Governance 101::Practical tips for a smooth-running Chamber

Presented to the 2014 BCCC Annual General Meeting & Conference byPresented to the 2014 BCCC Annual General Meeting & Conference by

Keith WoodsKeith WoodsChief Executive Officer,Chief Executive Officer,

North Coast Builders ExchangeNorth Coast Builders Exchange

(Senior Advisor on Chamber Trends, (Senior Advisor on Chamber Trends,

California Chamber of Commerce)California Chamber of Commerce)

keith@ncbeonline.comkeith@ncbeonline.com

(707) 542-0645(707) 542-0645

Ten Chamber Trends…Some Positive, Some Negative

1. Organizational re-structuring & streamlining is underway.

2. Better (not more!) communications efforts with members are being developed.

3. A commitment to creativity: new programs, services, & events (or updating old

ones).

4. A renewed sense of aggressiveness and confidence throughout the organization.

5. Membership numbers are finally stabilizing.

Ten Trends … continued

6. Exploration of new membership pricing and dues structures.

7. Increased efforts to build up non-dues sources of revenue.

8. More regional thinking and cooperation.

9. Higher quality Execs, Staff and Volunteers.

10. Serious introspection by Board members and Staff about the Chamber’s future.

A 5-Point Strategy for Good Governance:

1. Create a simplified, updated structure.

2. Right-size the Board of Directors and recruit and train them well.

3. Make sure there is clarity about the roles of Board & Staff.

4. Conduct consistent, candid evaluations of the Chamber’s CEO.

5. Although it’s tedious, keep all bylaws, policies and governing documents updated.

1) Create a simplified, updated structure

• Is the structure today the same as it was when Is the structure today the same as it was when the Chamber was created? If so, why?the Chamber was created? If so, why?

• The basics: a Board of Directors, an Executive The basics: a Board of Directors, an Executive Committee, Divisions or Councils, Committee, Divisions or Councils,

Committees Committees & Task Forces.& Task Forces.

• A significant trend: fewer standing Committees A significant trend: fewer standing Committees and more Task Forces. (Due to “Time and more Task Forces. (Due to “Time

Poverty”)Poverty”)

“ “Complicated organization charts and fancy Complicated organization charts and fancy titles count for next to nothing.” titles count for next to nothing.” General Colin PowGeneral Colin Powell

2) Right-size the Board of Directors and recruit and train them well

There is no magic number for a Board, but There is no magic number for a Board, but 15-25 15-25 Directors is most common.Directors is most common.

Most strong Chambers seek a Board that is Most strong Chambers seek a Board that is well-well-balanced: business sectors, age, balanced: business sectors, age, gender, gender, geography, Chamber experience, geography, Chamber experience, and ‘stature.”and ‘stature.”

Find Directors who recognize that successful Find Directors who recognize that successful Chambers think and act like a business, not Chambers think and act like a business, not just just another non-profit organization.another non-profit organization.

Board development … Board development … continuedcontinued

• An all-too-common Director recruitment mistake:An all-too-common Director recruitment mistake:

underselling the role (underselling the role (“It’s an easy job – you“It’s an easy job – you

just have to come to one meeting a month”). just have to come to one meeting a month”).

• Great Boards of Directors are willing to empower Great Boards of Directors are willing to empower decision-making to the lowest level within decision-making to the lowest level within

thethe

Chambers (Committees and Staff).Chambers (Committees and Staff).

Board development … Board development … continuedcontinued

* What should be included in a Chamber’s * What should be included in a Chamber’s comprehensive Board orientation?comprehensive Board orientation?

- the organization’s history- the organization’s history

- all relevant financial information- all relevant financial information

- any membership survey results - any membership survey results

- a review of the Chamber’s structure- a review of the Chamber’s structure

- Current bylaws & policies- Current bylaws & policies

- Director responsibilities/expectations- Director responsibilities/expectations

- organizational skeletons in the closet- organizational skeletons in the closet

Board: Board: Should be responsible for Should be responsible for the “ends”the “ends”

Staff: Staff: Should be responsible for Should be responsible for the “means”the “means”

3) Make sure there is clarity about the roles of Board & Staff

Board and Staff should agree Board and Staff should agree on the Chamber’s priorities:on the Chamber’s priorities:

Hopefully, it’s not just to “be liked”Hopefully, it’s not just to “be liked”

1)1) To be respected and acknowledged as the To be respected and acknowledged as the leader of the business community.leader of the business community.

2)2) To be a valuable resource to members.To be a valuable resource to members.

3)3) To be a force to be feared when necessary.To be a force to be feared when necessary.

Traits of a great Traits of a great Chamber Board Member:Chamber Board Member:

1)1) Follow-through on commitmentsFollow-through on commitments

2)2) Candor and honestyCandor and honesty

3)3) Focus on the big, not the littleFocus on the big, not the little

4)4) A positive, upbeat attitudeA positive, upbeat attitude

5)5) An ability to “play well with the other kids”An ability to “play well with the other kids”

4) Conduct consistent, candidevaluations of the CEO

• One of the most frequent failings of a One of the most frequent failings of a Chamber Board: inconsistent, or evenChamber Board: inconsistent, or evennon-existent, regular CEO evaluations.non-existent, regular CEO evaluations.

• It takes self-discipline by the Board and theIt takes self-discipline by the Board and theCEO, but an evaluation needs to be done CEO, but an evaluation needs to be done on an annual basis. on an annual basis. EveryoneEveryone benefits. benefits.

• Let’s review a sample CEO evaluation formLet’s review a sample CEO evaluation form

that has proven to be easy and effectivethat has proven to be easy and effective. .

5) 5) Although it’s tedious, keep allAlthough it’s tedious, keep allbylaws, policies and governing bylaws, policies and governing

documents updateddocuments updated

•As I mentioned earlier today, it’s not sexy but As I mentioned earlier today, it’s not sexy but it’s it’s a ‘must’ for good governance.a ‘must’ for good governance.

•The process doesn’t need to be done annuallyThe process doesn’t need to be done annually

but documents should be re-visited at least but documents should be re-visited at least every 5 years.every 5 years.

•Assign it to staff to review documents and to Assign it to staff to review documents and to make specific recommendations. make specific recommendations.

Final advice: Think of Board Final advice: Think of Board Meetings & Retreats as “Showtime”Meetings & Retreats as “Showtime”

Because they are!Because they are! This should be the Chamber at its bestThis should be the Chamber at its best Agendas should be sent in advanceAgendas should be sent in advance The room set-up should be well thought-outThe room set-up should be well thought-out Name tent cards should be placedName tent cards should be placed Board binders … not a bunch of papersBoard binders … not a bunch of papers Begin and end all meetings on timeBegin and end all meetings on time And remember: And remember: “Holding “Holding nono meeting is far meeting is far

better than holding a better than holding a badbad meeting.” Cancel it! meeting.” Cancel it!

Think of Board Meetings & Retreats Think of Board Meetings & Retreats as “Showtime” … as “Showtime” … continuedcontinued

Good use of visuals – liven up the meetingsGood use of visuals – liven up the meetings Appropriate refreshments/beveragesAppropriate refreshments/beverages Invite guest speakers (or guest “listeners”) ifInvite guest speakers (or guest “listeners”) if

an agenda looks lightan agenda looks light A trend: Board meetings with fewer A trend: Board meetings with fewer

committee reports and more committee reports and more action itemsaction items Said one savvy Chamber Board President:Said one savvy Chamber Board President:

““If Board meetings aren’t first-class, then If Board meetings aren’t first-class, then what in the Chamber is?”what in the Chamber is?”

The Bottom Line:

Great Chambers of Commerce in the Great Chambers of Commerce in the

2121stst Century will have a well-designed, Century will have a well-designed,

well-executed governance structure that well-executed governance structure that

allows them to focus on creating significant allows them to focus on creating significant

‘‘Return on Investment’ for their members. Return on Investment’ for their members.

All others will likely fail.All others will likely fail.

Words of wisdom from a farmerWords of wisdom from a farmer::

If the horse you’re riding dies …If the horse you’re riding dies …

get off!get off!