Managing the Transition From a Working Board to a Governance Board

The evolution of a board from hands-on operational involvement to strategic governance is a pivotal change with huge potential positive impact, but it’s hard. Some board members may not survive the transition. Let’s better understand the reasons for change and how we can best protect our valued board members, starting with the most important one, the board chair. 

Jorey Berry, CEO of the Immune Deficiency Foundation, and Tracy Shaw, her board chair, together managed the board from operational to what they describe as “strategic/generative” over the last few years. 

“This relationship [with my board chair] can’t be underestimated,” Berry said. “We had no choice but to build an authentic partnership that relies on mutual respect and trust. We learned each other's communication and personality styles and preferences — and this helps keep us strategically aligned and on the same page. I can have frank and honest conversations with her.  This has directly influenced the trajectory of the board’s own transition, which has fostered the organization’s transformation.”

Leading the transition of her chapter boards of directors into boards of trustees, Cyndi Zagieboylo, CEO of the National Multiple Sclerosis Society (NMSS), consolidated her organization into one 501(c)(3). After that process was completed, chapter boards had to move away from activities such as performing audits, approving budgets and reviewing financial statements. 

“The biggest challenge we had was keeping and developing those boards to doing their [primary] job of community engagement, community presence, building trust and confidence, and expanding community resources,” Zagieboylo said.

Sara Struwe, CEO of the Spina Bifida Association, is in the midst of such a transition at the moment. 

“We're struggling with how much the board needs to be in the weeds,” she said. “I think that's a common occurrence when you're trying to get boards focused on higher level things. It's easier to focus on smaller level things or the day-to-day operations. I think they feel like they have control over those things (like fiduciary responsibility).”

But Struwe added, “It's really about building relationships with people …. They're the best voice for us. Them delivering the message is much more impactful because they're the ones who are closest to the mission.”

The Importance of a Successful Transition

Here are five reasons why a board might go through the transition from working to governance.  

1. Scalability and Sustainability

As nonprofits grow, the demands of day-to-day operations increase. A working board, typically more involved in these daily tasks, might struggle to manage this increased workload. Transitioning to a governance board allows for scalability, as it empowers staff to handle operational roles, freeing board members to focus on long-term strategic planning and oversight. This shift is essential for sustainability, ensuring that the organization is independent of the board for operational success.

2. Professionalization of Operations

The growth of a nonprofit often necessitates a more professional approach to operations, which may include hiring specialized staff and implementing more structured processes. A governance board is better suited to oversee these professionalized operations, bringing in their expertise to guide strategy and policy rather than being involved in the day-to-day execution.

3. Risk Management and Compliance

As organizations grow, they face more complex legal and financial responsibilities. A governance board focused on oversight is better equipped to ensure that the nonprofit adheres to legal standards, manages risks effectively, and meets its compliance obligations. This shift is critical in maintaining the trust and confidence of stakeholders, including donors, beneficiaries and the public.

4. Enhanced Strategic Vision

Transitioning to a governance model allows board members to step back from operational involvement and develop a broader, more strategic vision for the organization. This strategic focus is essential for long-term planning, identifying new opportunities, and navigating challenges, which is fundamental for the growth and evolution of the nonprofit.

5. Diversity and Inclusivity

A governance board — often less bogged down by operational tasks — can prioritize broader goals, such as diversity and inclusivity. This focus can lead to more diverse recruitment, both on the board and within the organization, fostering a culture that reflects the communities the nonprofit serves.

Introducing the Transition

Recognizing the need for this transition is the first step. It often begins when key stakeholders, including board members and executive staff, see that the current operational model is becoming unsustainable or limiting the organization's potential. The board must then self-assess, evaluating their current involvement and how it aligns with the organization's evolving needs.

Managing the transition from a working board to a governance board in a nonprofit organization involves navigating complex psychological situations. 

1. Preparing Board Members for Change Due to Growth

The first step is preparing the board for the impending changes. Board members in a working board are deeply involved in the day-to-day operations. This involvement often leads to a strong sense of ownership and personal investment in the tasks they perform. However, as the organization grows, these tasks are increasingly delegated to staff members, which can lead to feelings of loss or redundancy among board members.

The key here is communication and education. Board members must be made aware of the reasons for the transition and its benefits to the organization. Highlighting the importance of their role in governance rather than operations can help them see the value they continue to bring. Providing training or workshops on governance roles and responsibilities can also be beneficial. This prepares them for their new roles and shows that their contributions are still valued and essential.

“The most important thing I think is that everybody knows, and you can speak openly about and agree on the roles,” Zagieboylo said of her multiple boards’ transitions.

2. Psychology of Feeling Violated When Change Occurs

When the change causes a board member to feel violated, it's often because their identity and self-worth have become intertwined with their operational role. They might think that their contributions are no longer needed or valued, leading to feelings of loss, anger or resentment. This emotional response is a natural part of the change process and should be handled with empathy and understanding.

Acknowledging their feelings and contributions is a crucial first step. Engage them in discussions about the transition and provide a space where they can express their concerns. It's important to validate their feelings while gently guiding them toward the realization that the change is for the organization’s greater good. Encourage them to see this as an opportunity to grow and contribute in new and potentially more impactful ways. 

Positioning the change as an elevation of importance is key, Berry said. 

“Basically, the board was given permission to have aspirations for the organization and its patient community and move into vision and strategy,” she said. “It was exciting to watch.”

3. Keeping Board Members Engaged After the Change

The final challenge is keeping board members engaged after the transition. This requires a clear definition of their new roles and how these roles contribute to the organization’s success. Regular training and development opportunities can help board members feel competent and confident in their governance roles.

Creating opportunities to provide strategic input and advice can also keep them engaged. This could include involving them in long-term planning, policy development or ambassadorial roles. Recognizing their contributions, both past and present, is also crucial. 

“What I found was that [we needed] the people who looked more like philanthropists and people who were going to try to help elevate the cause,” Debi Brooks, CEO Michael J. Fox Foundation (MJFF), said regarding her organization’s perspective on board roles.”[We found] if [the conversation in the board meetings] was around a topic where there's an expert in the room, everybody defaults to the expert’s point of view, and I found that to be quite limiting. … You know, there's kind of a power bind in there.”

Brooks continued, “But we took it further … if we put one Parkinson's researcher [in board meetings], everybody else in the room could say, ‘Well, I'm not an expert in that.’”  

That limiting mindset, Brooks shared, created a tension between being so connected to the underlying mission as an expert that the opportunity to think, “how do you build the business of the organization” could be overlooked. As a result, the MJFF board is primarily composed of what Brooks described as “builders” instead of Parkinson’s experts. Her builders are positioned to do exactly what Zagieboylo described as her own board members’ ideal efforts: Community engagement, community presence and expanding community resources.

At the end of the day, transitioning from a working board to a governance board is a delicate process that requires careful handling of the psychological aspects involved. Preparing board members for the change, addressing their emotional responses and keeping them engaged in their new roles are critical steps in ensuring a smooth transition. With thoughtful handling of the psychological transitions needed by board members, this change — while not painless — can lead to a more effective and efficient board, ultimately moving your mission forward faster.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.