Thursday, November 11, 2010

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.

Monday, November 8, 2010

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?