Measuring Nonprofit Board Performance

So now we come to this aspect of our thread on board performance: What are appropriate elements of measurement for a board's work? What kinds of ingredients should we put into a job description and performance standards that can helpfully and effectively be used in board performance evaluation?

First, I would say that any board performance measurement vehicle needs to comprise two distinct parts: The job description and standards of performance for the board as a group; and the standards of performance for each member of the board.

For the performance evaluation of the board as a group, we might delineate the following areas of performance to be measures:

1. Strategic planning on a regular basis to reaffirm the social aims desired by the board for the institution and to update and provide mid-course corrections for the strategies that the board believes will bring about those social aims. This is also a good time to make sure that the policies the board has set are really achieving the results they thought would happen.

2. Management of the executive director – a regular procedure should be developed for the performance evaluation of the executive.

3. Program overview -- the board should be kept abreast of happenings locally and nationally, and within the organization to make sure that the strategies delineated in the strategic plan are actually working the way the board hoped they would. Otherwise mid-course corrections should be programmed into the board’s strategic planning review process. Staff should be providing regular reports on the agency’s programs and on local and national trends in the field of service.

4. Financial overview – the board should be reviewing the financial condition of the organization at least quarterly to ensure proper financial management. Staff should be providing regular reports to the board.

With regard to performance evaluation of individual board members, I think there would be at least the following specific areas:

1. How much money has the board member given personally or been able to raise from others?

2. Attendance at board and committee meetings should be well above 50%.

3. The extent to which the board member has advocated for and publicly supported the organization throughout the geographic area in which the charity is situated. Board members should be attending gatherings of other organizations in order to promote their nonprofit in the most appropriate ways.

4. Each board member attending board training sessions. These sessions should be a regular part of board meetings and should be programmed by the executive working with the board president. Topics might range from the latest strategic planning techniques to program developments, to fundraising techniques and strategies, to government and policy concerns in the field of service. Training sessions should be short but packed with information the board members need to know to do their work effectively.

These are some of the yardsticks we can use to measure board performance. You might be able to think of others. If so, I invite your comments.