Cultivating a Strategic Board
Trust, Role Clarity, Shared Governance, and A Value for Innovation
Summary
“A leader clearly in charge with a board helping to provide sage advice is the perfect combination for strategy.”
Roger Martin
In order to win the future, I argue that associations should serve as strategic engines of innovation. Association boards – despite being responsible for strategic direction – are seldomly trained or experienced strategists. Due to their presence on the board, they should, however, have a grasp of the broader issues affecting the association in order to help drive its future.
Yes, board members are typically senior leaders with deep experience and broad knowledge in running complex organizations. Like most executives, they probably have experience with the fundamentals of strategic planning.
Though strategic plans are necessary, the great ones are fueled by strategies that help the association win the future. This is what distinguishes great associations from the rest of the pack.
The Product Community is a product development learning community designed specifically for associations.
What is a Strategic Board?
“Getting the simplicity right creates the magic.”
Keith Richards
Strategy isn’t always easy, but there are foundational things we need to do well to ensure we’re in sync and rowing in the right direction. A strategic board is engaged, understands its role, has been properly trained, and believes in the healthy boundaries afforded by a value for shared governance.
A strategic board doesn’t build or execute strategy. It helps the association identify challenges, determine external forces, and/or provide insights on what’s coming. It stays at a high-level and – through ongoing board chair and executive director dialogue – communicates with focus, intention, and regularity. Trust is paramount.
Let’s clear up some common myths or misconceptions about strategy:
Strategy and strategic planning are the same thing. Strategy drives strategic planning. I find that although strategic planning is common, strategy is fairly rare. Most strategic plans are shelf documents that don’t get at the real issues of what it means to create and sustain a community of excellence.
A strategic mindset is a requirement of board members. Being a senior leader does not equate to an affinity, talent, or experience with strategy. While a strategic mindset is a bonus, cultivating board members with broad experience, open minds, availability to focus, and a willingness to help drive the future are the common foundational ingredients for shared success.
There is one definition of strategy. The word strategy is one of the most misused and misunderstood concepts in the world of business and organizational change. I argue associations should set a high bar and settle on a single definition of strategy. Shared understanding drives shared progress.
Strategy is senior-level work. Yes, in some senses this is true, but many senior level leaders aren’t trained in – or regularly practice – strategy. Panic or serial mismanagement create an addiction to short-term thinking. Plus, I believe that strategy work is everyone’s work (more on this in a moment).
The board leads strategy crafting. In a true shared governance environment based on trust and alignment to the future, the executive director – in close concert with the board – leads the development and execution of the strategy. The board guides, supports, advises, and pushes for a sound strategy that can be executed within the planning horizon.
Strategy happens every five years. Strategy is embedded in daily work not relegated to semi-occasional planning retreats. It is a living concept that governs our actions, attitudes, and behaviors. Easier said than done, but a strategic plan that becomes a shelf document is not serving an association that wants to win the future.
To ensure boards and executive directors are aligned, agreeing on a shared definition is vital. So, what is strategy?
Strategy is investing in a set of focused choices that define a shared, compelling future. The purpose is to develop a unique value proposition and to gain competitive advantage. It involves making deliberate choices on who we want to be, where and how we want to serve, how we plan on winning, and where to invest and allocate resources to achieve specific outcomes.
Investing in strategy often involves committing capital, time, and effort to support execution. This can include activities such as acquiring new technologies, hiring talent, enhancing organizational capabilities, expanding infrastructure, reaching new markets, and/or growing research and development.
In complement, developing a strategic plan is a comprehensive process that involves defining an association's mission, vision, values, and long-term goals. It is a structured approach to establishing the direction and priorities of an organization. It is an outgrowth of a focused, choice-driven strategy.
We can’t do this alone so let’s dig into how to cultivate and sustain a strategic board.
How to Cultivate and Sustain a Strategic Board
“If a board that meets just a few days a year can do a better job of setting strategy than the CEO who is in the business 24/7, then the board has the wrong CEO.”
Roger Martin
An association’s executive director is in charge of strategy, the de facto chief strategy officer. The ED, however, is not alone so identifying the right board members to serve as advisors, guides, and subject matter experts in the association’s focus – trucking, the apple industry, insurance, or higher ed – as well bringing a particular lens to keep the board diversified and focused: finance, trends, technology, data, etc.
Perhaps most important, is ensuring the board is inclusive in voice and diverse in representation. A diverse board reflects our values and pushes us to focus on healthy outcomes. There are a number of steps to cultivate, recruit, continually develop, and sustain a strategically-focused board. Let’s take a look.
Identification
Expertise and Diversity – Look for individuals with diverse skill sets, experiences, and backgrounds that align with the association's goals.
Passion and Commitment – Seek members who are passionate about the association's mission and are committed to its long-term success.
Connections and Networks – Identify individuals who have networks and connections that could benefit the association.
Cultivation
Clear Roles and Expectations – Ensure that each board member understands their role, responsibilities, and the expectations placed upon them.
Training and Education – Provide proper training sessions to familiarize board members with their duties, the association's mission, industry trends, governance practices, and legal responsibilities.
Communication and Collaboration – Foster an environment where open communication and collaboration among board members are encouraged. This includes active participation in discussions and decision-making processes.
Sustaining Engagement
Regular Evaluations – Conduct periodic evaluations to assess board members' performance, commitment, and contributions.
Term Limits and Succession Planning – Implement term limits to bring in fresh perspectives and ensure succession planning for smooth transitions.
Board Meetings and Agenda – Structure efficient and productive board meetings with well-defined agendas that focus on strategic discussions and key issues rather than micromanagement.
Encouraging Innovation – Foster an environment where board members feel encouraged to bring innovative ideas and solutions to the table.
Shared Governance and Boundaries
Clarity in Governance Model – Clearly define the governance model and the boundaries of the board's authority, ensuring alignment with the association's mission and values.
Collaborative Decision-making – Encourage collaborative decision-making that involves input from various stakeholders, including members, staff, and external experts.
Transparency and Accountability – Maintain transparency in operations and decisions while holding board members accountable for their actions and commitments.
Value Alignment
Mission and Values Alignment – Ensure that board members share a deep commitment to the association's mission and values.
Ethical Standards – Uphold and promote high ethical standards and integrity within the board.
Sustaining a strategic board is an ongoing process that requires continuous nurturing, evaluation, and adaptation to changing circumstances. Regular assessments, training, and fostering a culture of trust and collaboration are essential for maintaining an engaged and effective board for the association.
To position an association for durable, sustainable success – perhaps most critically – is designing strategy that bridges successive board terms (see my article Aligning Successive Board Chairs).
Strategy Roles and Responsibilities
“Eventually we all have to accept full and total responsibility for our actions, everything we have done, and have not done.”
Hubert Selby Jr.
Association strategy is an iterative and interactive process in which the executive director is in charge, but gets the maximum guidance and advice from the board. This is realized through three steps.
Step One: Input and Alignment. The executive director seeks the board’s input and insights on the association’s challenges the board thinks the strategy should address. For instance, board members might feel the strategy should address technology disruption, the slowing of growth, or an erosion of engagement. Even if there is not total agreement, the executive director can incorporate areas of concern from the beginning of the process.
Step Two: Consultation and Possibilities. In the middle of the process, the executive director should come back to the board with diverse approaches to dealing with the challenges the board expressed. The executive director isn’t seeking approval at this point, just advice and feedback on potential solutions: which resonate, remaining concerns, how some of the approaches might be modified, etc. This lays the groundwork for eventually presenting strategy recommendations to the board.
Step Three: Presentation and Approval. The executive director presents the desired strategy to the board. As there has been ongoing dialogue and alignment about the challenges to be solved (and ways to solve them), the recommendations should come as little surprise. As they have been appropriately involved along the way, they can intelligently affirm a strategy that it understands and to which it has meaningfully contributed.
Though these three steps are indeed broad strokes, they are a great way to not just build a strategic plan, but to ensure the strategy is alive, widely bought into, and sustained over time. See my article Preparing Volunteers for Strategic Change for additional insight.
The Ultimate Partnership
“A coherent communal story is a new form of power.”
David Brooks
The most successful associations are a true partnership among volunteers and professional staff, executive leadership and the board.
This culture of shared innovation should extend beyond the board and into standing committees and short-term task forces. If professional staff serve at the behest of the volunteers, there will be a power imbalance and the overall association will suffer in performance, reputation, outcomes, and culture.
The ultimate partnership serves the ultimate destination: developing and executing an achievable strategy in order to tackle and win the future together.
Product-led growth fuels connection. Join the product community and flip your destiny.
About the Author
James Young is founder and chief learning officer of the product community®. Jim is an engaging trainer and leading thinker in the worlds of associations, learning communities, and product development. Prior to starting the product community®, Jim served as Chief Learning Officer at both the American College of Chest Physicians and the Society of College and University Planning.
Please contact me for a conversation: james@productcommunity.us.
Thanks, Renee! I post a new article each week. If you haven't done so already, please consider subscribing. Hope you're well!
Some great insights here - thank you!