I’m tired of hearing, “It’s all about relationships.”
Just off the top of my head, I’d guess I’ve heard this phrase about… 1.14 billion times over my career. A hunch.
What’s the problem? Yes, of course, relationships matter. I’ve yet to find someone who disagreed with this. Is there a movement of people who believe toxic relationships is the key to nonprofit success? I’ve yet to see “deteriorate donor relationships” in a development plan.
Of course not. Sure, some people are better at it than others. Even those who are not effective at building relationships would still say they believe in the importance of it.
So, let’s talk about a specific relationship. Board and Executive Director.
For a nonprofit, the relationship between the board and the executive director is probably the one that makes the greatest impact on the organization. A good relationship between the two has countless short and long-term benefits. On the other hand, there can be huge consequences stemming from a board and executive who can’t get on the same page.
Most nonprofits need an effective executive to lead the organization. However, many executive directors function more like a managing director than an executive.
Consider the questions below as you think about your situation whether you’re a board member or executive director.
1. Is the board treating the chief executive as an executive director or managing director?
When a board thinks the executive’s job is only to execute the board’s decisions, you end up with a managing director. Someone who is minimally involved in decision making or someone whose recommendations are regularly disregarded. This can be frustrating for executives because many of them want to lead and believe that’s what they signed up for. This is a common source of tension between the board and executive director. Many executive directors also have mission-based expertise and nonprofit experience. They can be in the best position to lead the board in making high-level decisions in many cases. When they aren’t given the opportunity to lead, the board could be missing some key information and experience in the decision making process.
Key questions to consider:
- Does the board want an executive leader or a manager?
- What are the high-level key performance indicators (KPI’s) for the executive?
- What steps has the board taken to ensure progress is being made by the executive?
2. Does the executive director act like an executive?
This doesn’t all fall on the board of directors. Nonprofit executives have a responsibility too. There are boards who want an effective executive director, but the executive behaves more like a managing director. How? Here are a few examples: By running every single decision by the board even when it’s not necessary, taking too much of the board’s time in the weeds instead of high-level strategic discussions, not building their knowledge in the field, and by failing to speak up and share their thoughts and opinions in meetings.
Executives should also have a vision for the organization. There’s a lot written about the board’s role in creating a vision for the organization. What I often find missing is the importance of the executive director to have a vision and plan for the organization.
Key questions to consider:
- Evaluate conversations between board and executive leadership. How much time is spent on strategy and high-level decision making compared to minor internal details?
- Does the executive demonstrate effective leadership skills during board meetings?
- Does the executive director have a clear plan or concrete thoughts about the future of the organization?
Building a healthy and productive relationship between the board and executive takes a lot of work. It can feel way too complicated at times and finding the right balance can feel impossible. While each organization is different, there are best practices that will set both sides up for lasting success.
If you want everyone to be in sync for 2025, we’d love to help. We have a number of ways to get the board and executive leadership all on the same page and pulling in the same direction.
All the best,
Kenny Sigler, CFRE