Seeking Diversity on Boards: Is it Enough?

BoardSource just released its Nonprofit Governance Index 2010 which contains interesting data collected from surveys of hundreds of nonprofit executives and board members. One finding highlighted by BoardSource is widespread dissatisfaction from those surveyed regarding the degree of racial, ethnic and age diversity on nonprofit boards.

My concern here is that people might think that diversity alone is the answer. Sure, it is nice to see boards and elected bodies look more representative of the population in which they exist. Furthermore, having board members with a variety of backgrounds, skill sets and perspectives should add important value to boardroom dialogue and decision-making ability.

For me, however, having ‘diversity’ in the boardroom is simply not enough. I advocate the view that the role of the board starts with understanding who the legal or moral ownership is, and then having meaningful conversations with the ownership about what results the organization should produce. To truly accomplish this function whilst exercising group authority, board members cannot simply sit back and represent their respective constituencies, regions, races or factions. True board leadership requires board members to, in effect, ‘transcend themselves,’ a concept brilliantly explored by Dr. John Carver in his 2004 speech, Transcending Ourselves: The Board’s Unique Contribution to Success.

If board members can become increasingly capable of transcending themselves in order (1) to be the owners and (2) to participate effectively as part of a group authority (not singular dictators or managers), they will achieve so much more than they would by creating boards that are visibly diverse. Diversity is fine if it happens, and, whether or not it is achieved, all board members should strive to become informed and effective stewards on behalf of all their owners.

Five Questions All Boards Should Ask

If your board is considering a governance audit or wants to evaluate its own performance, start by setting aside time on your next board meeting agenda for reflection on the five questions below.

1. Does everyone around the board table answer this question the same way: on whose behalf are we legally and/or morally accountable?
2. Do we have a regular way of engaging with our legal/moral ownership that includes listening to them as owners (rather than as customers or other stakeholders)?
3. Do we have a clear and transparent process for translating ownership input into direction that is delegated to our CEO/Executive Director?
4. Can we show that all authority our CEO/Executive Director is using has originated from direction (at some level) set out by the board as a whole?
5. Do we have an evidence-based way to show our owners that this organization is achieving what it should and avoiding what is unacceptable, further to their input?

I Love Governance and Here's Why

I love governance.

There, I said it, and I am not apologizing, either.

I heard a newscaster ask a newly elected political candidate the other day, “And, I hate to use this word since it really causes people’s eyes to glaze over, but what plans do you have for governance” -- he winces -- “for the new city council?”

Damn it, my eyes don’t glaze over. Instead, my heart skips a beat! What is wrong with me? Why do I burn the supper while furiously following #corpgov tweets? Why do I look at a pizza and think, “Mmmm...nice, round policy circle.” Why do I spend lazy Sunday mornings obsessing about splitting the chairman/CEO roles? Why does governance haiku float through my mind while I’m washing the dishes?

If we assume for a moment that I am not insane, let me propose three reasons why I love governance.

First, I hate bad board meetings, and everything that could possibly entail: people talking in circles, covering ground that has been covered before, long discussions with no apparent relevance, people not paying attention, pointless arguments about details, boring presentations, wasted time, and did I mention people talking in circles?

So I am thrilled when I witness a great board meeting, where the agenda is logical, the conversations are rich, the decisions are meaningful, and the participants are focused, happy, and engaged. Love it!

Second, I love creative freedom. I really like being able to do things my way. I want the opportunity to innovate, to invent solutions, to try new ideas, to be spontaneous, to get things done quickly and to have fun at my job. I’m all for following rules, but to me that means the fewer and clearer rules there are, the better. Don’t make me fill out a stack of forms or read three-inch policy binders. Let me brainstorm, create, design and invent, and I’ll be uber-happy always.

That love of freedom means I can’t get enough of a governance system that liberates both board and CEO to do their respective jobs. When the roles and rules are clear, you can create, achieve, and work with a real sense of joy in your heart. Everyone knows their area of accountability, and then when the work is done, they can honestly feel pride in what they’ve accomplished.

Third, I want to save the world. I mean, do my little part towards that effort, at least. Humans are social animals and while there is no shortage of outstanding individual achievements to gawk at on Youtube, people, in my view, are at their greatest when they work well together in groups. Did you cry when you saw the Chilean miners rise to the surface to greet their loved ones? I sure did. It was relief, it was love, and it was people working together to create a miracle.

Good governance is about that too. We have so many miracles to create in this world, whether it is curing diseases, making profits, feeding stomachs, saving whales, inspiring through music or stopping wars. Since people are capable of so much when they work effectively together, I can’t help but want to make it easier for them.

So that's my story and I'm sticking to it. Do you love governance -- well, good governance -- too? Think about why (or why not) and share your story.