A Look at Leadership:
Stages of Development and the Board
by Kate Scorza Ingram

At AMS Planning & Research Corp., our projects range from feasibility studies to strategic and implementation plans to rescue and recovery strategies.  Given the diversity of our projects, we see arts organizations at all five stages of development: 1) start-up, 2) adolescent, 3) mature, 4) stagnant, and 5) shut-down (see note).  Each stage has its own challenges but the real struggle is recognizing the transitional period in between stages and ensuring that the appropriate Board leadership is in place when the next stage is realized.  Alternatively, closely examining the Board could help an organization in crisis avoid the final stage by recognizing the need for a turnaround.

To follow is an overview of each stage of development and the transitions in the role of the Board as an organization matures.

1) In a new or start-up organization the emphasis is on mission and survival.  There is typically a founder who has invested themselves entirely in the organization, and a few enthusiastic and committed staff members.  The Board at this phase tends to be small in size and one would expect to see members who have been selected by the Founder(s) and/or Executive Director.  Board members are also typically volunteers who are committed to working for the “cause.”  Our clients will typically have a Board comprised of artists and arts professionals during this stage.  As such, it is not uncommon to see Board members actively participating in the operations of the organization and having a strong sense of loyalty to the mission.

2) As the organization transitions from start-up to adolescent, one would expect the Board to be less involved in the day-to-day operations and more engaged in oversight.  This is also a time when the size of both the Board and staff is expanding and the addition of more professionals brings both wealth and wisdom to the Board.  It is at this stage that arts and culture organizations tend to add more business professionals to the Board for enhanced credibility, increased expertise, and fundraising capabilities.  There may be tensions at this time due to the transition and the delineation of the obligations between Board and staff. The struggle between mission and business begins to arise.

3) The next stage of development is mature, and the transition from adolescent to mature is perhaps one of the most difficult and exciting.  This phase is experienced by our clients who are transitioning from renting performance spaces to owning and/or operating their own facilities.  At this stage the Board size increases significantly and the diversity of the Board will be the most pronounced.  This is the stage when an organization will have more of an institutional rather than organizing Board. Fundraising, policy and oversight become the main focus of the Board and the initiation of a formal committee structure will be important. 

[ back to top ]

4) Once an organization has reached maturity, there is a sincere concern that it can become stagnant – delivering stale programming, witnessing a drop in contributed revenues, and experiencing challenges reaching goals.  There tends to be less Board turnover in this phase, as the organization has now become recognized in its field and there is the appearance of less work.  The Board becomes lethargic and less involved in moving the organization forward.  At this point, the Board structure may no longer be relevant and could potentially stifle creativity and governance functions.  There is a significant amount of discussion right now in the arts and culture community that seems to be avoiding the recognition of the stagnant phase.  This is a slippery slope down towards shut-down; it is important to take a step back and reflect on the Board’s effectiveness and concentration – is the Board too entrenched and no longer focused on the mission?

This is the stage when a turnaround is the only option for survival.  This is the last chance to recognize the need for assessment, to refocus the mission to meet patron and community needs, to consider new business models (mergers or outsourcing), and a revision of programming.  Without this type of assessment and change, the final stage becomes inevitable.

5) The final stage of development is shut-down.  There is a loss of credibility with patrons and donors – the organization has completely lost sight of both its market and the community.  It is at this phase that key Board members may abandon the organization, leaving the rest to crisis management.  An organization needs to have an orderly dissolution process before moving on to something new.

There is no silver bullet or miracle solution.  Only a candid and honest assessment of what developmental stage your organization is in can provide you with the tools to prepare an organization for a transition or to recognize the need for a turnaround.  Ongoing evaluation and discussion of the role of the Board allows for more positive transitions as an organization matures. 

We're interested in your insights and perspective! Click here to share your thoughts on these and other industry issues with our clients and colleagues.

Back to Insights