Tuesday, August 18, 2009

Board Evaluation

Board of Directors Evaluation

Evaluate the Board of your organization based on a criteria you build from the principles discussed by Drucker, Brinckerhoff, Hubbard and others.



Non-Profit organizations have a board of directors to provide a check and balance to the activities of the organization. This group is responsible to create and enforce the policies that govern the work being done and make sure it is according to the mission statement. They must be some of the most committed and passionate people serving the needs of the institution, but they must also bring the “outsider” view to the decision making process. They also have a responsibility to the community to ensure the resources are being used as efficiently as possible.
A board must act as the balance of power for the non-profit to ensure that 1) the mission is accomplished and 2) the CEO and other management stays are accountable for their actions. The board will be made up of people dedicated to the cause. They may have strong personal connections or influences that force the mission to be strikingly clear. The board will passionately debate anything that appears to be redirecting the institution in a way that may negatively influence the ongoing mission objectives. They are also constantly watching the direction that is given to the organization. This group must evaluate the performance of the institution according to the mission statement and ensure that the leadership, starting with the CEO, is staying true to the goal.
Creating policy is the second most important aspect accomplished by the board. Not only is the mission reviewed, the next layer of governing documents are created and instituted. These policies typically deal more with the specifics of handling different tasks and situations the organization may face. This is not detail level, day-to-day operations standards, these tend to be more related to how we will create the atmosphere, personality and overarching business principles of the institution. These policies would directly effect the programs being conducted and the style of management.
The board should be made up of people from outside the organization. The goal here is to provide a higher level perspective than those “in the trenches”. At times we who are doing the work day in and day out see the operational tasks only; we can miss the “big picture”. For a non-profit the long term goal of continuing the mission is supremely important. This long term focus is difficult to attain when all we see are the crises of today. Passionate outsiders can easily focus on the long term because they are insulated from the day to day problems. This focus enables the board to ask the right questions and force the management to step back and identify the real problems and possible solutions.
The last critical function of the board is to ensure resources are being used for the most benefit to the goal. This may mean improving efficiency, redirecting the mission, modifying policies or changing up leadership. Brinckerhoff states that one critical facet is asking the right questions to verify the organization is doing the right things at the right time (2004, p.47). This included evaluating the performance of the organization against the mission statement. Drucker points out that management competence a large part of board responsibility (Drucker, p.157). To keep up with current business trends board members must be known as learning individuals, always ready to be taught and find ways to apply their new knowledge.
Salem Heights Church has a “board” equivalent, the Leadership Team. It is made up of obviously deeply committed men who desire to see the Word of God preached in a way that would impact people for Christ. It is clearly a high priority to ensure each program or event is perfectly aligned with the stated purpose of the Church. When things are not in line there is no hesitation in correcting the matter as soon as possible. The correction is part of the process of reviewing performance of the organization as a whole compared to the mission. These men serve as a check to the authority of the Senior Pastor. This balance is based on mutual accountability, constantly challenging to growth and prodding each other on to live Christ in every aspect of life. Among the leadership team there are the two Pastors and three other full-time church staff. The rest of the team include people from the “outside” in that have full-time employers in the secular arena with a wide range of experience.
Salem Heights could improve the spectrum of outside perspective on the board. I believe that because a majority of the leadership team is internal some of the focus would be distracted to the internal issues. This is however a difficult conundrum because the members of this team must be evaluated for many years before being approached to serve. The requirements are extremely high, based on the guidelines found in Titus 1:5-16 and I Tim 3:2-13 (NASB, 1995). Enlarging this perspective may add better planning skill and a broader base of experience to draw from.
Asides from the potential improvement of increasing the diversity of perspective within the Leadership Team, Salem Heights is doing an incredible job. Most of the weakness is overshadowed by the incredible hand of mercy from God, Himself. God has given the Leadership Team a passion to raise up future leaders starting at all levels of maturity so that the purpose can be carried out regardless of who is calling the shots. If they, with God's help, can accomplish this task, the Word of God will be preached for many generations with strict adherence to the careful handling of Scriptural interpretation.




Resources:
Brinckerhoff, P. (2004). Nonprofit Stewardship: A better way to lead your mission-based organization. Fieldstone Alliance, Saint Paul, Minnesota.

Drucker, P. (1990). Managing the non-profit organization: Practices and principles. Harper Collins Publishers, New York.

NASB (1995). New American Standard Bible, Updated edition. La Habra, Ca: The Lockman Foundation, 1995.

salemheightschurch.com (2009). Salem Heights Church, Website homepage. Retrieved July 24, 2009 from: http://www.salemheightschurch.org/ .

Wartzman, R. (2009). Boredom, Not Rigor, Dampens Volunteers' Spirits. The Drucker Institute. Retrieved August 11, 2009 from: http://www.druckerinstitute.com/showpage.aspx?Section=RP&PageID=111 .

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