Non-Profit Governance: Lessons For Corporate Boards

I really appreciate the superb advice column on Slate about “how to make the world better” by former Gates Foundation head Patty Stonesifer and her daughter Sandy Stonesifer.  This week’s entry about nonprofit governance applies very directly to the kinds of issues faced by corporate boards of directors.  A letter writer asks what to do about a non-profit with superb management and a “total turkey of a board.”  Patty Stonesifer responds:

You ill-serve that mission if you do not make the point, clearly, that you feel there is a big gap between the board as it operates today and the board the organization needs and deserves.

This should lead the agenda at your next board meeting. Be specific, illustrate what support this organization is likely to require in the years ahead, and supply a draft minimum job description for each board member and officer. No board needs to start from scratch. There is a wealth of information to help improve board performance, from the basics of what makes an effective board (courtesy Bridgestar) to sample job descriptions (courtesy Idealist.org et al.) to board assessments (courtesy Greater Twin Cities United Way). The very best aspirational guide I have read is The Source: 12 Principles of Governance That Power Exceptional Boards, and it is short enough, at 28 pages, for even the most impatient board member.

I especially appreciate the way she moves from theory to (measurable) practice:

Once the board has set new expectations for roles and goals, they should create a baseline of "how we're doing" to measure the gap between the plan and the reality. The most important function of this assessment will be to start the discussion of what the board must do to move quickly forward. Even if you achieve the turnaround you hope for, the last of the 12 principles is an important one: "Exceptional boards energize themselves through planned turnover, thoughtful recruitment, and inclusiveness."

Nell Minow — Editor

Comments

[Alice Korngold]

There are excellent advances in the field of nonprofit governance that are useful and parallel to for-profit governance. I am an avid follower of your work, Nell, and find it very useful in my work with nonprofit boards. Thank you!
Alice Korngold
http://www.fastcompany.com/blog/alice-korngold/leading-companies-good-0