Many people in both the nonprofit and for-profit worlds see a board as simply a group of people, with all boards being the same.
In their book Building Better Boards, however, David A. Nadler, Beverly A. Behan and Mark B. Nadler maintain that there are five types of boards, ranging from the least to the most engaged. Each offers a hint at what boards can be.
- Passive. The traditional model. The board’s activity and participation are limited and at the CEO’s discretion. The board has limited accountability, and its main job is to ratify management decisions.
- Certifying. This type places a heavy emphasis on the importance of outside directors and certifies to stakeholders that the organization is being managed properly and that the CEO is doing what the board requires.
- Engaged. This one partners with the CEO, providing insight, advice and support on key decisions and implementation. It recognizes its ultimate responsibility for overseeing CEO and organization performance.
- Intervening. The most common mode during crises. The board holds frequent and intense meetings, and becomes deeply involved in key decisions.
- Operating. The deepest level of ongoing involvement. The board makes key decisions, and management implements them. This model is frequently found in the early stages of startups.
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