Convening a board meeting can be costly. Some boards meet as often as monthly or bimonthly, though most meet quarterly.
The average number of directors is 15. To calculate the cost of governance, assign an hourly value (i.e., $200 each) and multiply by the number of directors, staff and the number of hours at the board meeting (i.e., 15 people x $200 x 5 hours = $15,000). Then add the costs of preparation, staffing, travel, food and beverage.
The board is convened for the purpose of governance. However, meetings often deteriorate into administrative discussions and committee work.
Few directors come with governance experience. While they do their best, some find it easier to dwell on tactics, history and personal business, rather than being visionary leaders.
To avoid wasting money, directors should be educated and encouraged to ask the right questions:
1. Does this 'fit' with our mission? Directors should be intimate with the mission statement. Include it on the meeting agenda, so it is always in front of directors. When passionate discussions and ideas come before the board, ask whether or not they advance the mission.
2. Will this advance the strategic plan? Directors should be intimate with the strategic plan. When new ideas come before the board directors should ask whether the program fits in the plan. New ideas can be "parked" for future consideration.
3. Are we doing committee work at the board table? Committees supplement the work of the board. Projects are assigned, and the committee chair or liaison reports to the board. Too often directors initiate committee work at the board table.
4. How will we measure success? Good boards make knowledge-based decisions and rely on performance measures. They frequently ask, "Why are we talking about it if we cannot measure success? What metrics or performance indicators will we monitor? Have we set a timeline, do we know the cost, can we expect to see measurable growth?"
5. Is this discussion in the weeds? Governance requires the board to be visionary, often described as discussions at the 50,000-foot level. Discussions at lower levels can be characterized as committee work (25,000-35,000-foot level) or staff work (10,000-foot level). Directors should halt discussions that drop below governance by asking, "Are we in the weeds?"
6. Isn't that the responsibility of our executive director, not the board? The board's governance responsibilities are distinct from management duties. Directors must focus on governance and leave the management to staff.
7. Will it add value? Some boards try to be all things to all people. Too many projects exhaust resources and staff. Rather than responding to recommendations with, "We should probably do that," encourage to the board to focus on core competencies that add value or equity to the organization. This requires board discipline and a willingness to say "no."
8. Is there another organization that could do this instead of us? Over time, an organization takes on more and more projects. To divest or avoid adding work, ask if there is another organization that can better manage the program or event. Don't be fooled by the phrase, "This won't take much time."
9. Are there any risks? Directors have a role in risk avoidance. Some proposals include an element of risk — liability, loss or legal violations. Directors should consider if the risk is worthwhile or can be delegated, or if safeguards and insurance are in place.
10. Is that a personal agenda? Directors are charged with serving the interests of the organization and stakeholders. They should avoid personal agendas and stick to representing the member concerns. They have a duty of loyalty to the organization.
