Pathways for improving Nonprofit Boards

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Pau Vidal

Siena, 12th July 2012

ISTR – 10th International Conference

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Index of contents

1. The research: need of improving

2. Pathways for improving nonprofit boards in NPOsThe organizational commitment.The functional strategy.The relationship with the directive team.The profiles diversity.The renewal of the board.The management of information.The culture of transparency and accountability.The culture of evaluation.

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Observatorio del Tercer Sector

Observatorio del Tercer Sector is an independent and

nonprofit research center specialized in the third sector. Its

aim is to deepen and increase the knowledge on the sector

and to work for the improvement of the nonprofit

organizations’ management.

Web: http://www.observatoriotercersector.org

Blog: http://www.tercersector.net

E-mail: pau.vidal@tercersector.net

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Reason for research: Need of improving

Boards are a key aspect for the development of the NPOs’ mission and values, the proper functioning and the accountability.

Still, in many organizations, the management of theboard has not been prioritized due to the pressure of the management of activities.

It is not enough just to show that things are progressing accurately and at a high quality level, but rather it is necessary that the activities are carried out in accordance with the values and mission of the entity

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Aim and Methodology

Understand the situation of the boards in NPO in Spain in order to improve their management and role in organization.

Analysis of the universe

The different typologies of NPOs (associations and foundations) and the key informants to interview.

Research of international

referents

An international search was achieved by compiling current publications related to experiences of the boards’ functioning in different countries.

Collected data

131 NPOs were interviewed and more than 1000 took part in the quantitative (Anuari TTS’09). The interviewees are people who participate in the management or/and board of NPOs with different roles.

Analysis and devising of

improvement proposals

Proposals for improving the management of the boards have been created and now we are working with the third sector in order to improve the boards of the organizations.

Main challenges for improving

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1. The organizational commitment.

2. The strategic role.

3. The relationship with the directive team.

4. The profiles diversity.

5. The renewal of the board.

6. The management of information.

7. The culture of transparency and accountability.

8. The culture of evaluation.

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Improving the organizational commitment

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Improving the organizational commitment

-Clarify and specify the responsibilities of the boards, such as governance-Distinguish the roles of the governance board and the advising board-Make decisions based on a board organizational knowledge-Extend the linking of the boards beyond the attendance to one or two meetings a year-Find spaces for the boards’ members in order to know the task of the entity and the social base as well as to participate within the organization

Proposals

-Clarify expectations and liabilities of the role of members and board.-Personalised meetings to clarify expectations.-Identifying the agenda of the organisation so to know when it is necessary to invite the board.-Facilitating the knowledge amongst board, remunerated staff, voluntary workers and beneficiaries.-A person in the board dedicated to the other members and to manage the dynamic within them.-Creating commissions for subjects: economic, strategic,…

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Improving the strategic role

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Improving the strategic role

-Differentiate between the functional strategy and the functional operation-Define the issues in which the board has to intervene-Make sure the board is in the most strategic subjects of the entity to draw up the general policies-Develop mechanisms to evaluate and monitor most of the operating tasks-Focus on both the day by day life and the future of the organization through processes of reflection and strategic planning

Proposals

-Devising the strategic planning of the organization

-Establishing strategic indicators.

-Clarifying which subjects ought to be discussed amongst the board and which ones are competence of the management team.

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Improving relationship with management team

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Improving relationship with management team

-Establish good relationships between the board and the directive team-Constitute relationships between the board and the directive team based on trust-Exert a certain degree of taxation of the work of the directive team-Create a strong bond between the president and the director-Understand the expectations that rely on the president and the director-Use tools of transparency and efficiency to guarantee the continuity of the bond of trust between the two of them

Proposals

-Establishing an open, fluent and transparent relationship.-Making possible the participation in the board of members of the directive team depending on the subjects.-Making evaluations of the directive team, the board alone.-Making joint evaluations of the board and the relationship with the directive team.

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Improving the diversity of profiles

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Improving the diversity of profiles

-Increase the profiles diversity within the boards-Increase the presence of women, immigrants, youngsters, etc. within the boards-Facilitate the representation of the diversity of the social base, specially the beneficiary people-Enrich the visions of board and governance by diversifying the profiles-Be aware of the moment of the organization and the type of profiles that the situation requires-Understand and reflect the plurality of society

Proposals

-Incorporating related persons from beneficiaries.

-Making a conscious effort to balance the issue of gender.

-Analysing the knowledge and skills of the current members to identify which profiles are needed to be incorporated.

-Thinking to add different complementary profiles regarding: age, vital trajectories, origin…

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Improving the renewal of the board

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Improving the renewal of the board

-Establish mechanisms to guarantee non-traumatic relays-Understand the necessity of generational renewals-Create criteria of renewal besides the low degree of attendance to the meetings-Avoid perpetuation in the boards, specially in leadership positions, where it becomes more difficult to find relay

Proposals

-Commission of the board to attract new members.

-Establishing closed periods of participation in the board.

-Identify profiles that are needed for a renewal of the board.

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Improving the management of information

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Improving the management of information

-Achieve the equilibrium between briefing and quality-Avoid confusion with far too much information-Select the information that ought to be generated and distributed within specific members of the board-Use of new technologies to informate and communicate-Understand that the right information is crucial to make right decisions

Proposals

-Making more than 2 meetings per year.

-Creating commissions for concrete subjects.

-Sharing information before the meetings.

-Using the new technologies.

-Thinking specific products of communication for the board.

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Improving transparency & accountability

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Improving transparency & accountability

-Generate public trust through explaining the activities realized-Be transparent in front of society-Accountability in front of society-Make an organizational value out of the culture of transparency-Understand the added value that suppose transparency and accountability-Include the culture of transparency and accountability in every process

Proposals

-Identifying the stakeholders for accountability.

-Involving board and team in the matter of transparency.

-Describing the channels in order to create public awareness of the organization.

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Improving the culture of evaluation

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Improving the culture of evaluation

-Include the culture of evaluation within every process, specially within those related to the management of the boards-Develop tools to evaluate the boards-Take into account the evaluation of the whole social base involved in the functioning of the entity, including technical teams, members of the directive team, etc.-Introduce the idea of self-evaluation within the boards

Proposals

-Meetings for evaluation of the board on a periodical basis.

-Establishing functional indicators of the board.

-Picking up the vision of the ones involved in the organization in relation with the board.

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To contact

Web: http://www.observatoriotercersector.org

Blog: http://www.tercersector.net

E-mail: pau.vidal@tercersector.net

Facebook: pau.vidal.garcia

Pathways for improving Nonprofit Boards

ww

w.o

bservato

rio

tercersecto

r.o

rg

Pau Vidal

Siena, 12th July 2012

ISTR – 10th International Conference