The Importance of Term Limits for Your Board
If I had a nickel for every time I worked with a board who either did not have term limits or did not enforce them, I would have a lot of nickels! And, if I could bet that those same boards have a dysfunctional or nonfunctional board as a result, I could parlay those nickels into a small fortune.
In case you didn’t guess, term limits provide an important safeguard for creating an effective board. Yes, I stand by that statement even if that means that some of your very good and experienced board members must rotate off that board. Term limits still makes for a healthier board.
Term limits come in two ways – the number of years per term and the number of terms that a board member can serve until they have to step off, either temporarily or permanently. I recommend usually 2- or 3-year terms with a maximum of 2 or 3 terms. Three, 3-year terms seem pretty common. If you want, you can retain the option for a board member to seek re-election after successfully completing their service and at least a one-year hiatus. However, often the board and the board member have moved on to other roles which makes this feel less critical than it did when their term ended.
Why do I believe in the critical importance of term limits?
It allows for fresh perspectives. My last blog talked about the importance of the board recruitment process to bring new blood and perspectives to your board. Term limits complete that circle by creating room for those new perspectives. Organizations need to continue to grow and evolve to survive; allowing your board to likewise evolve helps that process.
Prevents burnout. If you do it right, board service takes a lot of time and energy, especially in positions like the board chair or treasurer. Human natures says that we can only sustain high energy levels for so long before we become bored, burned out, or ready for new challenges. Even on the boards where I felt a passion, after nearly a decade of service, I found myself ready to move on. Term limits allow for that graceful exit for both the board and board member.
Allows you to remove deadweight. On the flipside of that equation, we often find that some board members do not fit the culture or work ethic of a board or had a life event that makes their continued service on your board less productive. Having term limits gives you a graceful and ready-made excuse and timeline for thanking them for their service and moving them on. Just because you can elect them for another term does not mean that you have to.
Prevents a concentration of power in the hands of a few. A small group of long-serving members can take over the board. This can lead to resistance to change and intimidation of new members, also counterproductive to an effective board, especially in today’s world that requires nearly constant change and adaptation.
Allows for planned transitions. Everyone will transition off the board at some point in time, whether by choice or because they did not beat mortality. Better to know and plan for these inevitable transitions than find yourself in an emergency situation when a board member passes away or suddenly becomes incapacitated.
Enhances accountability. With a finite term, board members often feel a heightened sense of duty to achieve specific goals and leave a lasting impact.
Expands supporter networks. As members rotate off the board, they should become ambassadors for your organization, improving fundraising efforts and community connections. Creating an emeritus board or otherwise ensuring that you keep your former board members actively engaged in the life of the organization can facilitate this.
Forces documentation of processes and histories. Many people fear that enforcing term limits will cause them to lose institutional history or memory. I got news for you: you will lose them at some point. Better to capture that information today, formalize your processes, and allow that person to mentor the next generation of board members than to rely on someone who may not be there tomorrow.
If you already have term limits – and enforce them – kudos to you! Keep up the good work.
If you do not, you might start the process by reviewing your bylaws and enforcing what you already have codified. Just ensure that if you need to start from scratch to develop term limits that you initially stagger board members’ terms and create alternative roles for valuable former board members to ease your transition toward reaping these benefits of regular board renewal.
