The following OpenMinds article titled "Nonprofit Board Member - The Other Workforce Problem" is a clever title about a substantive problem for most nonprofit boards providing a less than stellar, in my opinion, solution. There are certainly solutions "hidden" in the article but overall, the best contribution is to consider why what is said makes less sense for most nonprofits. I have inserted my thoughts into the article.
Finding the board members that non-profit organizations need is a growing challenge. People are busy. Roles are sometimes ill-defined. Recruiting is often not well thought out. (For more, see Six Roadblocks To Board Recruiting). The upshot—half of non-profit CEOs report that they don’t have the right board members, and the board members aren’t spending enough time on the right priorities (see Leading With Intent: BoardSource Index Of Nonprofit Board Practices – June 2021). Chief executives see a lack of commitment to fundraising (76%), community relationships (67%), strategic thinking (59%), strategic impact monitoring (53%), and setting strategic direction (48%) as key challenges. I pose that the first issue is that CEO's view the board as "their" board members and that "they" the CEO don't have the right board members. I pose further that this is for the board to determine.
Non-profit health and human service organizations face a unique challenge among other non-profit organizations. Unlike most other non-profit organizations, the majority of health and human service organization revenue is earned income—not contributions or grants. I don't know what this is based on and whether it also applies no matter the budget size. The health and human service market is becoming more competitive, more tech-enabled, and more value-based. As a result, organizations need board members who are not only mission-focused but also have business acumen. I think they have to be mission-focused no matter the capacity.
This leads to two questions—what the key attributes are needed in non-profit board members of health and human service organizations and what approach should chief executive officers take when recruiting board members? And why is the assumption that it is the CEO's who should recruit? It's not their board.
What key attributes are needed? The short answer is any attributes that will keep the board and the organization “future ready.” Boards must be structured to guide their organizations to success, and that structure will probably include a very diverse group of skillsets. Central to those skillsets will be both financial and business acumen, as well as a focus on mission, community, and programming.
“Organizations who is "organization"? need to be planful with their Board and they must establish what types of individuals are needed on that board,” said OPEN MINDS Senior Associate, Paul Duck. “For example, backgrounds in finance, legal, lending, and compliance are critical. The individuals ideally will have a connection to the mission of the organization and the work helping individuals, families, and the community.” ?Ideally?
“Many boards REALLY? have Articles of Incorporation requiring certain professions—such as bankers, social workers, lawyers, or doctors—be represented on the board,” said OPEN MINDS Senior Associate, Ray Wolfe. “More importantly, I think are the personality traits needed. I think there are three that stand out. The first is passion and engagement in the mission. YES Board members must be driven by their own sense of meaning and importance of your work and be willing to contribute their time and energy. The second is creativity and willingness to experiment. The speed of change will require leadership that isn’t committed to traditional views and are willing to adapt. They must be focused on what it will take to serve the population not the preservation of the traditional ways. And the third is being a conciliator and a team player. Divided boards are useless and worse than providing no direction at all. The stress of change makes board unity critical.” I generally like this list.
How to recruit board members? Step one is for the chief executive officer (CEO) and the board chair to clearly define the future strategic direction of the organization, and overlay that with the performance expectations needed to succeed. Then the board can weight the expertise it has with the expertise it needs, along with proper level of guidance and oversight to help steer the organization to success. This is the board's task not the CEO's!!! and certainly not the CEO and Chair alone.
“The chief executive officer, as well as the board chair, must look throughout the community for individuals that have a desire to serve,” said Mr. Duck. “Many organizations fail to recruit an individual (or two) that understand the health care dynamics and the ever-changing nature to the market. With the fast rate of change, these individuals with health care experience can ratify the thoughts and strategies of the chief executive officer and position the board to act more swiftly as needs arise. Organizations should also look for talented individuals that are not in the local market and have a national perspective. These types of board members can contribute at a level that often is missed by being too myopic on change that has happened elsewhere and that is likely to impact the local organization.”
“I don’t think the role of recruiting should rest with the chief executive officer,” said Mr. Wolfe. YES even if at all! “Even with best of intentions, a CEO will likely recruit members who share their views and do not provide the self-criticism necessary. A membership committee of the board should be continuously recruiting, not just when a vacancy occurs. They should have guidelines on talents and consensus on personal attributes. Solid transitions and long-term evolution are best guaranteed by this.”