governance essentials for success

MCREL INTERNATIONALGOVERNANCE ESSENTIALS FOR

SUCCESSJUNE 16, 2016

Emily Davis, MNM

President, Emily Davis Consulting

Senior Governance Consultant, BoardSource

MOTIVATIONAL VALUES

“What motivates me

to serve on the

McREL Board of

Directors?”

60 seconds or less

Name

Motivational Value

Challenge or Outcome

HI!

A LITTLE ABOUT YOU…

AGREEMENTS & PARKING LOT

AGENDA

Setting the Stage 9 – 9:30

Governance Essentials 9:30 – 10:45

Break 10:45 – 11:00

Shared Leadership 11:00 – 11:45

Lunch 11:45 – 12:30

Ensuring Human Resources 12:30 – 1:30

Closing 1:30 – 2:00

Why did you join?

Whathesitations

did you have?

Why would you leave?

Why do you stay?

BASIC BOARD RESPONSIBILITIES

Determine mission & purpose

Select the chief executive

Support & evaluate the CEO

Ensure effective planning

Monitor & strengthen programs & services

Ensure adequate financial resources

Protect assets & provide financial oversight

Build a competent board

Ensure legal & ethical integrity

Enhance the organizations good public standing

*BoardSource

OUTSTANDING (4)

GOOD (3)

FAIR (2)

POOR (1)

ACTIVITY

How does the board as

a whole perform the 10

responsibilities listed?

Rate the board as a

whole on a

scale from 1 – 4.

*BoardSource*BoardSource

NPO VS CORPORATE BOARD

NONPROFIT CORPORATE

Board Legally required Required only for publicly-traded companies

Compensation Volunteer Paid

Voting Exec. Dir. ex-officio CEO voting member

Strategic Planning Shared: Exec. Dir. & Board CEO-led

Clients/Constituents Stakeholders Shareholders

Human Resources Staff, Volunteers, Donors Employees, Clients

Committee Requirements

No federal-level requirement for an audit committee; some state-level requirements

Audit committee required by Sarbanes-Oxley Act

Cash Frequent restrictions on use Generally, limited restricted use

Funding

IndividualsCorporationsFoundationsGovernmentEventsSocial enterpriseService clubs

Service or Product

Bottom Line Impact, People, Financial Financial

ROLES & RESPONSIBILITIES

Set Organizational Direction

Provide Oversight Ensure Necessary Resources

*BoardSource


*BoardSource

STRATEGIC PLANNING

Strategic Priorities

Goals

Objectives

Tactics

• Process, not a document

• Three-year road map

• Input from board, staff, &

stakeholders

• Narrative, resources, &

implementation tools

ARE WE READY?

ORG STABILITY EXISTING PLAN PLAN STRATEGIES TIMING

FUNDING BOARD & STAFF COMMITMENT FACILITATION

*BoardSource

WHAT IS THE PROCESS?

DISCOVERY

Document reviewOrganizational assessmentStakeholder inputSituational analysis

RETREAT

Board educationPriorities discussionSWOTMisc. activities

DOCUMENTATION

Plan narrativeDrafts revisedImplementation dashboardAppendices

IMPLEMENTATION

Plan highlightsDashboardChampionsReview quarterly, reportsUpdate annuallyTechnical assistance

WHO CONDUCTS PLANNING? Objective perspectiveTime to commit and compile infoServe as “bad guy”ExpertKeeps focus on prioritiesCosts $Board/staff resistance

Less moneyUnderstand org bestCan get bogged down in detailsMore subjectiveTime accountability

Self-Facilitated

Consultant


Set Organizational Direction Provide Oversight

*BoardSource

GATHERINFORMATION

BOARD ASSESSMENT

EXECUTIVE DIRECTOR

COMMITTEES

MEETINGS

ASK THE RIGHT QUESTIONS

What is our capacity? What does success look like? What matters the most to us?

How does this serve our mission? How does it fit our strategic goals?How might this be a challenge for us?

Why is this important right now? Why should we consider other options? Why is this relevant to our stakeholders?

*BoardSource



Provide Oversight Ensure Necessary Resources

*BoardSource

ENSURE HUMAN & FINANCIAL RESOURCES

CEOBoard Members

Supporters

PoliciesPlanning

Board Giving

ProspectingCultivation

Stewardship


100% BOARD GIVING

Board Giving Commitment

Open Ended

Flexible

Specific0%

10%20%30%40%50%60%70%80% 68% 74%

46%

Board Participation in Giving

*BoardSource

FUNDRAISING POLICIES

•Gift acceptance policy

• Personal giving policy

• Ethics statement

• Letter of commitment

FUND DEVELOPMENT

Diversity is keyIndividuals

Membership

Special events

Foundation grants

Government grants

Corporate sponsorship

Earned income

Service clubs

FUNDRAISING BY THE NUMBERS*

*Giving USA 2014

FUNDRAISING PROCESS

PROSPECTING Identification Preparation

CULTIVATION Build the Relationship

Engage the Donor Ask for the Gift

STEWARDSHIP Recognition Reporting Communicating Engagement

FUNDRAISING ROLES

EXECUTIVEDIRECTOR

Chief Fundraiser

Media Spokesperson

Fundraising Planning

Board & Staff Liaison

DEVELOPMENT STAFF

Fundraising Strategy

Moves Management

Identify/Communicate Needs

BOARD OF DIRECTORS

Connect to Funding

Make Gifts

Policies

DEVELOPMENT COMMITTEE

Board & Staff Liaison

Staff support on specific

efforts/campaigns

*BoardSource

QUICK BREAK!

HATS WE WEAR

Legal AmbassadorVolunteerConnections

Resources

Communications

Duty of Care

Duty of Loyalty

Duty of Obedience

Board works for staff

Avoid micromanagement


WHAT DOES IT MEAN?

BOARD & STAFF

BOARD & ED ENGAGEMENT*

OBSERVATION LEADERSHIP

ATTENDANCE MICROMANAGEMENT

ED

ENGAGEMENT

BOARD ENGAGEMENT


WHO LEADS?

BOARD

[With EDsupport]

EXEC DIR

[WithBoardadvice]

BOTH

[50/50Split]

*BoardSource

SHARED LEADERSHIP

BOARD LEADS

SHARED LEADERSHIP

ED LEADS

Strategic Plan

FundingStrategies

EvaluationBoard

Meeting Prep

Policy Questions

Staff Hiring & Oversight

Develops, Implements, &

Oversees Programs

Chief Fundraiser

Operations Reporting

Create & Review Policy

ED Hiring & Oversight

Connections to Funding

Financial Due

Diligence

Board Recruitment & Retention

*BoardSource

OPERATIONS INALTITUDE

Do you need to

change your

altitude?

QUESTIONS?

LUNCH TIME!

Great board member retention begins with a great recruitment

process!

RECRUITMENT

Identify

Cultivate

Recruit

Orient

Involve

Educate

Evaluate

Rotate

CELEBRATE!


WHO LEADS?

REVIEW BOARD JOB DESCRIPTIONS

MEMBERS AT LARGE

PRESIDENT/CHAIR

VICE PRESIDENT/CHAIR

SECRETARY

TREASURER

STEP BY STEP

Evaluation Expectations Application Outreach

WHERE DO YOU FIND CANDIDATES?

STEP BY STEP

Evaluation Expectations Application Outreach

Vetting Selection Debrief

CANDIDATE EXPERIENCE

RETENTION & ENGAGEMENT

ONBOARDING

ORIENTATION BOARD BUDDIES

Hello. My name is…

WHAT MAKES ‘EM TICK

•Always YES•Wants to help everyone & everything

•Caution!

OVER-COMMITTED

•Needs lots to stay engaged

•Don’t let them sit around

BUSY, BUSY, BUSY

•Verbal & print

•Use titles & acknowledgment

LIKES RECOGNITION

•Stays focused & on track•Great for events•May get discouraged by others’ lack of support

ORGANIZER

•Lots of ideas for improvement

•Pair with an Organizer to keep things moving

CREATIVE

*Abigail Harmon

INVEST IN LEARNING

TRAINING & EDUCATION

NETWORKS & ASSOCIATIONS

PRACTICE LEADERSHIP

BOARD ENGAGEMENT PLANS

• What do you want to include?

• How will you create them?

• How do you hold yourselves

accountable?

• What challenges lie ahead?

• What does success look like?

• Board participation

• Committee participation

• Event participation

• Individual giving

• Fundraising activities

• Ambassadorship

• Resources have and need

MEETINGS:None of us is as dumb as all of us

BOARD MEETING TIPS

Governance

Board reports

Strategic priorities/goals

Mission moments

Ask questions

Avoid micromanagement

Facilitation

Consent agendas

Shared responsibilities

Giving accountability

Follow up

Participants

Guests, Staff

ED

Board members

Honor time

MEETING PREPARATION

EXAMPLE: FINANCE COMMITTEE

Board asks strategic questions

Monthly, quarterly ED/Finance Committee reports on budget

Board participates in fundraising efforts to meet financial goals

Board reviews, asks strategic questions, amends, approves budget

ED/Finance Committee researches & drafts budget for approval

Board requests annual budget

IT’S NOT ABOUT YOU

How does this serve the mission?Does it fit our strategic goals?

What’s our capacity?What does success look like?

Keep it high level!

OFF BOARDING

Succession planning

Honorary/ Emeritus/

Advisory Committee

Board buddy

Recognition

PICTURE YOUR LEGACY

Select a card that answers the question:

“What is the legacy you want to leave on the

McREL board?”

TAKE AWAY & COMMITMENT

Emily Davis, MNMPresident, Emily Davis Consulting

Senior Governance Consultant, BoardSource(720) 515-0581

[email protected]

governance essentials for success

Government & Nonprofit