The relationship between the board of directors and the executive director can easily be overlapped and misunderstood. To have a high-functioning, effective nonprofit, it is critical for the executive director and the board of directors to understand and appreciate their distinct roles. As outlined in Professor’s video, the Board of Directors sets and maintains the framework within which the organization functions whereas the Executive Director executes the mission and takes decision. In other words, he or she oversees the execution of the mission within the framework established by the board.

The reading of Fisman et al (2009) “Mission Driven Governance “highlights some of the issues that can arise in governance between the board and the executive director. The non-profit that they study has an inability to focused on a clearly defined articulated mission. Usually, when that happens, it is often the results of conflicting decisions between the board and the executive director and thereby a governance problem. It can also be that communication is not done effectively from both parties and their work on both a generative framework and strategic framework is not operated collaboratively. Ultimately, conflicts between board members and the executive director will hold back the progress of the organization and inhibit its growth as a healthy organization.

In order to prevent such chaotic environment or bad dysfunction, it is incumbent to both parties to create a climate of trust and work ethic and implement a system of checks and balances to avoid power authority of either party. As the readings point out, good governance can be built over time, it can be legislated and it must be revisited annually. Both board members and ED can both make sure that bad things don’t happen but also that good thing happen around the mission that they are both committed to. “To produce good outcomes people have to work together, taking advantage of individual strengths. Consequently, the ideal relationship is based on trust, not rules.” It is ultimately a joint effort and group decision making that will create a healthy growth.

Fisman, Raymond; Khurana, Rakesh; Martenson, Edward. (2009). Mission Driven Governance. Stanford Social Innovation Review. Vol. 7 (Summer), pp. 36-43.