Board oversight in all types of corporations is important, but not sufficient, for good governance. It is essential in today’s environment for boards to build into their DNA the opportunity to discuss tough issues and to be strategically alert.
One way to do this is to incorporate key questions into the annual board schedule, which also provides time for staff to prepare informative reports.
Assuming you meet six times a year, plus host an annual board retreat, here is an example schedule and questions:
January: Risk
What are the risks that, left unmanaged, could be catastrophic to our organization? What steps have we taken to attend to those risks? Where are we exposed? What is the status of any pending or current law suits? Have there been any critical incidents of which the board should be aware?
(Note: Risk encompasses people, finances, compliance, places and things.)
March: Mission
What metrics tell us we are advancing our mission? How are we performing against those metrics? How does each of our products, programs and services contribute to advancing our mission?
Are we at capacity? Have there been any spikes or drops in activity? What is driving utilization? What is the unit cost of each product or service? How can we reduce cost and/or increase value?
May: Customer satisfaction
How do we measure satisfaction? Why do people use our services? Why do people leave or go elsewhere? What have we done in the last year to improve customer satisfaction? What consumers do we want that we are not getting?
July: Staff
How satisfied is the staff in their jobs? What would they like to change? Are there areas of turnover that raise concern? How do we recognize exceptional staff? When people voluntarily leave our organization, where are they going?
What steps have been taken to improve employee satisfaction in the last year? What are potential disruptions or turnover for which we need to plan?
September: Environmental scan
What is going on externally that may impact our organization over the next 24 months? Who are our competitors and what is their market share? Have they made adjustments to their approach?
How do our major patrons and contractors view our organization? Are any of our major contractors making changes that could impact our organization? Should we be adjusting our vision, strategies, priorities or partnerships?
November: Financial health
What is the appropriate amount of reserves and where do we stand in comparison? How do we build our reserves? Do we have a policy about the use of reserves? Are there any cash flow concerns that may put unanticipated pressure on the organization’s operation?
Retreat: Board
Are we doing a good job? Do we have the right board composition? What could we do to improve the functioning of the board in the next year? How do we define a “conflict of interest” of a board member or the chief executive? Are there any current exposures?
Kate Dewey is the president of The Forbes Funds, a supporting organization of the Pittsburgh Foundation. Kate has more than 40 years of experience with nonprofit organizations, foundations, public agencies and corporations at the local, state and national level.
