DIRECTIONS editorial staff recently interviewed Michael K. Pearson, a board member of PHMC and of its newest affiliate Philadelphia Health Care Trust, to discuss the importance of effective board members and learn why he chose to sit on PHMC’s boards. Pearson is founder and president of Union Packaging, LLC, a Yeadon, PA-based paperboard packaging manufacturer that makes food containers for McDonald's Corporation, Burger King Corporation and Wendy's International, Inc. He participates in many civic and business associations throughout the region and nation. In August, Philadelphia Business Journal named Pearson one of its 2010 Minority Business Leaders.

Who inspires your decision to give back?

My parents remain my most important influence. Despite their humble middle class standing and five children, Mom and Dad miraculously found time to volunteer and money to donate. While working at Pfizer, I learned that world-class businesses promote corporate cash giving and encourage employees to donate time.

As a successful entrepreneur, what qualities do you bring to the board of a nonprofit?

In business, the most effective entrepreneurs manage with a laser focus on goals. The best nonprofits work in much the same way. I have been blessed to have been part of successful leadership teams in both worlds. Delegating responsibilities to groups of employees and outside consultants allowed those organizations to run well. As a businessman, I make sure that my teams have diverse skills that complement the areas in which I may not be as proficient. The teams that I worked with have been results-driven by bottom-line goals. The [PHMC] board works well because we aspire to be a socially responsible team driven by our desire to see our clients receive the best and most fiscally responsible service.

What convinced you to join PHMC’s board?

Board service at PHMC allows me to continue a family tradition of influential social stewardship. When I was approached, we reviewed PHMC’s scope of services and how important the health services are for close to 90,000 clients. PHMC manages to employ fiscal controls similar in spirit to those adopted by my business, but without compromising their nonprofit mission. The board focuses on the big picture which has helped us tackle problems in a very difficult economy. Board priorities remain clearly established and we do not spend time on any trivial concerns.

You volunteer as a board member for PHMC, as well as for our newest affiliate, the Philadelphia Health Care Trust. What aspect of volunteering do you find the most rewarding?

Community stewardship offers many rewards, but for me most important reward remains the good karma generated from making a difference in someone else’s life. However, community service reaches beyond just feeling good. Volunteering allows me to sharpen and hone the skills that are required to keep my business profitable. The best companies encourage private citizens to become involved in community stewardship partly for the reciprocity that public service involves.

What, in your opinion, are some of the biggest challenges facing nonprofits?

At some point every nonprofit organization, and its board of directors, faces the dilemma of growing or expanding its mission in the wake of diminishing financial resources. Larger organizations, like PHMC, also have different challenges from smaller organizations, such as managing growth and being nimble in a changing environment. A struggling, small nonprofit usually can’t afford outside consultants or training for staff, and often lacks the network to access funds to carry out its mission. PHMC has the resources—even in this current environment—to partner with smaller organizations that share its public health mission.

What are some of your current initiatives with the PHMC board?

As a less tenured member of the board, my first year has been committed to learning the inner workings of PHMC and the committees associated with the board. Going forward, I hope to contribute in two ways. First, align with the committees charged with assisting PHMC meet its mission through sound fiscal management. Second, help with the full integration of Philadelphia Health Care Trust into the PHMC affiliate family.

Three things Pearson says every board member needs to successfully serve an organization:

1. A creative and inquisitive mind, particularly at committee and board meetings.

2. The commitment to advance the good works of the organization to friends, family and even foes through “friend-raising,” devoting your time and financial resources to furtheringthe mission of the organization though introductions to decision makers.

3. The assurance that you are adding value to the organization. Constantly ask yourself whether you are; if you're not, get active or give that seat to someone else.