Leo Abdella.com

Stop rolling your eyes when I ask about your board

I talk with many seasoned and non-seasoned social entrepreneurs who are charging ahead to conquer that mountain and change the world, many with social causes, humanitarian needs, human rights, faith-based causes and the list goes on. The planet and its inhabitants require increased social impact of the under-served. Praise God that many social entrepreneurs are responding with passion to pursue justice and solutions for mankind. Many world changers burn economic, social and human capital struggling with non-core purposes.

The “Impact Check” that I use to gauge an organization’s stability is to ask the social entrepreneur, “Tell me about your Board of Directors.” Hence, the title of this blog…the eye roll is a dependable way to know that this passionate entrepreneur is carrying an inordinate share of running or growing the organization. 

So if I may be so bold, let’s say the biggest challenge facing nonprofit, “change the world” entrepreneurs is the Board of Directors! Wow, that hurts even to type it. I have served on Boards for 30 years and this brings great discomfort to say.

I can share story after story about “change-the-world” entrepreneurs™ who have begged, borrowed and stolen (well maybe just a tiny bit) to pursue their passion. The enthusiastic or charismatic entrepreneur can inspire and motivate their circle of influence, compassion-filled volunteers, and even some influential marketplace and community leaders to catch the vision and leverage their equity. Then, before you know it, a nonprofit corporation is formed, the cause becomes the charge of the community, you’ve spent valuable resources on websites, marketing materials, and a host of other expenses and you find yourself sitting in a tuxedo at a $200-a-plate rubber-chicken charity ball.

Shortly after comes the first dose of reality. The passionate entrepreneur, “the proud parent,” feels that he or she has done their part; it was a joyous birth and it’s a beautiful babe. The entrepreneur is still first into the office and last to leave, he or she still has a burning sense of urgency, but can’t quite figure out why the troops aren’t following quite as closely as before.

The entrepreneur turns to their first line of reinforcements, the Board, the cheerleaders, the smiling faces in the pictures at the rubber-chicken ball…

The Challenge: The non-profit has now reached a size where this is a “real” company and the founder needs real help. The answer? I submit that it is the Board’s responsibility to directly assist the founder. New non-profits have many issues and the Board needs to be counted on to help with:

• Legal decisions
• Setting the direction of the organization
• Determining the mission and vision
• Holding itself and organization leadership accountable
• Recruiting and cultivating leadership development
• Developing the short and long term financial sources
• Cultivating collaborative relationships with like-minded organizations
• Becoming the driving force, the champion of the organization

These responsibilities sound daunting, similar in tone to parenthood, and are meant to be taken just as seriously. The very clear benefit of navigating through these foundational issues will be that a successful and sustainable organization will emerge. The bottom-line: An organization that is built on a weak foundation will not withstand the test of time.

But not all people are wired to serve on a working Board of Directors. The ones that are must have a strong understanding of leadership principles. The first two principles that are essential are “Direction” — Where there is no direction the people will perish, and “Conflict” — Do your best and prepare for the worst (more on this below). In addition they must be willing and experienced early adopters and have a good understanding of a board’s capacities.

It is vital to the honorable causes of nonprofits that all stakeholders strategically navigate and plan for the health and well-being of the organization. Not only is this important for the benefit of the bottom-line of sustainability, but necessary for the causes we represent. There are a lot of causes counting on us to get this right.

So what should you, as the socially responsible, “change-the-world” entrepreneur™, ask yourself to determine just how well your board is doing. Here are some thoughts and suggestions:

1. Is your worst week the week you are preparing for the Board meeting?
2. Do you wrestle with just how much detail you want to give them?
3. Do you feel like a meeting with them is like meeting the IRS or the bank inspectors?

If a smile of agreement came to your face, then I know you are rolling your eyes quite a lot. There are some first steps that will start the shift from a rubber-chicken board to a productive working Board of Directors —your homework for now is to read the Principles of Direction and Conflict, consider my questions above and determine if you need help with your Board situation. In my next blog, we will get into adapting and embracing these changes. We will also talk about another unfortunate reality: How To Fire A Board Member.

 

How to fire a board member

Do you remember the excitement and passion you had when you told your best friend you were suddenly given a vision to start a program for inner-city children? You could see with incredible clarity what was going to take place. You knew everything you had done in life was in preparation for this. You asked your best friend to take this journey with you and be on the Board of Directors. Your best friend, after all, was a high capacity businessman, a major philanthropist and a “Real Mover and Shaker.”

The problem is…this best friend may have had what appeared to be a great bundle of assets for the organization, but he also brought along a U-haul of other baggage.

Board members must be an asset to nonprofit organizations, providing needed expertise, servant leadership, social and financial capital, all to further the mission and sustainability of the organization.

Occasionally an individual board member can become destructive to the organization. This destruction or “disruptive” behavior can become a negative force to the workings of the organization, causing poor morale among staff and board, loss of energy, board turnover and a damaged public reputation. Board members must live a life that reflects the values your organization stands for…key values and principles such as Dependability, “He who is dependable is like the sun, it is there, even when the storm is raging”, and Proper Thinking, “As a man thinks, so is he.”

There are many examples of such “disruptive” behavior that may ring a bell to you:

• Lack of participation or poor preparation at board meetings or events
• Lack of knowledge of their responsibilities to the Board and staff
• Lack of accepting the consensus of the board, even after issues are fully agreed upon
• Lack of follow through on assigned tasks and responsibilities
• Lack of a spirit of unity with the board, damaging public opinion of the organization
• Lack of maintaining confidentiality on board matters
• Lack of self-governance to the values promoted by the organization.

When these behaviors are exhibited, the board chair (not the change-the-world entrepreneur) has the responsibility to meet with the board member and discuss the behavior and the impact it is having on the organization. In some cases this will work; however, when discussions fail to solve the problem, the board member might need to be asked to resign. This can get ugly and become a disaster to an organization both short and long term.

Just as the change-the-world entrepreneur holds the staff accountable and responsible, the board must do the same for its members. So how does one go about “firing” a board member? This is actually easier than you might think. I recommend the following to determine if there is a right fit, or a mis-fit, on the board:

1. A self-performance and board performance evaluation to determine effectiveness
2. A board orientation of duties and responsibilities, with individual development plans
3. A clearly defined and measurable assignment to each board member

Most board members volunteer their time, talent and resources to the organization for the purpose of successfully achieving the vision and mission of the organization. If an individual is not fully on board (pun intended), it will become clear what is best for the organization and its cause.

It is also my recommendation that actions be taken quickly to minimize the potential damage. Consider these suggestions as a way to expedite the necessary course of action.

• Create the opportunity for the board member to resign
• Celebrate the positives and victories they have accomplished
• Allow them to serve in an advisory capacity (unless there are moral or ethical issues)
• Allow them to serve in a role of Ambassador for the organization in the community

These steps will allow for the change to take place while still saving the dignity of the individual and will bring additional benefits to the health of the organization. Specifically, these steps will:

1. Bring clarity to all board members
2. Develop a stronger, more productive board
3. Demonstrate the seriousness of the role the board has

As a change-the-world entrepreneur; you knew leading this organization would not be easy. Your responsibility to yourself, your calling and your cause is to build the organization in a way that has maximum impact for the cause and creates a sustainable organization that is bigger than you and your vision. This is what change-the-world entrepreneurs have the unique ability to do.