If every board meeting focused on what is important to the primary stakeholder, success would follow. When the primary stakeholder is served, the agency finds peace, unity, and a sense of fulfillment. A collateral or coincidental benefit is an increase in clients, volunteers, collaborations, and donations.
The community is the primary stakeholder. Community ownership and benefit is why the IRS grants nonprofit status to the agency. The exception is a faith-based organization. With faith-based organizations, God is the primary stakeholder.
At Mission Enablers, we help nonprofits build their capacity to serve. Because that is a strategic activity, we have the privilege of attending most board meetings.
Every board in this country exists to serve the stakeholders. In the for-profit world, the primary stakeholder is the stockholder. The board must pay attention to the desires of the stockholder. Likewise, nonprofits must pay attention to what matters to the community.
Here are a few questions to ask after attending a board meeting. How much, if any, time did we spend on the following topics?
The community –did anyone ask what does community wants us to do or mention the community?
The mission – was the mission mentioned at all?
Did anyone ask how will this decision serve the mission?
The clients – were the clients, their welfare, or success discussed?
Main service – was there any discussion of the main service offered by the agency, how to improve it, create better outcomes, etc.?
Money – did all of the discussion revolve around money, disagreement about non-mission topics, and scarce resources?
Some would say that the community, mission, client, and services are all a part of the discussion of money. A properly functioning corporate board never makes the stockholders an implied part of the conversation.
The primary interests of the stockholders are growth, profits, and sustainability. Money is the primary measure so it is appropriate for the for-profit board to discuss money. Money is the way we know that the board is serving the interests of the stockholders.
The community’s primary interests are the mission and the success of the clients. Is money a valid measure? Should you talk about something that is unimportant to your primary stakeholder?
Imagine how changing the focus from money to what matters to the community will change the discussion. It is a tough transition. It is a cultural change for many boards. Cultural changes are time consuming, hard work, and messy.
Success will be more than worth the effort!!! The peace, unity, and sense of fulfillment that comes from every board meeting will be worth it. A collateral or coincidental benefit is an increase in clients, volunteers, collaborations, and donations.
As always, if you want help contact us.
