Insights from Our Webinar with BoardPro: Roles in Not for Profit Board Governance

Balancing Strategic and Operational Roles in Not for Profit Board Governance: Insights from Our Webinar with BoardPro

Defining Strategic and Operational Roles in Not for Profit Board Governance

In a recent webinar we partnered with BoardPro to bring together industry experts Anna Fitzgibbon and Darren Fitzgibbon from our team at The Breakthrough Office, alongside David Bartlett of Resolve Consulting, to discuss the crucial distinction between strategic and operational roles in Not for Profit board governance.

This recap provides valuable insights and practical strategies from that webinar to implement in your governance work.

The Importance of Strategic Planning for Not for Profits

Strategic planning for Not for Profits is essential for an organisation’s viability, longevity, and success. It ensures an organisation stays true to its mission and vision while adapting to changing economic and social conditions.

David Bartlett emphasised the concept of ‘strategic planning is dead; long live strategic planning,’ highlighting the need for agility and flexibility in the strategic planning process, particularly in a post-COVID lockdown world. “A good strategic plan serves as the glue between governance and management, ensuring that operations align with the organisation’s charitable purpose.”

A proactive strategic plan will also help navigate evolving regulatory requirements rather than being reactive or defensive. In Australia, this has been underscored by significant changes introduced by the Australian Charities and Not for Profits Commission (ACNC) and recent amendments to auditing standards.

Strategic vs Operational Roles in Not for Profits

Anna Fitzgibbon explained the clear distinction between strategic and operational roles in Not for Profits. Maintaining this role distinction is vital to avoid board members becoming overly involved in the organisation’s day-to-day operations. The board needs to focus on governance and strategic oversight, while the operational team executes these plans.

Strategic roles, often seen as the visionaries, involve providing oversight, direction, long-term goals, and alignment with core values. The key elements of strategic roles include mission and vision, long-term planning, policy development, and oversight and accountability. On the other hand, operational roles, known as the doers, implement the board’s goals, plans, and visions through actionable workflows. These roles encompass program implementation, fundraising and financial management, administrative tasks, performance management, and operational decision-making.

Monitoring and evaluating operational functions is essential and is achieved by establishing clear and measurable goals and KPIs, regular structured reporting from operational teams, periodic reviews and audits, use of dashboards and analytics, and continuous improvement with clear delegation. Implementing these processes maintains oversight and accountability, providing valuable insights into the effectiveness of the strategic plan and highlighting any areas needing adjustment.

Leveraging Technology for Better Reporting

Adopting integrated systems provides seamless data tracking and reporting, ensuring the board can access real-time data on the organisation’s performance. This leads to better decision-making and necessary strategic adjustments.

Action Tips for More Strategic Board Meetings

Prioritising strategic discussions over operational details by placing them at the beginning of the agenda can enhance the effectiveness of board meetings. Using a single-page document to outline the organisation’s purpose, strategic goals, values, and desired outcomes can help maintain focus. It is also beneficial to push operational reports to the end of the meeting, adopting a block motion for their approval to save time for strategic discussions. Sorting issues into categories such as ‘why’ (strategic), ‘how’ (operational), and ‘what’ (collaborative) can determine the nature of a discussion more effectively.

Clear distinctions between strategic and operational roles ensure your Not for Profit organisation maintains a balance between meeting regulatory obligations and staying true to its mission and long-term goals.

Continue the Conversation

We encourage you to connect with Anna Fitzgibbon and Darren Fitzgibbon from our team, and David Bartlett of Resolve Consulting to continue the conversation around governance.

Watch the full webinar and access the presentation slides here.

To understand how The Breakthrough Office could support your organisation to see breakthrough in the governance space, reach out to us to connect with our Executive Team.