It is worth noting that most non-profits, at least at the local level, suffer from disfunctional boards of directors. One reason is that boards are volunteers, and don’t spend all that much time in the role, so they don’t know what boards should do. They end up focusing on operational aspects of the business, rather than on the strategic direction and vision.
Get it straight: The board hires management to operate the business. Period. Management executes tacticly based on strategy the board has envisioned. If the board spends all its time critiqueing the operational tactics, there is no vision on which to base tactical decisions. It’s a vicious cycle and causes frequent management turnover, hurting the long-term prospects for business success.
One approach to avoid this cycle, possibly the only method yet well-known, is John Carver’s Policy Governance model. Quote: “Policy Governance
July 20, 2003