Board GEMs

A few years ago the board of a provincial farm organization was receiving a lot of negative feedback from its members.  The member-owners were complaining so much that the board members felt quite under-appreciated.  They “knew” that they were serving the best interests of the industry and of the individual members, and were frustrated that they had to stop doing the work of the organization to handle this uninformed member-owner reaction.

The concerns were serious enough that the board requested that a survey be conducted to learn why the member-owners were so disgruntled.  The survey revealed as the top concern that the members did not feel heard and acknowledged by the board members.  The owners perceived the board members to be making decisions that served their personal interests, without regard to the needs of business owners in different circumstances.  The owners felt that the board was not serving the interests of the owners as a whole.

Because this board acknowledged that they needed to serve the needs of the industry, and to be seen to be doing so, they devoted some time to understanding what they did as a board and how they could do their job more effectively.  They learned that only one board member had a personality that was sensitive to people’s feelings.  The rest of the board members made informed, logical decisions, and expected that the organization’s members would be happy with the cold hard facts as the board presented them.  It was an eye-opener to realize that a significant number of the member-owners felt under-served because they didn’t feel that the board members had really listened to, understood, and considered their concerns. 

The board moved forward realizing that to have harmony in the industry, and for the member-owners to appreciate the board members’ work, they had to listen to the owners in a way in which they felt heard.  They had to be open to the owners’ expectations and serve the owners’ interests.

When boards listen to the owners on a regular basis, they generally avoid the negative emotion of frustrated owners.  This leads to a healthier organization with a high level of member and investor retention.

What Can You Do?

1.  Acknowledge that your organization’s members or investors are the organization’s owners, and that the board is accountable to the owners.

2.  Be proactive in seeking owner input. 
a) Send out surveys requesting their perspective on major big picture issues. 
b) Hold focus groups to garner ideas that develop during group dialogue.
c) Make it a habit for all board members to call a couple of owners who have varied perspectives to get their thoughts and feelings on upcoming board agenda items.

3.  At your board meetings, share and discuss the owner feedback.  Consider it carefully as you make board decisions.  This will enable you to truly be servant leaders, serving those who have entrusted you with representing their interests at the board table.

4.  Keep in mind that as board members, you must make decisions that are best for the organization as a whole.  This requires having diverse input, but does not mean giving in to outspoken uninformed or minority perspectives.

GEM Discipline on EXPECT
Expect Great Board - Management Interaction:  Articulate the board’s expectations of the CEO and the evaluation process.  Foster effective communication and teamwork between the board an the CEO.