In this article we dive into the crucial aspect of a board’s responsibility: evaluating the chief executive and providing essential support. But what should a board do when it suspects that poor performance goes beyond the operational realm and crosses ethical boundaries? We explore this issue, particularly in light of recent ethical failures among well-known nonprofit ministry leaders. Discover seven key practices that boards can adopt to ensure effective chief executive accountability, including being pre-emptive, vigilant, diligent, objective, courageous, unified, and humble.
As you have seen, the 4th responsibility of a board is to evaluate the chief executive and provide needed support. What is a board to do when it suspects that poor performance is not merely operational but is over the line ethically?
Over the past several years, there have been a good number of instances of ethical failures on the part of well-known nonprofit ministry leaders (sexual improprieties, dishonest reporting of ministry results, financial misdeeds, etc.). In most cases, it became clear that the boards had suspected or had known of the problem yet failed to confront it. How could this happen? Boards are the primary line of defense against such failings. Feeling held hostage to the influence and power of a founder, finding the possibility of misbehavior on the part of a “spiritual giant” too hard to believe, and lacking managerial courage in confronting a strong, assertive leader are only the beginning of a list of reasons for a lack of keen oversight and accountability.
Time and space don’t allow for a detailed treatment of the topic, but boards would be wise to embrace seven key practices in their chief executive accountability duties:
An old axiom observes that it is easier to stay out of trouble than to get out of trouble. In chief executive evaluations, straight talk is essential. Don’t be afraid to ask direct and possibly uncomfortable questions. Abraham, Moses, and Habakkuk all asked God direct and difficult questions. Cannot we do so with one another in the right manner and in the right spirit? Gender and culture matter a lot, so such a meeting must be done with a small, gender-matched, culturally sensitive committee. (Ephesians 4:15)
(watchful, alert, on guard, pay close attention). Be alert for the smell of smoke. (Proverbs 27:23, 1 Peter 5:8)
If you smell smoke, pursue its source (don’t wait for the annual review). (Ecclesiastes 9:10, Galatians 6:9, Colossians 3:23)
Good friends are generally not the best people for the evaluation committee because loyalty often blinds us to reality. (Romans 2:11, James 3:17)
If you see a problem, confront it. (Joshua 1:9, Proverbs 27:17, Matthew 18:15- 17)
Few occasions call for the need of the collective wisdom of the group more than the possibility of unacceptable behavior by the chief executive. It is important that the board walk through the process together, beginning to end, from confirming whether or not there is a problem to confronting the executive if need be, to imparting the decided discipline, including termination. (Ecclesiastes 4:9, Acts 15:6-18 (considering the matter); Acts 15:19 (deciding the matter); Acts 15:25 (becoming of one mind); 1 Corinthians 1:10)
Galatians 6:1 conveys this idea well: “If anyone is caught in any transgression, you who are spiritual should restore him in a spirit of gentleness (i.e., gently and humbly)