Every minute in the boardroom is an opportunity to shape the organization’s future. But outdated processes can leave boards spending their limited time on routine updates, just as growing pressures demand a more strategic approach.
We explored this challenge in episode two of our Nonprofit Board Excellence Series, where we were joined by Patricia Connolly, Co-Founder at Connolly & Ludwig, and David O. Renz, Director Emeritus of the Midwest Center for Nonprofit Leadership at UMKC.
They set out four steps boards can take to boost their productivity.
1. Get your governance architecture right
A board’s structure can either enable strong governance or get in its way. As an organization changes, its committees, decision-making processes and meeting structure may need to change with it. What works for a young organization may become cumbersome as it grows.
“The architecture should reflect the mission of the organization, but particularly its life stage,” says David. “It’s not going to look the same for a startup as for a mature organization.”
One way to spot when the structure isn’t working is to look at what happens after the meeting. David recommends comparing the discussion time with the time spent afterwards in the parking lot discussing what was missed. “When that ratio is one-to-one or worse, three-to-one, it’s time for a substantive discussion about architecture,” he explains.
Boards should make time to review how they work before a major challenge forces the issue. “People don’t ask that question until something disruptive happens,” David says. “And that’s unfortunate, because it’s also a tougher time to rethink the bigger picture.”
2. Use a 50/50 agenda
Board time is often taken up by routine updates, leaving little room for the issues that matter. The problem often starts with the agenda, which sets out what the board prioritizes and how it spends its limited time.
“The agenda is not administrative; it’s a value statement,” Patricia insists. “And it tells everyone in the room what the board thinks actually matters.”
Patricia thinks nonprofits have something to learn from corporate boards in this area. “Corporate boards spend more than 70% of their time on strategy,” she reflects. “I would love nonprofits to have a minimum of 50% of their agenda dedicated to strategic discussion.”
This means being disciplined about what needs to happen in the meeting. Committee reports, for example, can be shared beforehand, rather than taking up valuable discussion time. “They’re to be approved, not narrated,” Patricia argues. “Use pre-reads aggressively.”
Board management software can support that shift by making it easier to share information ahead of time, so directors arrive prepared and more of the meeting can be spent on discussions and decision-making.
3. Plan for the unexpected
Boards also need to make space for decisions that may not need to be made today, but could become critical tomorrow. Scenario planning is a useful way to think through different possibilities before they become urgent problems.
“It’s about looking ahead strategically and thinking through: what alternative courses of action might we have to take down the road?” explains David.
The transfer of wealth between generations is one scenario nonprofits should be exploring now. In the US, $124 trillion is expected to pass between generations by 2048, with $18 trillion projected to go to charity.
“How is that going to reshape donors?” Patricia asks. “You might say, ‘Well, that’s a problem for 2048.’ But it’s going to happen over time.”
4. Build the board you’ll need in three years
Scenario planning often raises the important question: does the board have the skills and perspectives it will need to respond to all its potential futures?
This is where succession planning comes in. It works best when it’s treated as a strategic exercise, rather than something to address when a vacancy appears. “I want boards to be thinking next generation,” says David. “What’s coming in the next one to three years, and how well is this board organized?”
That might mean developing potential candidates, cultivating younger members or looking for expertise the board does not currently have.
“Ask yourself: what’s the unique value the board can add to the mission of the organization?” recommends David. “And are we organized to enable that?”
Watch the Nonprofit Board Excellence Series
These insights are part of our Nonprofit Ideals Board Excellence Series, where governance leaders share practical lessons on strengthening board effectiveness.
Register for the full series for more perspectives on how boards can build the skills, transparency and leadership they need for long-term success.