The board plays a vital role in the reputation, culture, growth and success of a not-for-profit (NFP) organisation. For this reason it is important for board members to practice good governance, which can be achieved by employing the following principles and practices:

1. Create the vision

You wouldn’t embark on a road trip without an idea of where you are going, and the same principle applies to the strategic direction of a NFP organisation. There needs to be a clear understanding of where the organisation will be in five years and the board is responsible for making sure there is a strategy in place to achieve this vision. This strategy should be based on plans that have been developed following careful analysis.

2. Learn from the best

One common mistake many organisations make is not taking off the blinkers when looking for organisations to benchmark against. It’s easy to stay within the comfort zone of a specific industry, but in reality there may not be anyone operating at the optimum level within your area. Learning from the best might mean turning your attention further afield.

3. Lead by example

In a modern and progressive organisation the board should not be seen as an elitist group that is disconnected from front-line staff or volunteers. The culture of an organisation starts at the very top and it’s important for every board member to recognise that the way they communicate and act has a huge impact on the successful operation of an organisation. Boards need to walk the talk and demonstrate their commitment to the organisation and its mission.

4. Give power to the people

Empowering staff, volunteers and management teams by letting them play an active role in the way the organisation operates is a key factor in an organisation’s success. Giving staff/volunteers ownership of their role will lead to increased job satisfaction and overall performance.

5. Monitor member, donor and stakeholder satisfaction

For those operating at a board level, it’s important to understand what a good organisational result looks like. The board needs to have its finger on the pulse when it comes to member, donor and stakeholder satisfaction because of the inherit link to growth. Typically, an executive team will have a range of measures to capture and track this data, which the board should examine as part of its broader organisational performance review.

6. Challenge the status quo

There is an old saying that if you always do what you’ve always done, then you will always get what you’ve always got. NFP boards should not accept the way things are without question. The best NFP organisations are those that are constantly evolving, changing and improving the way things are done to keep pace with the changing environment in which they operate.

Kate Costello

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