Governance – Boards can succeed with Effective Leadership.

BoardSource published a monograph called The Source that outlined twelve principles of governance that power exceptional boards. These twelve principles were identified by a blue ribbon panel of governance experts concerned with enabling boards of directors to govern more effectively. Effective governance, according to the panel, requires boards to exercise fiduciary responsibility by balancing oversight and guiding force functions that enable the organization to achieve its mission. With more than 1,000,000 501(c)3 public charitable nonprofit organizations in the United States, there is an increasing public concern regarding the board’s ability to ensure effective governance. If boards, however,  follow the twelve principles advocated by the blue ribbon panel, it is more likely the board will be effective, and as research has demonstrated, the organization will, as result, be effective as well.

Boards can succeed with effective leadership. While the governance literature seems mixed on who should provide this leadership, it has identified two major players who must work together: the board chair and the chief executive. The most effective working relationship is described as a governance partnership.

Governance Partnership

The governance partnership significantly impacts the success of the nonprofit organization. Lloyd found this statement to be true based on his research at the University of St. Thomas in Minneapolis, MN. The findings of that research are documented in his doctoral dissertation entitled: The Governance Partnership in Nonprofit Organizations: The Board Chair and the Chief Executive

The development of an effective Governance Partnership is based on four factors:

  1. Role Clarity:  The roles are clearly identified: the board chair is the leader of the board and the chief executive is the leader of the organization.
  2. Mutuality: There is a shared commitment to navigate the grey areas, those areas of responsibility that are not clearly assigned to one leader or the other.
  3. Trust: There is s shared commitment that both leaders will work together to further the mission and ensure the effectiveness of the organization.
  4. Communication: The board chair and the chief executive agree to pattern of communication throughout their partnership as governance leaders.

Lloyd’s Experience

Lloyd has 40 years of nonprofit governance experience in organizations located in Wisconsin, Iowa and Michigan. His first board experience was as an Executive Director in a small Wisconsin nonprofit organization called Society’s Assets, Inc. Since then he has accumulated a wealth of experience working for boards, serving on boards, consulting with boards, and listening to colleagues about their board experiences. Lloyd has served on the boards of nonprofit human service and mental health organizations as well as several college boards of trustees. In many of these situations he also served as the chair of the board. These experiences have shaped his view of nonprofit governance and the importance of the governance partnership.

In his final year as President/CEO of ChildServe, the board was ranked #6 on the Des Moines Business Record’s 25 Most Influential Boards and CARF, a voluntary accreditation agency, recognized the ChildServe governance system as exceeding its voluntary standards. These successes can be attributed to a strong governance partnership, an outstanding board of directors and trustees, and an effective organization.

Advice, Consultation and Coaching

Lloyd is available to assist boards and organizations in their quest to successfully navigate the many challenges of governance, leadership, and governance partnership. He can share his expertise as an advisor, consultant, or as a governance and/or executive coach.

Areas of Expertise:

  1. Governance and Mission — The board as the steward and guardian of the organization’s mission. A key measure of an effective board is the success of the mission in the community.
  2. Governance and Partnership — successful governance occurs when there is a constructive relationship between the board chair, the board and the chief executive.  A key measure of an effective board is the strength of that governance partnership.
  3. Governance and Strategy — When boards use an effective well-defined strategic planning process, organizations tend to be more successful. A board-driven strategy is key to expanding the impact of the  mission as well as improving organizational performance.
  4. Governance and Leadership Development — When boards are thoughtful and intentional in their recruitment of new members, they are more likely to be effective as governing authorities. The board’s Governance Committee can serve as a vehicle to improve the strength and capacity of Boards as they change and improve their governance practices.
  5. Governance as Organizational System — Governance is system that includes the entire organization. The partners in the governance system include the board, leadership, management, and compliance. A key measure of system effectiveness is the shared commitment of partners to mission outcomes and organizational results.