Tip #30 How Large Should Your Board Be?
While there’s no perfect size for all boards, we can say, in general, that a board needs to be large enough to include a range of perspectives in a diverse board membership and have enough board members to be able to complete its board work. On the other hand, it needs to be small enough for coordination and cohesiveness and to be able to engage all board members in the board’s work.
It may be helpful to have a sense of how large boards actually are. According to the latest information I have, non-profit boards average about 15 members, down from about 19 members in 1994 (BoardSource, Leading with Intent. 2017, p. 18 and 2015, p. 9) while large corporate boards (S&P 1000) average about 10 members (Peter Browning and William Sparks, The Director’s Manual. Wiley, 2015, p. 70).
According to John Carver, the creator of the Policy Governance® model, “the simple rule is to justify any number over seven.” (Boards That Make A Difference, Third Edition. Jossey-Bass, 2006, p. 366)
It is important to be aware that as the size of a board increases, the likelihood of board members assuming less responsibility and “checking out” increases. This means that the larger a board is, the greater the attention and effort that needs to be directed towards facilitating the meaningful involvement of all board members in board discussions and decision-making.
While boards should be large enough to include members of differing perspectives, it is unrealistic to expect that a board can represent all the perspectives held by its organization’s owners or key stakeholders, that is, those persons on whose behalf the board governs and to whom it is accountable for the performance of the organization. Since all owner perspectives cannot be represented by the board’s membership, it is important that the board prioritizes its ongoing conversation with its organization’s owners or key stakeholders so that it can make governing decisions informed by the range of perspectives of its organization’s owners or key stakeholders.
So, select a board size for your board that seems to find a balance of the pros and cons of small and large boards and that works for your board. If you choose to have a larger board or if an external authority mandates a larger board than you may see as ideal, recognize your need to make special efforts to meaningfully engage all board members in your board work. For example, board member engagement can be enhanced in the boardroom through a range of group process techniques and through involvement of board members in board committees and ownership linkage activities.
For more information about the Policy Governance® system, please go to www.BoardsOnCourse.com/policy-governance. Also, if you are interested in a comprehensive exposition of the Policy Governance® model by its creator, John Carver, I would highly recommend Boards That Make A Difference (mentioned above).
To read other Tips for Effective Boards, click www.BoardsOnCourse.com/blog.