While many board members are enjoying a bit of a summer break, I find Governance Committees are still hard at work. These dedicated committees are carefully reviewing their board’s policies and brushing up their governance practices to gear up for the fall. Watching the diligence of these committees has made me reflect on the critical role of Governance Committees. I would even suggest that they are the most important of all board committees. Here’s why:
- Governance Committees Determine Who Joins the Board
- I realize it is the board or the members who ultimately make the decision but it’s the Governance Committee that analyzes the matrix, recruits for gaps, reviews the options, interviews the candidates and recommends the new board members; great Governance Committees apply the same level of rigor to finding new board members as organizations do to hiring new staff; since these new members will be around for many years, it is a wise investment in the future
- By impacting who joins the board, the Governance Committee determines who is going to sit around the board table and play a role in managing the CEO; if you have board members who don’t show up to meetings, don’t come prepared, dominate discussions or create unnecessary work for the CEO, circle back to your Governance Committee’s policies and practices and look for ways to improve the systems that manage the board
- Board recruitment also develops the talents and skills needed on the board for the other committees; it is the Governance Committee that carefully manages the board matrix to ensure future chairs and committee members are in the pipeline
- Governance Committees Reduce Risk
- By recruiting for excellence and diversity in every sense of the word, Governance Committees provide the board with a healthy range of talents, views, and perspectives to be able to learn, grow, and avoid mistakes which reduces risk for both the board and the organization
- Governance Committees Keep the Board on Track
- Governance Committees manage the board’s policies and practices which keeps both the board and management on track and communicating effectively
- the Board Policy Manual sets the expectations for the board, individual board members, and management which allows for clear lines of accountability
- Governance Committees Continually Improve the Board’s Performance
- Boards need regular evaluations to ensure performance is kept at a high standard; this is achieved through Board Self Assessments, Board Meeting Assessments, and Peer-to-Peer Assessments; Governance Committees drive this process and are usually responsible for analyzing and acting on the findings which creates a culture of strong performance and continuous improvement
- Governance Committees Keep the Board Informed
- Governance Committees are usually where board development topics are discussed; board knowledge of the organization and sector is highly correlated to board and organizational performance and it is here that decisions are made about where the board has weaknesses and what the board needs to know for the future
The critical role of Governance Committees can be seen not just around the board table but in the performance of the organization. It is the one committee whose actions have a major impact on the board of today and can set the stage for the success of both the board and the organization of the future.
