LESSON 32 – Loose Lips Sink the Boardroom Ship

Welcome to Lessons From the Nonprofit Boardroom Blog, a 40-week journey through the new book, Lessons From the Nonprofit Boardroom, by Dan Busby and John Pearson. Each Wednesday, we're featuring a guest writer’s favorite snippet from the week's topic. Rick Alvis is our guest blogger this week for the second of three lessons in "Part 10: Building a 24/7 Board Culture.”

LESSON 32 OF 40 - Loose Lips Sink the Boardroom Ship

What happens in the boardroom must stay in the boardroom.

THE BIG IDEA FROM THE BOOK: Here’s the wisdom from Lesson 32: As a board member, keep your lips sealed, regardless of the topic matter. Loose lips can destroy a ministry and its public reputation.

MY FAVORITE INSIGHTS from Lesson 32, pages 163-167: 
• It is so important for a board member to know that most everything at a board meeting should be treated confidentially. It should also be noted—ministries ought to consider having members sign a confidentiality statement even though confidentiality may be spelled out in the board policies manual. Signing a statement annually is a timely reminder that the information in board meetings is confidential.

• Follow the two strikes rule. Yes, the first time can be overlooked and considered an “Oops, I forgot!” moment. However, when a board member shares confidential information a second time, that person should be removed from the board. (Perhaps it is in that person’s DNA to leak information—and so boards must always address the issue.) 

MY COLOR COMMENTARY:
In this age where there is ample misinformation floating out in cyberspace, it is not necessary to add to the data flow. Once the information is out, there is no way to reel it in. There are matters that a board needs to process internally and boards do not need the pressure of outsiders to “help” the processing aspect. If a member of the board releases information, either good or bad, it can do irreparable harm to the organization. 

All too often comments are made because people want to look important or in the know—like they have the inside track. They overlook the fact that there are right ways to release information to the public and wrong ways. Whenever information is released, organizations today need to get the best possible impact from it that they can. Boards need to strategize the best way to take advantage of any kind of information for the good of the cause. Loose lips work just the opposite. 

THIS WEEK’S QUOTES & COMMENTARY BY RICK ALVIS:

Rick Alvis has served the homeless and addicted in Indiana for 40 years. Since 1990, he’s served as President/CEO of Wheeler Mission in Indianapolis. He began his career with the Evansville Rescue Mission where he worked for 13 years before coming to Wheeler Mission.  In his tenure in Indianapolis, he has directed a path of growth and outreach to the neediest citizens of the state, increasing the number of services offered and extending programs to men, women, and children. Under his leadership, three organizations have merged with Wheeler Mission in order to provide more effective care for Hoosiers in need of vital services. Setting Wheeler Mission on a solid financial path has allowed Wheeler Mission to expand programs and the number of staff by growing a balanced budget from around $650,000 in 1990 to over $13 million in 2017 and an increase in staff from 17 in 1990 to more than 150 today.

Rick has served the Association of Gospel Rescue Missions in several capacities, including Secretary/Treasurer, Vice President, and as President (board chair) from 2003–2009, the longest serving board chair in AGRM’s history. He currently serves on the ECFA board as secretary. In 2016, Governor Mike Pence, now Vice President of the United States, honored Rick with Indiana’s Sagamore of the Wabash award. Rick and his wife, Julie (who also works at the mission), have been married since 1974 and have three grown children, one grandson and three grand dogs (two are German Shepherds).

TO-DO TODAY: 

• Review your board policies. Do you have a confidentiality statement? If not, create one.
• Consider having board members annually sign the confidentiality statement. 

NEXT WEDNESDAY:
On July 4, 2018, watch for the commentary by Tom Addington on Lesson 33, "Good Is the Enemy of Great. When great board experiences end, they should be lamented."

Subscribe to this blog by submitting your email (just above the date/day). Visit the Lessons From the Nonprofit Boardroom webpage and order extra copies for your board members.

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LESSON 20 - Apply for a Staff Position and You Can Deal With That Issue!

Welcome to Lessons From the Nonprofit Boardroom Blog, a 40-week journey through the new book, Lessons From the Nonprofit Boardroom, by Dan Busby and John Pearson. Each Wednesday, we're featuring a guest writer’s favorite snippet from the week's topic. Rich Stearns is our guest blogger this week for the second of three lessons in "Part 6: Boardroom Time-Wasters, Troublemakers, and Truth-Tellers.”

LESSON 20 OF 40 - Apply for a Staff Position and You Can Deal With That Issue!

Help board members not to cross the line into operational details.

THE BIG IDEA FROM THE BOOK: In Lesson 20, we learn how to prevent board members from crossing the “bright line” between governance and ministry operations. Your board likely comprises professionals at the top of their fields, so it’s natural that they’re curious and opinionated about details in their realm of expertise. But just because they can wade into operational minutiae doesn’t mean they should. That’s not what a board of directors is designed to do. 

Clarifying the role and scope of board members is a foundational first step. Then, applying a few strategies to keep board members on task will mitigate the risk. 

MY FAVORITE INSIGHTS from Lesson 20, pages 99-103: 
•  “What happens when board meeting discussions regularly detour into operations? It squanders time that should be devoted to major issues, blurs the decision-making, and impacts the emotional well-being of CEOs and board members.”
• “It is up to each board member to be spiritually discerning and highly sensitive about which topics they comment on during board meetings.”
• “Even though every board member can raise a concern about the level of the board discussion, the primary responsibility rests squarely on the board chair. He or she is the first line of defense for keeping discussions at the appropriate level.” 

MY COLOR COMMENTARY:
In 20 years with World Vision, I’ve had time to bring added rigor to an already well-managed board of directors. We’ve developed a strong philosophy of governance that is codified in our Board Policy Manual, clearly defined in our orientation materials, and reinforced by governance refresher training. We also leveraged external expertise, including a two-day session with Bob Andringa on board development principles and practices. 

What serves us well is to employ guidelines that remind board members of their scope. There’s the “three hats” framework from Bob, defining the roles board members can play: governance, volunteer, and implementer. Naturally only one hat can be worn at a time. Outside of official meetings, individual members are simply volunteers with no authority to make directives to staff, and only occasionally can they act as implementers. We also embrace the acronym NIFO, “Noses In, Fingers Out”—shorthand for keeping members focused at the policy level. If the conversation strays to operational details, the board chair or a member will throw out the NIFO flag.

If hats, noses, and fingers don’t do the trick, I rely on the collective wisdom of the board. In response to a questionable suggestion from a member, I’ll say, “Let’s share this with the other directors. If they agree that the idea has merit, we’ll put it to a vote to make it policy.” Not surprisingly, that’s often as far as the matter goes.

Thanks to all these strategies, along with the solid leadership of the board chair and well-planned meetings, we’ve avoided the kind of “crossing the line” behavior described in Lesson 20.

THIS WEEK’S QUOTES & COMMENTARY BY RICH STEARNS:

Rich Stearns is the longest-serving president and CEO of World Vision U.S., leading the Christian relief and development organization since 1998. He calls Christians to action on the greatest needs of our day, including extreme poverty, hunger, and the plight of refugees. His best-selling book, The Hole in Our Gospel, has encouraged thousands of readers to open their hearts to those who are hurting in our world. The former CEO of Parker Brothers Games and Lenox is a frequent commentator in outlets such as Christianity Today and FOX News, an in-demand speaker at conferences such as Christian Leadership Alliance and Q Conference, and the author of three other books, including Unfinished: Filling the Hole in Our Gospel.

 TO-DO TODAY: 
• Make sure an effective philosophy of governance is codified in your Board Standing Policy, and periodically refresh principles and practices of good governance with your board.
• From the board chair and CEO down, create a culture of healthy governance by preparing crisp agendas, conducting disciplined meetings, and holding one another accountable.

NEXT WEDNESDAY:
On April 11, 2018, watch for John Ashmen's commentary on Lesson 21, "Back Off the Ledge of Dysfunctional Mayhem. When dysfunction reigns, healthy board members head for the door."

Subscribe to this blog by submitting your email (just above the date/day). Visit the Lessons From the Nonprofit Boardroom webpage and order extra copies for your board members.

ORDER THE BOOK

LESSON 4 - Do Unwritten Board Policies Really Exist?

Welcome to Lessons From the Nonprofit Boardroom Blog, a 40-week journey through the new book, Lessons From the Nonprofit Boardroom, by Dan Busby and John Pearson. Each Wednesday, we're featuring a guest writer’s favorite snippet from the week's topic. Bob Andringa is our guest blogger this week for the first of four lessons in "Part 2: Boardroom Tools, Templates, and Typos."

LESSON 4 OF 40 - Do Unwritten Board Policies Really Exist?

Can't find that 10-year-old policy? You need a BPM.

THE BIG IDEA FROM THE BOOK: In Lesson 4, John and Dan point us to the best “governance operating system” for ministry boards, large or small—a Board Policies Manual (BPM). 

A BPM contains (a) ALL the on-going policies a board needs to address, (b) in ONE organized document (maybe 20 pages with some attachments), (c) that is reviewed at every board meeting based on new data and new wisdom from the Lord.  Who on a board can remember all the “policies” contained in years of minutes?!  

A BPM solves many common issues that make boards dysfunctional.  Once you have one, and keep it current, you will never convene board meetings without it.

MY FAVORITE INSIGHTS from Lesson 4, pages 14-20: 
This chapter affirmed my 23-year love affair with a BPM and I am grateful for its reference to one of my own books. Lesson 4 prompted so many good insights as to the WHY and the HOW of starting and maintaining a BPM.  These are key:  

• Since no one rereads minutes after a few years, policies still relevant in a court of law get lost in the files.  Besides, old ad hoc motions in the minutes often conflict with one another and don’t make sense for guiding future decisions.
• The oral tradition doesn’t and should not work for boards that take governance seriously.   
• An up-to-date, organized BPM serves many purposes. It allows a new board member or new CEO to get up to speed fast; saves time by not rehashing issues already addressed in the BPM; helps the board stay focused on what it must do (governance) rather than what it may be tempted to do (management).
• A small board committee might be the best way to draft a first BPM for board review (but the CEO might be an alternative drafter).  

MY COLOR COMMENTARY:
Really, any organization that wants governance to be more than mediocre needs a BPM.  The original concept came in a 1994 book by John Carver. He was gracious enough to allow my co-author, Fred Laughlin, and me to write Good Governance for Nonprofits: Developing Principles and Policies for an Effective Board.

For every hour spent on creating and maintaining a Board Policies Manual, at least three hours of board and committee meetings will be saved before too long. It’s a “living document,” always reflecting the latest wisdom of the board.

No BPM—even when amended several times a year—reflects perfection. But it does help in recruiting new board members and CEOs. It builds trust between the board and CEO because they are working off the same song sheet. It saves time because well-crafted policies allow decisions to be made in accordance with the BPM between board meetings. Showing a BPM to major donors or foundations gives them confidence your ministry is well led.  

Like the Rich Stearns quote on page 14 of Lessons, you can enjoy a long governance honeymoon as a CEO or board member by creating your own BPM. Why wait? Hundreds (perhaps thousands now) of ministries are moving from good to great with their customized BPM. A good BPM contains dozens of best practices. For a free downloadable primer on the What, Why and How of a BPM, visit The Andringa Group website and download “Introduction to Board Policies Manual” and get started.

THIS WEEK’S QUOTES & COMMENTARY BY BOB ANDRINGA:

Dr. Bob Andringa is active in “re-firement” after a diverse career that included: university administrator, military officer, congressional committee staff director, gubernatorial campaign manager, director of policy research for that successful governor in Minnesota, CEO of the Education Commission of the States and the Council for Christian Colleges & Universities, and a governance consultant to more than 400 faith-based nonprofit CEOs and their boards. Bob and his wife, Sue, live in Scottsdale, Ariz., and have two grown sons. 

TO-DO TODAY: 
• Read Lessons From the Nonprofit Boardroom, then may I (humbly) suggest you read my book, Good Governance for Nonprofits.  
• Click here to download an updated BPM template you can customize for your board.
  

NEXT WEDNESDAY:
On Dec. 20, 2017, watch for Ed McDowell's color commentary on Lesson 5, "Before the Board Meeting - Collaborate, then wisely build the board meeting agenda."

Subscribe to this blog by submitting your email (just above the date/day). Visit the Lessons From the Nonprofit Boardroom webpage and order extra copies for your board members.

ORDER THE BOOK