The high performance board

Not so long ago I interviewed the Chair of a theatre board as part of a governance review. The topic of our discussion focused on the commitment and contribution made by trustees in fulfilment of their duties and responsibilities. It began to emerge that few among the trustees had any real sense of either, other than a vague awareness of the necessity to occasionally appear at trustee meetings, first nights and the £1 limitation on their liability. When I asked how often trustees had sight of a financial report or cash flow forecast (let alone understood them), the response made me wonder if I hadn’t just suggested to a Chair of the Women’s Institute that they commission a Damian Hirst sculpture to place next to the picture of the Queen. “They wouldn’t understand it and, if they did, they probably wouldn’t hang around for long. Can’t afford to lose trustees you know – too damned hard to find these days.” What struck me was how this train of thought was seen as a sensible approach to trusteeship of a high-risk organisation (as arts organisations usually are). From his perspective, it would seem more justifiable to maintain a full quota of potentially unknowledgeable or uncommitted trustees than not, simply to keep up the numbers.

This isn’t the first time I’ve had this type of conversation, although it represents the extreme end of the spectrum. Essentially, too many boards seem happy to accept low thresholds of expertise and commitment in their desperation to find volunteers ready to take on the demands of trusteeship. But ask them if they would apply the same standards to the recruitment of staff and we are back to the Damian Hirst suggestion again. Good staff need good trustees with whom they can work in partnership, establishing clear definitions of responsibility and mutual respect based on levels of expertise and commitment. It’s to do with calibre: people who are very good at things tend to be those who rise to a challenge. This makes them perfect for arts organisations. You’re more likely to struggle to get and keep them on a board if they feel you have low expectations, or operate a governing environment in which they are prevented from applying their skills and experience. Set the commitment bar at a level commensurate with the needs of your organisation. Identify what trustees really need to know and must be able to deliver. Then make this very, very clear to prospective trustees. Don’t wait until they’ve accepted your invitation!
Establishing your expectations
What level of commitment and experience is critical to the efficient and effective running of your organisation? This will vary according to your size and the challenges you face in pursuing your organisational purpose. When recruiting trustees, tell prospective candidates about the capabilities you need trustees to possess. This covers general or specific experience, codes of conduct, level of commitment and any specific contribution – all of which they will be expected to commit to delivering. Make it clear that they will be required to sign a contract which sets out your needs and expectations.
Consider, for example, how many hours of crisis management your organisation might have avoided in the past if trustees had promised and adhered to the following commitment to protect the organisation’s reputation:

• I will not speak as a trustee of the scheme to the media or in a public forum without the prior knowledge and approval of the Chair;
• When prior consent has not been obtained, I will inform the Chair at once when I have spoken as a trustee of the scheme to the media or in a public forum;
• When I am speaking as a trustee of the scheme, my comments will reflect current organisational policy even when these do not agree with my personal views;
• I will respect the scheme, board and individual confidentiality.

And if someone should refuse to be tied to such a promise, you might want to ask whether you still want to risk appointing them.
Induction
A formal induction policy should give new trustees the confidence and ability to play their part efficiently and effectively. What do new trustees need to know and how do you satisfy yourself that they have learnt it? There are two essential parts to an induction programme. The first is the induction manual. The second is a system that augments the manual; ensures trustees have actually read it, understood it, and received answers to their queries; and enables it to be continually updated.
Prior to a new trustee’s first board meeting, the Chair, or a designated trustee, will have a one-to-one meeting, face-to-face or by phone. This meeting can cover: general and specific expectations of trustees; any concerns that new trustees have about joining the board; an introduction to the board papers and trustees’ manual; an introduction to a buddy/mentoring system for new trustees; the appraisal process for board members; equal opportunities and other statements of values and beliefs; conflict of interest; and expenses policy. The Chair and the new trustee will have a review meeting within three months of their appointment. This will include a debrief of the first board meeting attended. At this meeting it can be established whether they have found the induction manual useful, and whether there are areas that may need to be updated. If trustees know the agenda in advance helps to ensure that they prepare themselves accordingly. Thereafter, the Chair or a nominated trustee should check that all new trustees have been able to participate in all the induction procedures, and receive recommendations for improvements and changes to the process and induction manual where necessary.
In a nutshell, boards should make the same commitment to finding and inducting the right trustee as they would a senior member of the management team. And if you are wondering where to begin your search for the perfect trustee – has anyone suggested Damian Hirst?