial contributions to the institution.
• The board ensures that the organization is fiscally sound.

Image and Advocacy

• The institution has a positive image in its community.
• Board members regularly promote and advocate the institution's programs and services.

Oversight, Follow Up, Compliance and Corrective Action

• The board ensures that an annual financial audit is performed.
• The board monitors operations and finances to the members' satisfaction.
• The board receives an annual, written audit and management letter from outside professionals.
• The budgeting process allots resources in accordance with the institution's priorities.
• The board reviews plans and budget on a quarterly basis.
• The board follows up on its decisions.
• The board has ensured that contingency plans are designed for possible emergencies.
• The board's records are current and past records are archived (i.e. tax and financial information, founding documents, minutes, etc.).
• Trustees are well-informed about their duties to uphold the public trust (legal compliance).
• The board reviews the institution's human resources policies and practices regularly.
• Board members are confident the institution is in compliance with all legal requirements.

Board-Director Relationship

• The board ensures a competent director is in place.
• The board reviews the director's compensation package regularly.
• The board reviews the director's performance regularly.
• The board has a formal process for the director to evaluate the board.
• The director has authority and support from the board to lead the institution.
• The director has the appropriate staff required to delegate regular aspects of management so that they can effectively lead the institution.
• The board supports the director's decisions regarding staff.
• The director has the authority to hire and fire all staff.

Board Staff Relationship

• The staff understands the board's goals.
• The staff members are regularly included in board meetings.
• The staff receives enough information regarding what the board does.
• The board does not operate as volunteer staff.
• The board solicits open and thorough input from the professional staff when making decisions.
• The staff provides input regarding board decisions.
• The board and staff have constructive conflict.
• The staff is supportive of the board's decisions.
• The board respects staff members.
• The staff is committed to the direction, goals and strategies of the board.
• Conflicts with staff are well managed.
• The board does not ask staff to do work or projects.
• Formal and informal relationships between board and staff are not used as back channels of information.

Collections (for museums)

• A clear collections policy been approved by the board.
• Board members are satisfied with the guidance the collections policy provides.
• The collections policy is clear regarding what is NOT to be collected.
• The board approved policies for deaccessioning.
• Guidelines and policies for collections loans are clear.
• The public has adequate access to the collections.
• Collections storage and vault space are adequate with regard to industry standards.

Facilities

• The physical plant is well maintained.
• Staff offices are safe, secure and comfortable working environments.
• Public spaces are safe, secure and comfortable.
• Adequate funds for maintenance are available.

Board Improvement

• The board regularly examines itself to establish specific areas of improvement.
• The board engages in professional development and resources are provided.
• Trustees evaluate one another.
• The board receives feedback on its performance.
• The board manual is regularly reviewed and updated.
• Individual board members receive regular feedback on their performance.

Appendix 2: Example Of A Customized Board Survey

Instructions:
Read over each item and rate its significance for this board as either high (H), medium (M) or low (L). High means it is an issue for the board and it would be beneficial to proactively addressed it. If the issue is present, but there is not much benefit in addressing it, the significance would be lower. Encourage people to make a quick decision with an H, M or L. Don't agonize! You can change it later if you wish, as this is only the first step in the assessment. These notes are for your eyes only (not to be handed in or shared) so please be 100% honest.

Do other issues come to mind? If so add in the blanks at the end of each section.

1. The museum's mission is clearly defined and approved by the board

2. The board is engaged in long-term (3-5+ years) thinking and planning.

3. The staff is appropriately involved in the strategic planning.

4. The mission and strategic plan provides clear guiding principles that enable the board and staff to think strategically. We can make decisions regarding what to do and what not to do.

Supporting The Direction

1. The board's policies support the mission and long term or strategic plan.
2. The board's structure (committees, etc.) is designed to help attain/further the mission/plan.
3. The board's structure supports the staff's work to achieve the strategic plan.
4. Trustees get involved in management issues.

Board Functioning

1. We meet frequently enough and long enough to handle all board issues with sufficient depth.
2. Our board members are well prepared when they arrive at meetings.
3. Our communication is open and honest at board meetings.
4. Our board makes good use of an executive committee.
5. Our board uses committees effectively.
6. Our board members respect and trust one another.
7. Our board meetings have solid leadership.
8. Board members can disagree openly without becoming disagreeable.
9. Our board solicits open and thorough input from the professional staff when making decisions.
10. Our board decisions are responsive to the changes and trends in the external world impacting the institution.
11. Our board regularly examines itself to establish specific areas of improvement.
12. Board members regularly challenge one another's assumptions and beliefs.
13. There is a culture of open dissent on the board.
14. Our board has good balance in that the members represent different perspectives and skills.
15. The board has a good process for evaluating decisions before making them.
16. Our board meetings are efficient and do not waste my time.

Potential Weak Areas

1. The board spends too much time on trivia, to the detriment of the important issues.
2. The board focuses on the short term and neglects what can be done now to ensure the institution's survival and health in the future.
3. The board is reactive and tends to wait until a crises is upon them before taking action.
4. There is a hesitancy to make any waves until the storm is upon us.
5. Our board tends to review, rehash and micromanage.
6. The board undermines the director by usurping their authority to decide and by consuming staff time with board projects vs. the planned projects.

Appendix 3: Example Of A Blow Up Assessment

Appendix 4: Example Of Board Meeting Guidelines

1. Pre-meeting materials are concise and helpful
2. Everyone arrives well prepared.
3. a. The meeting agenda is well prepared.
   b. An approximate time set for each item.
   c. Action is set for items: inform, discuss, decide, etc.
4. The issues covered are largely strategic.
5. We stay focused and on the subject.
6. We disagree, without being disagreeable.
7. The board is proactive rather than reactive.
8. Board members speak up and speak out.
9. There is mutual respect between board members.
10. We are willing to explore new ideas and changes.
11. We use a clear process for making decisions.

Appendix 5: Example Of Board Meeting Evaluation
Use during the meeting so you can see what's happening and make corrections immediately.

1. Pre-meeting materials were concise and helpful
       No 1 2 3 4 5 Yes

2. Everyone arrived well prepared.
       No 1 2 3 4 5 Yes

3. The meeting agenda is well prepared.
        Yes 1 2 3 4 5 No

4. The issues covered today were
       Trivial 1 2 3 4 5 Important

5. Today's discussions concerned primarily
       Operations 1 2 3 4 5 Policy and Strategy

6. We stay focused and on the subject.
        Yes 1 2 3 4 5 No

7. When we disagree, we do not become disagreeable.
        Yes 1 2 3 4 5 No

8. In this meeting we are largely proactive rather than reactive.
       Yes 1 2 3 4 5 No

What or who helped this meeting go well?

What or who hindered this meeting from going well?

Date                    Name