The Rural Collaborative Presents Effective Board Composition

1. The Rural Collaborative PresentsEffective BoardComposition “How to sit on a board without getting splinters” Utah Housing Coalition September 22, 2003

2. Discussion Overview • Why so much interest? • Is there a “secret” to effective boards? Does one size fit all? • Practical tools for “Effective Board Composition.” • Competing Values Model • How can these tools help my organization?

3. Information Overload • Abundance of information • Is the information being used? • Is anything working? Are Boards Effective? • What does being effective mean? • How would you rate your board? • Does one size fit all?

4. Practical Tools • Skills Matrix • Job Descriptions • Board Member Agreements • Board Member Evaluative Survey • Trustee Manuals • Competing Values Model

5. Effective Board Composition • What is the number one reason individuals join boards? • Individuals usually join boards because they believe in the values the organization embodies • Joining a board takes time and energy= commitment

6. Board Composition Board Composition: Representation of community, constituents, a variety of backgrounds Skills Matrix • Identifies areas of strengths and needs of the board • Board may conduct exercise on what strengths and needs exist

7. Board Recruitment Tools used for recruiting include: Board Member Job Descriptions Board Member Agreements Board Interviews

8. Board Recruitment Trustee Manual: clearly states expectations and responsibilities • Articles of Incorporation • Bylaws • Historical Overview • Mission Statement • Board Member Job Description / Agreement • Minutes • Committee listings, contact information • Annual Report

9. Effective Board Composition • Board Effectiveness: Clear Expectations= Less Frustration Reduces Deadwood • Ways to avoid deadwood: Limit Terms Specify Attendance Requirements Pocket Book Test Trustee Manual

10. Effective Board Composition • Common Obstacles That Lead To Board Ineffectiveness Time on the trivia Short term bias Reactive stance Reviewing, rehashing, redoing Diffuse authority

11. Board Sustainability Board Evaluation: A constructive exercise that should take place annually • Retreats • Surveys • Informal Discussion • Peer Evaluation

12. Competing Values Framework Model Robert E. Quinn F L E X I B I L I T Y HUMAN RELATIONS MODEL OPEN SYSTEMS MODEL Means: Management of Individuals Ends: Smooth Functioning Group Means: Innovation & Adaptation Ends: External legitimacy Resource acquisition ORG. FOCUS INTERNAL ORG. FOCUS EXTERNAL C O NTR O L INTERNAL PROCESS MODEL Means: Documentation & Information Ends: Stability & Control Means: Planning & Goal Setting Ends: Productivity & Accomplishment RATIONAL GOAL MODEL Means: Management of Individuals Ends: Smooth Functioning Group

13. OPEN SYSTEMS MODEL Organization’s focus is EXTERNAL Organization’s structure is FLEXIBLE • Staying abreast of changes in external environment • Fully adaptable to changes in external environment • Means: Innovation; Ends: External Legitimacy The Emphasis: • Built on the basic assumption that continuous research, adaptation and innovation lead to the acquisition of external legitimacy and essential resources • Primary consideration for the board

14. OPEN SYSTEMS MODEL How does a board function in this realm? Innovator and Boundary Spanner • Strong role in developing vision • Intentionally works to enhance the fit between the organization and its external environment • Board is supportive, encouraging, tolerant of risk. It may involve itself in identifying new directions, articulate unmet needs, respond to new opportunities and challenges • Board serves as a liaison to important constituencies • Ensures the org. has adequate resources to meet purposes • Enhances organization’s public image • Board develops relationships with external constituencies • Board engages with staff, common committees and stakeholders

15. RATIONAL GOAL MODEL Organization’s focus INTERNAL Organization’s structure is CONTROL • Focuses on organizational accomplishment Means: goal attainment and planning; Ends: productivity and accomplishment The Emphasis: • Built on the basic assumption that clarity of direction will lead to productive outcomes • Primary consideration of the board

16. RATIONAL GOAL MODEL How does a board function in this realm? Director and Producer • Board takes a lead in ensuring that expectations are clear and lead to mission • Board helps to develop long term strategic plans emphasizing goals and objectives and defines roles and tasks • Board expects clear goal setting and requires reports on progress • Accepts responsibility for the overall focus and viability of organization

17. INTERNAL PROCESS MODEL Organization’s focus is INTERNAL Organization’s structure is CONTROL • Emphasizes standards of practice • Implicit assumption that without board oversight managers might behave in a manner of self- interest Means: documentation and information management Ends: Stability and Control The Emphasis: • Built on basic assumption that routine and standardization lead to stability • Primary consideration of the board

18. INTERNAL PROCESS MODEL How does a board function in this realm? Monitor and Coordinator • Works to assure organizational action is aligned with budgetary restrictions and mission • Exercises fiduciary responsibility to provide oversight to budgeting, programming and planning. • Oversees structure and flow of system- information and work is coordinated properly within system

19. HUMAN RELATIONS MODEL Organization’s focus is INTERNAL Organization’s structure is FLEXIBLE • Integration of individual and group into a whole, well-focused organization • High standard of dialogue Means: management of individuals; Ends: Smooth Functioning Group The Emphasis: • Built on basic assumption that involvement results in commitment and that commitment results in excellence • Primary consideration of the board

20. HUMAN RELATIONS MODEL How does a board function in this realm? Mentor and Facilitator • Board has an obligation to orient new members and encourage training, skill development for board and staff • Board sees its responsibility to build capacity by providing direction, guidance and support to ED • Emphasizes group process, fosters openness, cohesiveness and a shared sense of purpose – teamwork • Embrace decision making processes that encourage group norms that tolerate conflict, promote shared knowledge, value diverse perspectives- toward group cohesion

21. Competing Values Framework • Group Breakout Where does your organization fit? What are the implications? Is your board balanced?

22. What can I take back to my Organization? Questions or Comments: Carol Cohen Rural Collaborative (435) 940-1687 ccohen@sisna.com

23. Supporting Sources Judith L. Miller and Sue R. Faerman, Making Good Board Choices: A Competing Values Approach, The Nonprofit Quarterly Spring 2003 Competing Values Model: Robert E. Quinn, Beyond Rational Management