Question

CASE: The Broken Board

You are the CEO of the “Ending Homelessness Foundation” (EHF) and have been in your role for three months. You are getting yourself acquainted with the operations of the foundation as well as the functioning of the board. For many years the EHF has had a strong reputation in the community but as of late the stakeholders including donors, community members, and staff are showing signs of a lack of trust and commitment to the organization.

You know in your new role as CEO you have a lot of work to do and have decided to examine the board of director culture and functioning. You have come to realize that your board of directors is really not functioning at an optimal level and feel significant improvements need to be made.

You have witnessed several signs that need to be addressed quickly. The first noticeable problem was the blatant lack of respect on the board. There appears to be political and personal agendas and obvious power struggles between some of the members. People interrupt each other and have sideline conversations that influence votes and essentially “gang up” on ideas. Board members meet outside of the meetings and coerce others to vote in a certain way. During meetings members of the board present issues not identified on the agenda that often take up too much time. As the CEO you know these items are important however board meetings only last two hours. Lately they have been running way longer. During the last board meeting you had individuals bring up a funding opportunity that resulted in a motion directing you to pursue the application. This funding opportunity, although would grow the organization, is completely outside of your mission and strategic priorities. Additionally outside of the board meetings you have board members individually calling you and trying to push their own agendas and ideas forward, all the while, speaking about other board members behind their backs. Finally, you notice that the chair of the board only calls you the day before the meeting for an “update.”

On a positive note, you know all the board members are solid individuals with the right intentions. They clearly believe in the cause of the Ending Homelessness Foundation and you know that this board, with significant improvements and guidance, can make great things happen.

1. Integrating the five elements of board effectiveness and the seven basic areas of board responsibility, how would you guide your board through change?
2. Also, you will want to consider “how the board does it work” in your essay.

Answer 1

There are various issues found in director’s behavior. The board members do not pay respect to each other and this also reveals lack of trust among them. Board members are involved in power struggle and they are identifying issues outside of meeting that are not included in agenda. One unethical behavior of board members is to use a funding opportunity that does not meet the mission of organization. Thus, it is required that board members behavior must be improved to avoid conflicts and personal goals fulfillment. For this purpose, five elements of board effectiveness are taken into consideration. Existing board composition should be taken into consideration to determine whether the existing board members bring sufficient experience and skills to the organization. Fortunately, these board members are skilled to contribute for organization development therefore; I should consider the structure of board. For this purpose, I should consider creating different committees purposefully to ensure strategic direction and mission of the organization are not lost. Board members are asked to support committees to bring in transparency in board practices. Another consideration would be to consider recruitment process and it should be ensured that a good fit to organization is accomplished. Committee is given opportunity to recommend a fit candidate to the board. The recruitment process of new people in the board can help them to know their accountability and ethical requirements. Orientation of board members towards responsibilities needs to be reinforced. Another element is assessment of the board members that can help them to recognize conflicts with each other and mitigation of differences. Assessment also helps board members to become accountable towards organizational goals.

The board of directors should be reminded about the seven responsibilities. They are reminded to consider mission statement of the organization first before commencing any activity. They should be asked to consider whether any action serves the interests of the organization and its stakeholders. Another responsibility for the board director is supporting CEO to select employees, and provide oversight. The board members will be reminded to attend the meetings regularly. Board members another responsibility is offering oversight for operations and supporting employees. Board members responsibilities are to maintain stewardship of the organization and establish financial accountability. This responsibility will be reminded to the board members to avoid unethical fund raising practice. Board members will also be reminded about their responsibility to support organizational financially and serve as ambassador for organization. Advocating in community about the organization and among peers is also a responsibility of board members. These responsibilities will be communicated to the board members to improve their behavior and orient their thinking to support organizational missions and goals.