Board & Executive Director Relationship

The board of directors delegates the task of running the non-profit organization to the executive director, or management team. It is the board’s responsibility to ensure an executive director/CEO is in place that is capable of moving the organization forward. Ideally, boards should formally define their expectations for their executive director/CEO, which includes: setting clear objectives, defining responsibilities, setting out performance measures and targets, monitoring the executive director’s performance against those targets, and setting out the executive director’s remuneration.

While the board should support the organization’s management team, its basic role is to question, scrutinize and actively monitor its decisions, operations and compliance with plans and policies. Board meetings should include time for the board members to constructively question, test and challenge management’s views and proposals.

When done right, the hiring process can be a good opportunity to highlight your organization and focus on its new direction.

HIRING THE EXECUTIVE DIRECTOR

Before starting the hiring process for a new executive director, is taking the time to assess your organization and determine its strengths, key challenges and areas for improvement. This analysis will help to determine the most appropriate person for the organization. This is a good opportunity to review your organization’s vision and mission, existing short-term and long-term plans, financial condition, current staff complement, and community image and reputation. From this assessment, a board can get a clearer perspective on the type of individual required for the position, as well as identifying key skills. Consider inviting staff to be part of this process.

Next, prepare or update the Executive Director’s position profile, or job description. The job description should include: the accomplishments expected, the working relationship between the executive director and the board, a summary of responsibilities’ and specific duties and the description of the board’s governing style. Check out some sample job descriptions as a model.

After updating the job description, the board should review the salary and benefits package for the position. There are several compensation studies that have been done in the past few years to determine a remuneration level.

The board will also need to determine how extensive of a search process it plans to undertake. Some board’s use an executive search firm if they are uncertain of there being suitable candidates that will apply. This is a costly approach, but sometimes saves time. Some board’s will appoint a hiring or search committee to ensure the promotion of the position is shared widely and attracts some ideal candidates. They may even get the entire board actively involved in soliciting candidates to apply. In this case, it is important to select a chairperson for this committee that has the time and energy and can keep the process fair, timely and well-organized.

After the potential candidates have been identified and scheduled for interviews, the hiring committee or board members should meet to determine the flow of the interviews. The interview process should include the creation of interview questions and scoring sheets. Interviews should be scheduled with enough time to allow both the committee members and candidate a chance to get to know each other and cover the interview questions. It is an opportunity to discover how each candidate is able to move the organization forward. Some organizations have candidates present on a topic, or work on their own to complete an assignment. Leave time in between interviews and do not schedule too many in one day.

After the interview, the hiring team can meet to select the candidate. It is a process of discussing how appropriate each candidate is for the position, using the information collected from the interviews. Remember that previous behavior is one of the best predictors of future behavior.

Before offering the position to the candidate, is to make a hiring recommendation to the board. It is important for the candidate to know that the entire board supported the hiring decision, not just those on the search committee.

Once the board has approved the recommendation, the search committee can make the job offer. Be sure to include information such as salary, increment schedule, benefits, holidays and the length of the probationary period. The candidate may also have questions for the organization, including “why did the last Executive Director leave”? Be sure to be honest and build the trust level for the ongoing board/executive director relationship.

When the new hire has accepted the position, it is appropriate for the board to issue a public announcement to your membership and even the media. However, before going public, it is good public relations practice to contact the unsuccessful applicants and let them know the status of their application. When done right, the hiring process can be a good opportunity to highlight your organization and focus on its new direction.

REVIEWING THE EXECUTIVE DIRECTOR’S PERFORMANCE

Since the relationship between the executive director and the board is important to the success of the organization, it is essential to keep lines of communication open. The best means of communicating a clear direction is by ensuring the executive director is given an annual performance appraisal.

This might not always be the most comfortable role for volunteer board members; however, there are many performance appraisal tools available. In Reviewing the Executive Director Performance: A Guide for boards of Directors (in the download button below), boards must ensure that, performance reviews are not just a once-a year event focused on an interview, but should be a continuous process that is forward-looking and helps clarify communications and expectations.

Once again, a board committee can be created to undertake the executive director’s performance appraisal. However, the performance appraisal and any remuneration changes must be taken to the full board for approval, before they can be confirmed with the executive director. While the board may see any materials developed during this process, it is important to share the committee’s comments on how well the executive director had met goals and expectations up to the point of the appraisal, as well as identifying any new expectations going forward. The committee should be able to make a compelling case to the rest of the board for any form remuneration increase.

WHAT IF PERFORMANCE IS NOT MEETING EXPECTATIONS?

If an executive director is meeting expectations, the performance appraisal is generally a positive experience for all involved. However, if there are challenges to address, the committee, and the entire board, must be diligent in their process. It is important for the committee and/or entire board to go through the performance appraisal process. Upon completion, all comments on expectations shared at the appraisal meeting should be prepared in a written format, as well as the areas of change expected by the board, by an expected date. The document is then signed by the executive director and the board chairperson to confirm a shared understanding. The document is given to the executive director, and a copy is retained in the Board’s file.

If more action is required, it is best for the board to obtain legal counsel before moving forward with any action.