In contemplating altogether new organizational models for the arts and culture sector, I find myself focusing on the roll of boards. Increasingly, professional staff members are spending escalating percentages of their time managing their boards of directors, taking time away from managing activities related to their missions. Once a good and necessary idea, perhaps the traditional NFP board needs to be completely rethought, and either remade or replaced by something more effective.<\/p>\n
Board functions include fiduciary oversight (on behalf of the government, which is granting tax-exempt status), garnering of resources through personal generosity or through influence with others, and providing expertise and insight. And while many boards carry out these functions with merit, most do not. Moreover, with the securement of contributed revenue the #1 challenge in the arts and culture sector, professional staff spend an enormous amount of time massaging board members’ egos in an effort to get them to give of their resources, or to get them to ask others for theirs. This tiresome effort directly takes precious time away from managing the core activities of their organizations.<\/p>\n
There’s got to be a better way, but in building one, it’s esential to look more deeply into the problems. There are connections between the elements of board functionality and the problems that exist.<\/p>\n
For one, fiduciary oversight establishes a power relationship with professional staff. The board hires and fires, and sets employment conditions. Combining this with the functions of providing contributed revenue and expertise can cause unusual interpersonal relationships. “I provide your salary through my giving. I’m your employer. I’ve got a great idea on how to run (some aspect) of the organization.” The various permutations of this “formula” create frustration, anger and toadying behaviors. Only the most mature board chairs and CEO’s can rise above the inherent pitfalls of this arrangement. <\/p>\n
I believe that this systemic dysfunctionality is central to that of the organization, and in fact to the dysfunctionality of the standard NFP model (501(c)3). Finding an alternative is paramount to the future health of the arts and culture sector.<\/p>\n
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N.B. I have served as CEO in 4 organizations, and as board chair of 2 organizations, one at present. I have also served in other leadership postions on a number of boards of both large and small organizations.<\/p>\n
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