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McKinsey's Nonprofit Board Assessment Tool

Surveys to be completed on or before June 26
Overview of the McKinsey & Company Nonprofit Board Self-Assessment Tool
The tool may be used by nonprofit managers and board members:

- To identify the areas of board performance that are strongest and those that need improvement
- To identify priority areas for the board to focus on over the next 1 or 2 years
- To allow different views to emerge : the difference between responses given by two groups of board members or by the board and senior staff can be tracked and then used to start a discussion

Respondents should use their best judgment to rate their board in the spirit if not in the letter of the performance description. The scores are meant to provide a general indication – a “temperature” taking – of a board’s performance, in order to identify potential areas for improvement.

Please make generous use of the comments section to expand on or explain your ratings. We typically find summaries of anonymous comments as helpful as the ratings themselves in surfacing issues.

This tool is meant to create an informed starting point for discussion among the leadership of a nonprofit. 

This assessment is estimated to take 20-30 minutes to complete

CCUA's Assessment Manager will send all anonymous responses directly to the Board’s consultant, New Chapter Coaching, for review and analysis. Anonymous results will be provided in a combined report at CCUA’s next Board Meeting
SECTION 1: PERFORMANCE OF BOARD ON ITS CORE RESPONSIBILITIES
Instructions: Please rate how well your board is performing on a scale of 1 to 4

1 = poor
2 = fair
3 = good
4 = distinctive 

NOTE: An organization’s performance does not need to match the distinctive description precisely in order to be distinctive. Rather, the description is given as an indication of the general level of performance to help calibrate your rating.

Please use the comments section to expand on any aspect of performance you wish.

If a row is not relevant to CCUA, select "Not Applicable"; if you have no knowledge, select “Don't know.”
1.1 Shape the mission and vision

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1. Common understanding of mission: All board members share a common understanding of the mission that has been stress tested through
discussion.

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2. Common understanding of vision (i.e., what the organization aspires to become in 5 years) : All board members share common understanding of where organization wants to be in 5-10 years; vision is well documented with concrete goals.

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3. Use of mission and vision in policy/strategy decisions: All major policy/strategy discussions include explicit consideration of fit with mission and vision

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4. Process for raising mission and vision issues: Formalized process (e.g., board retreats) to foster active board member participation in examining mission-related issues

1.2 Engage in strategic planning and policy decisions

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5. Process for strategic planning and quality of board participation: Formal process for board involvement that specifies broad framework (timing and content) for strategic planning; joint board and staff ownership of strategic plan with some board members heavily involved; active discussion by the entire board supported by needed facts/materials before final approval

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6. Quality of strategic plan : Robust plan covers all key strategic elements; agreed upon program outcomes are tightly linked to mission and vision and results inform subsequent decisions; clear plan for closing resource gaps if any

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7. Agreement on the distinction between board level and management-level decisions: Board and staff have a shared understanding of relative roles (written or explicitly discussed); all parties feel their views are heard in the process; frequent interaction between the Executive Director ensures a “no surprises” environment

1.3 Select, Evaluate, and Develop Executive Director

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8. Succession planning: Board has explicit view on succession and actively works with the Executive Director to identify internal candidates and provide development opportunities for the top 3-5 candidates to “round out” their skills

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9. Evaluation and development process: Evaluations performed at least annually against pre-defined criteria; evaluation includes 360-degree feedback and includes a self-assessment by the CEO. Written feedback includes skill development plan. CEO compensation decision reinforces view of performance

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10. Search process (when required): Formal search criteria, expectations for first 2 years, and search plan receive broad board support; internal and external candidates reviewed and “true choice” between qualified candidates can be made

1.4 Ensure adequate financial resources

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11. Financial needs assessment: Board works with staff as a part of strategic planning process to develop a multi-year view of funding requirements and trade-offs embedded in different resource levels; board feels strong ownership for the targets

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12. Individual donations to the organization: All board members financially support organization, which is a priority for each board member’s charitable giving; board consistently meets/ sometimes exceeds “donation” goals

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13. Involvement in fundraising planning and execution: Board and staff develop clear plan to meet fund-raising targets; board introduces staff to potential donors and drives fund-raising activities when necessary

1.4 Provide expertise and access for organizational needs

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14. Board understanding of needed access and influence to support organizational objectives, (e.g.,legislative access, community access): Needs for access and influence based on strategic view of organizational objectives; needs identified in detail to allow meaningful roles to be identified for individual directors

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15. Ability of board to provide access and influence needed: Board proactively reaches out to further organizational goals and is frequently very influential in achieving them

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16. Board understanding of needed expertise to support organizational objectives, e.g financial, strategic, subject matter expertise: Needs for expertise based on strategic view of organizational objectives; needs identified in detail to allow meaningful roles to be identified for individual directors

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17. Board understanding of needed expertise to support organizational objectives, e.g financial, strategic, subject matter expertise: Needs for expertise based on strategic view of organizational objectives; needs identified in detail to allow meaningful roles to be identified for individual directors

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18. Ability of board to provide expertise: Board expertise addresses most needs and is seen as source of distinctive value to organization

1.5 Build reputation

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19. Board understanding of reputation objectives and of the role the board can play in building/enhancing reputation: Needs for reputation building based on strategic view of organizational objectives; needs identified in detail to allow meaningful roles to be identified for individual directors

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20. Board effectiveness in enhancing reputation of organization in the relevant communities: Board members proactively reach out in community to build awareness and excitement about the organization; board members seen to be very effective ambassadors for organization

1.5 Oversee financial performance, ensure risk management

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21. Board role in financial planning: Board’s active involvement in preparing/reviewing multi-year financial plan results in robust discussion of resource allocation, funding plans, and investment objectives in context of strategic goals.

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22. Ongoing monitoring of financial and investment performance: Board monitors financial statements regularly; key performance indicators routinely reported to whole board; well-prepared staff can explain variances and discuss potential corrective actions; “no surprises” because of trust-based communication with staff

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23. Fiduciary and other regulatory compliance: Board ensures timely, independent audit of results and internal processes; board understands compliance required to regulatory bodies; feedback from auditors/regulators forms basis of recovery plan monitored by board

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24. Board role in risk management: Board annually reviews potential sources of risk and mitigation plans; surprises or gaps in coverage are few

1.6 Monitor performance and ensure accountability

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25. Board involvement in developing performance metrics: Board works with staff to set outcome based metrics and goals as well as activity/efficiency metrics; targets set for 1 to 3 year period. Performance of comparable institutions is used to inform targets

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26. Process for monitoring performance: Board routinely monitors and discusses the performance of program/organization and uses results to inform the strategic plan, resource allocation, and evaluation of the Executive Director

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27. Board understanding of accountability: Board identifies primary stakeholders and ensures that performance results are communicated effectively to the stakeholders

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28. Process for obtaining and using feedback from stakeholders: Board has formal process in place (e.g., stakeholder committee) to obtain feedback from stakeholders without filters by the staff; board ensures that the results from the stakeholder feedback are used to inform strategy and resource allocation

1.7 Improve board performance 

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29. Goal setting for the board as a follow on to strategic
planning: Board translates the strategic plan for the organization into a set of concrete goals for the board and board committees, including timelines and required staff support

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30. Evaluation of board performance against goals: Board evaluates its performance against the goals and uses the lessons learned to develop plans to improve board effectiveness

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31. Process for evaluating individual directors: Board committee in place to evaluate individual director performance periodically and jointly discusses how to
help a director give his/her best to the organization; little collective tolerance for directors who are not active in organization governance and support

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32. Developing a plan for improving board performance over time: Formal process (e.g., annual self assessment) results in a clear plan for improvement; board collectively owns the topic of improving its value to the organization

SECTION 2: PERCEIVED IMPORTANCE OF RESPONSIBILITIES FOR THE NEXT 1-2 YEARS
Instructions:  A nonprofit board adds value by undertaking each of the nine responsibilities identified; however, boards rarely have time to focus on all of the responsibilities. Good nonprofits prioritize their activities depending the context of the organization.

As you complete this section please identify those areas of potential board focus that are most needed over the next 1 to 2 years to ensure the organization succeeds against its mission.

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33. How important is it for your board to focus on: Clarifying the organization’s mission or vision

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34. How important is it for your board to focus on: Resolving key strategic or policy issues (please identify issues below)

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35. How important is it for your board to focus on: Developing (or replacing) the Executive Director

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36. How important is it for your board to focus on: Providing expertise or access to support organizational priorities (please identify priorities below)

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37. How important is it for your board to focus on: Building/enhancing reputation of organization with key stakeholders/community (please identify stakeholders/community targets below) 

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38. How important is it for your board to focus on: Overseeing financial performance and ensuring adequate risk management

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39. How important is it for your board to focus on: Improving board performance

SECTION 3: ENABLERS OF BOARD EFFECTIVENESS
Instructions: Please rate how well your board is performing on a scale of 1 to 4

1 = poor
2 = fair
3 = good
4 = distinctive

NOTE: An organization’s performance does not need to match the distinctive description precisely in order to be distinctive. Rather, the description is given as an indication of the general level of performance to help calibrate your rating.

Please use the comments section to expand on any aspect of performance you wish.

If a row is not relevant to CCUA, select "Not Applicable"; if you have no knowledge, select “Don't know.”
3.1 Composition 

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40. Understanding of board composition needed to meet organizational goals: Systematic process for identifying needed board skills driven by strategic plan; gaps are understood and agreed to by the entire board; most new board members seem to “fit our needs well”

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41. Process and criteria for recruitment: Formal process with clear evaluative criteria in place; whole board reaches out to potential members from a wide range sources; recruitment process is continuous and with multi-year horizon; new members are seen as great additions to the board

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42. Diversity on the board: Board understands types of diversity needed for organization and the value of diversity; current diversity on the board adequately reflects the diversity needed

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43. Term limits: 
Term limits effectively balance:
-Need for new members/skills
-Retention of valuable directors
Mechanisms are in place for ensuring continued involvement of high performing retiring board member

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44. Orientation of new members: Formal orientation process covers key topics (mission, organization, finances, responsibilities of directors); committee assignments are welcomed by new directors who quickly become effective members of the board

3.2 Leadership (Board chair, committee leaders)

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45. Process for deciding who leads and for how long: Clear, well-understood, and accepted process is in place to select and transition board and committee
leadership. Board leadership decisions seen to strengthen performance of institution

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46. Succession planning and development of board leaders: Process in place to identify and develop board leaders; committee assignments rotated to give board members experience and opportunity to lead; board seen to have a rich set of future leaders

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47. Quality of leadership relationship with Executive Director/ key staff: Board leadership has an effective working relationship with the Executive Director and key staff

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48. Effectiveness of board leadership: Current board leadership has the necessary skills, enthusiasm, energy, and time to provide leadership to the board 

3.3 Processes

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49. Quality of preparation: Calendar of meetings set and distributed
for the year; agenda for the individual meetings sent out ahead of time with indication of expected focus/ high impact areas for board consideration; board receives quality background materials well in advance of meetings and arrive prepared

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50. Effective meeting processes: Meetings start and end on time and time is managed to ensure board discussion on all important topics; minimal ‘show and tell’ by the Executive director/staff; most time dedicated to board discussion and debate on important issues. Board members feel involved and their contributions valued

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51. Fun and Passion: Board interactions are productive and enjoyable; good mixture of work and fun activities including effective efforts to connect board members to the mission (e.g., site visits); board members hate to miss meetings

0 of 51 answered
 

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