mazimizing board effectiveness 2007

the Monthly Newsletter of the Arts Consulting Group

February 2007

Maximizing Board Effectiveness By: Kathryn R. Martin, Vice President and Katherine E. Akos, Senior Consultant

Great things can be accomplished when the Board of an arts or cultural organization is engaged, focused, and goal-oriented. Substantive discussions about enhancing or refining programs occur, the financial health of the organization is strengthened, and plans for the institution’s future are thoughtfully developed. In this issue of Arts Insights, we examine why, when, and how to best engage the board in order to catapult an institution forward in its organizational advancement efforts.

Cultivate and Create the Right Environment Developing a dynamic Board, like preparing a delicious meal, requires having a great recipe, using only the finest ingredients, and understanding the dietary needs and tastes of those for whom you’re cooking. For the best results, start by assembling strong board members, stir in strategies that engage and educate, add a strong committee structure, and season generously with effective communication and strong evaluation techniques.

All nonprofit organizations, particularly arts organizations, have unique missions, passions, and internal cultures. At any given time, many are navigating a pivotal period of artistic or executive transition, wanting to capitalize on a new opportunity, needing to overcome a significant challenge, or looking to continue building upon past successes. In all cases, it is the unique collection of individuals who volunteer to serve on your Board who will provide the most critical guidance and resources to achieve your organization’s goals.

Engage a Group of Visionary Leaders It is sometimes helpful to ask yourself a few basic questions about your Board and its current effectiveness. Do your board members attend board meetings regularly and actively? Do they productively participate in committees? Do they set governance and policy for the organization? Are there good working relationships between Board and the professional staff? Are board members regularly attending programs and events? Are they fulfilling their community ambassador roles while supporting the institution financially?

An organization can approach building positive answers to these questions in a variety of ways. Certainly, there are basic policies that can help. However, key priorities and clearly defined measures of success should be established up-front in order to arrive at solutions that are informed both by an understanding of individual board members - their interests and strengths - and an appreciation of the consensus and combined wisdom of the group as a whole. It is their in–depth understanding of the goals (and resources) of the organization that is key to answering the essential questions:”Where are we now?” “Where do we want go?” “What is our roadmap to get there?” and “Who needs to be on our team to make it happen?” An in-depth look at the importance of these questions is available in The Strategic Board, Mark Light’s helpful guide to effective governance (2001, John Wiley & Sons).

Copyright © 2007 Arts Consulting Group, Inc.

www.artsconsulting.com/artsinsights/ (888) 234-4236



ARTS INSIGHTS - FEBRUARY 2007 (2 of 4)

Develop a Strategic Plan and an Action Plan There are many reasons why strategic planning is essential for arts and cultural organizations, but for many organizations, the planning process fails in the implementation phase because it has no accompanying Action Plan. A guided process that incorporates a clear, step-by-step Action Plan has many benefits. Only a few are listed here.

The first is simply to ensure that the major players in your organization have a clear understanding of your organization’s purpose, by carefully reviewing and, if necessary, revising the mission statement. This helps identify (or form) guiding principles that govern your programs and initiatives, so that everyone is traveling in the same direction, with a shared sense of culture and values as the process unfolds. Developing core values and creating a shared vision will inspire passion in key stakeholders.

A second benefit of focused planning is to stimulate creative thought and provide clarity on understanding current conditions. If you don’t know where you are, it is difficult to identify and proactively manage where you’re going.

A third, and often overlooked, benefit is that a strong case statement is developed during the process of defining or refining your mission statement. This allows for concerted efforts in developing appropriate artistic, fundraising, education and marketing plans that emphasize your role in the community and why your audience and donors should support your efforts. A fourth benefit is the resulting framework that will enable you to assess organizational strengths and weaknesses, allowing you to capitalize on what you do best while recognizing areas where you may need additional resources or expertise.

Finally, a well-organized strategic planning and implementation process ensures that your goals and objectives are S.M.A.R.T. (Specific, Measurable, Attainable, Reviewable, and Time-Sensitive) and will assist your organization in focusing limited resources on priorities, helping it to weather the storms of a rapidly changing world.

Cultivate Leadership and Engagement through Strong Committees More questions arise as an organization looks forward to leadership cultivation and engagement. Does your current committee structure support your organization’s vision, short-term goals, and long-term objectives? Does committee work result in action and move the organization forward? Do members have a clear sense of why they are needed to participate and how they can help? In some cases, temporary committees may need to be created to address a particular short-term challenge or opportunity, but in general it is essential that the Board define clear objectives for each standing committee that are tied to the objectives established for the organization as a whole through the Strategic Planning and the Action Plan implementation process.

Board Development & Nominating: Strategic Cultivation Armed with the S.M.A.R.T. goals and objectives and your Action Plan, the Nominating Committee will be able to refer to the overall needs and priorities of the organization and know what skills and resources are needed from board members to achieve these goals. An organization can begin by reviewing the current make-up of its Board. What areas of experience and expertise, philanthropic capacity, community influence, representation of diversity, and other criteria you have established in your planning sessions are lacking? Once you determine your needs, it will be easier to identify candidates matching those specific areas.




Candidate cultivation should include a detailed discussion of the goals and expectations of board members and be conveyed to the full board during the nomination process. A written document that outlines expectations of board members is essential to formalize these discussions. Organizations often find it helpful for the Chair of the Development Committee to serve on the Nominating Committee to ensure that financial expectations of board members are thoroughly explained during the process and assist in identifying both current and potential donors who might be excellent Board prospects. Ideally, the Nominating Committee also reviews the participation of each board member annually. It is also important to do so prior to re-nominating members for an additional term.

Fundraising: Turning the “They” into “We” Often the Nominating Committee (or Board Development Committee) is able to identify a list of people who “should” be giving to the organization, but are not current supporters. It may be that board members do not feel comfortable in what they perceive as their fundraising role or the institution needs to perform more research to know the capacity of its patrons to financially support the organization. As part of the Development or Fundraising Committee, consider having subcommittees to focus on the areas of Major Gifts, Corporate Gifts, and Special Events, etc. so that committee members can focus their efforts in the areas to which they are most suited. Identify the role that staff will play to adequately support such committee work.

A few additional tips: First, identify Board members who can lead by example, and thus teach others through positive action. Then invite them to a cultivation lunch or a meeting with a funder to demonstrate effective relationship-building firsthand. Then create opportunities for these Board members to interact with other stakeholders by thanking donors, inviting prospects into the organization, or simply meeting and greeting patrons at events.

Communication: Keep Everyone Focused on Goal Achievement - Together! During the implementation phase of the Action Plan, having specific strategies for effective communication with your Board is essential. Achieving a balance between providing useful information and updates, while not overloading board members with too-frequent communications about operational details, will help to keep the Board informed, focused and engaged, allowing them to govern efficiently and effectively. Progress reports from Committee Chairs should tie directly to the Action Plan, with Board-action items and required decisions clearly highlighted. This encourages board members to “own” the challenges faced by the organization rather than merely listening to staff reports.

Board Evaluation: Doing “Good” by doing “Well” The Action Plan provides a mechanism for creating and monitoring Board and committee progress and performance at each meeting. It also allows for periodic updating and approval of new strategies. Once the Board clearly articulates its plan, members will be able to clearly see how they can contribute to its goals.

The end of each season or fiscal year is a good time to review the organization’s overall progress, achievements, and accomplishments as well as noting opportunities and challenges for the future. It is important to have the Board conduct a similar evaluation of its own work and participation. Some general areas that should be included in such a self-assessment include effectiveness in the following areas:




Organizational

I: Mission, Vision & Strategic Planning

II. Productions, Exhibitions & Performances (from both artistic and marketing perspectives)

III. Education & Community Engagement

IV. Facilities Oversight (where applicable)

Board

I: Membership Structure, Board Development, Resources & Cultivation

II: Governance

III: Financial Stewardship & Fundraising

IV: External Affairs and Community Ambassadorship

V: Board-Senior Management Partnership

VI: Board-Staff Relationship

VII: Board Operations

Undertaking this review annually will provide the Board with a comprehensive understanding of the organization, its mission and culture, and opportunities and challenges it faces. By developing a clearly articulated vision, a strategic plan paired with an action plan, and a clear understanding of the value your organization brings to those it serves, your board members will each be able to find a way to fulfill their roles as cultural ambassadors to the community.

Celebrate Your Successes! With a Strategic Plan and Action Plan implementation process in place, and a well-constructed Board that knows its own strengths and challenges, the Board and staff can accomplish many great things together. It is important to celebrate such organizational achievements and milestones. Find ways to positively reinforce the good work taking place by Board members and communicate the impact that the Board has made to the programs and community. Measuring success periodically throughout the year, as well making sure to update Strategic and Action Plans annually, will produce results that help to increase your institution’s impact and build upon its community legacy well into the future.

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mazimizing board effectiveness 2007

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