SUMMIT ON NON-PROFIT LEADERSHIP

Colin Carter

Melbourne

8 July 2004

- 2 -Boards Not For Profit Summit July 04.ppt

WHERE IT CAN ALL GO WRONG FOR ANY BOARD

• Lack of agreement about board ‘role’

• Chairman more into process than dealing with the key issues

• Chairman and CEO in conflict

• Directors don’t behave

• ‘shooting the messenger’ who brings bad news

• undermining the CEO in their dealings with management

• too involved in ‘management’ matters

• talking, but not listening well

• Directors don’t put in the work or don't comprehend the issues

• CEO defensive in response to questions

• Management presents material poorly or as a fait accompli

• Management isn’t open with the board

- 3 -Boards Not For Profit Summit July 04.ppt

NOT-FOR-PROFITS: COMMON ISSUES

• Directors that understand........

- the business model but not mission and values

- the mission and values but not the business model

• Poor performance data on outcomes

• Boards too large....and poor attendance records

• Key skills lacking

• Unable to deal with poor performers on the board

• Directors too involved in detail – eg. too many committees

• Directors not ‘independent’ - with conflicts of interest or representing constituencies

• Constituency based elections leading to overt politics

• Confidentiality of boardroom discussions lacking

• Lack of cooperation among NFPs