Many nonprofit boards have issues with their performance. Some boards are subject to legal scrutiny and need to improve. Others are looking to increase their value to donors or the community. There are others who have to tackle specific board governance issues. It is recommended for every board, regardless the demands, to conduct some form of evaluation. However, a performance evaluation can be a daunting task, especially if the process is not something that the board has experienced before. The right tools and guidance can aid any board in overcoming obstacles and achieve success.
The first step is to understand the issue. The most frequent issues are that the board functions too much as a “rubber stamp” for decisions taken by management or is involved in operational issues that should be left to the management team and CEO. Additionally, the board might not be aware of its legal obligations and how to protect itself from them.
In such cases the board must clearly define its role and define it and communicate clearly between the management and the board. The board should also have structures in place that will allow it to carry out its tasks. This may include committees or officer positions whose primary responsibilities include analyzing and gathering information regarding board performance. It is also essential to follow-up on any agreed actions that result from an evaluation. The momentum that was created during the evaluation can be lost.
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