The ideal board governance is a hard concept to achieve. But it is a goal boards should strive for – and one they can reach if they recognize what good governance is, if they are well-constructed following a meticulous blueprint (what Nadler calls “board building”) and exhibit appropriate behaviors.
In order to do this, boards must be well-structured, vetted and focused on the future. They should be able to combine the needs of the organization and the needs of its stakeholders and shareholders. They should be able to deal with the new regulatory pressures as they occur.
The success of a non-profit is dependent on its board’s ability to address these challenges, and to ensure that they are positioned to be sustainable in the future. This could mean monitoring the quality of an organization’s programs, or keeping it on track to be accredited, a strong board can assist its members in fulfilling their responsibilities as trustees and serve the community.
The creation of a board agenda and schedule is a crucial structural element. It should be simple for directors to decide which things require their attention and the ones that are delegated. It should also define the time when the board should be informed or consulted about issues that don’t require full board vote.
The board must also be able to identify their own shortcomings and areas of improvement. A review every year is helpful, as it allows the board to assess its performance against prevent and mitigate board conflicts that of its peers.