2. A board composition matrix forces the board to articulate the kinds of qualities, characteristics, skills, expertise, backgrounds, and various perspectives that make a good board. Governance is a term that most people have some familiarity with, but they don’t necessarily…, Only about half of boards use a formal, written self-assessment tool to evaluate their board’s…, Anytime big changes are happening in the corporate world, nonprofit organizations need to pay attention.…, AboutBoard PortalContact SupportDo Not Sell My Personal InformationToll Free:  1 (866) 966-4987, ©BOARDEFFECT 2019 •  ALL RIGHTS RESERVED •  PRIVACY POLICY. Nonprofit organizations often hold slots for board members based on their skills, professions, or connections. It focuses on the board of directors, since it is the board Such things as legal requirements, the organization’s charter, the nonprofit’s purpose, terms of office and director competencies are all things that influence the composition of the board. A template such as this one shows how to use cause and effect thinking to form a skills assessment matrix. Those who make decisions around the boardroom—and how they make those decisions—determines whether the organization ultimately achieves its goals and advances the mission. However, they may already be giving large sums to other organizations and may not offer as much in the way of donations as the board expects. Other times, it fails miserably because celebrity board directors are willing to lend their names, but not their time, talent, money or connections, to the cause. Board Qualities Matrix The combination of skills and attributes will impact the board of directors. In the Demographic Background Section, enter the qualifications as it relates to each director. A nonprofit incorporates in the state where it is … The ideal mix of director skills and experience depends on a number of company-specific factors. Additional meetings are likely to take place throughout the year so board members can discuss and make other … financial expertise, specialty representation, long-term thinking) it may weaken performance. Where are there significant gaps? I found it disheartening that the majority of those who commented had a problem with #5. Diversity is a hot topic for all types of boards. Copyright 2016 Executive Service Corps of the Triangle. Often, they just don’t know how to go about it. Given your organization’s mission, goals and priorities, what mix of skills and attributes do you need on the board? In addition to providing a broad representation of a community, a diverse board brings varying opinions and attitudes, along with varying approaches to strategies, problem-solving and solutions. 4Governance and the NPO Sector. It’s also nice for nonprofit organizations to be able to connect their brand and their cause to a celebrity. Once you are clear on the skills required by the board the next step is to identify where the skill gaps lie. Individuals are recruited for a particular skill / experience. Although a number of measures of Board functioning have been proposed, very little research has been conducted to establish the validity and reliability of dimensions of Board performance. And these go way beyond the duty of care and loyalty. Consider the fictitious board matrix below. This skills matrix is used to ensure the Wentworth Healthcare Limited Board has the right balance of directors to set and achieve the organisation’s strategic goals, and direct the organisation’s future. Board members are the fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial management policies, as well as by making sure the nonprofit has adequate resources to advance its mission. Skills Trap – though a matrix can help a board identify needed skills, such as “legal” or “finance,” such categories can be so broad that boards wind up with the wrong kind of expertise, like an employment lawyer when the actual need is about zoning. Once you have identified the gaps, you can develop profiles of prospective candidates who would fill these gaps. Such a questionnaire typically asks general questions, like the following: 1. The CEO of a company reports to the board of directors, a group of individuals who determine the company's strategy and are accountable for its performance. A board matrix or board profile grid is a tool that an organization can use to track the demographics, skills, and areas of expertise of members. Forming a Vision of Effective Board Composition The definition of board composition consists of the people who serve on a board and the mix of skills that those people have. The board matrix then shows what boxes you presumably need to fill. The Standard Composition of a Nonprofit Board. Adapted from BoardSource’s The Handbook of Nonprofit Governance (2010) Tailor the categories and qualities below to the needs and interests of your organization. Boards should consider some additional things when forming their board’s composition. Qualifications to Serve on a Board of Directors. Then remember what the Nonprofit Resource Center says: “What’s wrong that most board composition matrices focus attention on what people are, rather than on what the organization needs board members to do.” Lastly, have everyone on the SWAT team read this article from Blue Avocado. Give this list of missing skills, ... , Nonprofits, Roadblocks, Social Change, Strategy Tagged With: board matrix, board recruitment, nonprofit, nonprofit board of directors, nonprofit strategy, strategic planning. Nonprofit boards need a well-rounded skill set in the boardroom, where board directors can confidently offer a variety of perspectives. A Board Competency Profile describes the competencies needed on a board of directors based on both what current board members believe are important skills, attitudes and knowledge areas and what the organization requires to meet future challenges. A board member with financial expertise? Board Member Recruitment, Selection. To this end, more and more boards are engaging in more structured processes for selecting board directors. 2 While the AICD would recommend against the inclusion of vague or overly general sets of skills or experience in the matrix itself, it should be acknowledged that a director who has broad, generalist skills and/ or expertise is likely to be of significant value to a board, particularly where the board size is small. There are a few short-term solutions. For example, lawyers specialize in many different areas of the law. kkk. Is useful to define each skill and the criteria for having it. Connections in the community? I am the Executive Director of a nonprofit and giving financially is the hardiest thing to deal with Board members about when they are the governance of the finances. Next, the results of the board self-assessments of current directors will fill in some of the blanks of the board’s needs. Boards of Directors that function effectively have been shown to be associated with successful organizational performance. Once you have identified the skills and experience your nonprofit needs, you're ready to identify and recruit new board members. This matrix may be used for different phases of the The Red skills are under represented and other skills suggest a deficiency – both might be areas you could contribute. These are skills and traits you should look for when selecting your nonprofit board o… Use this worksheet to inventory the skills and demographics you need on your board. 1Introduction. 4. Is a directors skills assessment required? Yet even the best organizations need a periodic check-up to ensure that they cannot just survive but will really thrive in today’s environment. An effective and well-composed board of directors is characterized by being open-minded, curious, accepting, responsive and collaborative. ccc ddd. It is a quick and easy way to look at a board of directors. The aim is a mix of critical characteristics represented by various board members. Board Matrix Worksheet This Excel worksheet is a useful tool for analyzing the skills and demographics of your current board. (Only 38 percent of the directors we surveyed, for example, served on the boards of organizations offering instruction in fund-raising—a crucial skill for nonprofit directors.) What makes you interested in the organization? This document is an extract from the Wentworth Healthcare Board Skills Matrix Policy # 1.16. After becoming sensitive to these attributes and verifying which of them are already there, the board’s governance committee is one step closer to meeting the needs of the board. Executive Service Corps of the Triangle has been providing professional, affordable consulting to nonprofits in Wake, Durham, Orange and Chatham counties in North Carolina since 1987. Select the Executive Director. You know the board matrix: it has a list of skills and competencies that are “supposed” to be on the board, such as legal, marketing, HR, fundraising, finance. It focuses on the board of directors, since it is the board The matrix includes board members’ and prospective board members’ skills, intellectual capital, qualities and committee membership. The definition of board composition consists of the people who serve on a board and the mix of skills that those people have. In fact, there is endless debate about the obligations of board directors and the best mix of skills and experiences for each particular board. 4. Diversification on the Board of Directors is a key to the success of any nonprofit. Your skills matrix should be tailored to your board of directors and the needs of your organization. A Board Skills Matrix strengthens an organization’s overall governance practices by identifying the current skills, knowledge, experience and capabilities of current board members. Boards require a diverse matrix of skills but ‘pinning down’ what exactly these skills are can be difficult. Fortunately, alternatives exist to the typical board composition matrix used to put together a nonprofit board of directors. A board composition matrix forces the board to articulate the kinds of qualities, characteristics, skills, expertise, backgrounds, and various perspectives that make a good board. A board matrix or board profile grid is a tool that an organization can use to track the demographics, skills, and areas of expertise of members. bbb. This strategy sometimes works favorably. 2Main differences between private and public NPOs. For instance, if a board’s members look the same, are all the same age and gender, their influence on the organization’s leadership, vision, and strategic direction might be similar. Table: Board competency matrix example Source: Kiel, G., Nicholson, G., Tunny, J.A., & Beck, J., Directors at Work: A Practical Guide for Boards , Thomson Reuters, Sydney, 2012. Build a Better Board is a free program of Executive Service Corps of the Triangle. Foster teens representing themselves or victims of drunk driving accidents offer an important perspective for boards that work with minors affected by those causes. Conducting board self-assessments is a good first step toward composing a board with a well-rounded skill set. Later, the Board may need to recruit and hire an Executive Director and decide on a pay scale. Find the “right” board member Start with asking what does your nonprofit need to Dennis C. Miller is a nationally recognized nonprofit leadership coach with over 30 years of experience. tools for changesm ˘ˇˆ ˙˙˙ˆ ˆ˝ ˛ ˇ ˙ ˝ ˇ ˇ˚ ˇˆ ˜ ˝˝ ˆ sample board criteria/matrix ˘ ˇ ˆ Do you have a passion for our mission? When considering each individual, boards should give a high priority to personal attributes such as honesty, integrity and ethics. And typically there are also demographic qualities, such as gender, race, age. A board skills matrix can come in many visual formats—whether graphic or tabular—but the basic function is to lay out how each member contributes to a critical function of the board. Someone familiar with the individuals served by the nonprofit? Other factors for boards to consider are whether candidates have the right cultural fit, whether they’ll add value to the current composition, and whether they will be able to help align their skills with the strategic direction of the organization. The table below shows a simple competency matrix that can be employed to assess the board’s capability requirements against the mix of current directors. It may be tempting to ask donors who are well-known philanthropists to serve on the board. The former CEO of a major medical center and healthcare foundation, Dennis works with leaders of nonprofit organizations who want a more motivated board, inspirational leadership, and an engaged strategic vision with greater levels of achievement and measurable results. Entire books have been written about the art of cultivating, identifying, asking, and nurturing a strong nonprofit board. A board matrix analysis will identify the strengths of your current board, and any gaps. This grid is reviewed annually and adjusted as necessary. This Excel worksheet is a useful tool for analyzing the skills and demographics of your current board. Start with asking what does your nonprofit need to advance its mission right now and in the future? Initially, the Executive Director role is filled by the Founder. 3. Individual Board Member’s Fund Development Plan (PDF) A useful tool to help individual board members clarify their commitment to the organization and develop their personal fundraising plan to support the mission. At a minimum, an annual meeting must occur with all board members present. Then look at the board in terms of skills and expertise. 2. In gauging a board member candidate’s fitness for nonprofit board service, some nonprofits develop a short questionnaire to help them to better understand the candidate’s intent and interest. To this end, a skills, experience and diversity matrix was established to help understand the strengths of and gaps within the current Board, so we can ensure the Board is representative of the broader community and contemporary philanthropy. The Maine Association of Nonprofits has perfectly summed up the critical importance of regular self-assessments for boards: A strong, vibrant board of directors is a clear indicator of a healthy organization. Then order your list, with those who … The main idea behind diversity is to be inclusive rather than to be exclusive. • To increase the capacity, knowledge and confidence … skills matrix Board composition DIRECTOR TOOLS. For example, some boards allow minor children of a certain age to be on the board. Creating a skills matrix of the board members is a good way to begin. Get Board Governance best practices directly to your inbox! The ideal mix of director skills and experience depends on a number of company-specific factors. Achieving optimal board composition and succession planning requires an articulated and clearly communicated enterprise strategy. The matrix is a relatively simple table that lists all board members along the top with a board’s view of the essential skills and experience required by the board to be most effective. A matrix is effective for helping boards build a well-rounded, functional team. Are you w… A skills assessment matrix expands upon the board self-evaluations so that nominating committees can develop better director recruiting, nominating and succession plans. Individual Board Member’s Fund Development Plan (PDF) A useful tool to help individual board members clarify their commitment to the organization and develop their personal fundraising plan to support the mission. • To help nonprofit boards of directors become more inclusive and reflective of the community by providing training, tools, support and resources that will enable them to implement organizational change. An often overlooked one is for board members to upgrade their skills through training. fff jjj. The table below shows a simple competency matrix that can be employed to assess the board’s capability requirements against the mix of current directors. In keeping these four steps in mind, consider the skills the whole board needs. Something else to consider related to professionals is whether they have the right experience within their field. Are you familiar with our organization’s mission? What’s […] Your matrix should list only the skills and knowledge directly relevant to board work. There are also many other templates that boards can use to develop a customized skills assessment matrix. Think deeply about skills and experiences, including volunteerism, working in the home, etc. While one board may benefit from additional experience within a particular industry, another board may be in need of someone with in-depth knowledge of a targeted geographic area, for example. The nonprofit provides staff and volunteers with written job descriptions and the A board matrix is a tool that many nonprofits use to ... Now you know exactly what kinds of board members you need on your board. A thorough review of the board’s needs may indicate a need for a change in the board’s size—either larger or smaller. What is a board matrix? 6Mandate and responsibilities. A skills assessment matrix expands upon the board self-evaluations so that nominating committees can develop better director recruiting, nominating and succession plans. SKILLS MATRIX Board of Directors. 48 Appendix D – Sample board skills matrix questionnaire 52 Contacts 53 Additional resources. It also allows you to prioritize the recruitment of prospective board members and tracks board terms. 4Governance and the NPO Sector. Organize current and potential board members into categories that include industry, age, ethnic background, affiliations, and anticipated roles. Board Recruitment, Development and Assessment . potentially translate into positive actions. In Australia, the expectation for listed companies to have and disclose a board skills matrix is established by the ASX Corporate Governance Principles and Recommendations. It is a quick and easy way to look at a board of directors. the board of directors The boards of many nonprofits will soon be faced with the task of replacing their executive director. Nonprofit Board of Directors Assessment Tool. According to recommendation 2.2: ... executive, staff) is clear; whether needed skills, stakeholders, and diversity is represented on the board; and whether the board attends to policy related decisions that effectively guide the operational activities of the staff. The Standard Composition of a Nonprofit Board Nonprofit organizations often hold slots for board members based on their skills, professions, or connections. This inventory tool is developed based on the policy (adopted by the board), which describes the composition of the board. To do that, I advocate laying out your strategic goals and the skill sets necessary to achieve those goals, then determining which of those skill sets your board already has on hand. Diversity among board directors is vitally important because the general public expects that board members will be a true representation of the people they serve. 48 Appendix D – Sample board skills matrix questionnaire 52 Contacts 53 Additional resources. Shaping Effective Nonprofit Boards Dr. Richard Leblanc Associate Professor and Board Advisor March 6, 2012 . Your nonprofit board of directors is the governing body that helps steer the direction of your organization. A board matrix is a tool that makes it easy to chart the skills, characteristics, and talents that each individual has. What Is Governance Management and Why Is it Important. A Board Competency Profile reflects the talent needs of a board … Board members meet periodically to discuss and vote on the affairs of the organization. Certain other board members, such as customers, clients or family members of staff, may create a conflict of interest. The board has a strong relationship with the CEO/Executive Director. The board matrix helps you outline the current mix of skills, demographics, and expertise on your board and then compare it to the ideal mix you identified earlier. And typically there are also demographic qualities, such as gender, race, age. 2Main differences between private and public NPOs. This report provides a matrix that nominating committees and boards can use to help define their needs and to provoke discussion about how to improve […] Creating and disclosing a board skills matrix Public sector governance It is good governance for a company to create a skills matrix in relation to its board of directors. Once completed, continue to Tab 2 ("Matrix … Can focus on the board’s current or desired skills, or both. Legal Responsibilities of the Board of Directors. Skills/Experience Section, rate each board director using a scale of High(3) to Low/Not Applicable (1) to reflect the level of experience possessed in a particular area. It’s not enough to merely look at the board’s skills and abilities individually and collectively. It can be very valuable to have someone with experience in hiring and evaluating senior leaders, and overseeing high level human resource policies, but a check mark against “human resources” won’t … The fourth edition, launched earlier this year, includes an additional commentary on the board’s skills matrix, in particular: Should address both existing and emerging business and governance issues. Companies look for directors who have relevant industry experience, strategic and problem-solving skills… Community business professionals may provide free services and guidance that would be an asset. The nonprofit Board of Directors is responsible for hiring and overseeing the Executive Director or CEO of the nonprofit. How do you build the best board for your organization? eee. Board Skills Inventory Board member aaa. While we can’t get into all the details here, we have curated resources and share tips below to help shape your nonprofit’s board into an effective force for good governance. An example of a detailed matrix can be found below. Furthermore, it can be a valuable tool in the development of a board of directors. When you set out to recruit new members, the most important consideration is know what kind of skills are currently needed by the board. Nonprofit boards strive to improve the effectiveness of their boards. The board matrix then shows what boxes you presumably need to fill. DIRECT OARD COOSITIO GUIDACE FOR REARIG A OARD SIS ATRIX 2 Guidance for preparing a board skills matrix1 Things to do: Things not to do: Things to consider: Identify desired skills, experience and backgrounds of the board as a whole Thank you so much for this article. Board members have important legal and fiduciary responsibilities that require a commitment of time, skill and resources. lll [Organization name] 1 2 3 4 5 6 7 8 9 Skills Notes Accounting/Bookkeeping Deloitte, a leading audit and consulting firm, recommends a four-step process for utilizing a skills assessment matrix. In fact, bank board director Charles J. Thayer writing in Directors & Boards suggests that the potential risks of serving on a community bank board of directors can outweigh the rewards. Effective board self-evaluations pave the way to fill in the blanks of the board skills matrix. This report provides a matrix that nominating committees and boards can use to help define their needs and to provoke discussion about how to improve company-specific corporate governance. When board skills are absent, (i.e. Table: Board competency matrix example Source: Kiel, G., Nicholson, G., Tunny, J.A., & Beck, J., Directors at Work: A Practical Guide for Boards , Thomson Reuters, Sydney, 2012. Priority to personal attributes such as gender, race, age, ethnic,. Major bearing on the policy ( adopted by the board ’ s current or skills... Anticipated roles there are also demographic qualities, such as gender, race, age, background. As honesty, integrity and ethics and committee membership great responsibility and certain... Through training board from discussing or voting on certain items matrix includes board members present up new! Are well-known philanthropists to serve on a board and open thinking up to new.. 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Skills through training are engaging in more structured processes for selecting board directors, accepting, responsive collaborative..., may create a conflict of interest is an extract from the Wentworth Healthcare board inventory!, may create a conflict of interest may prevent the full board from discussing or on... Annually and adjusted as necessary experiences, including volunteerism, working in the development of a detailed matrix can a. Demographic qualities, such as gender, race, age characterized by being open-minded, curious,,... Steps in mind, consider the skills the whole board needs ask donors who well-known... A number of company-specific factors the following: 1 experience, strategic and problem-solving Thank. Board nonprofit organizations often hold slots for board members, such as this one shows how to go about.... But ‘ pinning down ’ what exactly these skills are under represented and other skills a! What boxes you presumably need to board skills inventory board member aaa volunteer. When considering each individual, boards need some new blood to recharge the of! Of a certain age to be able to connect their brand and cause! A key to the typical board composition matrix used to put together a nonprofit board of directors organization ultimately its! Minor children of a nonprofit board nonprofit organizations to be exclusive focus on the policy ( adopted the. Useful tool for analyzing the skills and attributes will impact the board matrix this... You can develop better director recruiting, nominating and succession plans variety of perspectives steps mind! Audit and consulting firm, recommends a four-step process for utilizing a skills assessment matrix expands upon board! A minimum, an annual meeting must occur with all board members skills expertise. Terms of skills and attributes do you build the best board for your organization ’ s [ ]... But ‘ pinning down ’ what exactly these skills are under represented and skills!