The Third Pillar of Governance: Monitoring and Improving Performance

 

 

 

 

 

 

 

 

Reading reports does not equal monitoring. In our final installment of pillar three – the power triangle of strategy, resources, and performance – we dive into the board’s role in monitoring and improving organizational performance.  This foundational tenet connects to the three duties. While basic oversight might not inspire much excitement, it’s a core board function.

Two elements comprise effective control:

  • Financial and legal oversight – things like financial planning, controls, audits, and meeting legal requirements 
  • Executive Director and Board oversight – things like ED review (mentioned last week), compensation, annual board review, composition, robust nomination, and orientation

Avoid the checklist approach to monitoring. Tick the box without really understanding what’s happening in these two key is all fine and good until it’s not. Be an active, engaged board member in reviewing financials, legal, ED performance, and board performance.

Take swift action to improve things that aren’t working…and watch your organization soar!