Friday, January 7, 2011

Why Boards Micromanage

Why do Boards sometimes micromanage?

If you’ve ever served on a board or worked for a nonprofit organization with a board of directors, you have probably noticed there are times when board members tend to move away from the lofty role of oversight and into the operational side of the organization. It happens. But, why?

I believe one key reason is that the generous volunteers who agree to serve on a board often come from successfully managing in business. They may have gone to school to learn how to administer a business and they have likely spent years honing those management skills. Therefore, these worthy folks are very comfortable in the management world.

But very few of us ever get any formal education in the art of governance. And, even when someone is elected or appointed to a board, he or she is not likely to receive adequate training in board governance. Most of us have learned good governance through trial and error, and reading the occasional book on the topic.

Another reason board members micromanage could be that governance requires, by its very nature, a long-range focus. Operational issues are frequently resolved quickly and results realized right away. But strategic issues can only be realized over time. Most strategic plans are designed to be measured over two, three or more years. There just isn’t the immediate gratification we desire.

Another thought I have about micromanagement is that sometimes a CEO leads the board in that direction. This could happen if a CEO is unsure of his or her actions and frequently brings operational issues to the board table for affirmation.

A board is micromanaging if it:

· Approves individual salaries;

· Is present for staff meetings;

· Approves the organization’s monthly checks (really common!);

· Decides which vendor to use;

· Contacts staff members for information (when not specifically asked to do so) or “pumps” the staff for an assessment of the CEO’s effectiveness.

These are just a few examples. Do any of them sound familiar?

A CEO who recognizes this kind of overstepping should discuss this with the board chair in order to find a solution. It is helpful if board and staff are regularly reminded of the difference in the their roles and given direction on proper communication techniques.

Have you ever experienced board micromanaging, either as a board member or a staff member? What are some other good examples of micromanagement? More importantly, how can board micromanaging have a negative impact on an organization?

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