Three Key Questions

I was Africa last week facilitating a workshop with the executive directors and chairs of about 10 organizations. On the morning of the second day, we turned to the three key questions I believe are the essential questions for a board to ask:

·        How do we know if we are fulfilling our mission?

·        Are we talking about what’s really important?

·        How do we make sure our organization is sustainable and resources are directed towards fulfilling the mission?

I asked the group how their boards would go about addressing each question, and it was fascinating to hear their responses.

The first question about mission was by far the most difficult. At first the group was stumped as to how to respond. Finally someone ventured to say that given the large and idealistic mission statements of most of their organizations, this was an impossible question to answer.

Prodding a bit, I asked how, in that case, the mission could possibly serve as the North Star for board decisions and strategies, as we are taught in all codes of good practice. A long silence followed, and then another participant remarked that it was important to break the mission down into concrete and measurable chunks.

This led into a productive conversation about the types and quantity of information a board needs to measure organizational performance. The group agreed that there is much a board doesn’t need to know in order to gauge mission fulfillment. Whether the board prefers KPIs, written reports, a dashboard, or another approach to data collection, it must work hard and steadily with the executive director to come up with a reporting format that allows it to keep addressing this fundamental question.

The second question about what’s important to talk about elicited three important comments. First, a board must constantly ensure that its conversations focus on governance rather than management issues. This is not easy and takes ongoing practice and discipline, as well as effective leadership from the chair. Second, the board should key its main concerns off of its strategic goals for the organization. Therefore a longer-term strategic plan is essential to structuring the board’s work. Third, the board needs to constantly check itself to make sure it is working on the right issues and doing a good job. Annual evaluations must focus on promoting a solid understanding of governance and effective goal-setting for the organization, the executive director, and the board.

Finally, the topic of sustainability and utilization of resources led to a discussion of the budgeting process. One participant observed that the board of an NGO should be every bit as jealous of resources as the owners of a profit-making business. Only then can there be a surplus — whether it’s financial, knowledge-based, or a network of contacts — to invest in the future of the organization. Another participant added that longer-term strategies, including financial strategies, can be regarded as a form of mission fulfillment deferred into the future.

When we broke for lunch, the group agreed that even though there are no easy answers, all boards must continue to ask themselves how they are going to answer these three key questions. Are there other key questions you feel boards should ask?