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The investigation of the Iowa Association of School Boards (IASB) serves to pull back the curtain on board operations and processes. If there is a positive aspect to the allegations of IASB fraud and malfeasance, perhaps it is the lesson to governing boards on avoiding similar problems.

By definition, boards are obligated to provide vision and direction. The governance function is being scrutinized now like never before, and the margin for error – and indecision – is rapidly shrinking. The Institute on Governance identifies several factors that can derail board performance, including:

Lack of consensus on the role of the board and the scope of its authority.

Trustees do not fully understand their duties and liabilities.

Board members have difficulty reading financial statements.

The board does not receive the right information in the right format.

Decisions are rubber-stamped by the board.

Decision paralysis.

The impact of these problems can be very real: sub-par financial returns, poor board leadership, member dissatisfaction and burnout – and even illegal activity.

Yet these challenges often can be addressed through effective strategic planning, ongoing board education and executive/officer development, and rigorous board evaluation.

First, strategic planning. When done well, strategic planning can plot a course for organizational growth and define the criteria by which management decisions are made. A comprehensive strategic planning process encompasses a number of steps: reaffirming the mission and vision of the organization, reviewing the internal and external environment (including trends and projections), and prioritizing organizational goals.

Second, ongoing education of new members, incumbents and officers. A board that does not devote resources to its own development risks falling out of step with the market and the industry.

Finally, board evaluation. A must for any work team, self-evaluation is no less essential for those in the governance role. It is given that boards evaluate financial performance and exercise appropriate influence; it is equally important to assess governance practices, structures and leadership.

The September 2009 issue of Hospital & Health Networks underlines an emerging trend in board evaluation, appraising the performance of individual members by peers. With balanced criteria and a well-defined scale, peer assessment can lead to increased trustee growth, engagement and satisfaction – which only strengthens overall board effectiveness.

The IASB inquiry can serve as a powerful reminder that diligent planning, continuous education and development, and regular self-evaluation are essential to board performance and success.

Jeff Hannah is the president of Touchstone Executive Development.