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As a long time CSAE member, I’ve heard countless expressions of frustration from association executives resulting from Board interference in operational matters. After asking a few specific questions, I occasionally determine that the association executive doing the complaining is actually inviting Board interference by virtue of the type of information they are placing on the agenda for Board meetings.

Years ago I worked for an association during a transition from an ad hoc governance model (you know, the governance model that is in everyone’s head, and differs depending on who you ask) to a policy driven governance model. Upon completion of that exercise, both myself, as Chief Staff Officer (CSO), and the Board knew our respective roles, responsibilities, authorities and accountabilities.

Policies on Board Information Needs

As I recall, one of the most interesting and animated discussions with the consultant related to defining the Board’s information needs. What information does the Board need to govern well? In my case, the Board at the time established the following policy:

COMMUNICATION AND COUNSEL TO THE BOARD

With respect to providing information and counsel to the Board, the Executive Director shall not cause or allow the Board to be uninformed or misinformed.

Accordingly, s/he shall not:

1. Fail to inform the Board of relevant trends, material external or internal changes, particularly changes in the assumptions upon which any Board policy, priority or objective has been previously established.

2. Fail to gather staff and external points of view, issues and options and advice as needed for fully informed Board choices.

3. Fail to inform the Board on program changes or staff changes related to services offered to members.

A more comprehensive policy can be found in CSAE’s Best Practices and Tools for Not-for-Profit Boards. This policy provides a more detailed breakdown of the Board’s information needs and compels the Chief Staff Officer, Committees and Task Forces to provide the Board with information on the following:

• External trends and issues that may impact on the organization and its members
• Internal strengths and weaknesses
• Member expectations
• Member and stakeholder issues
• Information to support strategic and business plans
• Financial and Operational Reports to monitor and evaluate plans and ensure accountability
• Support for communications and presentations on the organization’s activities
• Information to help serve as an ambassador and promote the organization
• Analysis to support new product and service development or abandonment
• Information on courses, publications, copies of magazine and newspaper articles, information on web sites that include information and/or discussion related to boards, and any other information coming to the attention of the CSO that might help the board improve its performance

It’s a given that associations must, at least once every three years, conduct a comprehensive member needs survey. That information, along with strategic information including an analysis of sectoral, demographic, political and other trends will help ensure the Board’s priorities and objectives truly reflect member needs. As noted above, financial and operational reports are key to ensuring the Board holds the CSO accountable for pursuit of those objectives.

A Case in Point

But without doubt, what I’ve found is that the information of greatest value to the Board comes from benchmarking or best practice analyses. One particular exercise comes to mind. If you have never seen it, head to CSAE’s bookstore (www.csae.com/bookstore) and purchase the most recent version of the Not-for-Profit Sector Operations Report. The report contains detailed financial information on the sector, and is designed solely to help you benchmark your financial performance to that of other similar organizations. Then, put it to use.

I had to invest a considerable amount of time to complete the self-analysis and comparison worksheet included in the publication, but the investment was well worth the effort. In my case, the report, when presented to the Board, illustrated clearly that: the association has too many of its eggs in too few baskets (revenue diversification became high priority); that revenues from membership dues were well below the average of all other comparison groups (thereby arming the Board with evidence that a dues increase could be rationalized); that a risk management strategy was overdue; and, that investment interest was below the norm (resulting in the establishment of a more flexible investment policy to guide the CSO).

Summary

I’m constantly taking advantage of the information CSAE has to offer to help me better serve my association. I’ve also recently conducted a comprehensive analysis of my association’s bylaws using the examples provided in CSAE’s Understanding Bylaws: A Guide for Directors of Not-for-Profit Organizations. That analysis will also pay huge dividends to the association over the longer term.

And yes, I know it’s hard to find the time for research and analysis while balancing the many other pressures faced by association executives today. But I urge you to find the time to find out what’s happening, what’s new and what the norms are in this unique and challenging environment we call ours. The rewards can be substantial. And the bonus? Your Board will be so preoccupied with the big issues – the ones that will truly have an impact on the future of your association – that they’ll have no time to waste discussing the “look” of your new online newsletter or where you’re buying your new computers.

The bottom line for me is this: the Board agenda should be chock full of information that will help it govern well, not information that you need to manage it.

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