36. Choosing the Board: Charting the Course with Competing Priorities
IV – 54
Gender. The current Board is all male. Adding a female(s) would
provide some gender diversity. Ask students what might happen if just
one woman were added. Would it matter which woman, i.e., whether
that woman were Sue Novenski, Layla Amini, Carmen Diaz, or Katherine Dobbs
Courtney? Why?
Ethnicity. Nothing is stated about the ethnicity of the current Board.
It is likely that since all members are upper class industrialists, most if
not all, are white and possibly Euro-white. From their names, it appears
that several of the nominees might be identifiable ethnically, however. In
particular, note that some of the nominees may be ethnically mixed, such
as Charles Wong and Sue Novenski, who have Anglo first names and
ethnic last names while other nominees have completely Anglo or ethnic
names. Should some or all four nominees with ethnic names be added to
the Board to provide ethnic diversity?
Social Class. Current Board members are all upper class, but not all of
the nominees appear to be. While diversifying the Board in socio-economic
terms may be desirable, there are potential problems. First and foremost,
governing Boards have fiscal responsibility for their institutions and this could
create an awkward and embarrassing situation for some new members. Many
people are not familiar with financial statements such as balance sheets and
income statements and are totally lost when faced with them. Financial reports
are so much a part of Board decision-making that knowing how to interpret them
is vital. A further problem is that placing less affluent members on nonprofit and
community Boards could be embarrassing to them if they cannot make the
substantial contributions to the organization that other Board members can make
and that may be expected.
Political Influence. Nominees were put forth by different sources. Each of
these sources represents a form or source of stakeholder influence that
could affect the hospital’s future. Should political influence be a factor in
selection? If so, to what extent? Why?
Conservatism and Personal Style. Current Board members are all
conservative. Unfortunately, their policies have not been effective in
ameliorating the present financial and managerial situation and may have abetted
it or even created it, so it can be argued that changes in policies and actions are
urgently needed. Some of the nominees are team players and conciliatory in
nature and likely could do much toward making the “new” Board function
smoothly. On the other hand, some very major (even radical) changes in fiscal
and managerial policies are needed to put the hospital on a sound basis.
Seemingly, the innovators, idea people, and self-starters among the nominees
might be just the people to introduce new policies and put the hospital back on
track.