“The standard you walk past is the standard you accept.”
Lieutenant General David Lindsay Morrison, former Chief of the Australian Army, made this statement in response to inappropriate behavior within the military, but it has always stuck with me because of its application to other arenas, including the nonprofit Board room.
Board members are the owners – the standard bearers – of their team. They shape the culture of the team and set the standard for its performance. Board members who fulfill expectations and are accountable for their commitments contribute to a high standard of performance. Likewise, Board members who witness a problem or behavior and fail to address it are implicitly accepting it as the new norm.
Healthy Boards reflect on the standard they are setting in many areas, including:
1. Setting Organizational Culture
Nonprofit boards play a critical role in shaping the culture and ethics of the organization. If board members allow low standards—whether it’s poor governance, lack of accountability, or ineffective fundraising practices—they are implicitly accepting those standards as the new baseline. Over time, this can erode the organization's mission, reputation, and ability to deliver on its goals.
2. Accountability
Board members have a fiduciary duty to ensure that the nonprofit operates efficiently, ethically, and in accordance with its mission. If they overlook financial mismanagement, unaddressed conflicts of interest, or ineffective leadership, they are condoning those behaviors. By walking past these issues, boards risk harming the nonprofit’s long-term sustainability and undermining public trust.
3. Leadership and Influence
Boards set the tone for executive leadership. If nonprofit leaders see that the board tolerates substandard behavior or practices, they may feel emboldened to act in ways that don't align with the organization's values. Boards should be proactive in holding leadership accountable, providing guidance, and ensuring that the nonprofit's values are reflected in every aspect of its operation.
4. Risk Management
Boards are responsible for identifying and managing risks, including legal, financial, and reputational risks. By walking past risky behavior or inadequate systems, they expose the organization to unnecessary dangers. Nonprofit boards must be vigilant and prepared to step in when things go wrong, before the situation worsens or becomes irreparable.
5. Setting Expectations
One of the most important roles of a nonprofit board is to set clear expectations for performance. If board members fail to address underperformance or missed opportunities, they send a message that mediocrity is acceptable. This can have a ripple effect throughout the organization, from staff members to volunteers, and can ultimately diminish the nonprofit’s impact.
6. Building a Culture of Excellence
Boards should actively cultivate a culture of excellence by setting high standards, regularly reviewing performance, and ensuring that resources are used efficiently and effectively. By doing so, they help the nonprofit fulfill its mission in the most impactful way possible. If board members allow mediocrity, they reduce the nonprofit's ability to achieve its goals and make a difference in the community.
7. Encouraging Transparency
Effective boards encourage openness and create an environment where transparency is the norm.
What is your Board’s standard?
If your Board is ready to evaluate or elevate its standard, let’s talk!