Managing Your Board: Tips and Tactics for CEOs

June 2009

Managing Your Board: Tips and Tactics for CEOs

By William J. Bennington and Mal Brett. Schwartz
© 2009 The Institute for Nonprofit Excellence*

"When a board of directors considers the performance of a CEO or Executive Director, the evaluation will often be influenced more by the perceived value of the individual the board is evaluating than actual results."

In consulting with and presenting to more than 20,000 CEOs, Executive Directors and Board members of nonprofit organizations worldwide over the past 20 years, the two issues most frequently encountered around the Board/chief executive relationship are

1. measurement of executive performance, and
2. "the board's meddling in day to day operations."

At the Institute for Nonprofit Excellence we have found there are ten time-tested strategies and a few good tactics that do help CEOs and Executive Directors "manage" the Board, to improve their working relationship and to convince the Board to buy in to their agenda. They are:

Ten Time Tested Strategies

1. No Surprises: The first rule of an effective Board/CEO relationship is no surprises. Good news, bad news - your Board (starting with the Chair) deserves to know as soon as you do if there is an issue or major development that deserves Board attention. When a critical issue emerges, engage the Board immediately, usually through the most senior available member in the chain of command.

2. Board Empathy: Develop a high-level of understanding as to what is important to the Board and become a source of information, insight and input. Understand the Board's problems and agenda and put that knowledge to work to increase your perceived value as an asset.

3. Nurture the Chair: Begin by solidifying your relationship with the board chair, and make contact at least every week. Here are a couple of tips:

Ask the chair the question, "Is there anything I can help you with today?
Provide an enthusiastic response to a request or a cheery good morning or good evening, etc.
Keep the Chair posted on industry or issue trends and news.

This all adds up to better relations with the most important ally you can have.

4. Keep then Informed: Keep your Board Chair informed of what you are doing and become a source of other helpful information. (However, always make sure the information you share is of a high level. Providing the board with too much information, especially the trivial, opens the door for them to involve themselves in your affairs.)

5. Be the Solution: Never go to your Board with a problem unless you are armed with two well thought-out recommendations for resolving the issue at hand. Become a part of the solution...not a perceived element of the problem.

6. Seek Help: If you are overwhelmed, ask your Board Chair to help you sort out the priorities. The most effective way to avoid being overwhelmed is through the use of a strategic plan.

7. Get Along: Love your Board. Hate your Board. But get along with your Board. (Note: This does not suggest that you should develop close personal relationships with Board members, which in most cases are best to avoid in as much as such relationships create possibilities of conflict and can often lead to other problems - for you and among members of the Board).

8. Gain Confidence: Remember that a huge percentage of the reasons Boards meddle in the day to day operations of an agency stem from a lack of confidence in the CEO's ability to successfully manage the organization.

9. Communicate: It's as much your responsibility as your Board's to create and maintain an effective working relationship. However, you are the one responsible for the quality of communication with your Board. The key to good communications with the board is balance. Too little or too much communication can lead to problems.

10. Keep Your Promises: Keep your commitments to your Board and meet the deadlines you and the Board have agreed to. If a deadline is unreasonable, negotiate (or attempt to) up front. If things go wrong, revert to rule # 1, no surprises. Never put your Board in a position where the Chair will have to ask you for something you promised, committed to or the Board requested and you agreed to provide.

Five Steps to Selling Your Ideas

Convincing the Board to accept new ideas will often be difficult, even though the proposed actions may be winners. New ideas signify change and in turn, change often brings Board resistance. So how do you convince your Board to accept your approach? Remember: The sale, any sale, must be made in several distinct steps.

Step 1: Sell the goal first.
Make the Board aware of what you will be bringing to the table and why it's of benefit to the organization's Mission and Vision.

Step 2: Provide information-based details on why your suggested approach is important or what issues it will address.

Step 3: Help your Board evaluate benefits of implementing the project. Quantify the expected results or return on investment (which means you must estimate the cost of the project in relation to the anticipated return.)

Step 4: Enlist others your Board respects or members who you know will support your idea to advocate on your behalf for what you are proposing.

Step 5: Secure approval of your project or approach, or amend and secure agreement. If you get a "no" at any point, move on and look for another problem to solve or process to improve.

Eight Minute Pitch to Influence Your Board's Decisions

To influence your Board's decisions or to become more effective in dealing with people up the ladder, you can deliver your "pitch" that includes these tips in eight minutes.

The information you share must be concise and the communication should be brief - state your case in three minutes or less.
The information must be understandable.
The information should be meaningful from the Board's perspective.
The information must be relevant to the needs and operational guideposts of the Board.
The information should be presented in the context of your organization's strategic plan and key goals.
The information must be timely.
The information must be presented in context that clearly indicates its importance.
The information must touch the recipient on the emotional as well as logical level.
The story must be supplemented by graphically interesting & clarifying support materials.
The presentation must be rehearsed and reviewed.
You must make a recommendation related to what you want (ask for the order) and not look to your Board to select the best alternative. (You may be overruled but you are not asking your Board to do your thinking and work for you.)

Other Tips for Enhancing the Board/CEO relationship

Lean on the Strategic Plan: To the degree you can, insist that the organization operate to a strategic plan. In this way, there is context for what you are doing.

Get a Performance Review: As an employee of the organization, you have the right to an annual performance review. The best approach is to agree with the Board to the measurement criteria at the beginning of the performance year and then to have the review focus on those criteria when making the evaluation. It is perfectly acceptable to negotiate in relation to the measurement criteria.

See the Big Picture Choices: Finally, understand that there are a multitude of factors that can influence any human relationship, many of which are beyond the control of the individual being impacted. Thus, there are three choices you can make when faced with impossible circumstances - find another job then resign, live with things as they are, or take the long term approach to addressing the issue.

# # #

*(Editor's Note: The Institutes for Nonprofit Excellence "INPEx" first began working with leaders from charitable organizations in 1987. Since that time more than 25,000 board chairs, trustees and board members, CEOs and senior staff leaders representing more than 6,000 organizations worldwide have benefited from INPEx seminars, board retreats, CEO Forums and conference presentations. INPEx senior facilitators have led more than 350 nonprofits of all sizes and focus areas in the completion of strategic and development plans. Further information on INPEx can be found at http://www.inpex.us.)



	June 2009 Managing Your Board: Tips and Tactics for CEOs By William J. Bennington and Mal Brett. Schwartz © 2009 The Institute for Nonprofit Excellence* "When a board of directors considers the performance of a CEO or Executive Director, the evaluation will often be influenced more by the perceived value of the individual the board is evaluating than actual results." In consulting with and presenting to more than 20,000 CEOs, Executive Directors and Board members of nonprofit organizations worldwide over the past 20 years, the two issues most frequently encountered around the Board/chief executive relationship are 1. measurement of executive performance, and 2. "the board's meddling in day to day operations." At the Institute for Nonprofit Excellence we have found there are ten time-tested strategies and a few good tactics that do help CEOs and Executive Directors "manage" the Board, to improve their working relationship and to convince the Board to buy in to their agenda. They are: Ten Time Tested Strategies 1. No Surprises: The first rule of an effective Board/CEO relationship is no surprises. Good news, bad news - your Board (starting with the Chair) deserves to know as soon as you do if there is an issue or major development that deserves Board attention. When a critical issue emerges, engage the Board immediately, usually through the most senior available member in the chain of command. 2. Board Empathy: Develop a high-level of understanding as to what is important to the Board and become a source of information, insight and input. Understand the Board's problems and agenda and put that knowledge to work to increase your perceived value as an asset. 3. Nurture the Chair: Begin by solidifying your relationship with the board chair, and make contact at least every week. Here are a couple of tips: Ask the chair the question, "Is there anything I can help you with today? Provide an enthusiastic response to a request or a cheery good morning or good evening, etc. Keep the Chair posted on industry or issue trends and news. This all adds up to better relations with the most important ally you can have. 4. Keep then Informed: Keep your Board Chair informed of what you are doing and become a source of other helpful information. (However, always make sure the information you share is of a high level. Providing the board with too much information, especially the trivial, opens the door for them to involve themselves in your affairs.) 5. Be the Solution: Never go to your Board with a problem unless you are armed with two well thought-out recommendations for resolving the issue at hand. Become a part of the solution...not a perceived element of the problem. 6. Seek Help: If you are overwhelmed, ask your Board Chair to help you sort out the priorities. The most effective way to avoid being overwhelmed is through the use of a strategic plan. 7. Get Along: Love your Board. Hate your Board. But get along with your Board. (Note: This does not suggest that you should develop close personal relationships with Board members, which in most cases are best to avoid in as much as such relationships create possibilities of conflict and can often lead to other problems - for you and among members of the Board). 8. Gain Confidence: Remember that a huge percentage of the reasons Boards meddle in the day to day operations of an agency stem from a lack of confidence in the CEO's ability to successfully manage the organization. 9. Communicate: It's as much your responsibility as your Board's to create and maintain an effective working relationship. However, you are the one responsible for the quality of communication with your Board. The key to good communications with the board is balance. Too little or too much communication can lead to problems. 10. Keep Your Promises: Keep your commitments to your Board and meet the deadlines you and the Board have agreed to. If a deadline is unreasonable, negotiate (or attempt to) up front. If things go wrong, revert to rule # 1, no surprises. Never put your Board in a position where the Chair will have to ask you for something you promised, committed to or the Board requested and you agreed to provide. Five Steps to Selling Your Ideas Convincing the Board to accept new ideas will often be difficult, even though the proposed actions may be winners. New ideas signify change and in turn, change often brings Board resistance. So how do you convince your Board to accept your approach? Remember: The sale, any sale, must be made in several distinct steps. Step 1: Sell the goal first. Make the Board aware of what you will be bringing to the table and why it's of benefit to the organization's Mission and Vision. Step 2: Provide information-based details on why your suggested approach is important or what issues it will address. Step 3: Help your Board evaluate benefits of implementing the project. Quantify the expected results or return on investment (which means you must estimate the cost of the project in relation to the anticipated return.) Step 4: Enlist others your Board respects or members who you know will support your idea to advocate on your behalf for what you are proposing. Step 5: Secure approval of your project or approach, or amend and secure agreement. If you get a "no" at any point, move on and look for another problem to solve or process to improve. Eight Minute Pitch to Influence Your Board's Decisions To influence your Board's decisions or to become more effective in dealing with people up the ladder, you can deliver your "pitch" that includes these tips in eight minutes. The information you share must be concise and the communication should be brief - state your case in three minutes or less. The information must be understandable. The information should be meaningful from the Board's perspective. The information must be relevant to the needs and operational guideposts of the Board. The information should be presented in the context of your organization's strategic plan and key goals. The information must be timely. The information must be presented in context that clearly indicates its importance. The information must touch the recipient on the emotional as well as logical level. The story must be supplemented by graphically interesting & clarifying support materials. The presentation must be rehearsed and reviewed. You must make a recommendation related to what you want (ask for the order) and not look to your Board to select the best alternative. (You may be overruled but you are not asking your Board to do your thinking and work for you.) Other Tips for Enhancing the Board/CEO relationship Lean on the Strategic Plan: To the degree you can, insist that the organization operate to a strategic plan. In this way, there is context for what you are doing. Get a Performance Review: As an employee of the organization, you have the right to an annual performance review. The best approach is to agree with the Board to the measurement criteria at the beginning of the performance year and then to have the review focus on those criteria when making the evaluation. It is perfectly acceptable to negotiate in relation to the measurement criteria. See the Big Picture Choices: Finally, understand that there are a multitude of factors that can influence any human relationship, many of which are beyond the control of the individual being impacted. Thus, there are three choices you can make when faced with impossible circumstances - find another job then resign, live with things as they are, or take the long term approach to addressing the issue. # # # *(Editor's Note: The Institutes for Nonprofit Excellence "INPEx" first began working with leaders from charitable organizations in 1987. Since that time more than 25,000 board chairs, trustees and board members, CEOs and senior staff leaders representing more than 6,000 organizations worldwide have benefited from INPEx seminars, board retreats, CEO Forums and conference presentations. INPEx senior facilitators have led more than 350 nonprofits of all sizes and focus areas in the completion of strategic and development plans. Further information on INPEx can be found at http://www.inpex.us.)