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White Room

What's Board Governance Got to Do with Innovation?


"Boards that embrace change, that are forward-looking, that are nimble and adaptive, and that take measured risks will drive their organizations to greater impact."

Risa Lavizzo-Mourey

Former CEO and President, Robert Wood Johnson Foundation


Currently, while serving as Chair of the Board of Trustees for Philanthropy Southeast (PSE) and as a new board member for Metropolitan Business League (MBL), I'm witnessing up close the dynamic and rapidly changing world of board governance in philanthropy and the non-profit sector where there's an undeniable and yet often unrecognizable symbiotic relationship between innovation and board governance. This interplay becomes even more palpable when you add the relationship between the board and executive leadership into the mix. While the organization's executive leadership and team are responsible for the day-to-day strategic implementation of the mission, vision, and goals, It's the board of directors who sets the strategic direction and, in doing so, plays a pivotal role in fostering or stifling innovation. Often, the board's decisions to make or not make decisions set in motion a series of events that can either propel an organization into new realms of change or anchor it firmly to the past. This relationship is not just linear but multi-dimensional, with each entity influencing and being influenced by the other. A visionary board recognizes that to stay relevant and have a lasting impact, they must adapt to change and often be the forerunners of it. An agile, forward-thinking board can differentiate between transformative change and stagnation.

Here are seven lessons I believe boards must embrace to be innovative and impactful:

  1. Adaptive Governance: In an era marked by rapid technological advancements and swift societal shifts, sticking to age-old governance methods might need to be in sync. As businesses pivot according to market dynamics, non-profits must continuously reevaluate their strategies in response to changing societal needs. This doesn't mean boards and organizations should be hopping onto every trend but discerning which changes align with the organization's core mission and values. A board that actively promotes a culture of learning and adaptation ensures longevity and relevance. For example, with PSE, we engaged in a series of learning journeys throughout the American South, had courageous conversations about our history, and engaged diverse voices and perspectives to inform our direction before implementing our Equity Framework.

  2. Diverse Perspectives Foster Innovation: More is needed to have a board; the composition of that board is crucial. Including voices from various racial, gender, socioeconomic, and experiential backgrounds ensures a rich tapestry of ideas. When board members bring diverse life experiences to the table, they enrich brainstorming sessions, leading to holistic solutions that consider multiple stakeholder needs. Moreover, boards that reflect the communities they serve are more likely to gain trust and support from those communities.

  3. Trust in Leadership: Trust isn't just about belief but about empowerment. A board that micromanages stifles innovation, whereas one that empowers the executive team to make decisions fosters an environment ripe for creative thinking. This trust is cultivated through open communication, setting clear expectations, and creating spaces for feedback and reflection.

  4. The Role of Technology in Governance: As the world becomes increasingly digital, how can boards utilize technology not just for efficiency but for expanding reach, understanding their communities better, and fostering innovation? Technology transcends mere tools and platforms; it's a transformative agent that reshapes how organizations function. For non-profits, technology presents a dual-edged sword. On one side, there's efficiency — automated processes, virtual meetings, and digital record-keeping streamline operations. On the other, there's expansive potential. Boards can employ data analytics to gain insightful patterns about community needs, utilize social media for genuine engagement and outreach, and leverage collaborative tools to drive participatory decision-making. Embracing technology isn't about replacing the human touch but augmenting it. By integrating advanced tech solutions, boards can ensure that their organizations remain agile, connected, and responsive in a dynamic landscape.

  5. Measuring Innovation: It's essential to have metrics to measure innovative strategies' outcomes. How can boards effectively gauge the impact of their innovative initiatives? Innovation isn't just about ideation but a realization. Boards must understand that innovation remains a nebulous concept without measurable outcomes. Setting up Key Performance Indicators (KPIs) tailored to innovative initiatives is a start. For instance, when a new community outreach program is initiated, its success could be gauged through community feedback, participation rates, and tangible impact (like improved health metrics or educational outcomes). Boards must also ensure that these metrics are continuously updated, reflecting the evolving nature of innovation. Regular reviews and 'innovation audits' can help identify which strategies are bearing fruit and which need rethinking.

  6. Challenges to Innovation: Innovation is not always smooth sailing. There might be resistance to change, both internally and externally. How can boards navigate these challenges, and what strategies can they employ to mitigate them? Every wave of change faces resistance. In the non-profit sector, this resistance can be multi-faceted, from stakeholders fearing redundancy or the unknown to external partners unsure about the potential implications of change. Boards play a critical role here — by fostering a culture of openness. Encourage open dialogues where concerns can be voiced and addressed. Transparency in the decision-making process is key. Risk assessments and pilot testing can also be invaluable, allowing for small-scale implementation before a full-scale rollout. It's essential for boards to position themselves not as mere enforcers of change but as visionary leaders, empathetic listeners, active learners, and guides through the process.

  7. Continuous Learning: Emphasize the importance of board members' commitment to constant learning. This might include workshops, courses, or even immersion experiences better to understand community strengths, needs, and opportunities. The non-profit landscape isn't static; societal shifts, global events, and community evolution shape it. For boards to lead effectively, they must refrain from resting on their laurels or past successes. Continuous learning is non-negotiable. This could take the form of regular training sessions, exposure to local, national, and global best practices, or even community immersion experiences or learning journeys to understand the people they serve sincerely. Beyond formal education, boards should foster a culture of curiosity, where members are encouraged to stay updated with global trends, new technologies, and innovative governance models. Such a culture ensures that the board remains proactive rather than reactive, always ready to lead its organization into the future.

If we hope to address the complex social issues that perplex us, our philanthropic, non-profit sectors need innovative strategies and governance models that recognize and respond to this. It's time to reevaluate and recalibrate for a brighter, more innovative future.


 

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