To test your board’s critical performance or to put in place practices and strategies for a healthy and re-energized board, the best place to start is with a board assessment. A check-up now, as the pandemic persists but with less intensity, can ensure that you are not just surviving, but thriving.
While evaluation is a worthwhile goal, how many boards do it? Is it worth the time and effort—especially if you are coming out of a tremendously challenging period? Here are four reasons why the answer is assuredly yes to doing a board evaluation.
1. Peak Performance. Conducting a self-evaluation and assessment for the board is similar to evaluating the performance of a top executive: You start with a job description and conduct a periodic performance evaluation against that description.
Boards are no different—the best boards continue to build on what they are doing well and develop in areas that need strengthening to reach peak performance. Boards that regularly self-assess are also more likely to evaluate the executive director. Additionally, self-evaluation increases the likelihood that meaningful strategic planning occurs, and even fundraising improves. See Leading with Intent: BoardSource Index of Nonprofit Board Practices (Washington, D.C.) BoardSource, 2021.
2. Education. Developing the criteria for the board to evaluate itself also forces boards to think about what it is they are doing or should be doing now that the pandemic is receding. What are your board’s benchmarks for success?
As part of this, now is the time for all nonprofits to examine their relationship with racial, ethnic, and gender issues. Has the board been through an examination of its diversity practices? Has it examined its relationship with racial equity? Do the board members reflect the diversity of the community it serves?
What are the board’s responsibilities? What are the fiduciary, managerial, or fundraising roles? Do the agendas and meetings focus on important strategic and generative issues rather than mundane reports? Does fundraising capacity need to improve?
The process of developing questions and indicators for board evaluation helps the board identify its standards for top performance.
3. Energize and Build Your Team. We sometimes hear board members complain that they do too much listening and not enough participating in leading the organization. Developing and doing the self-evaluation and assessment process is an active step that often energizes the entire board.
Promoting honest conversations around these topics gets them out in the open without any hidden agendas. In these times of authentic discussion about racial equity, has the board done any self-examination? It helps build the board members’ trust and relationships with each other. For example, the board members’ lack of participation in fundraising efforts would be easier to discuss through this assessment model; if done in a constructive rather than a critical manner, it can move the dialogue forward on a broad range of issues.
4. Create a Roadmap. The assessment results will point to strengths, such as fiduciary or financial knowledge among board members or a dynamic committee structure that can become building blocks for new endeavors.
It will also help the board determine what needs further development or training (e.g., diversity, planning, fundraising, recruitment, governance, all come to mind). Assessment helps with better recruitment and orientation in the future, as well as building self-assessment into an ongoing part of the board’s process. All of these outcomes can help build the board’s goals and objectives for the coming year, and you can set time aside at a retreat to discuss, train, or further develop operations.
It is worth noting that an evaluation at a time of crisis may not be appropriate, but if the situation has passed or at least is not at its peak, this would be an opportunity to start to address the issues raised. If you have just added or are about to add new members, an assessment can be an excellent introduction to what it means to be an influential board member today.
Self-assessment and evaluation are worthwhile and critical components to ensure your board is functioning at its highest level and working to accomplish its mission. It may result in board training (an overlooked area) or some focus or action (review by-laws, create fundraising committee, research executive compensation etc.).
Sample Board Evaluation Questions
Please indicate the extent to which you agree or disagree (scale of 1-5 five being agree strongly) with the following statements.
- The board did well during the pandemic.
- The board monitors and evaluates the performance of the executive director on a regular basis (at least every other year).
- All members participate on some level in the evaluation.
- Annual performance goals are set by the board and CEO.
- The board reviews the compensation package of top executives for reasonableness.
- The process of review and compensation is documented in writing.
- There is a succession plan in place.
- Board members discuss organization-wide policy issues, rather than managing the day-to-day affairs of the organization (i.e., not micromanaging the staff).
- The board reviews personnel policies periodically.
- The board ensures a whistle-blower policy exists.
- The board ensures a document-destruction policy exists.
- Board members regularly read and prepare for board meetings ahead of time.
- There is a diversity of board members.
- The diversity mirrors the client base.
- There is sufficient diversity training of the board.
- All members participate in fundraising for the organization.
- There is a strategic plan in place and board meetings use the strategic plan to measure progress.
- The board regularly reviews and understands financial statements.
- Financials controls are in place.
- (Open-ended) Do you have suggestions for improvement?
You can develop your own grid or questionnaire, adapt one found on web, or hire a consultant to help with the process.
Learn more about how to work with and improve your Board by attending the LEADERSHIP: Governance, Board Policy & Volunteerism class on Saturday, March 18 from 1 – 5 pm as part of the Sunshine Certificate in Nonprofit Management.
by Ann Lehman on September 3, 2021
Source: Blue Avocado, the e-magazine of Nonprofits Insurance Alliance®, offering practical tools and tips for nonprofits, by nonprofits. Nonprofits Insurance Alliance has been a preferred partner of the Florida Association of Nonprofits since 1991, when they were formed by an Act of Congress. They are a group of 501(c)(3) nonprofit, tax-exempt insurers whose purpose is to serve 501(c)(3) tax-exempt nonprofit organizations by providing a stable source of reasonably priced liability insurance tailored to the specialized needs of the nonprofit sector.
In case you missed it… Creating a Board that Works