Importance of Board Structure
With shrinking public money, greater demand for services, exposure to liability, stronger accountability and questioning of the nature of charitable work, the voluntary sector must put forth a greater effort to increase its credibility and effectiveness.
Boards of Directors must be accountable to their membership, funders and stakeholders. Boards need to understand how to manage these relationships effectively.
Boards of voluntary organizations whether new, established or in transition, now have a range of choices about how to work together to fulfill their role.
Boards must make decisions about their structure based on three basics questions:
1. Which decisions does the board want to make and which does it want to delegate?
2. How much involvement does the board want to have in the operations of the organization?
3. How will the reporting relationship between the board and the staff be defined and communicated?
Based on the responses to these questions, four possible board models are suggested:
Each organization needs to take the time to decide on a board structure that best meets its needs. To assist you in deciding what board model suits your organization’s best interests, please visit the Board Models Comparison Chart Matrix.
When determining which model would work best for a board, it is important to take relevant factors into consideration such as the organization’s culture and the personalities of key staff members and officers of the board. The structure itself is only relevant insofar as it ensures that there are no gaps or overlaps in the work of the board. If working relations are posing difficulties, officers need to determine if it is the board structure that needs to be changed, or if it is the behaviours and assumptions of the people working within the structure that need to be addressed.
Structure alone does not ensure a good board. The key elements on the human side of board effectiveness are:
- Commitment
- Competence
- Diversity
- Collective decision-making
Board Models
Policy Board
This traditional model is familiar to many organizations. A partnership is developed between the board Chair and the Executive Director in order to lead and manage the organization. A series of committees carries out the work of the board; these are often supported by senior staff.
Responsibilities:
- Establish and implement the organization's purpose
- Set the rate of progress that the organization will undertake in achieving its mission
- Provide continuity for the governance and management of the organization's affairs
- Confirm the organization's identity within the community
Policy Governance Board
This model of board organization has been popularized by John Carver in Boards that Make a Difference. This type of board provides a structure and method of proscribing limits on the responsibilities of Chief Executive Officers. Emphasis is placed on the main purpose of the board - policy development. The board works as a whole and speaks with one voice. While committees are heavily relied upon in Policy Boards, they are rarely used in Policy Governance Boards.
Responsibilities:
- Determine ends to be achieved
- Determine means to the ends
- Determine Board/ Executive relationships
- Determine Board process
For a more complete definition of the Policy Governance Board Model, visit http://www.carvergovernance.com/model.htm
Working or Administrative Board
A working board undertakes some responsibilities for the operations of the organization. In addition to providing policy and general direction, members of working boards may help in practical ways such as organizing events and drafting documents.
Responsibilities:
- Planning
- Finance
- Human Resources
- Organizational Operations
- Community Relations
Collective Board
A collective is a group of like-minded people working towards a specific goal. The individuals within the collective have a responsibility to define and support the basic philosophy of working as a collective. Governance and operational decisions can be made by both the board and staff- they operate as a single entity, which is acceptable provided that they share common values as members of a collective should.
Responsibilities:
- Planning
- Finance
- Human Resources
- Organizational Operations
- Community Relations