Yes, in perceived terms. In real terms, no. The corporate structure is based on a chain of command from lower management levels to most senior. Level 0– top most level. Shareholders or founders level. The people who appoint the board of directors, who are headed by the board chairman. Often times, the founder may and can appoint himself or herself on the Board. In America, it is common. Level 1 —Board members. The people who run the business on behalf of the founder or shareholders. Ideally, shareholders appoint board members required. And on their first sitting, they elect their Chairman.…
Is cybersecurity advice valuable to a board of directors?
Of course, it is. I recently delivered a talk to the Board of Directors of a major, not for profit organization in Africa. I was surprised at their basic appreciation of the cybersecurity risk management strategy. Compared to Bank Boards, Not for Profit Boards don’t invest a lot in learning new and emerging business risks as their counterparts in financial institutions. Nevertheless, all board members need ongoing advice on cybersecurity. Competitive advantage today is through a company’s ICT infrastructure investment and optimization. Without a robust ERP system, for example, your Company is at a competitive disadvantage. However, automation comes with…
Is your board in existence as a necessary nuisance?
Once I was asked by an SME owner to help set up a board of directors. When I asked why the board was needed at the time, his answer was revealing. “I want to apply for funding. I have been informed when you have the board of directors, you stand higher chances.” A board should not merely be ceremonial. It must be progressive and value-adding. In today’s technology-driven business models of ecosystems, platforms and A ceremonial board cannot win. It is for mere window dressing – to the public and partners, the company has aboard. However, in reality, the…
Is your board effective?
No board is 100% effective. But the imperfection varies. On a scale of 1 (ineffective) to 10 (effective), what is the degree of your board imperfection? Just like no person is perfect. No board is perfect. When I joined the council of ICGU, the then Chief Executive Officer, Samuel F. Owori, invited the newly appointed members for an orientation meeting. “You need to understand what everything about ICGU so that you are able to perform your oversight role effectively”, he said. For a whole day, he told us about the background of ICGU, gave us copies of key documents about…
Can a founder of a not for profit be on the board
Yes, a founder can be on the board. Should be on the board. The board is composed of members who represent the interests of the owner. If the owner or founder has the time, skills and networks it requires to win, s/he is the best person to be on the board for unprecedented success since they have lots of passion and goodwill than any other person! Unlike public entities where there is need for separation of powers or independence of executive, board and founder, for not for profits (NFPs), the founder involvement is the best. Brac, the leading global NFP…
Why NGOs must diversify to unrestricted funding?
Restricted funds are ones that donors provide for defined programs and specific activities with clear performance indicators. The organization is not required to ‘vire’ or relocate to any other activities other than the ones the donors specified. It this inability to freely apply the funds to new and emerging priorities that make reliance on donor funds difficult. Imagine a not for profit organization like the Red Cross which provides disaster response and crisis management engagements, it must first revert to the donor if it needed to redeploy any available funds to other most pressing needs. By the time such approval…
