LESSON 27 - Report Once and Report with Clarity

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. Mike Pate is our guest blogger this week for the third of three lessons in "Part 8: Boardroom Worst Practices.”

LESSON 27 OF 40 - Report Once and Report with Clarity

Hearing the same report more than once is a “10” on the pain threshold!

THE BIG IDEA FROM THE BOOK: In Lesson 27, we’re reminded that the quality of your board meeting experiences rests largely on the quality and effectiveness of your board reporting.

MY FAVORITE INSIGHTS from Lesson 27, pages 136-139: 
• “Reporting once and reporting with clarity can keep the board out of the weeds and focused on the mission of the ministry.”
• “Consider submitting committee reports to the board only if there is a potential action being recommended…”
• “For every detailed report, there should be an executive summary…”

MY COLOR COMMENTARY:
One of the most frequent questions I hear from CEOs and board chairs is “how do we engage and keep great board members?” And one of the biggest complaints I hear from current board members is “meetings are tedious and dull.” Is it just possible that these two issues are closely linked?  

If you want to engage and keep great people on your board, don’t torture them with boring and redundant reporting. Few things make a meeting feel more irrelevant faster than long, overly detailed reporting. 

I’ve heard it said, (perhaps it was me that said this…) “There are few things in life worse than a bad meeting, and actually few things better than a great meeting!” The quality and clarity of your board reporting will go a long way to improving the engagement, and ultimately the effectiveness, of your board meetings!  

THIS WEEK’S QUOTES & COMMENTARY BY MIKE PATE:

Mike Pate serves as Executive Director of Camping for Transformation Ministries. He oversees five entities including three Christian camps and two outdoor education LLCs.  Mike has served as a coach with the Murdock Trust Board Leadership and Development Program and currently presides as chairman of the board for Christian Community Credit Union. He is also a Certified Canfield Trainer with the Jack Canfield Training Group.

TO-DO TODAY: 
• Consider using a one-page board meeting evaluation form after each meeting to gauge the satisfaction level of your board.
• If you don’t already, provide a brief “executive summary” for every detailed board report that highlights the most salient information. 

NEXT WEDNESDAY:
On May 30, 2018, watch for Jerry White's commentary on Lesson 28, "Slow Down and Wait on God. 'He does not bestow his gifts on the casual or hasty.'"

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 26 - Spotting, Catching, or Exiting a Falling CEO

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. Ed Morgan is our guest blogger this week for the second of three lessons in "Part 8: Boardroom Worst Practices.”

LESSON 26 OF 40 - Spotting, Catching, or Exiting a Falling CEO 

Watch for the critical signs.

THE BIG IDEA FROM THE BOOK: In Lesson 26, we’re reminded that a board uninformed, and asleep at the switch about the effectiveness of their CEO, is a failed board. That failure can cost the ministry everything—reputation, results and future potential.

There are plenty of warning signs along the way in this account—like a few departures of top talent, slow loss of major givers, and seemingly excused unbalanced budgets, to be sure. But the cardinal sin of omission by the board is the lack of yearly evaluations against board-approved goals.

Having the right CEO in place is the number one responsibility of a non-profit board—period! If you don’t have that, very little else matters.  

MY FAVORITE INSIGHTS from Lesson 26, pages 131-135: 
• It all started with a two-year honeymoon with a new CEO—a common and understandable mistake—but that reduced accountability turned very costly.
• Before long the board had accepted an environment with reduced opportunity for the board to spot a failing CEO.
• What eventually happens in a lack of accountability situation is only obvious in the rear view mirror. Don’t let it happen to you. 

MY COLOR COMMENTARY:
It’s ironic and tragic—in a town or city where the ministries all know each other, often everyone knows about a failing CEO, but the board is the last to recognize it. I’ve seen it in New York.

So we have to ask ourselves, as this lesson advises, are we in touch enough to see what everyone else sees—or are we part of the problem?

The “case of the falling CEO” illustrates why board governance needs to be taught. How is it that 12 perfectly rational, sensitive, and relationally intelligent people can come together into a group—called a board—and get really dysfunctional?

It’s because board governance is a learned skill and learning to behave like a board, not an opinion gathering body, is an acquired skill. Catching and helping a falling CEO—relatively early—may be one of the signature things you look back on with satisfaction in your board service. 

THIS WEEK’S QUOTES & COMMENTARY BY ED MORGAN:

Ed Morgan is the President of Inspirational Leadership, LLC, which he founded after 22 years at the helm of The Bowery Mission in Manhattan. He remains President Emeritus there. He previously spent 20 years in executive communications at General Electric. Ed spends most of his time helping younger leaders these days, but also leads a board good governance program for the Association of Gospel Rescue Missions and its members. Ed and Judy, married 50 years, have two sons who are actually raising families in Manhattan—and it’s working!

TO-DO TODAY: 
• At your next board meeting’s executive session, ask the question: “Does everyone on the board believe we’re adequately encouraging and holding our CEO accountable?" Go around the room to make sure.
• If you don’t do a regular evaluation of your CEO, you have abdicated a key board responsibility and your organization is in danger. Get started this week! 

NEXT WEDNESDAY:
On May 23, 2018, watch for Mike Pate's commentary on Lesson 27, "Report Once and Report With Clarity. Hearing the same report more than once is a '10' on the pain threshold!"

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 25 - Align Board Member Strengths With Committee Assignments

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. Erika E. Cole is our guest blogger this week for the first of three lessons in "Part 8: Boardroom Worst Practices.”

LESSON 25 OF 40 - Align Board Member Strengths With Committee Assignments 

Leverage the Three Powerful S’s.

THE BIG IDEA FROM THE BOOK: In Lesson 25, we are reminded that we all have different strengths, social styles and spiritual gifts (which form the “Three Powerful S’s”). It is a mistake not to consider the unique qualities that each person possesses when considering committee assignments.

In this first lesson of Part 8: “Boardroom Worst Practices,” you will read how one board member states his awareness of his unique qualities, but finds a chairman who is less than receptive. This lesson encourages leaders to align board member strengths with committee assignments.

We are all fearfully and wonderfully made (Psalm 139:14) and we honor Him and serve best as we seek to leverage our God-given strengths and gifts.

MY FAVORITE INSIGHTS from Lesson 25, pages 126-130: 
• Effectively serving on a board requires a certain degree of introspection. What are your core strengths? How can you most effectively contribute? In what ways may your personality, perspective, and purpose align with the vision of the board on which you serve?
• Board leaders who leverage the power of their strengths (visit the Gallup Strengths Center) have board members who are six times as likely to be engaged in board work, according to Gallup.
• “Can you imagine the incredible culture you could create for this important ministry if the board modeled a strengths-based environment for staff, volunteers, donors, and your customers?”

MY COLOR COMMENTARY:
When we can help people leverage their strengths, social styles and spiritual gifts, we get to see them blossom. While 99.99% of attorneys focus on other practice areas, I have the incredible blessing of representing churches, ministries and denominations. Ironically, when I completed my law school application over 20 years ago, I indicated that I wanted to practice family law.  Family law?!?!  While there is certainly a need for excellent family law attorneys, I am glad that God moved me toward an area that reflects my strengths, social style and spiritual gifts.

For me, prayer is a key component to tapping into those God-given abilities.  Seeking His guidance is certain to provide us with direction as to how to leverage the gifts He has provided to us all.

THIS WEEK’S QUOTES & COMMENTARY BY ERIKA E. COLE:

Erika E. Cole, Esq. is an attorney with Whiteford Taylor & Preston LLP, a law firm of over 160 attorneys serving clients regionally, nationally and internationally.  Known as The Church Attorney®, Erika has dedicated her life to helping churches of all denominations and sizes ensuring that their legal affairs are in order so they can focus on spreading their message, serving their communities, and growing their ministries.

For nearly two decades, Erika has partnered with ministries to address everything from church planting, new leadership transitions, buying and selling property to church litigation issues, and helping leadership address the spectrum of governance matters, including IRS matters. She is a contributor on the editorial board of Christianity Today’s Church Law & Tax Report, and is on her second term of board service at ECFA. She can be reached at The Church Attorney or Whiteford Taylor & Preston LLP.

TO-DO TODAY: 
• Consider providing every member of your board the book, StrengthsFinder 2.0 by Tom Rath, and inspire them to complete the online assessment tool.
• Examine your board culture—are members invited to speak up, even when the discussion may be uncomfortable?

NEXT WEDNESDAY:
On May 16, 2018, watch for Ed Morgan's commentary on Lesson 26, "Spotting, Catching, or Exiting a Falling CEO. Watch for the critical signs."

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 24 - Ministry Fundraising 101 for Board Members

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. Scott Rodin is our guest blogger this week for the third of three lessons in "Part 7: Boardroom Best Practices.”

LESSON 24 OF 40 - Ministry Fundraising 101 for Board Members

Could your board members pass a pop-quiz of fundraising practices?

THE BIG IDEA FROM THE BOOK: In Lesson 24, we are reminded of the importance of why board members must be aware and knowledgeable of how funds are raised for their ministry. As keepers of the fiscal integrity of the non-profit, board members are accountable for not only the quantity of funds raised to balance the budget, but the means by which they are raised, and how they align with the ministry’s values and mission. 

MY FAVORITE INSIGHTS from Lesson 24, pages 120-124: 
• “The board should ensure that the ministry’s fundraising practices are ethical and reflect well on the ministry and its mission.”
• “The ministry’s most valuable asset is its good name. If a ministry engages in questionable fundraising practices, it can quickly forfeit a good name that took years to build.”
• “For a ministry that receives a significant amount of charitable gifts, few board responsibilities are more important than providing oversight of the fundraising process.” 

MY COLOR COMMENTARY:
There is an important underlying assumption in this chapter that we must not miss. It’s not only important that our ministry raises the funds needed for sustainability and strategic growth, it is also important, maybe even more important, the way these funds are raised. In fundraising for ministry, the end never justifies the means.

As board members, we must understand the ideology/theology behind our development strategy. That will drive our desire for funds to be raised according to Biblical ethics, and used as the giving partner requests. It ensures the integrity and witness of our ministry, and reflects our own integrity as a board. That is the importance of this little chapter and it must not be missed if we are to be a board that does God’s work, God’s way for God’s glory.

THIS WEEK’S QUOTES & COMMENTARY BY SCOTT RODIN:

Scott Rodin (PhD, University of Aberdeen, Scotland) has a passion for helping God’s people discover the freedom and joy of the life of a faithful steward. He is president of The Steward’s Journey and Kingdom Life Publishing and runs Rodin Consulting, Inc. He also serves as a Senior Fellow for the Association of Biblical Higher Education. Dr. Rodin has authored 14 books and he blogs weekly at The Steward’s Journey.

TO-DO TODAY: 
• Distribute, review and affirm your Gift Acceptance Policy.
• Ask your development leadership to produce a “Theology of Fundraising” document that describes the Biblical approach they take to raising funds for your ministry. (Editor’s note: See the six-page example in Development 101 by Scott Rodin and John Frank).  

NEXT WEDNESDAY:
On May 9, 2018, watch for Erika Cole's commentary on Lesson 25, "Align Board Member Strengths With Committee Assignments. Leverage the Three Powerful S's."

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 23 - Focus on Mission Impact and Sustainability

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. Steve Moore is our guest blogger this week for the second of three lessons in "Part 7: Boardroom Best Practices.”

LESSON 23 OF 40 - Focus on Mission Impact and Sustainability

The "dual bottom line" equips boards to address dead horses and sacred cows (or goats).

THE BIG IDEA FROM THE BOOK: In Lesson 23, the authors point us to the helpful resource, Nonprofit Sustainability: Making Strategic Decisions for Financial Viability. The book’s chart on page 25 provides the outline for a “heavy lifting” session at your next board meeting. Ask your CEO to plot your ministry’s key programs in the four-quadrant grid with these icons: Hearts, Stars, Money Tree, and Stop Sign. Then discuss and discern next steps as you weigh mission impact and sustainability issues. The goal is to be in the “Stars” quadrant: High Mission Impact and High Sustainability.

One way to think about this incredibly helpful resource from John and Dan is to recognize the #1 responsibility of every nonprofit board: “The stewardship of the mission, and the organization.” In Lesson 23 we are given practical tools to assess at a high level the way the mission is expressed through its programs and resources. This helps us understand where the rubber meets the road—the way the mission comes to life through the activities the nonprofit does! 

MY FAVORITE INSIGHTS from Lesson 23, pages 115-119: 
• “Nonprofit is a tax designation, not a management philosophy.”
• “Are you tempted to prolong a program that will never be sustainable—perhaps unduly swayed by your heart?”
• “Scripture doesn’t confuse us with a negative dichotomy between business and ministry. The better question is, ‘Whatever tax code we use to serve others (nonprofit or for-profit), will we be sustainable and God-honoring in the long-term?”
• “Nonprofit” is a status awarded by the government for serving communities, not an excuse to manage poorly or to be unfocused in the deployment of resources!
• Attention Board Members: Don’t check effective business practices at the door of the board meeting! 

MY COLOR COMMENTARY:
At the M.J. Murdock Charitable Trust, we seek to inspire organizations to focus on sustainability in their important work—so they will flourish not just for three years, but for generations perhaps. We’ve noticed that some organizations hyper-focus on failing programs, thinking more funds will prop up a failed strategy. That rarely works. Money is rarely the solution.

Instead, we commend boards and CEOs that understand their mission and their calling and thoughtfully focus on how their “Heart” programs (High Mission Impact and Low Sustainability) can gradually become “Stars” (High Mission Impact and High Sustainability).

The “Stop Sign” is the perfect metaphor. Even though it’s a painful decision, boards and CEOs must eventually act—and “pull the plug” on a failed program.

One of the most common sayings in the nonprofit world is that the board’s biggest responsibility is to pick the president. While that is an important responsibility, it actually falls under the biggest responsibility—to steward the mission!

Tragically, many nonprofits are full of vision or passion but thin on strategy and execution. We often have groups that seek our support as a foundation who hope they can simply inspire us with their vision. We are regularly inspired! But, we are sometimes saddened when little thought has been given to deploying their resources, human and financial, in the ways that most effectively represent that vision and mission. Boards must learn to ask hard questions and encourage leaders to say no to “good things,” and focus on the highest and best ways for the mission to come to life in the programs and activities of the nonprofit. 

“Everyone who has ever taken a shower has had a great inspirational idea; it’s those who get out of the shower and plan and execute that finally make a difference in the world.”

THIS WEEK’S QUOTES & COMMENTARY BY STEVE MOORE:

Steve G.W. Moore, Ph.D., serves the M. J. Murdock Charitable Trust as the Executive Director and CEO. The Trust is a private foundation which seeks to nurture and enrich the educational, spiritual, cultural, and social life of individuals, families, and communities with particular interest in the Pacific Northwest. Steve is an alumnus of McMurry University, Asbury Theological Seminary, St. Andrews University, and the University of Michigan. He did post-grad work at Hebrew University and Harvard University and was a visiting scholar at Oxford University. He is a widely published author and speaker and has served in a number of leadership roles in community and professional organizations.

Steve and his wife, Thanne, a professional speech pathologist, have four children: Madison and his wife Chandi, now with The University of Texas, and daughters, Maegan, who works as a business consultant in Great Britain; and Mollie, who works in Washington, D.C. They share the house with Cooper, a fun-loving yellow lab. 

TO-DO TODAY: 
• Inspire one or two board members to read Nonprofit Sustainability: Making Strategic Decisions for Financial Viability (see the chart on page 25).
• After you’ve plotted your key programs in the four quadrants, pray and discern your next steps.
• What are the top three programs that represent the mission of the board on which you serve? Is that where your resources flow? 

NEXT WEDNESDAY:
On May 2, 2018, watch for Scott Rodin's commentary on Lesson 24, "Ministry Fundraising 101 for Board Members: Could your board members pass a pop-quiz of fundraising practices?"

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 22 – The Most Underrated Board Position

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. David McKenna is our guest blogger this week for the first of three lessons in "Part 7: Boardroom Best Practices.”

LESSON 22 OF 40 - The Most Underrated Board Position 

The position of the board chair is pivotal to a healthy board.

THE BIG IDEA FROM THE BOOK: Election of the board chair should be based on the same criteria used in the selection of deacons in Acts 6—good reputation, practical wisdom, and filled with the Holy Spirit. Good reputation is required because the chair is always the face of the board and in times of crisis or change, the face of the institution or ministry. Practical wisdom is essential for keeping the Big Picture before the board as issues are debated, initiatives are considered, and outcomes are assessed. First and foremost, the chair must be filled of the Holy Spirit in order to lead by discerning the mind of Christ, assuring the guidance of the Spirit, and obeying the will of God. 

MY FAVORITE INSIGHTS from Lesson 22, pages 110-114: 
• The board chair must have the character of being first among equals in integrity, trust and humility.
• The board chair has no inherent authority or power. The board itself authorizes the chair to speak or act on its behalf. 

MY COLOR COMMENTARY:
A board member once told me that an organization has a choice between a strong chair and weak CEO—or a weak chair and a strong CEO. Experience often proves him right. But should it be? Isn’t the goal for the most effective ministry to have a strong chair and a strong CEO? Have you been a part of that kind of team, or know of a ministry, that modeled that partnership? If so, was the board more efficient in its process and the ministry more effective in its outcomes? If you had no other choice, would you choose a strong chair and a weak CEO—or a weak chair and a strong CEO? Why? If a strong chair and a strong CEO is your preference, how can you work to achieve and maintain that goal?
 
THIS WEEK’S QUOTES & COMMENTARY BY DAVID McKENNA:

David McKenna is the retired President of Spring Arbor University, Seattle Pacific University, and Asbury Theological Seminary. He is Chair Emeritus of the Spring Arbor University Board of Trustees and Founding Chair of Bakke Graduate University. Author of more than 35 books, his ECFAPress book, Call of the Chair: Leading the Board of the Christ-centered Ministry, is a primary source for the selection, leadership, and assessment of the board chair in Christ-centered ministries. Board members will also appreciate the wisdom in Stewards of a Sacred Trust: CEO Selection, Transition and Development for Boards of Christ-centered Organizations.

TO-DO TODAY: 
• Review the criteria and process for the election of your board chair.
• Read “Maestro,” the final chapter in Call of the Chair.

NEXT WEDNESDAY:
On April 25, 2018, watch for Steve Moore's commentary on Lesson 23, "Focus on Mission Impact and Sustainability: The 'dual bottom line' equips boards to address dead horses and sacred cows (or goats)."

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 21 - Back Off the Ledge of Dysfunctional Mayhem

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. John Ashmen is our guest blogger this week for the third of three lessons in "Part 6: Boardroom Time-Wasters, Troublemakers, and Truth-Tellers.”

LESSON 21 OF 40 - Back Off the Ledge of Dysfunctional Mayhem

When dysfunction reigns, healthy board members head for the door.

THE BIG IDEA FROM THE BOOK: In Lesson 21, we are introduced to six fictitious individuals who are all too real in many nonprofit boards. They end up in governance roles because of poor recruiting/vetting practices or cronyism, and are allowed to remain because those at the top lack the gallantry or diplomacy to address their disruptive and destructive behavior. 

This chapter calls out the fuddy-duddies, the goody-goodies, the know-it-alls, the power-grabbers, and the loose cannons. Moreover, it calls on board chairs to confront these underminers of progress in a timely manner for the sake of the organization. The underlying lesson is this: Having a scrupulous, courageous chair is paramount. 

MY FAVORITE INSIGHTS from Lesson 21, pages 104-108: 
•  “What do the [dysfunctional members] have in common? They distract the board from its responsibilities. Other board members wonder, with so many dysfunctional members, is it really worth their time to serve on this board?”
• The insight: If you let your inept board members run free, they will eventually chase off the effective ones.  

MY COLOR COMMENTARY:
I was recently asked by a NPO chair to spend an entire day meeting with his full board and CEO to help them do organizational triage. Their board was imploding. In fact, when I accepted the invitation, the ministry had 10 board members; when I arrived at the meeting location three weeks later, they were down to six—all dominant individuals who would gleefully launch into loud debate at the drop of a hat. Two of the members who resigned said they were tired of feeling bullied. The third said she was frustrated because nothing of lasting value was being accomplished. The fourth departed member gave no reason for leaving, but did say he wanted no further contact with the ministry.

At the end of our time together, we mapped out a pathway to peace and purposeful governance—but whether they will faithfully follow it remains to be seen. My doubt stems from the fact that the board’s behavioral patterns were years in the making: controller-type people seeking their same kind to serve; never addressing the cause of turmoil, just trying to fix the ramifications of it (which repeatedly took them into operations). I’m praying for God to give the principal players a spirit of contrition and a full measure of courage to confront the improper conduct. It could happen, but the longer that dysfunction is left to fester, the harder it is to heal. 

THIS WEEK’S QUOTES & COMMENTARY BY JOHN ASHMEN:

John Ashmen is president and CEO of the Association of Gospel Rescue Missions, providing vision, advocacy, and resources for some 300 personal-transformation ministries throughout North America. His book, Invisible Neighbors, is considered by many to be a how-to manual for followers of Jesus who are serious about meaningful engagement with poor and powerless people. John previously served as vice president with Christian Camp and Conference Association. He is a National Association of Evangelicals board member and on the steering committee of the Circle of Protection, an alliance of national Christian leaders focused on ending hunger and poverty. 

 TO-DO TODAY: 
• Determine if there has been any ongoing, underlying tension within the board and, if so, determine if it needs to be addressed one-on-one (chair and responsible person) or if it is pervasive and needs to be addressed openly during a board session.
• Make sure there is a good vetting system in place to ensure you get spiritually, intellectually, socially (i.e., mature social skills) qualified candidates for the board.  

NEXT WEDNESDAY:
On April 18, 2018, watch for David McKenna's commentary on Lesson 22, "The Most Underrated Board Position" and learn why "the position of board chair is pivotal to a healthy board."

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