Tuesday, 25 June 2013

What About Term Limits For Board Members?




It is important that we have term limits for board members so we can get fresh blood.

You need terms limits; otherwise how do you get rid of poor board members.

Make sure you have staggered terms so everyone does not leave at once.

And there are other supposedly good ideas for ensuring term limits for board members.

In many cases excellent board members are “forced” to step off the board to make room for often less experienced, less effective and even less willing board members. Add to this the lack of familiarity which new board members have with the current functioning of the board and therefore requiring orientation and training time.

Healthy boards do not need fresh blood. A board that is functioning with excellence will have ongoing connection with its various constituencies. These constituencies include the legal members, volunteers, donors, recipients of the ministry etc. The board is constantly being challenged by the input of these people and using that input to further clarify its Ends. Ends is the Policy Governance® term used to describe the benefit/blessing provided by the ministry, the beneficiaries of that ministry and the relative cost/value for providing that ministry.

What do we do with board members who are ineffective or just plain tired? One option is to place something in the bylaws that legally requires the organization to do what it does not have the moral fortitude to do; (an option, but not a particularly good option). A board needs to be constantly monitoring itself to ensure that the directors are performing their role effectively. Another way to address this is to have one, two or three-year terms which are constantly renewable. For example a Nominating Committee can approach those board members who are doing an effective job and invite them to let their names stand for reelection. Doing so requires the Nominating Committee to do its homework in finding out if the particular board member is effective. It also allows the membership the opportunity to vote out directors which the membership senses is not effectively governing on its behalf.

I currently serve on the international board of a mission organization that has a very low turnover. This virtually eliminates the concern for having all board members resign at the same time. If a board wants to mitigate the likelihood of this possibility, it can still have staggered terms. 

Whatever an organization decides to do, it needs to do so because it is in the best interests of the organization and not because the board is unwilling to monitor the effective performance of its directors.