Entrepreneurs: Beware The Not-For-Profit Board!

I've seen it so many times in the past. A young entrepreneur is impressed with the work of a charity and is excited when asked to sit on their Board.

Unless properly oriented and guided, it is very common the for the business person to end up feeling frustrated, angry and disenfranchised from (what was at one time) their favourite charity. Given how difficult it is to get talented people onto the board, and how damaging negative reviews can be, it is crucial that charities and non profits understand why this happens and how to avoid it in the future.

Entrepreneurs, by their nature, have succeeded because of their mindset, tenacity and sheer will. They may have faced seemingly insurmountable obstacles, but they overcame them all to get where they are. They know how to get things done, and while may appreciate an insightful comment or suggestion, generally run the ship.

On the other hand, the average Board of Directors for any mid to large size charity usually struggles with having too many directors. They juggle between having members who represent some important demographic, those who have wealth, those who actually get work done, and then there are those who they cannot remove because they've been on the board for some many years (decades?) and no one has the courage to ask them to leave. That's quite a stew of personalities, and not always a recipe for success. Where does the energetic entrepreneur fit into this?

The first thing to keep in mind is that the entrepreneur will expect their ideas to be followed and implemented. They may not be expecting a great deal of debate or discussion once they give their directives. NFP board are all about teamwork; they follow the maxim that "all of us are smarter than one of us." While frustrating to the successful business person, a poor decision, and its legal ramifications, are usually borne on the board as a whole, not just an individual director.

Prior to bringing the entrepreneur onto the board, sit down with him/her. Review how the board works and the importance of the process of consensus and teamwork. Orient them to some of the very important history and initiatives to the directors and organization. Explain how some of the seemingly benign issues may in fact be flashpoints, or how others are so very interconnected which has resulted in decisions being put off. Entrepreneurs are doers and rarely have time or patience for indecisiveness. For the NFP, the political process often ends up being as important as the endpoint itself.

As you reflect on this with your potential new board members, listen to their comments. At this point, s/he can still pull out, save face, and continue remain a strong friend and supporter. That may be even more important than having them on your board.

Then ask them for their advice. Let them bring their skills to the table. Allow them to have a slot on the agenda to train their fellow board members in a new method, idea or technique that they feel will help the board be more efficient and effective. Giving them the role of teacher/trainer will help them shift their mental gears from "Drill Sergeant" mode to "Coach". It may also help some of the seasoned board members who may otherwise feel resentment at having the "young upstart" come and tell them what to do.

Another approach is to give your new board member a special title or role. Maybe they will be responsible for recruitment and outreach? Perhaps they will take the lead as fundraising chair (and since most board members hate fundraising, this will certainly make them very popular with their fellow members). If they are given permission to "own" an area, then they can rule that roost without ruffling too many other feathers.

As much work as there is to do with your new inductee, there may be even more to do with your current board itself. Board cultures differ, one from the next. Some boards eschew change and prefer the status quo. Others embrace it, seeing the opportunity to grow as a chance to become even better.

Ironically, it is these static boards, where integration will be the most difficult, where the entrepreneur will be needed the most. In all likelihood, the cobwebs are gathering and a fixed mental state is likely settling in, if not already present. The board's inability to see the need for change is usually one of the biggest signs that change is needed, and soon. In these situations, professional assistance from a consultant can be very helpful to move the board along, as the organization's staff may not be able to manage the transition.

Integrating the entrepreneur incorrectly into the board can upset the delicate balance and distance your other members, resulting in accusations of favouritism or even trigger resignations at the extreme end. Getting it right, however, can breathe a breath of fresh air and help rejuvenate a tired or lagging board. Moreover, correctly executed, the induction of the entrepreneur can be a very satisfying experience for him/her, and result in even bigger support in the future.

Mordechai (Marc) Bookbinder, Hon BA, MSW

Simplicity Consulting

www.simplicityconsult.com

Simplicity: Because jargon doesn't produce results