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How to recruit an effective How to recruit an effective board board Peter D Cox at the Peter D Cox at the Charity and Voluntary Sector Group annual conference Charity and Voluntary Sector Group annual conference 1

Recruiting boards: Charity and Voluntary Sector Group ICAEW

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Presentation by Peter D Cox to a breakout group at the 2014 Annual Conference of the Charity and Voluntary Sector Group of the ICAEW held at Chartered Accountants' Hall, London 13 November. Intended to inform and promote discussion about the role of trustees, boards of third sector organisations, and recruiting suitable board members/trustees.

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Page 1: Recruiting boards: Charity and Voluntary Sector Group ICAEW

How to recruit an effective boardHow to recruit an effective boardPeter D Cox at thePeter D Cox at theCharity and Voluntary Sector Group annual conferenceCharity and Voluntary Sector Group annual conference

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Page 2: Recruiting boards: Charity and Voluntary Sector Group ICAEW

The Conference billingThe Conference billing

How to recruit an effective How to recruit an effective board board This session will look at the This session will look at the various elements involved in various elements involved in recruiting an effective board, from recruiting an effective board, from information packs, shortlists and information packs, shortlists and interviews to developing / interviews to developing / retaining suitable board members retaining suitable board members and the investment a Company and the investment a Company should be prepared to make in the should be prepared to make in the leaders of their organisation. leaders of their organisation.

Page 3: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Why me?Why me?I worked independently for over 35 years I worked independently for over 35 years as a consultant at a strategic level for as a consultant at a strategic level for commercial and not-for profit commercial and not-for profit organisations, arts organisations, local organisations, arts organisations, local authorities, fire services, government authorities, fire services, government departments and in higher education. departments and in higher education.

Chair/board member for a number of Chair/board member for a number of charities/not-for-profits and is currently charities/not-for-profits and is currently board member Cardiff & Vale Credit Union board member Cardiff & Vale Credit Union (an FCA (an FCA ‘‘approved personapproved person’’) and vice-chair ) and vice-chair of Cardiff Civic Society.of Cardiff Civic Society.

Page 4: Recruiting boards: Charity and Voluntary Sector Group ICAEW

How itHow it’’s going to works going to work- I change the slides and talk- I change the slides and talk- you interrupt with questions, - you interrupt with questions, comments, argumentcomments, argument- in 45 mins I will have learnt a lot- in 45 mins I will have learnt a lot

with luck, so might you, but itwith luck, so might you, but it’’s a s a collaborative processcollaborative process

there may be prizesthere may be prizes

Page 5: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Not just any old board, but Not just any old board, but probably in the probably in the ‘‘third sectorthird sector’’

charitablecharitable

artsarts

historic, heritagehistoric, heritage

mutuals including credit unions, mutuals including credit unions, housing associationshousing associations

may be an omnibus organisation eg may be an omnibus organisation eg WCVAWCVA

from tiny, to some of the biggest from tiny, to some of the biggest businesses - holding over £53 billion businesses - holding over £53 billion in assetsin assets[Charity Commission (December 2010) Facts and [Charity Commission (December 2010) Facts and Figures. www.charity-commission.gov.uk—Figures. www.charity-commission.gov.uk—factfigures.aspx]factfigures.aspx]

And the trustees themselves are a And the trustees themselves are a massive group, more than a million massive group, more than a million people in 180K registered charities people in 180K registered charities and another 80K unregisteredand another 80K unregistered

Probably half of these boards have a Probably half of these boards have a vacancy of at least one trustee.vacancy of at least one trustee.

Page 6: Recruiting boards: Charity and Voluntary Sector Group ICAEW

So whatSo what’’s the offer?s the offer?Almost always no pay (a non-exec doing Almost always no pay (a non-exec doing the same work would expect £25k plus pa)the same work would expect £25k plus pa)

The compliance whether registered or not The compliance whether registered or not can be onerouscan be onerous

ItIt’’s no longer a game for non-experts - s no longer a game for non-experts - trustees need a high level of competence trustees need a high level of competence that might include almost continuous that might include almost continuous personal developmentpersonal development

It can, like any board post, be hugely It can, like any board post, be hugely stressful - many charities live on a stressful - many charities live on a financial knife edgefinancial knife edge

And because people are usually interested And because people are usually interested in the charityin the charity’’s objectives, it can be s objectives, it can be personalpersonal

Page 7: Recruiting boards: Charity and Voluntary Sector Group ICAEW

What might a board member get What might a board member get then?then?

Involvement in a community or cause that matters to youInvolvement in a community or cause that matters to you

Meeting and networking with a diverse group of peopleMeeting and networking with a diverse group of people

Leaning new skills, adding to your experience (CPD and CV)Leaning new skills, adding to your experience (CPD and CV)

Challenges that are not the same as your day job, working in a Challenges that are not the same as your day job, working in a teamteam

Being valued not just for your Being valued not just for your ‘‘professionalprofessional’’ skills but the other skills but the other qualities you bring to the tablequalities you bring to the table

Making a difference, often to a cause that you may have been Making a difference, often to a cause that you may have been personally touched bypersonally touched by

Page 8: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Recruiting the right boardRecruiting the right board

So, if we look at what So, if we look at what we've got we just need we've got we just need more of the same, Yes?more of the same, Yes?

Probably notProbably not

Page 9: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Recruiting the right boardRecruiting the right board

Some things may need addressing in the board itselfSome things may need addressing in the board itself

wrong mix of people/skillswrong mix of people/skills

high turnover, low turnover high turnover, low turnover

poor leadershippoor leadership

lack of a clear vision, no detailed objectives, poor planninglack of a clear vision, no detailed objectives, poor planning

lack of diversity, recruiting on recommendation, missing out on talent lack of diversity, recruiting on recommendation, missing out on talent

leaving it all to the CEO/artistic directorleaving it all to the CEO/artistic director

or - being an executive trustee and having to do the actual workor - being an executive trustee and having to do the actual work

Page 10: Recruiting boards: Charity and Voluntary Sector Group ICAEW

What is the boardWhat is the board’’s rôle?s rôle?To contribute to and approve To contribute to and approve medium and long term plans for the medium and long term plans for the organisationorganisation

To approve all policies and procedure To approve all policies and procedure

To monitor the implementation of To monitor the implementation of policy – eg through monitoring policy – eg through monitoring targets in business plan and ensuring targets in business plan and ensuring programme fulfils key aimsprogramme fulfils key aims

To ensure compliance with the lawTo ensure compliance with the law

To be responsible employersTo be responsible employers

To appoint the CEO(s)To appoint the CEO(s)

To ensure the financial solvency of the To ensure the financial solvency of the business - approving budgets, business - approving budgets, monitoring financial performance and monitoring financial performance and protecting the assets protecting the assets

To act as ambassadors and advocates To act as ambassadors and advocates

Provide leadership, support and Provide leadership, support and encouragementencouragement

Ensuring the board is effective, including Ensuring the board is effective, including succession planning succession planning

Ensure the fulfilment of the objectives of Ensure the fulfilment of the objectives of the charity the charity

Provide an overviewProvide an overview

Page 11: Recruiting boards: Charity and Voluntary Sector Group ICAEW

It also has a leadership rôleIt also has a leadership rôle

Think strategic, long term, Think strategic, long term, forward planning – the big pictureforward planning – the big picture

Keeping focused on the Keeping focused on the organisational mission and organisational mission and objectivesobjectives

To support and safeguard the To support and safeguard the charitable objectivescharitable objectives

To own, debate, develop and To own, debate, develop and advocate the vision for the advocate the vision for the organisationorganisation

Engage in policy debate Engage in policy debate

Make clear delegation – trust the Make clear delegation – trust the staff to make day to day decisionsstaff to make day to day decisions

Ensure the organisation has Ensure the organisation has necessary policies and procedures necessary policies and procedures – and review regularly– and review regularly

Understand how the organisation Understand how the organisation worksworks

Page 12: Recruiting boards: Charity and Voluntary Sector Group ICAEW

So how do we recruit these So how do we recruit these paragons?paragons?Almost half of (49%) of new trustee Almost half of (49%) of new trustee

appointments primarily came via appointments primarily came via personal recommendations from existing personal recommendations from existing trustees. Only 20% of respondents stated trustees. Only 20% of respondents stated outside advertising as their primary outside advertising as their primary means of recruitment.means of recruitment.

target what you need (skills check)target what you need (skills check)

focus a campaignfocus a campaign

use specialist services if appropriateuse specialist services if appropriate

think think ‘‘out the boxout the box’’

exploit social mediaexploit social media

Page 13: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Preparation, preparationPreparation, preparation

Have board got clear rôle descriptions (especially if named Have board got clear rôle descriptions (especially if named position eg chair, treasurer)?position eg chair, treasurer)?

Is there a clear vision for the organisation, a business plan, Is there a clear vision for the organisation, a business plan, governance documents?governance documents?

Is the web site attractive, useable?Is the web site attractive, useable?

Will there be a chance to meet other board members?Will there be a chance to meet other board members?

Is there a clear format for applications?Is there a clear format for applications?

How will selection be undertaken?How will selection be undertaken?

When will induction be carried out?When will induction be carried out?

Who is Who is going to do going to do

all this?all this?

Page 14: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Skilled and Skilled and diversediverse““We look for members who can genuinely add to We look for members who can genuinely add to the work that our very professional staff team are the work that our very professional staff team are already doing rather than just replicating it.already doing rather than just replicating it.

””The Board also looks for people from a wide The Board also looks for people from a wide range of backgrounds. range of backgrounds.

““WeWe’’re not embarrassed to say that half of our re not embarrassed to say that half of our Trustees are currently women, 20% are disabled Trustees are currently women, 20% are disabled and 20% are from ethnic minorities.and 20% are from ethnic minorities.””

Ben SummerskillBen SummerskillChief Executive, Stonewall UKChief Executive, Stonewall UK

Page 15: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Focus on the outcomeFocus on the outcome

““We want altruistic people who can, above all, We want altruistic people who can, above all, add value.They should recognise the add value.They should recognise the opportunity that trusteeship is. opportunity that trusteeship is.

ItIt’’s a chance to be a part of something special. s a chance to be a part of something special. I think everyone who works for Stonewall feels I think everyone who works for Stonewall feels that way.that way.

We look for members who can genuinely add We look for members who can genuinely add to the work that our very professional staff to the work that our very professional staff team are already doing rather than just team are already doing rather than just replicating it.replicating it.””

Page 16: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Recruitment Recruitment maybe just the maybe just the beginningbeginningNeed for new trustees is Need for new trustees is often merely the tip of an often merely the tip of an icebergiceberg

Page 17: Recruiting boards: Charity and Voluntary Sector Group ICAEW

““When I arrived, [Stonewall] was on the When I arrived, [Stonewall] was on the brink of insolvency and suffering from very brink of insolvency and suffering from very poor senior management. It was very clear poor senior management. It was very clear to everyone that things had to change, and to everyone that things had to change, and quickly.quickly.””

This need for change extended to the Board This need for change extended to the Board itself, which quickly began to address how itself, which quickly began to address how it went about recruiting new members.it went about recruiting new members.

““I recall showing some of the Board a map I recall showing some of the Board a map with the home addresses of trustees with the home addresses of trustees marked on it. Eight or nine out of twelve of marked on it. Eight or nine out of twelve of them were within an inch of each other in them were within an inch of each other in Islington. Islington.

Page 18: Recruiting boards: Charity and Voluntary Sector Group ICAEW

And what comes next?And what comes next?

Succession planningSuccession planning

Refreshment – new ideas, new Refreshment – new ideas, new contacts, new thinkingcontacts, new thinking

Avoid over-reliance on one Avoid over-reliance on one person/group of peopleperson/group of people

New skills to meet new challengesNew skills to meet new challenges

Ensure quorate meetingsEnsure quorate meetings

To implement Nolan good practice eg To implement Nolan good practice eg advertising appointmentsadvertising appointments

Avoid stasis and the comfort-zone Avoid stasis and the comfort-zone (moribund organisation)(moribund organisation)

Board membership should be a Board membership should be a challenge, not a chore – if you relish challenge, not a chore – if you relish the Board rôle, share your expertise the Board rôle, share your expertise with new organisationswith new organisations

To keep the organisation (staff and To keep the organisation (staff and board) on its toesboard) on its toes

Page 19: Recruiting boards: Charity and Voluntary Sector Group ICAEW

How could accountants make the How could accountants make the difference?difference?

If you want to serve on a charity board If you want to serve on a charity board dondon’’t just be a t just be a ““free consultantfree consultant””

Of course you have particular skills - Of course you have particular skills - but ensure you fulfil the total trustee but ensure you fulfil the total trustee rôlerôle

That will be most rewarding for you, That will be most rewarding for you, and most valuable for the organisationand most valuable for the organisation

And help the board realise that their And help the board realise that their work isnwork isn’’t just unpaid public service, t just unpaid public service, itit’’s real work for a real purposes real work for a real purpose

Page 20: Recruiting boards: Charity and Voluntary Sector Group ICAEW

More discussion if we have time More discussion if we have time ……Peter D Cox at thePeter D Cox at theCharity and Voluntary Sector Group annual conferenceCharity and Voluntary Sector Group annual conference

Page 21: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Essential sources/links:Essential sources/links:

http://trusteesweek.blogspot.co.ukhttp://trusteesweek.blogspot.co.uk

Charity Commission for England and Wales esp Charity Commission for England and Wales esp https://www.gov.uk/running-charityhttps://www.gov.uk/running-charity

ACEVO charity leaders network https://www.acevo.org.ukACEVO charity leaders network https://www.acevo.org.uk

http://www.instituteforphilanthropy.org/images/files/http://www.instituteforphilanthropy.org/images/files/the_state_of_uk_charity_boards.pdfthe_state_of_uk_charity_boards.pdf

http://www.grant-thornton.co.uk/Global/Publication_pdf/Charity-http://www.grant-thornton.co.uk/Global/Publication_pdf/Charity-Governance-Review-2013.pdfGovernance-Review-2013.pdf

Linked-in group: UK Charity TrusteesLinked-in group: UK Charity Trustees

Page 22: Recruiting boards: Charity and Voluntary Sector Group ICAEW

Peter D CoxPeter D Cox is based in Cardiff, Tel 07971 183879 is based in Cardiff, Tel 07971 183879

Email [email protected] [email protected]

LinkedIn peterdcoxLinkedIn peterdcox

Twitter @peterdcoxTwitter @peterdcox

Website for media, cv, links http://www.pdconair.comWebsite for media, cv, links http://www.pdconair.com

Blog - an original Guardian short-listed one (ancient) - Blog - an original Guardian short-listed one (ancient) - intermittently updated at http://www.peterdcox.me.ukintermittently updated at http://www.peterdcox.me.uk