Association Governance: Board Composition Values Competence
As association governance evolves, Board composition increasingly values Director competence.
Competency based Boards engage Directors based on their specific knowledge and expertise.
Traditionally, associations and many other NFP Boards have engaged Directors based on their seniority, industry experience, and even location.
Which is better?
On competency-based Boards, the expertise of the Directors mirrors the challenges and opportunities that the association and its members are facing. These opportunities and challenges could range from information security to e-commerce, from outsourcing to industry consolidation.
On a traditional association Board the expertise of the Directors frequently mirrors the success they have running their own organizations. Given that many association Boards are stocked with owners, CEO’s and senior managers, the overlapping competencies of many Directors is entrepreneurship and general management.
Association Governance is Evolving
Think of the challenges that your industry and industry association is facing. What is the impact of technology, security, consolidation, foreign markets, on-line distribution, government policies, etc.?
When you assess the composition of your industry association Board what do you see? Do you see a differentiated mix of skills and expertise that reflect these challenges and opportunities – or an overlapping set of traditional industry knowledge and leadership experience?
Association governance is continuing to change. Traditional governance structures and approaches are being adapted and sometimes blown away by the impact of new threats and opportunities. Is your Board up to the competency challenge?
Jim Crocker is the founder and Chair of Boardroom Metrics. He is an experienced Director, CEO and Consultant to public, private and not-for-profit organizations. Jim facilitates and works with Boards, CEO’s and Leadership teams on governance effectiveness.