Structure Board of Executive Director Directors Manages theAssumes the daily legal operations ofresponsibility the for an organizationorganization’s existence Effective or Ineffective?
Contributing Factors• Conflict of Interest• Founder’s Syndrome• Program Monitoring• Board Size• Pluralistic Ignorance Ineffectiveness
Conflict of Interest Interpretation of Mission and Vision Differ How Can Organizations Overcome Conflicts of Interest?• Training• Clarity of Roles and Responsibilities of Board & Executive Director Gibelman Research
Founder’s Syndrome Emotional Investment of Founder Can Paralyze an Organization Personalized Leaders vs Socialized Leaders Discussion QuestionHow can the emotional investment of the founder influence the boardand impede the progress of the organization? Block and Rosenberg Research
Program Monitoring “evaluations tends to be on processes and inputs rather than outcomes” (Ott, 2001) “ideal methods of evaluation are rarely followed because goals are unclear and measurement instruments yield ambiguous results” (Ott, 2001). Discussion QuestionHow has the Sarbanes-Oxley Act impacted the nonprofit sector and do you believe that further government regulation is needed in nonprofit governance matters? Why or Why Not? Herman Research
Board SizeResearch reveals that smaller boards govern moreeffectively Discussion Question: Do you agree or disagree with this statement and why? Best practice for large boards - Bifurcated Board This type of board would allow some members to govern while and others are considered non- governing members Discussion Question What would be the advantages of a Bifurcated Board? Klausner & Small Research
Pluralistic Ignorance Everyone presumes that the initiative is supported because of board member silence. Silence = Acceptance = Bad Strategy Discussion Question Have you been guilty of not speaking up at work when you knew theorganization was not engaging in best practices? What kept you from voicing your opinion? Holloway Research
Literature Review Both Worth and Ott believe that there is no magic formula to board effectiveness Worth states that organizations should be skeptical of “the one right way” prescription to board effectivenessWorth and Ott recognizes that there is limited empirical studies on board effectiveness Each research article had its own unique approach to board effectiveness All cited research had a common theme: Success is dependent on proper strategic planning.
Final Discussion QuestionWhat would be your recommendations to nonprofits to ensure board effectiveness?