Our law practice has had the privilege of working with many corporate boards. These organizations range from for-profit to nonprofits. The industries include hospitality, government, banking, faith, and technology.
We have observed some boards as more effective than others. The best practices for good governance is not a secret.
High performing boards have skilled directors who know their roles well. These board members successfully help their organizations strategically plan ahead, navigate uncertain futures, and mitigate risks. Successful directors approach their roles with serious diligence and excellence.
On the flip side of the coin, we have observed instances where boards have failed. These are occasions when the directors led the organization astray and mismanaged their responsibilities. Some mishaps are recoverable. Other misjudgments have led to disastrous consequences from which a rebound was impracticable. We believe these results are completely avoidable.
Here are a few practices we believe will help your church board operate well:
- Knows the Business Church officials should know how the business side of the church operates. This includes where revenues are received, how expenses are managed, and the functions of major departments. It would be difficult for a board to direct the institution without having a sense of where matters stand.
- Understand Board’s Composition Every board member arrives with specific qualifications, talents, and experiences. The church governing body should catalog the collective credentials of the board. Awareness of the directors’ abilities can help spot gaps in proficiencies.
- Encourage Continued Training The demand for corporate governance continually evolves. Directors who are committed to excellence search for new educational opportunities. Church officials should seek seminars, conferences, and classes to hone their skills.
- Maintain Healthy Culture Church board members should enjoy a productive working relationship with one another. This includes respect for others’ opinions, orderly conduct, and ethical behavior.
- Good Public Relations Church directors are usually high profile leaders. The membership often observes how active the leaders engage in ministry work. Officials should commit themselves to being visible and supportive.
- Regular Self-Assessments High functioning boards accept the need to continually make improvements. To this end, the directors periodically evaluate their own performance to identify weaknesses and opportunities to expand their effectiveness.
- Strategic Thinkers Boards that perform well, have directors who take time to think forwardly about the church. Cultivating a church strategy is one of the most effective ways a board contributes to the membership.
- Respect Rules of Order Highly skilled directors understand meeting rules of order. Regardless of whether the church follows Robert’s or another system, directors know how to reach orderly decisions.
- Stay Agile Effective directors recognize the future can be unpredictable. Church leadership must balance the need to anticipate when current plans may need to be altered.
- Be Accountable An effective board takes full responsibility for the success of the ministry. These directors don’t look to make scapegoats of others. They work collectively to find solutions to challenges.
A high performing church board is comprised of directors who know their roles and work to make continuous progress. The board’s competence helps the church achieve an effective ministry.