by Dr. Kevin Dean, President & CEO, Tennessee Nonprofit Network
Serving on a nonprofit board is a privilege and a responsibility. It’s an opportunity to leverage your skills and passion to champion a cause that resonates deeply. However, the path to effective board leadership is rarely straightforward. Even with the purest intentions, our brains can fall prey to cognitive biases, those inherent mental shortcuts that can subtly, and sometimes dramatically, skew our judgment. Understanding these biases is paramount, especially in the nuanced and often complex realm of nonprofit governance.
For board members, particularly those transitioning from for-profit sectors or lacking direct experience in nonprofit operations, these biases can be particularly influential. The nonprofit world operates with its own unique set of challenges, from resource scarcity and mission-driven priorities to the need for deep community engagement. It’s a landscape where simplistic solutions rarely exist, and where the “bottom line” extends beyond financial metrics to encompass social impact and community well-being.
Let’s delve deeper into several key cognitive biases that frequently affect board members, and explore how they manifest in the nonprofit context:
1. The Illusion of Explanatory Depth: Believing We Know More Than We Do
This bias, also known as the “feeling of knowing,” creates a false sense of understanding. We might listen to a presentation, read a report, or participate in a discussion, and walk away feeling confident that we fully grasp the intricacies of the subject matter. However, when pressed to explain the details, we often find our understanding is superficial at best.
- Nonprofit Example: Program Evaluation and Impact Assessment:
- A board member might review a program evaluation report and believe they understand the methodology and its implications. They might nod along during discussions about statistical significance and control groups, but struggle to articulate the report’s key findings or the limitations of the data.
- This can lead to flawed decision-making. For example, a board might approve a program expansion based on a superficial understanding of its impact, without considering the nuances of the evaluation or the potential for unintended consequences.
- Mitigation Strategies:
- Encourage Active Questioning: Foster a culture where board members feel comfortable asking clarifying questions, no matter how basic they might seem.
- Promote Deeper Dives: Encourage board members to request detailed reports and presentations, including methodology, data sources, and potential limitations.
- Facilitate Educational Workshops: Organize workshops and presentations by experts in relevant fields, such as program evaluation, fundraising, or financial management.
- Implement “Explain It Back” Exercises: After presentations or discussions, ask board members to summarize key points in their own words. This can reveal gaps in understanding and prompt further discussion.
- Foster a Culture of Humility: Board members should be encouraged to acknowledge when they don’t understand something and to seek further clarification.
2. Overclaiming: The Exaggeration of Contributions
This bias leads us to overestimate our own contributions and knowledge relative to others. We might attribute successes primarily to our own efforts, while downplaying the contributions of colleagues, staff, or volunteers.
- Nonprofit Example: Fundraising and Donor Relations:
- A board member who made a single introduction that led to a significant donation might overemphasize their role in securing the funds, while neglecting the years of relationship-building and cultivation done by the development team.
- This can lead to resentment among staff and volunteers, and undermine the collaborative spirit essential for effective fundraising.
- Another example is a board member that has a professional background in marketing, and overclaims their role in a successful social media campaign, while ignoring the work of the communications director.
- Mitigation Strategies:
- Emphasize Teamwork and Collaboration: Celebrate collective achievements and recognize the diverse contributions of all stakeholders.
- Implement Systems for Acknowledging Contributions: Establish clear processes for recognizing and acknowledging the contributions of staff, volunteers, and board members.
- Promote Active Listening: Encourage board members to listen attentively to the perspectives of others and to acknowledge their expertise.
- Regularly Review and Evaluate Board Performance: Conduct regular evaluations of board performance, focusing on both individual and collective contributions.
3. Knowledge Neglect: Ignoring What We Already Know
This bias occurs when we fail to consider relevant information that we actually possess. We might ignore data, past experiences, or expert opinions that contradict our current assumptions or preferences.
- Nonprofit Example: Strategic Planning and Program Development:
- A board member might advocate for a new program expansion without considering past evaluations that revealed similar initiatives faced significant challenges in reaching target populations or achieving desired outcomes.
- Another example is ignoring past financial reports that show a trend of declining revenue when making budgeting decisions.
- This can lead to costly mistakes and missed opportunities.
- Mitigation Strategies:
- Promote Data-Driven Decision-Making: Emphasize the importance of using data and evidence to inform strategic decisions.
- Establish Clear Processes for Information Sharing: Implement systems to ensure that relevant information is readily accessible and considered by board members.
- Regularly Review Past Reports and Evaluations: Conduct regular reviews of past reports, evaluations, and lessons learned.
- Encourage Diverse Perspectives: Seek out and incorporate the perspectives of diverse stakeholders, including staff, volunteers, beneficiaries, and community members.
- Implement a “Red Team” Approach: When making major decisions, assign a group to challenge the prevailing assumptions and identify potential risks.
4. The Illusory Truth Effect: Believing What We Hear Repeatedly
This bias makes us believe that repeated information is true, even if it’s false. The more we hear something, the more likely we are to accept it as fact, regardless of its actual validity.
- Nonprofit Example: Public Perception and Reputation Management:
- A board member might repeatedly hear anecdotal stories about a program’s success without seeing concrete data, leading them to overestimate its impact and overlook potential weaknesses.
- Also, a board member might hear repeated negative rumors about a staff member, and begin to believe those rumors without verified data.
- This can lead to flawed perceptions and misguided decisions.
- Mitigation Strategies:
- Emphasize the Importance of Verifying Information: Encourage board members to verify information from multiple credible sources.
- Promote Critical Thinking and Healthy Skepticism: Encourage board members to question assumptions and to challenge claims that lack evidence.
- Insist on Data-Driven Reporting: Require that claims about program impact and organizational performance be supported by credible data.
- Implement a System for Fact-Checking: Establish a process for fact-checking information before it is disseminated to the board or the public.
- Demand transparency: Ensure that all data is presented in a transparent way, and that the board has access to the raw data.
The Importance of Awareness and Mitigation, Especially in Today’s Climate:
The nonprofit sector is facing unprecedented challenges, including economic uncertainty, increased demand for services, and a rapidly changing social and political landscape. Board members must be equipped to navigate these complexities with sound judgment and informed decision-making.
Recognizing and mitigating cognitive biases is essential for effective board leadership. Boards must develop a culture of humility, open communication, and critical thinking so they can make more informed and impactful decisions that serve the best interests of their organizations and the communities they serve.
For Board Members Without Nonprofit Experience: A Call to Learning and Engagement:
If you’re new to the nonprofit sector, embrace the opportunity to learn and grow. Seek out opportunities to engage with staff, visit programs, and delve into the organization’s data. Don’t be afraid to ask questions, challenge assumptions, and seek guidance from experienced colleagues. Educate yourself on your role as a board member, too!
Your role as a board member is to provide strategic guidance and oversight, not to micromanage or impose your own assumptions. Be aware of cognitive biases and actively working to mitigate them so you can contribute to the success of your organization and the communities it serves. The nonprofit sector needs your expertise, your passion, and your commitment to making a difference. Approach your role with a spirit of continuous learning, and a willingness to challenge your own assumptions.