How long is too long? The thorny dilemma of Board term limits

Do Board Chairs have use by dates?

by Jak Carroll, Strategic Sport Solutions

In 1998, plans were progressing for the Sydney Olympics, a virus like COVID-19 was the stuff of science fiction, iPhones had not been invented - and Eddie McGuire was President of the Collingwood AFL club

In 2020, Eddie McGuire is still President of the Collingwood AFL club, with a recent article in The Australian questioning whether this is a good thing or not.

In this article, leading lawyer David Galbally stated: “… it’s not healthy for the club to have the same person serve in that role [President] for as long as he has.”

There are other examples in Australian sport of even long tenures at the top but is that the best thing for the organisation?

While there is no doubt that organisations need stability at the top and that effective leaders are an asset to an organisation, I believe you can have too much of a good thing.

The USA has term limits on its President and even China, until 2018, had term limits on its leader. So why should sport and nonprofit organisations be different?

Periodic changes in leadership - with orderly succession (unlike the USA) - are generally considered part of good governance.

They not only prevent burn-out of incumbents but also allow for organisational renewal. They are an opportunity for fresh ideas, new attitudes and different perspectives to infuse an organisation.

They can be also be important ways to ensure a Board reflects the changing composition of an organisation’s membership.

Finally, term limits can be a convenient way to get rid of some “dead wood”: that burdensome Chair or Board member who are inactive, troublesome or contributing very little.

Does your organisation need some help with planning or governance? Jak Carroll has extensive experience in the sport and nonprofit sectors, including consulting to organisations and conducting training sessions. If you are interested in some quick advice or having Jak work with you on your next project, please click here