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Governance Best Practices

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The Five Habits of High-Performing Boards

When a Board of Directors serves in a governing capacity (e.g. for a non-profit, a public agency, or a corporation), the Board needs to act in certain ways in order to assure high levels of performance throughout the organization. This tool lays out the five governance best practices of high-performing boards.

High-performing governing boards display the following governance best practices:

Habit 1: Board members cultivate the Board as a distinct entity.

• Board members recognize the Board as a distinct entity that governs the organization.
• The Board is different from Board members.
• The Board directs the organization via the chief executive.
• Individual Board members do not direct staff, except when authorized to do so.
• Board members may offer suggestions or ask for information from staff.

Habit 2: The Board focuses on results – and on monitoring results.

• The Board’s job is to define the results that the organization is to achieve.
• The Board expresses its goals through a written plan or policies.
• The Board regularly monitors the goals, via measures of success.
• The feedback loop established through the monitoring process creates strong levels of performance.

Habit 3: The Board ensures sufficient resources are on hand and that those resources are managed effectively.

• The Board regularly reviews the finances of the organization.
• The Board helps develop and approves the organization’s budget.
• The Board raises money and other resources to support the organization.
• The Board assures an audit is conducted of the organization’s finances.

Habit 4: The Board develops itself so that it can effectively serve the organization’s needs.

• The Board regularly monitors its effectiveness and structure.
• The Board regularly clarifies the roles of the Board, Board members, and staff.
• The Board assures an orderly succession of Board leadership.
• The Board recruits and approves new Board members and orients them to be effective as Board members.

Habit 5: The Board provides feedback and support to the chief executive.

• The Board regularly evaluates the executive director on the basis of the organization’s success in achieving the goals.
• The Board assures the chief executive receives the coaching, mentoring, and training support that he or she needs.
• When a vacancy occurs, the Board selects a new chief executive based on his or her ability to achieve the Board’s goals.

Best Practices of High-Performing Boards

To speak with a governance consultant about how LRI can help you implement governance best practices, call (916) 325-1190 or email info@leadingresources.com.

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