BOARD EVALUATION

Bill Taylor, UW Area Community Development Educator

References
The Handbook of Nonprofit Governance by BoardSource, published by Jossey-Bass, 2010 The Board Chair Handbook, Second Edition by Mindy R. Wertheimer, published by BoardSource, 2008 The Nonprofit Boards Role in Mission, Planning and Evaluation, Second Edition by Kay Sprinkel Grace, MA; Amy McClellan, MNO; John A. Yankey, Ph.D., 2009 The Board Building Cycle: Nine Steps to Finding, Recruiting, and Engaging Nonprofit Board Members, Second Edition by Berit M. Lakey, published by BoardSource, 2007

References (cont.)
Evaluating Board Performance by Bob Cropp, Director, University of Wisconsin Center for Cooperatives, January 1966 at http://www.uwcc.wisc.edu/issues/Governance/board.ht ml Board Performance Evaluation; Private Sector Opinion, Issue 9 by the International Finance Corporation at http://www.gcgf.org Corporate Governance: A Primer on Board Member Evaluation by Bill Capps and Rob Steinberg of Jeffer, Mangels, Butler & Mitchell LP at http://about.bloomberglaw.com/practitionercontributions/corporate-governance-a-primer-onboard-member-evaluation/

Exceptional boards embrace the qualities of a continuous learning organization, evaluating their own performance and assessing the value they add to the organization.
The Source: Twelve Principles of Governance That Power Exceptional Boards

EXCEPTIONAL BOARDS
Results-oriented Measure overall efficiency, effectiveness, impact, outcomes Cant afford complacency keep discovering ways to increase their value

EVALUATION
Figuring out somethings worth by looking at it carefully. Assessing the effectiveness and performance of the organization, its programs and its services

POTENTIAL
Identify issues pushed aside during normal business Identify strengths & weaknesses affecting optimal performance Keep the board focused, on track Allow board chair, members, & chief exec. to assess growth & progress in their roles

POTENTIAL (cont.)
Reinvigorate individual board members to take responsibility as part of the team Reinforce that the board takes its work seriously & models good governance

WHEN
Varies with organization Suggested:
Brief evaluation annually Extensive every 2-4 years

WHO
Governance committee Ad hoc committee Outside consultant Board chair and the membership in partnership

LEVELS
Organizational extent to which the organization has met its stated goals & objectives & how well it performed in the process Programmatic efficiency and outcomes of various or individual programs Board how well the board as a whole is functioning and understanding its role

LEVELS (cont.)
Individual Board Member how well each member is fulfilling his/her job description Board Chair is the chair a good leader and facilitator? Chief Executive how well is the chief executive fulfilling his/her job description and assisting the organization to their annual goals?

LEVELS (cont.)
Levels can be coordinated, mixed, or only certain ones performed, according to needs and structure of the organization

ORGANIZATIONAL EVALUATION
One method dashboard reporting
Attached to meeting agenda 1-2 pages graphs, charts, tables, columns, limited text
Showing progress toward goals & objectives

Indicators to monitor:
Finances Programs Quality control Human resources

ORGANIZATIONAL EVALUATION (cont.)

Benefits of dashboard reports:
Supports planning Identifies performance drivers Prioritizes information Identifies problems early Increases efficiency

*ORGANIZATIONAL EVALUATION EXERCISE 15 minutes

PROGRAM EVALUATION
Provides accountability to funders Takes subjectivity out of justifying the organizations existence 2 components
Outcomes measurement
How a program is working its results

Performance measurement
The inputs & outputs of a program Quality & effectiveness of the program implementation

PROGRAM EVALUATION (cont.)

Based on qualitative & quantitative data Methods
Surveys, interviews, focus groups, pre- & post-tests, observations, assessments of products from program participation

BOARD SELF-ASSESSMENT
How well is the board meeting its responsibilities?
Examine:
Composition Identification & recruiting of new members Relationship w/ constituents/stakeholders Relationship w/ chief executive Does committee structure work? Are meetings well run?

BOARD SELF-ASSESSMENT (cont.)

Questions:
Is board clear about its roles & responsibilities? Members familiar and in support of mission? Will mission be appropriate for organization in 2-4 years? Has board engaged in setting a strategic direction? Is there a vision of the strategic evolvement of the organization over the next 3-5 years?

BOARD SELF-ASSESSMENT (cont.)

Questions (cont.)
Is board knowledgeable about the programs? Is there effective process for tracking program performance? Does board understand the finances & resource strategy? Do all members participate in any fundraising? Does budget reflect priorities of strategic or annual plan? Are financial controls in place? Are there established investment & risk management policies?

BOARD SELF-ASSESSMENT (cont.)

Benefits:
Moving from micromanaging organizations work to focus on governance More engaged & higher-performing board Developing team-building skills & better problem-solving structure Showing stakeholders board members take responsibility seriously Improved board-staff relations

BOARD SELF-ASSESSMENT (cont.)

Benefits (cont.):
Clarification of division of labor Identification of board structures needing improvement Development of an action plan

BOARD SELF-ASSESSMENT (cont.)

When:
Every 2-3 years Exploring roles & responsibilities Identifying gaps in performance Discovering problems Developing plans for the future

BOARD SELF-ASSESSMENT (cont.)

When (cont.):
Critical points:
In early stages of the organizations life, especially when hiring the 1st staff There is confusion about which responsibilities belong to the board and which to the staff During changes of leadership on the board or of chief executive When doing strategic planning

BOARD SELF-ASSESSMENT (cont.)

Techniques:
Mini or complete assessment
Easy to complete surveys Anonymous responses to encourage candid comments Compiled in report to board Sample from The Handbook of Nonprofit Governance Culminate w/ extended board session or retreat to discuss & identify action steps

Regular board training

BOARD SELF-ASSESSMENT (cont.)

Techniques (cont.):
External Audit
Engage expert in governance Review articles of incorporation or establishing resolution, bylaws, observe board & committee meetings; interview officers, board members, former board members, & chief executive Written/oral report to board and chief executive BoardSource provides online and custom evaluations
www.boardsource.org

BOARD SELF-ASSESSMENT (cont.)

Techniques (cont.):
Evaluating board meetings
10-15 minute item on each agenda for discussion
Ideas for Improving the Board

Feedback form or round of comments at end of each meeting

2 questions: The thing I most liked about this meeting was One thing that could have improved this meeting was

BOARD SELF-ASSESSMENT (cont.)

Techniques (cont.):
Evaluating board meetings (cont.)
Items to address:
Dealt w/ issues of substance & strategic importance? Run efficiently? Used board members time wisely? Well organized? Background materials available in advance? Begin & end on time? Everyones voice heard or did a few dominate? Issues were discussed & debated? Was something achieved? *Board Meeting Evaluation Exercise
2 minutes

BOARD SELF-ASSESSMENT (cont.)

Outcomes of a good board assessment:
Measure progress Identify areas needing improvement Establish goals for the future Remind members of their responsibilities Reshape operations Build trust, facilitate communication Identify strategic planning initiatives

BOARD SELF-ASSESSMENT (cont.)

Outcomes of a good board assessment (cont.):
Improvements in monitoring program effectiveness Enhanced board meetings & more effective use of committees Improvements in process of reviewing chief executives performance Strategies for more intentional board recruitment Establishment of a governance committee & and a more thoughtful nomination process
*Full Board Evaluation Exercise 8 minutes

BOARD MEMBER EVALUATION

Two methods
Self-assessment
Based on the board member job description or the individual section of a board assessment instrument Sample from The Handbook of Nonprofit Governance

BOARD MEMBER EVALUATION (cont.)

Two methods (cont.)
Peer evaluation
A brief anonymous survey each board member rates others on items such as:
Attendance Preparation Follow-through on assignments Quality of participation in discussion Interactions w/ other board members Interactions w/ staff

Results tallied & shared privately w/ each board member * Board Member Self-Evaluation Exercise 15 minutes

BOARD CHAIR EVALUATION

Benefits:
Clearer view of the position & its requirements Clarifies the work of the chair & where improvement is desired Helps prevent informal mumbling & private discussions about the chair

BOARD CHAIR EVALUATION (cont.)

Focus:
Facilitation skills Relationships & interactions w/ board members Use of board work structures Use of governance practices

BOARD CHAIR EVALUATION (cont.)

Handled by fellow board members (never the chief executive) Anonymous survey Communicated directly to chair in private discussion

CHIEF EXECUTIVE EVALUATION

Job description
Must be clear, unambiguous Basis for evaluation and measurement

Expectations
Annual expectations should be listed to identify priorities and projected accomplishments

CHIEF EXECUTIVE EVALUATION (cont.)

When
End of fiscal year

What to evaluate
Success in meeting organizations overall goals Strategic alignment w/ boards directives Accomplishment of management objectives Programmatic & fundraising achievements Fiscal management Relationship w/ board, staff, community

CHIEF EXECUTIVE EVALUATION (cont.)

Process
Organized by board chair Should fit the culture of the organization Should enhance working relationship between board & chief executive Determine which instruments to use, who should be involved, how results will be communicated 2 components
Self-evaluation Board member questionnaire
Comments compiled, tabulated

CHIEF EXECUTIVE EVALUATION (cont.)

Written report
Shared privately with chief executive
Placed in personnel file

Provided to entire board