367: Behind the Boardroom Curtain: Best Practices, No-Nos, and Workplace Wisdom

Does your board have good governance? In this episode featuring John Pearson, you'll discover the essential elements of a healthy board that lead to extraordinary outcomes. John Pearson is the president of John Pearson Associates, and he helps nonprofit organizations in vision implementation. 

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In this episode:

• Purpose of a Board
  • John defines the primary function of a board. (05:38)
  • The three hats board members wear, and the importance of boards owning the strategy. (06:19)
  • Insights on the state of nonprofit and church boards, highlighting the need for more partnerships and innovative approaches in the church. (12:36)

  • John outlines the top five practices for healthy board functioning, starting with finding the right balance between policy governance and micromanagement. (14:57)

• Sweet Spot Between Policy Governance and Micromanagement: 

  • Identify the leadership style of the top leader (senior pastor, CEO, etc.) on a scale of one to ten. (16:17)
  • Evaluate their approach: Do they lean towards seeking forgiveness rather than permission, or are they more cautious and consult with the board first? (16:59)
  • Use this evaluation to understand the leader's style and where adjustments might be beneficial. (17:15)

• Board Prospects and Recruitment:

  • Emphasize the importance of a thoughtful process in bringing new board members on board. (17:24)
  • Discourage proposing board membership hastily; instead, suggest a more extended 18- to 36-month recruitment process. (18:15)
  • Encourage recruiting healthy individuals for a healthier board, emphasizing the significance of reference checks. (18:24)

• Leveraging Gifts and Passions:

  • Utilize assessments, such as spiritual gifts, social styles (analytical, driver, amiable, expressive), and Gallup StrengthsFinder, to understand and leverage individual strengths. (18:37)

• Strategic Planning with a One-Page, Rolling Three-Year Plan:

  • Advocate for a concise one-page, rolling three-year plan for the board, focusing on three to five initiatives. (20:14)
  • Regularly update and evaluate the plan to maintain clarity and prevent the introduction of harebrained ideas during board meetings. (20:41)

• Recruitment Based on Needs:

  • Differentiate between recruiting a board member and recruiting a volunteer. (21:00)

• Balancing Policy Governance:

  • Discuss challenges associated with pure policy governance, emphasizing that it may not be suitable for every organization. (24:46)
  • Highlight the importance of having clear protocols for senior team members' participation in board meetings while avoiding unnecessary interference in staff matters. (25:54)

• CEO and Board Chair Relationship:

  • Recommend that CEOs establish three to five annual SMART goals, ensuring clarity and alignment with the board's expectations. (30:21)
  • Introduce the 5/15 monthly report as a tool for monitoring progress on established goals. (30:47)
  • Clarify the board chair's role as a coordinator and encourager rather than the boss of the CEO. (32:13)

• Building Relationships on the Board:

  • Stress the importance of intentional bonding and relationship-building among board members. (34:14)

  • Encourage in-person meetings whenever possible, acknowledging the challenges of online communication. (35:45)

• Importance of Board Policy Manuals:
  • Refer to a template provided by Bob Andringa and Fred Laughlin for creating a comprehensive board-policy manual. (38:17)

• Key "No-Nos" for Board Practices:

  • Emphasizing the four phases of bringing new members onto the board. (45:12)
  • Courageously addressing board-member dysfunction, including unexcused absences and confidentiality lapses. (45:57)

• Building a Healthy Workplace Culture:

  • Boards engaging in an annual self-assessment survey to model cultural change. (50:23)
  • Importance of caring about feedback, using tools like the Five-Finger Feedback method. (50:41)
  • Regular performance reviews, including the CEO, communicate the significance of evaluation. (51:48)

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