Prepared by: Adnan Al-Ghamdi - March 2024
Ulom Association for Research and Development
The nonprofit sector in Saudi Arabia is undergoing significant transformation, and boards of directors play a critical role in the success of nonprofit organizations. The board is one of the most important elements for any organization, especially nonprofits, as it is responsible for strategic decision making, overseeing organizational performance, and guiding the organization toward its goals. As such, boards must possess certain qualities to help the organization succeed and carry out responsibilities efficiently. This article will discuss some important qualities of a high-performing board and highlight the board's role in self-evaluation.
First, the board must have a clear vision and future strategy. This vision is embodied in the clarity of institutional goals and the mechanisms for achieving those goals. Additionally, the board should have the ability to analyze available data and information to make appropriate strategic decisions based on that analysis.
Second, board members must demonstrate high integrity and ethics. They must be able to make decisions with integrity and in the best interest of all stakeholders and be fully accountable and take responsibility for decisions.
Third, the board should be diverse and inclusive. Representation from a variety of backgrounds, cultures, and skills can provide different perspectives to stimulate innovation and make better decisions for the benefit of the organization.
Fourth, the board must regularly evaluate its own performance. This involves assessing both the board's collective ability to achieve objectives and fulfil responsibilities, as well as individual board member performance through periodic, structured evaluations.
The Board can conduct a self-assessment by examining its processes, deliberations, and the degree to which it attained established goals. Individual Board member performance can also be evaluated via 360-degree feedback incorporating perspectives from across the organization regarding contributions toward shared objectives. Further, the Board may organize internal discussion sessions to review its effectiveness, recognize areas of strength and opportunity, and craft a development plan to advance the Board's performance.
Board diversity and its strategic importance. As previously discussed regarding the significance of board members understanding their roles and how they can contribute to organizational success through fulfilling those roles, it is imperative to not overlook the importance of diversity among board members. The following explores the importance of diverse experiences and specializations and the benefits thereof:
Firstly, diversity in expertise within the Board of Directors contributes to enhancing institutional performance. When a board comprises members from different backgrounds and industries, a varied range of knowledge and understanding is provided regarding the challenges and opportunities faced within the sector in which the organization operates. This permits the Board to make informed and appropriate decisions grounded in those diverse experiences.
Diversity also enhances innovation and creativity within the board of directors. When there exists diversity of experiences and skills, the diversity of ideas and visions presented is augmented. Board members from different backgrounds can contribute novel and innovative ideas and pose different challenges to the nonprofit. This would enhance innovation and develop new strategies to address future challenges.
The diversity of experiences represented on the Board of Directors contributes to improving decision-making processes. When diverse backgrounds, cultures and skills are represented on the board, there exist multiple perspectives to evaluate present options and alternatives. This diversity can contribute to mitigating personal biases and achieving a more comprehensive and balanced assessment of complex situations. Therefore, the Board of Directors can make decisions that are more accurate, insightful and impactful for the organization.
At the end, achieving organizational success necessitates a successful and distinguished board of directors. The board must be diverse and comprise members with the right qualities such as strategic vision, experience and integrity. Moreover, the board must have the ability to periodically and regularly evaluate itself to improve performance and achieve common goals. By applying these qualities and best practices, the Board of Directors can be a key factor in the success of the organization and achieving sustained excellence and sustainable development in the nonprofit sector.
