One of the most important responsibilities of a nonprofit board is setting the overall direction of their organization, so it’s a bit ironic that strategic planning is often thwarted by dysfunctional boards—boards that don’t engage enough, engage too much, are misaligned with the needs of the organization and its stakeholders or rule like authoritarians. Whether you’re a nonprofit CEO or a board member, understanding the different types of dysfunctional boards and how they impact strategic planning can help you identify problems early, create better collaboration and ultimately contribute to more effective leadership and organizational success.
In our 10+ years of working with nonprofit boards, we’ve identified four profiles that the vast majority of dysfunctional boards fall into. The four types of dysfunctional nonprofit boards include:
- The Underinvolved Board
- The Overinvolved Board
- The Disconnected Board
- The Authoritative Board
Sometimes, a board may struggle with just one of these dysfunctions. Often, boards have symptoms of two or three of them. Of course, there are boards that exhibit none of these dysfunctions, as well, but that doesn’t typically happen by accident. It takes strong leadership, sound governance practices and constant re-evaluation of board culture and makeup.
If you suspect your board suffers from one of more of these dysfunctions, this article is for you. Let’s dive into what each dysfunction looks like, examine how they harm the strategic planning process and explore what can be done to overcome them.
1. Dysfunctional Board Profile 1: The Underinvolved Board
How This Dysfunctional Board Shows Up:
An underinvolved board is one that fails to engage meaningfully with the organization, not just during strategic planning, but on a day-to-day basis. Members of The Underinvolved Board might fail to show up for meetings, skip reading reports or materials sent by staff or just generally shirk their responsibilities to the organization. Of course, underinvolvement isn’t always quite this egregious. Underinvolved boards are also those that simply don’t take the time to get the information they need to effectively participate in decisionmaking, fail to ask challenging questions or delegate every important task to staff. Underinvolved boards are often out of touch with the financial realities of an organization as well, make little or no personal financial contributions or take very limited accountability for the organization’s financial health.
Often, this lack of involvement stems from a variety of factors: board members may not understand the time commitment and duties associated with their role. They might be overwhelmed with other responsibilities. They may not know how to get the information they need from their organization. Or, perhaps most commonly, they may have misconceptions about their role as “volunteers” versus the role of “paid staff.”
How It Harms Strategic Planning:
Strategic planning is meant to be a collaborative process that incorporates the input, expertise, and perspectives of the board, the staff and other stakeholders. An underinvolved board is detrimental because it weakens the strategic plan by removing a vital layer of oversight, strategic thinking and external insight.
- Lack of Direction: Without active participation from board members, the strategic plan is more likely to be crafted in a vacuum. The staff may create a plan based on their own perspectives, without benefiting from the valuable input of the board, who may have broader perspectives or industry experience.
- Missed Opportunities: Underinvolved boards fail to provide feedback on critical aspects of the plan, such as financial projections, long-term sustainability, or emerging trends in the sector. This results in a plan that is narrow in scope and doesn’t leverage the full potential of the nonprofit’s leadership team.
- Weak Accountability: The board plays an important role in holding the organization accountable. If they’re underinvolved, the strategic plan might not be assessed or measured against relevant outcomes, leaving the organization to drift without clear metrics for success or failure.
- Low Buy-In: Underinvolved boards are far less likely to buy into plans they don’t help develop. Strategic plans developed with little board involvement and input often fail to get off the ground.
How to Fix It:
To address an Underinvolved Board dysfunction, nonprofit leaders need to clearly define board members’ roles and responsibilities, both in general and in the strategic planning process. Establishing a culture of accountability within the board can be achieved by:
- Establishing and regularly re-evaluating board bylaws and job descriptions that clearly outline roles, responsibilities and time commitment expected of board members.
- Setting clear expectations for board participation in strategic planning and implementation in bylaws and other board documents, and educating new and existing board members about their expected role in strategic planning.
- Holding regular strategic planning retreats that involve the board. For most organizations, we find that a 2-3 year strategic planning cycle works well, as does having a two-day retreat where day 1 is attended by the leadership staff and constituents, and day 2 is attended by the leadership staff and board.
- Ensuring board members are well-prepared for strategic planning sessions and otherm eetings by providing pre-meeting materials, and encouraging them to ask questions and offer insights.
- Establishing clear board roles (secretary, treasurer etc.) and committees within the board to oversee specific functions like fundraising, HR and strategic planning. While the entire board should be involved in the strategic planning process, a strategic planning committee can offer a deeper level of involvement in the strategic planning process and guide an underinvolved board toward the proper level of engagement.
When board members understand their roles overall and in strategic planning, see evidence that their ideas and insights are valued and have regular opportunities to contribute to strategic direction, they can heal the Underinvolved Board dysfunction.
2. The Overinvolved Board
How This Dysfunctional Board Shows Up:
In contrast to the underinvolved board, the overinvolved board takes an “in the weeds” approach to the organization’s operations. Board members in this scenario often blur the lines between governance and management. They may want to micro-manage staff, make day-to-day decisions, or dictate every aspect of the organization’s strategy. This overreach typically arises from a lack of clarity about roles, a desire to assert control or a belief that staff members are not capable of making good decisions on their own.
How It Harms Strategic Planning:
While a board’s engagement is necessary for effective strategic planning, overinvolvement can derail the process in several harmful ways:
- Micromanagement: When board members step into operational matters, they may override staff decisions, leading to frustration and confusion. Staff members may feel that they lack autonomy, which can lead to disengagement, lower morale and culture challenges.
- Confusion of Roles: A board that’s overinvolved often undermines the role of the executive director or CEO. This dynamic creates confusion about who is responsible for making strategic decisions. When board members take on operational tasks, it often leads to inefficiencies and a lack of coherence in decision-making.
- Stagnation in Innovation: Overinvolved boards may insist on following outdated strategies, prevent experimentation, and impose constraints on staff creativity. They might avoid taking calculated risks or considering new approaches, which could ultimately hinder the organization’s growth and adaptability.
How to Fix It:
To prevent overinvolvement from damaging the strategic planning process, boards need a clear understanding of their role in governance versus the staff’s role in management. Here are some strategies to mitigate overinvolvement, some of which are similar to the fixes for underinvolvement.
- Clarify Roles: Clearly define the roles and responsibilities of the board and the CEO or executive director. The board should focus on oversight, governance and accountability, while the staff should be responsible for the day-to-day operations. Though it’s often been said that the long-term vision of the organization should be the responsibility of the board as well, we actually disagree. Long-term vision is best co-owned by leadership staff (especially the CEO) and the board.
- Establish Boundaries: Create and enforce a governance policy that outlines the scope of the board’s involvement in strategic planning and other responsibilities. In strategic planning, the board’s role should be to provide feedback and input into the OKRs developed by staff and oversee their implementation at a high level, not to declare what all the OKRs should be or to implement them.
- Strengthen Trust: Build a culture of trust where board members believe in the capabilities of the staff and vice versa. This helps mitigate the temptation to overstep and ensures that each group can do its job effectively.
By promoting a balance between governance and management, nonprofits can ensure that their strategic planning process is both inclusive and effective, with each party contributing in a way that enhances the organization’s success.
3. The Disconnected Board
How This Dysfunctional Board Shows Up:
A disconnected board is one that is out of touch with the needs of the organization’s stakeholders, whether that’s staff, clients, donors, constituents, the community or all of the above. This dysfunction is quite common, and I think it stems from the long-held power dynamics in the sector, and a lack of established practices for building connections between board members and stakeholders. Until recently, the prevailing belief was that nonprofit board members had accumulated enough money, status or professional expertise to know what was best for the organization, and staff and constituents were simply lucky to benefit from their contributions. Of course, this is changing as more organizations move toward shared power approaches, but we still have a long way to go.
How It Harms Strategic Planning:
A disconnected board can be particularly damaging during strategic planning because it leads to a plan that doesn’t align with the actual needs or realities of the organization’s stakeholders.
- Misaligned Goals: If the board isn’t connected to the needs of staff, constituents, or the community, the strategic plan may focus on irrelevant or misguided goals that don’t address real-world challenges. For example, a board might push for a major expansion of services without understanding the strain it would put on existing resources, staff, or infrastructure. Or, a board may suggest prioritizing one type of service when the community clearly priorities receiving another.
- Poor Resource Allocation: When a board is disconnected from the ground-level realities of the organization, it may allocate resources (time, money, personnel) in ways that aren’t aligned with the most pressing needs. This can lead to wasted funds, missed opportunities and unmet needs.
- Lack of Buy-in: If board members don’t understand the needs or priorities of the community, they may fail to fully commit to the strategic plan. Without board members who are actively involved in and connected to the mission, it becomes difficult to gain the necessary support for implementation.
How to Fix It:
To bridge the gap between the board and the organization’s stakeholders, your nonprofit should:
- Commit to Sharing Power: Overcoming this dysfunction begins with committing to doing things differently, both during strategic planning and in the day-to-day. Shared Power nonprofits are those that commit to involving their constituents in every important decision. If your organization wants to begin its transformation into a Shared Power nonprofit, join the waitlist for Shared Power Champions here. We’ll be releasing a self-paced version of the course later this year.
- Prioritize Regular Site or Program Visits: Encourage board members to engage directly with the nonprofit’s programs, attend community events, or even participate in service delivery. These interactions help board members understand the needs of stakeholders and make more informed decisions during strategic planning.
- Stakeholder Input: Create mechanisms for collecting feedback from key stakeholders—staff, clients, donors, and the community—and use this data to guide the strategic planning process. Board members should actively participate in this feedback loop and ensure that stakeholder voices are heard.
- Ongoing Education: Provide ongoing education for board members about your nonprofit’s mission, values and challenges. Regular updates from staff and community leaders can help keep the board informed and connected to the organization’s day-to-day reality.
By ensuring the board remains connected to stakeholders, nonprofits can create a strategic plan that is grounded in the actual needs of the people they serve, leading to better outcomes and stronger community support.
4. The Authoritative Board
How This Dysfunctional Board Shows Up:
An authoritative board imposes decisions without consulting or collaborating with the staff. This board is often characterized by a top-down approach, where board members believe they know what is best for the organization and simply issue directives to the CEO or executive director. Staff members may feel disempowered or ignored, and the organization’s culture may suffer as a result.
How It Harms Strategic Planning:
The authoritative board undermines strategic planning by neglecting the crucial element of collaboration. Strategic planning works best when board members and staff engage in open dialogue, share perspectives, and work together toward a unified vision.
- Lack of Collaboration: When board members dictate the strategy without consulting staff, it creates a disconnect between the leaders who set the direction and the staff who must carry it out. The staff may have valuable insights or ground-level knowledge that could improve the plan, but an authoritative board doesn’t give them the opportunity to contribute.
- Diminished Morale: An authoritative approach can demoralize the staff and lead to disengagement. When staff members feel that their expertise and input are undervalued or ignored, it can erode trust between leadership and employees. This, in turn, leads to low morale, lack of enthusiasm, and an unwillingness to work toward the strategic goals set by the board.
- Reduced Buy-In from Staff: Strategic planning should be a collaborative process that involves key organizational leaders, including staff who are responsible for executing the plan. When staff are excluded from the planning process, they are less likely to take ownership of the plan or feel committed to its success. A top-down approach stifles creativity, reduces ownership, and can lead to high turnover, as staff feel disconnected from the mission they are tasked to carry out.
- Short-Term Focus: Authoritative boards often have a limited view of the organization’s long-term needs and may push for strategies that focus too heavily on immediate results. This can create a mismatch between the organization’s strategic goals and the needs of the community or the broader social landscape. It can also leave long-term sustainability at risk, as the focus on short-term wins may neglect important investments in capacity building, innovation, or staff development.
How to Fix It:
To counteract an authoritative board, nonprofits must foster a culture of collaboration and shared leadership. Here’s how to ensure that the strategic planning process is truly inclusive:
- Collaborative Leadership: The CEO or executive director and board chair must establish a culture where collaboration between staff and the board is encouraged. This involves creating opportunities for input from staff at all levels, integrating their expertise into the strategic planning process, and ensuring that their feedback is heard and valued.
- Facilitate Joint Planning Sessions: Instead of keeping the strategic planning process solely in the hands of the board, incorporate joint planning sessions where both staff and board members work together. These sessions allow everyone to contribute ideas, raise concerns and provide feedback on potential strategies.
- Create Clear Channels of Communication: Develop a structured communication plan that ensures there is consistent, transparent dialogue between the board and staff throughout the strategic planning process. This can involve regular updates from the CEO or executive director, periodic check-ins with board members to solicit their input and mechanisms for soliciting feedback from staff about the organization’s direction.
- Empower Staff Leadership: Boards should recognize the importance of staff leadership in the strategic planning process. Empowering staff to take ownership of key parts of the plan or to lead initiatives can help increase their investment in the process. Staff who feel that they are trusted and involved in shaping the future of the organization are more likely to put in the effort to make the plan successful.
When the board collaborates rather than dictates, the strategic planning process becomes a more effective and sustainable endeavor. Not only does this lead to a more robust plan, but it also strengthens the organization’s culture and enhances the commitment of all parties involved.
Building a Strong, Effective Board for Strategic Planning Success
The strategic planning process is vital to the success and sustainability of any nonprofit organization, and the board plays a crucial role in guiding that process. However, as we’ve explored, dysfunctional boards—whether underinvolved, overinvolved, disconnected, or authoritative—can wreak havoc on the planning process, leading to weak strategies, poor staff morale and missed opportunities to make an impact.
Understanding these four types of dysfunctional boards and their potential impact is the first step toward making positive changes that can improve your organization’s strategic planning process. As a nonprofit CEO or board member, it’s essential to actively work to prevent these dysfunctions from taking root. Doing so will ensure that the strategic planning process is effective, collaborative, and, most importantly, aligned with the true needs of the organization and the community it serves.
By fostering an engaged, well-informed, and collaborative board, you will create a more strategic, resilient, and impactful nonprofit. When board members understand their roles and contribute meaningfully—without overstepping or disengaging—they enable the organization to reach its full potential. Strategic planning, at its core, is about ensuring that the nonprofit has the resources, vision, and leadership to achieve its mission. A healthy, functional board can provide the guidance needed to steer the organization toward lasting success.
In the end, building and maintaining a strong, effective board isn’t just about creating a strategic plan; it’s about creating a foundation for a nonprofit that can adapt, thrive, and make a real difference in the communities it serves. Whether you’re in the process of strategic planning or preparing for future cycles, keeping these dysfunctions in mind and actively working to overcome them will make all the difference in ensuring your nonprofit’s continued mission impact.
