NONPROFIT NEWS

Study identifies characteristics
of effective board chairs

What qualities do great board chairs have, what makes another chair particularly ineffective and does it really matter if the chair of your board of directors is one or the other?  Board ineffectiveness, according to a 2003 article in Business Economics, has contributed to a $7 trillion loss in the value of U.S. corporations. Does it impact nonprofits, too?

A new study, "The Role and Impact of Chairs of Nonprofit Organization Boards of Directors: An Exploratory Study," completed in April examined the qualities of highly effective and highly ineffective board chairs as perceived by experienced executive directors and board members. The study was conducted by Yvonne Harrison of Seattle University and Vic Murray of the University of Victoria (British Columbia, Canada), who began with in-depth interviews of a small, diverse group of nonprofit CEOs and board members in Victoria and Seattle and a larger online survey with 200 responses from across the U.S. and Canada.

Citing the recent case of the chair of the Hewlett Packard board who spied on board members, Harrison and Murray set out to determine whether some board chairs were perceived as being more effective than others, what characteristics made them more effective, how does their effectiveness impact the organization, its CEO and the support from its stakeholders, and the factors that influence a chair's effectiveness.

Looking at behavioral characteristics of exceptional board chairs, the study found that qualities rated least desirable were those found to be characteristic of ineffective chairs. For example, focusing on the details was rated lowest of characteristics of effective chairs, while seeing the big picture was rated the highest. The study also found respondents agreed more about the characteristics of effective than ineffective board chairs.

General qualities of exceptional board chairs, ranked from most desirable least desirable:

  1. Ability to see the big picture
  2. Clarity about their role
  3. Commitment to the organization
  4. Ability to clarify issues
  5. Ability to handle contentious issues
  6. Commitment to getting things done
  7. Ability to be collaborative
  8. Tendency to be proactive
  9. Knowledge about the organization
  10. Ability to coach and mentor others
  11. Connections and influence they use with key people
  12. Use of connections to advance the organization
  13. Time they devote to the organization
  14. Ability to focus on the details

Personal qualities of exceptional board chairs, ranked from most to least desirable: 

  1. Trustworthy
  2. Good listeners
  3. Bright/intelligent
  4. Focused
  5. Empowering
  6. At ease with people of all types
  7. Confident (not inappropriately so)
  8. Had a sense of humor
  9. Organized
  10. Calm
  11. Flexible
  12. Non-judgmental
  13. Innovative
  14. Friendly and nice
  15. Altruistic
  16. Humble
  17. Strong and authoritative
  18. Critical
  19. Had their own agenda

Does it matter if your chair is effective? Ranked in order of agreement, the study found respondents felt exceptional leaders directly impacted:

  1. Clarity of board's role vis a vis the role of management
  2. Board efficiency and effectiveness
  3. Board’s ability to attract top quality board members
  4. Board's due diligence function
  5. The organization’s financial position
  6. The organization’s stability and ability to successfully resolve crises
  7. Morale of staff, volunteers or members
  8. Organizational efficiency
  9. The organization’s innovativeness

The study will be reported in the Nonprofit Quarterly in its next edition. The goal of the next phase of their research, say professors Harrison and Murray, “is to find answers to the bigger question of why some board chairs are more effective than others. If you are will to help us further, please click on the following link to a brief two-minute questionnaire:”  http://www.surveymonkey.com/s.aspx?sm=Zs4FpulsYuDm_2bmm4VVl0_2fw_3d_3d