Critical to the success of every not-for-profit is the relationship between the leader and the board.  Whether it is a school superintendent, ministry executive director, college president or other leadership position, the organization’s effectiveness and overall success will be impacted by the strength of the leader’s relationship to the board.  Here are three things to consider in developing a solid board/leader relationship for your organization.

Step #1 – Define Roles Carefully

It is imperative that the respective roles of leader and board are well-defined and carefully monitored.  When lines are crossed, problems ensue.  Here is a brief overview of common role definitions.

Not-for-profit boards have five basic responsibilities:

1) Set policy according to mission,

2) Develop long-term strategy,

3) Undertake self-governance,

4) Take fiduciary responsibility including raising and giving money, and

5) Hire and direct the ministry leader.

CEO’s have the overall responsibility of operating the organization according to set policy, fulfilling the organization’s long-term strategy, maintaining financial controls and fiscal integrity, and hiring and managing personnel.

Boards must not get involved with the management decisions of the ministry.  Ministry leaders must leave the work of governance and policy to the Board.  While there will be cooperation in all of these areas, final decisions and responsibilities must remain separate.

Step #2 – Establish Clear Evaluation Processes

Accountability is a key to institutional integrity and effectiveness.  There should be accountability at every level.  CEO’s should be responsible for the timely evaluations of all employees.  Likewise not-for-profit boards should have a self-evaluation process to ensure that all board members are serving to the best of their abilities. 

Most importantly, there must be a clear evaluation process between the board and the ministry leader.  At a minimum it should include a formal annual evaluation where a committee of the board meets with the CEO.  These evaluations should involve written responses by both the CEO and the board committee.  Areas of concerns should be documented and discussed with clear processes established for improved performance.  Likewise areas of exceptional work should be documented and rewards outlined.

Every ministry leader deserves to know clearly where he/she stands with his/her board.  This is a relationship that demands clarity, honesty and open communication.

Step #3 – Balance the “Boss vs. Co-Laborer” Tension

Not-for-profit organizations have a built-in tension by virtue of their very organizational structure.  As we have seen, CEO’s must see their boards as their boss, as they have the power to manage and fire the ministry leader.  This reality sets up a relational dynamic that cannot be denied.  No matter how close the leader becomes to the board, this dynamic is ever present.  For this reason, some CEOs will tend to approach board meetings with a ‘need to know’ attitude.  That is, they will paint the best possible picture of the state of the ministry for fear that bad news may prove personally too costly.  Many ministries are seriously impaired by a lack of honest reporting by the CEO and staff. 

Conversely, many boards and ministry leaders have developed a very close working relationship.  They see each other as co-laborers in their mission and the barriers of board and staff have all but been obliterated.  The problem comes when there needs to be accountability infused in the process.  By becoming too close, it often becomes impossible for the board to implement the necessary level of evaluation.  Many ministry leaders are poorly served by their boards when they are not properly evaluated and held accountable for their work.