What defines high impact boards can be best understood by member's behaviors according the Harvard Law School Forum on Corporate Governance.
I suggest that this is particularly useful information while trying to understand how to ensure your nonprofit board "achieves". I have included a summary of the behaviors below but want to suggest that you take a look at the whole release.
From Insights to Action
Almost all boards aspire to be high performing—but few actually measure potential and current directors to assess their ability to create a high performing board.
Russell Reynolds Associates helps place over 1000 corporate directors each year and this work, combined with our board effectiveness consulting, gives us a unique view into hundreds of public and private companies, as well as nonprofit organizations. In addition, the data from our research efforts enables us to identify the attributes of high performing directors. We divide these into two groups of characteristics.
- Foundational or Baseline Attributes: those required to be an effective director and fulfill the responsibilities of the role well
- High Performing Attributes: those that we see among the best directors, and that help set them apart from the rest
While many attributes are important, some stand out as being critical enablers of director success:
Foundational or baseline behaviors of effective directors:
- Prepared and engaged: Comes prepared, is fully present at meetings, avoids distractions and seeks to add value across a range of board topics.
- Current and open: Stays abreast of industry and company developments, is open to new ideas, processes, and ways to solve problems.
- Builds trust and respect: Assumes positive intent and builds the trust and respect of fellow directors and management.
- Knows their role: Understands the role of a director and avoids crossing the line into management.
- Stakeholder and investor savvy: Effectively understands institutional investor and other key stakeholder concerns and how to think about maximizing shareholder returns.
High performing director attributes:
- Sound judgment and relevant expertise: Applies the relevant, current business expertise and insights to the situation at hand and demonstrates sound business and situational judgment.
- Constructive engagement: Listens more than talks, willing to constructively engage with and challenge management and peers when appropriate.
- Integrity and courage: Acts with integrity and possesses the courage to do the right thing for the right reasons.
- Focus and questions: Asks the right questions appropriate to the situation and focuses on the key issues relevant to the discussion and business.
- Possesses an independent perspective: Avoids groupthink and prioritizes the interests of the company’s shareholders and stakeholders.
To build a highly effective board that successfully adds value to the company in the way strong directors desire to, it is important boards use these insights—tailored as necessary to their unique context—in both the recruitment of directors, and their regular evaluation of director performance.