The Risk of Board Complacency Under Charismatic Leadership — And How to Prevent It

You’re the visionary at the helm of your nonprofit. With natural charm, unwavering confidence and a persuasive presence, you embody charisma. With these characteristics, you — and only you — can lead board members. They trust you deeply, follow your lead and believe in your vision. Congratulations on being the kind of leader who moves missions forward.

This reality is all too common among nonprofits. Since your board members have this uncompromising belief in you, they also gain the space to become complacent. Complacency results in members forgetting what it means to fulfill their fiduciary duties of care, loyalty and obedience. For many board members, this complacency may not only manifest as passive participation in board meetings but also as a lack of enthusiasm for representing the nonprofit’s interests or seeking financial support from the public.

It’s important to be aware that charismatic nonprofit leaders can inadvertently cause board members to become complacent, and therefore neglect their fiduciary duties of care, loyalty and obedience. This complacency may result in passive participation during meetings and reduced efforts to represent the nonprofit or secure public support.

Here are five tips for reducing the negative consequences of the board-executive love fest.

1. Define Theory of Change and Core Values

Be clear about the organization’s theory of change and core values. These serve as the anchor to everything a board and the executive do together and independently. They also define and directly impact members’ expectations of the executive and the work of the nonprofit.

2. Set Annual Performance Expectations

Assist the board chair and/or the executive performance committee (often the board officers) in advance of the next fiscal period to set clear, specific and realistic expectations for the executive. Such expectations may include annual performance goals, outcomes or just plain statements that define what the leader should be complete. 

Remember, executive performance goals measure the executive's achievements within their span of control — not the staff's performance. This typically includes program planning, oversight, risk prevention and management, supervision, and financial controls.

3. Conduct Annual Performance Reviews

Schedule and conduct an annual performance review process to evaluate whether the performance committee’s expectations have been met. The executive can assist the committee chair in initiating and completing this process, preferably before the end of the fiscal year.

4. Identify Guidance for Fiduciary Duties

Guide the board in clearly specifying the knowledge needed to fulfill its fiduciary duties, mainly concerning risk management, program results, and fiscal and fundraising outcomes. Include illustrative graphs to convey financials.

Operational matters that don't impact these areas are generally outside the board's governance scope. Warning: The biggest failure in trust develops when the board is not understanding why and what is going on within the nonprofit.

5. Ensure Fairness and Clear Communication

Be fair and communicate clearly. Boards should go into the executive session after each meeting to evaluate the board-executive relationship. This private time helps ensure mutual understanding and trust, which is essential for effective board performance and engagement beyond the boardroom.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.