High Performance Boards

1. High Performance Boards Building and Retaining Terrific Boards AFP Congress Darrell Gregersen, CEO, National Arts Centre Foundation November 15, 2006

2. High Performance Boards Session Outline • Defining High Performance Boards • Roles That Handcuff Boards a) The Professionals b) The Monitors c) The Advisors • Change Model-Based into Mission-Based • Roles That Handcuff Directors • Harnessing the Power of Your Directors a) Radical Recruitment Strategies b) NAC Board Recruitment Document c) What Work Works? d) High Impact Actions e) Respect For the Directors’ Environment • What Boards Want From Staff • Learnings • Advice from Leading Board Members

3. Defining High Performance Boards Key Questions • What brings you to this session? • What outcomes are you hoping to achieve from this session? Visualizing Success • What is a High Performance Board? • What words describe your current Board? • What words describe your ideal Board? • How will you know when you have succeeded? Describe what will be different.

4. Roles That Handcuff Boards1.The Professionals Focus is on Operations Approach: Build a grid that outlines the various skills required, and the positions available. Fill the gaps. • Legal: corporate structure; charitable requirements; trust law; estate planning • Financial: accounting; investing; insurance; tax strategies • Communications: media relations; French; writing, editing and proofing; • Advertising; marketing. High Performance Boards

5. Roles That Handcuff Boards2.The Monitors Focus is on Monitoring A. Effective Use of Resources - Human resources effectively deployed: board/staff/leadership - Profitability and cost containment - Defining outcomes criteria: setting, reporting and monitoring B. Internal and external Reporting - Proper accounting - Proper deployment of contributions and contributed resources - Audited Financial Statements - Regular financial oversight and reporting High Performance Boards

6. C. Policy and Regulation Setting external policy / internal guidelines Setting goals and expectations Monitoring results / compliance D. Reputation Management Integrity and public trust Public image Roles That Handcuff Boards2.The Monitors – con’t Focus is on Monitoring High Performance Boards

7. Roles That Handcuff Boards3.The Advisors Focus is on Guiding Objectives: Approving, monitoring and acting on vision, mission and strategy Values: Approving, monitoring and exemplifying the organization’s ethical values Defining and approving criteria for successful outcomes Execution: Approving, monitoring and acting on the plan Hiring, evaluating CEO Monitoring management control Evaluating senior management Overseeing reputation/external communications Assessing Board effectiveness High Performance Boards

8. Change Model-Based Into Mission-Based Focus is on Impact 1. Help Identify and Exploit Opportunities • Help Maintain Resilience - Ability to respond to community needs - Ability to respond to changing landscape - Ability to make decisions without definitive information 3. Guide Management by Sharing Expertise 4. Act at the Request of Management High Performance Boards

9. Roles That Handcuff Individual Directors 1.Fear of the Fear of Fundraising - Does it matter if your Directors won’t fundraise? 2.Anything for Their Name - Anything wrong with this picture? 3.Time Pressures: Yours and Theirs - Do you have time for all these people? - Do they have time for you? High Performance Boards

10. Harnessing the Power of Your Directors1.Radical Recruitment Solutions • Focus on Giving versus Focus on Fundraising • Bypassing the Recruitment Committee • Cold Calling versus Tried and True • Tossing Out Attendance Rules • Highly Strategic Accountability High Performance Boards

11. Harnessing the Power of Your Directors2. What Work Works? Work that Excites Directors: • Crucial, do-or-die issues central to success • Work that is driven by a focus on results linked to deadlines • The process and the paper are never cause for discussion • Knowing what the CEO sees as the critical issues – and agreeing on what they, as Directors, can bring to the table to help solve the issues

12. Example High Performance Boards

13. Harnessing the Power of Your Directors3. High Impact Actions • Who do you need to know, and can the Directors help? - Prospect ID - Introductions - Solicitation • What do you need to know and can they help? - Expertise - Emerging Trends - Research • Addressing Critical Issues Flexible committees based on issues to be addressed rather than functional standard committees 4. Adjust Your Action Requests to Their Environment High Performance Boards

14. What Boards Want From Staff Clarity! • Of Purpose: Their role in the overall mission • Expected Outcomes: Be clear on the results you are seeking • Expect Results from Board Meetings: Address key issues and avoid the “Kiss of Death” (reports on your own work) • Say What You Want: It’s easier for Directors to fulfill your expectations if you say what they are • Put Them in a Position to Do What You Ask Easily: Be aware of their circumstances, provide clear direction, and support them in a highly professional manner • Reward Results: Tell the others what/who’s got great results High Performance Boards

15. Learnings Keys • Board Giving: Don’t Leave Home Without It! • You are Responsible for Their Effectiveness • Compelling Case Matters More than Peer Pressure Tactics That Work • Avoid the Kiss of Death: Reporting at Meetings • Definable Short-term Projects • Use Them or Lose Them Problem Solving • You are Responsible to the Board as a Whole, Not to the Individuals • Conflicting Opinions and Conflicting Objectives Can Be Helpful High Performance Boards

16. Advice from Leading Board Members • Tell Me What You Want From Me • Target the Younger Generation • Pair New Directors with Board Mentors • Understand My Limitations, But Use Me Ideas From Board Members Across Canada High Performance Boards