Columbia’s Music Men and their dysfunctional directors

Missouri Theatre executive director David White’s (left) resignation this month under a cloud of contractor disputes reminded me of former superintendent Phyllis Chase’s retirement last year from the Columbia Public Schools.

Both departures were the culmination of controversies that might have been avoided if a board of directors had mustered the courage to take charge and say “No.”

No, David: Given what we owe our contractors, Tony Bennett – unless he can sell out 1,200 seats at $100 a seat – is too expensive for our opening gala. No, Phyllis: Given budget shortfalls, we can’t afford $10 million in new expenses.

Many local organizations – from non-profits to government agencies – hire paid executives who answer to unpaid directors who tend to rubber stamp the executive for reasons that range from expedience to keeping the peace.

The result is almost always the same: long-term dysfunction that ultimately erupts in a high-profile departure and a storm of bad publicity. 

 

Secrecy and Sunshine

Board dysfunction manifests in many ways. School board observer and Acorn Books owner Ken Green sees it in something as simple as a seating arrangement.

“The superintendent’s central position at the school board’s legislative table raises an important question: Is the school board a step up in the chain of command, in charge of the superintendent, or not?” Green asked in a recent editorial.

There were only three superintendents in the 50 years prior to 1993, but “six or seven” superintendents since then. Dysfunction manifests in executive turnover, as Missourian columnist George Kennedy noted in a January column about the search for Chase’s successor.

Kennedy laid the blame for at least three disastrous departures – Chase; Russell Mayo, who left after a similar no-confidence levy defeat; and Joel Denney, fired over allegations of on-the-job drinking and sexual harassment – at the doorstep of another common board dysfunction: secrecy.

“Secrecy is a bad idea,” Kennedy noted. “The unhappy outcomes I’ve recounted all began behind closed doors.”

Speak up, Shoot down

Executive turnover has long vexed the Central Missouri Humane Society, and insiders tell me that a paralyzing fear of confrontation is partly to blame for the society’s well-known financial problems.

For instance, “The board hasn’t had the guts to stand up and insist that government agencies pay their way when they use the shelter for animal control,” said a source close to CMHS. “Anyone who speaks up gets shot down. They’re too afraid to make waves.”

Getting shot down is partly what prompted board members Steve Tatlow and Alison Martin (my wife) to resign from the Boone County Family Resources (BCFR) all-volunteer board last year.

Financial and management irregularities – including an unusually large reserve fund and an unduly long term for board chairman Bob Bailey – churned up a perfect public relations storm that had Bailey literally yelling at dissident board members. “Who talked to the papers? Don’t talk to the papers!”

News accounts had Bailey and BCFR’s six-figure-salaried director Les Wagner telling Tatlow that his questions about their taxpayer-funded operation were “a waste of time.”

Fear of personal liability for board malfeasance drove Tatlow to the Missouri attorney general’s office, which sent a letter to BCFR on Oct. 11, 2007, that “expressed concern about the legality of the board’s operations and raised the possibility of a formal investigation,” the Columbia Missourian reported.

Speaking in Tatlow’s defense during one grueling board meeting, “Alison Martin said she felt uncomfortable with the board,” the Missourian reported. “I feel very intimidated, and it really bothers me,” Martin said.

Saying it was “vital that a board member ask critical questions,” Tatlow resigned rather than fight an effort to dismiss him. 

 

Karl and the King

The most high-profile example of this volunteer board-paid staffer arrangement, the Columbia City Council, would have dissolved in disarray years ago if not for the iron-clad control of a nearly monarchical city manager.

The city manager doesn’t answer to the citizens, at least not directly, and with Columbia’s extraordinary growth over the past decade, council control is more critical than ever.

But council members are reluctant to take charge, and it’s no wonder why. Asking questions about a staff hiring process earned Third Ward councilman Karl Skala a threat of dismissal á la Steve Tatlow. “Not exactly what I expect from a democracy,” Skala quipped.

True to the prevailing form, council members’ hands are tied. They aren’t paid; they don’t have dedicated staff or office space; and, with the exception of retirees or the independently wealthy, they don’t have adequate time to scour the budget, answer staff arguments, or grill the city manager when he oversteps as Bill Watkins did during the Missouri State Historical Society’s disastrous foray into eminent domain.

-- Originally published in the Columbia Business Times


READERS WRITE ABOUT DIRECTOR DYSFUNCTION

Hi Mike. Thank you for airing these concerns about Boards of Directors. They are one reason that we really want to emphasize the importance of board development. It is unfortunate that these situations occur with such frequency.

Nonprofit organizations are the interface between our community and those most in need. A way for the community to take care of itself, without the need for government intervention. It is our [the community’s] responsibility to ensure that nonprofits operate efficiently and with integrity. Effective board training is an integral part of ensuring that nonprofits, and their executive directors, receive the oversight that they need and deserve. -- Mindy Duncan, Columbia

Mike,

Just got your latest Beat Byte and couldn't agree more about the lay board vs. professional staff issue.

This is a major problem at all levels - from not-for-profit organizations in DC, SF, and LA to our local City Council. Most bylaws or charters specify that lay board sets the policies and positions, and the staff carries these out. But, the way it works in reality is that the professional staff works every day and the lay board meets every other week or monthly or even annually - and the staff insists that things come up that must be dealt with immediately. These are reported to the lay board, but as a fait accompli - and the Board is asked to ratify decisions and actions that have already been made.

Then there are those situations where the staff says "trust us" and just goes ahead and does what it damn well pleases. When the lay board attempts to exercise some oversight, the staff objects vociferously - such as the situation here when Karl Skala offered some advice and was promptly ruled out of order by an attorney hired by the City Manager.

Staff also insists (with some validity) that they are there every day, and the Board only meets occasionally, and therefore is not up to speed on day to day events. In addition, the professional staff "knows" how far it can go. For instance, the City staff here knows that with the current composition of the City Council, that certain actions cannot be taken, or these actions are done out of sight of the Council, the media and the public. Finally, the professional staff recruits persons to get on the lay board (either through election or appointment) - persons that will support the actions of the staff.

When the City Manager (and the City Attorney and City Clerk) or the School Board Superintendent sit at the meeting table with elected members, the public perception is that these appointed officials are at the same level as elected officials and these staff people often weigh in on whatever agenda item is being discussed.

I have met with several City Council members, and have urged them to use their authority to direct staff to take certain actions - and if the staff doesn't do so, their sorry butts should be canned. While these City Council members agree with me, they haven't done much to establish their control and oversight. They talk the talk, but don't walk the walk.

Akin to you, I have no magic wand to wave to address this situation. It is up to individuals on the lay boards and, at present, most of them seem to be invertebrates - lacking a backbone.
-- Ken Midkiff, Columbia