The most important part of any not for profit organisation is good governance. You cannot underestimate the power of governance to:
- Create positive organisational culture
- Fulfil the organisation’s short and long term strategy
- Ensure the organisation meets its charitable purposes
But what does governance actually involve?
Governance includes monitoring your organisation’s culture, policies, procedures and directions that regulate how your organisation is run on a day-to-day basis.
Ensuring your Board is running like a well-oiled machine is a crucial step in the success of your organisation.
Boards have an important role to play, and are responsible for a number of really important tasks. These include:
- Envisioning and enforcing the strategic direction
- Working with the CEO
- Monitoring and improving the organisation’s performance
- Frequently looking at the composition and structure of the Board to ensure it reflects the organisation as a whole
- Appointing and monitoring the CEO’s performance
- Succession planning with regards to the CEO
These are all demanding tasks that need to be handled carefully. But there are also a number of other things related to the Board that you must consider.
1. Policies and Procedures
Policies and procedures guide the operational aspects of the Board. Well-drafted policies are essential to ensuring that business is conducted in a manner that is both time and cost efficient.
Good policies and procedures also help to make sure that all of your Board members and staffs are on the same page, and working together towards a common goal.
2. Succession and Recruitment
A good Board is a diverse Board. This means that recruiting the right people for Board roles is a crucial step. Board members should offer different strengths and assets, but also complement each other and make up a good team.
Having diversity in your Board sends a positive message to the rest of your organisation, but also means that the decisions the Board makes are going to be creative, innovative and solution-based.
When recruiting for the Board, consider what each individual offers by way of their professional skills. For example, people with financial, accounting, legal, governmental, marketing and human resources experience are people who will be an asset to the organisation. You should always keep in mind what the Board needs and recruit based on this.
Running a good not for profit organisation means having a good Board. Think about your Board and whether the people in it can move your organisation forward. Think about your policies and whether they match the goals of your organisation. Envisioning the best your Board can be is a good place to start.
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The information contained in this post is current at the date of editing – 6 May 2024
