The ideal governance of a board is a difficult idea to attain. Yet it is an objective that boards must strive for – and one they can reach if they understand what good governance is as long as they are constructed in accordance with a strict blueprint (what Nadler calls “board building”) and if they demonstrate the appropriate behavior.
To accomplish this, boards must be well-structured, chosen and focused on the future. They must be able to meet the wants and needs of the company, as well as those of the stakeholders. They must also be capable of governance levels in corporate structure dealing with the new regulatory pressures as they come up.
Ultimately, the success of a non-profit institution is contingent on its board’s ability to face these challenges and ensure that it is positioned to be sustainable in the future. A well-functioning board can help its trustees to fulfill their responsibilities and help the community by ensuring that the programs of the organization are healthy or on track for accreditation.
A key structural element is establishing a proper agenda for the board and a schedule. It should be easy for directors to identify which things require their attention and the ones that can be delegated. It should also state when the board must be notified or consulted on matters that don’t require a full board decision.
Finally, boards must be able to identify their own shortcomings and areas for improvement. A review every year is helpful as it allows the board to evaluate its performance with those of its peers.