BTMAD 04
The reason for the existence of Reach Unlimited is to satisfy the needs of our clients. Whose needs, which needs, and what constitutes “satisfaction” are the unending and subjective questions that confront our board. Therefore, the most important work of the governing board is to create, and re-create, the reasons for organizational existence.
It is important that the board view results in terms of cost and benefit. We engage in a transaction with the world outside Reach. We consume talent, capital, and space in exchange for making clients safer, happier, and healthier. The board should ask itself, “What good shall we accomplish, for which people and needs, and at what cost?”
Ends are the satisfactory results. Means are activities and procedures staff choose to achieve the intended effects. Often we get so engrossed by discrete routines that we lose sight of the intended results. We can become distracted by commendable activities, conditions, structure, and technologies.
Activities are always means, no matter how important or complex. External outcomes, results, and impacts are Ends.
A Mission statement is a broad and brief Ends statement that answers these questions: “What is this organization for?” and “How will the world be different as a result of our existence?” Following are six critical characteristics of a powerful Mission Statement:
1 – Detail the change, the effects, we wish to make - but not in terms of activities. Rather, the change is the mission.
2 – Succinct.
3 – It should be generated by the board, not just approval of a staff generated statement.
4 – The statement should be integrated with related external organizations i.e. the community.
5 – The Mission should be a displayed prominently and repeated often.
6 – It should be the theme of all departments and decisions.
The first step is to determine the Mission. Second is to establish the products, consumers, and costs which the board feels strongly enough about to make pronouncements. And third, to subject those issues to analysis, debate, and vote.
Policy making stops at the point where the board is willing for the Executive Director to make further decisions about activities (Means). The idea is to not extend policy making to the small value choices. The staff should not have to worry that the board will so extensively address low level issues that there is very little latitude for the staff to do its job. The staff is driving, and as long as we feel they are not taking the long route, they should be permitted to choose the lane and the route.
Good governance calls for the board‘s role in long range planning to consist chiefly of defining a “somewhere” the organization needs to go. The enunciation of this “somewhere” is the board’s highest contribution. The actual long range planning should be done by staff – not the board. The board should confine itself to the big questions about Ends and not drift into current issues.
Once Ends policies are written, the board should focus on answering the question: “How are we doing?” There should be a precise, systematic, non-intrusive, criteria-focused method for monitoring results. Keep asking, “What did we want to accomplish and did we accomplish it?”
Monday, April 25, 2011
Wednesday, April 20, 2011
Designing Policies That Make A Difference
BTMAD 03
Board leadership and governing are largely policy tasks. Yet only about 5% of boards have a Policy Manual. Usually they have only a loose collection of statements from the Executive Director about specific issues. Further, it is often in response to problems rather than principles for future actions. Policy making is proactive about the larger issues rather than reactive to smaller matters. The goals are for board policies to be explicit, current, literal, centrally available, brief, and encompassing.
Explicit means written. Even though they may not be in written form, there is always at least unwritten policy. In these cases, implicit policy is substituted for explicit guidelines. People then are left to “suspect” they understand what is required
Policies should literally mean what they say, and if unclear, then they should be clarified or deleted. They must be kept up to date and reliably available in one book / location.
Brevity and simplicity are the secrets of excellence policies. No matter how broad the policy, it will always be more specific than if left unstated and less specific than it could be. Policies should be written within a framework that assures comprehensiveness, and dealing with all board functions.
By attending to the largest issues in each category, the board can limit its work. As it attends to specificity, it reaches a point at which the board feels it can accept any reasonable interpretation of the policy language. At this point, management can be entrusted to make all further choices.
To do this, the boundary between board policy and staff implementation must be detailed. We want the board to control without meddling. The following principles should be observed. The board should write and resolve the broadest or largest policy issues in each category before dealing with smaller issues. Further, the board should grant the Exec Director the authority to make all further decisions as long as they are within the board’s policy guidelines.
The Policy Manual is not a “policy and procedures” manual. It is different from staff- created, staff-owned documents. For example, rather than a board-approved budget, there should be a board budget policy. Instead of board personnel manual, there is a board personnel policy. This leads away from the Approval Syndrome. Often boards are handed ponderous documents, full of both the important and the trivial. They do not have the time or expertise to fully evaluate budgets and project descriptions.
Policy making is not an occasional board chore, but its chief occupation. Only reacting to problems is clearly not leadership or good governing. Broad policies, with diligent monitoring of execution, are the cures.
Board leadership and governing are largely policy tasks. Yet only about 5% of boards have a Policy Manual. Usually they have only a loose collection of statements from the Executive Director about specific issues. Further, it is often in response to problems rather than principles for future actions. Policy making is proactive about the larger issues rather than reactive to smaller matters. The goals are for board policies to be explicit, current, literal, centrally available, brief, and encompassing.
Explicit means written. Even though they may not be in written form, there is always at least unwritten policy. In these cases, implicit policy is substituted for explicit guidelines. People then are left to “suspect” they understand what is required
Policies should literally mean what they say, and if unclear, then they should be clarified or deleted. They must be kept up to date and reliably available in one book / location.
Brevity and simplicity are the secrets of excellence policies. No matter how broad the policy, it will always be more specific than if left unstated and less specific than it could be. Policies should be written within a framework that assures comprehensiveness, and dealing with all board functions.
By attending to the largest issues in each category, the board can limit its work. As it attends to specificity, it reaches a point at which the board feels it can accept any reasonable interpretation of the policy language. At this point, management can be entrusted to make all further choices.
To do this, the boundary between board policy and staff implementation must be detailed. We want the board to control without meddling. The following principles should be observed. The board should write and resolve the broadest or largest policy issues in each category before dealing with smaller issues. Further, the board should grant the Exec Director the authority to make all further decisions as long as they are within the board’s policy guidelines.
The Policy Manual is not a “policy and procedures” manual. It is different from staff- created, staff-owned documents. For example, rather than a board-approved budget, there should be a board budget policy. Instead of board personnel manual, there is a board personnel policy. This leads away from the Approval Syndrome. Often boards are handed ponderous documents, full of both the important and the trivial. They do not have the time or expertise to fully evaluate budgets and project descriptions.
Policy making is not an occasional board chore, but its chief occupation. Only reacting to problems is clearly not leadership or good governing. Broad policies, with diligent monitoring of execution, are the cures.
Wednesday, April 13, 2011
Policy Manual As Board Leadership
BTMAD 02
In my last essay, we categorized Reach Ltd. as a non-profit governing board and that we need a Policy Manual. Indeed, policy definition and clarification should be the central focus of our governance activities.
The essence of an organization lies in what it believes, what it stands for, and what and how it values. Its works, rather than its words, is the telling assessment. This requires leadership and direction. The challenge is to lead to future deeds rather than analyze past activities.
Policy should reflect the values and perspectives of the organization. “Value” is what we believe is important. It reflects our definition of right / wrong, prudent / imprudent, acceptable / unacceptable, and so forth. “Perspective” is our approach, our point of view, and our guiding principles.
We apply our values and perspectives when we encounter external realities and they lead us to act in certain ways. Setting goals, hiring staff, developing budgets, and all other board and staff activities should reflect our values and perspectives. The purpose of the policy manual is to state our values and perspectives.
Boards that govern by policy are more likely to act in accord with its basic principles because they are well thought out and written. Less time is needed to make decisions because the guidelines are established. Making policies explicit and then keeping the spotlight on chosen policies keeps the organization faithful to its purpose.
The Carver governance model establishes four categories of policy:
1 - Ends (or Mission) - What needs are met, for whom, and at what cost. What should our results be? Our leadership will be pronounced through wisely developed organizational ends.
2 - Administrative Parameters - Principles of prudence and ethics that limit the practices of staff. When we have dealt with where we want to go, then what is left is “How do we get there?” The answer typically belongs to the staff, not the board. Ends and means should be kept separate. We do not need to tell them how to do their job. The staff is judged by results, not by their methods (as long as they are prudent and ethical).
3 – Board / Staff Linkage - the manner in which authority is passed to the organizational machinery. There are two parts – how the board relates to the staff, and how the board goes about governing.
4 - Board Process - How the board represents the ownership and provides leadership to the organization. What is the board’s job description? What are legitimate board topics and activities? On behalf of whom is the board acting? In what manner will the board provide strategic leadership?
These categories of policy will profoundly affect the nature of board conversation, accountability, and documents. The Policy Manual is the repository of all board pronouncements and wisdom.
In my last essay, we categorized Reach Ltd. as a non-profit governing board and that we need a Policy Manual. Indeed, policy definition and clarification should be the central focus of our governance activities.
The essence of an organization lies in what it believes, what it stands for, and what and how it values. Its works, rather than its words, is the telling assessment. This requires leadership and direction. The challenge is to lead to future deeds rather than analyze past activities.
Policy should reflect the values and perspectives of the organization. “Value” is what we believe is important. It reflects our definition of right / wrong, prudent / imprudent, acceptable / unacceptable, and so forth. “Perspective” is our approach, our point of view, and our guiding principles.
We apply our values and perspectives when we encounter external realities and they lead us to act in certain ways. Setting goals, hiring staff, developing budgets, and all other board and staff activities should reflect our values and perspectives. The purpose of the policy manual is to state our values and perspectives.
Boards that govern by policy are more likely to act in accord with its basic principles because they are well thought out and written. Less time is needed to make decisions because the guidelines are established. Making policies explicit and then keeping the spotlight on chosen policies keeps the organization faithful to its purpose.
The Carver governance model establishes four categories of policy:
1 - Ends (or Mission) - What needs are met, for whom, and at what cost. What should our results be? Our leadership will be pronounced through wisely developed organizational ends.
2 - Administrative Parameters - Principles of prudence and ethics that limit the practices of staff. When we have dealt with where we want to go, then what is left is “How do we get there?” The answer typically belongs to the staff, not the board. Ends and means should be kept separate. We do not need to tell them how to do their job. The staff is judged by results, not by their methods (as long as they are prudent and ethical).
3 – Board / Staff Linkage - the manner in which authority is passed to the organizational machinery. There are two parts – how the board relates to the staff, and how the board goes about governing.
4 - Board Process - How the board represents the ownership and provides leadership to the organization. What is the board’s job description? What are legitimate board topics and activities? On behalf of whom is the board acting? In what manner will the board provide strategic leadership?
These categories of policy will profoundly affect the nature of board conversation, accountability, and documents. The Policy Manual is the repository of all board pronouncements and wisdom.
Thursday, April 7, 2011
What is a policy manual ?
BTMAD 01
There are several types of boards: Governing board – sits at the top of organization and has ultimate authority and accountability Advisory board – gives advice but does have accountability Working board – does all the work itself, often for small or startup organizations Line board – has authority but is not the top of organization, may be overruled by Exec Director Profit and non-profit board – obviously we are a non-profit. Because we do not use profit as a measure, it is a necessary function of the board to represent the interests of both the consumer and the public who chartered the organization. If we are to be a governing board, then it is necessary to have a policy manual. You cannot hold people accountable if there is no standard or procedure or priorities. Therefore, we need for written policies. These policies should reflect the needs and interests of those we serve. The board must perform this function. Intelligent, caring board members often exhibit procedures that are deeply flawed: Time on trivial matters Short-term bias (that matches there term in office) Reactive stance to current situations (rather than proactive planning) Reviewing the past rather than providing for the future (e.g. after the fact budget questions) Leaky accountability – letting others or the Exec Director and staff take over Diffuse authority – lack of clarity on boundaries of authority creates gaps and overlaps Boards try to fix these problems with these prescriptions: More / less involvement – over managing or failing to manage Board as watch dog, sniffing everything Board as cheerleader - “support” activities and “rubber stamping” Board as manager – going beyond governing to over managing Board as planner – engaging in the details of implementation Board as communicator – more “human relations” activities The methods above are reactions to problems. They are sensible but still miss the mark. All look backward and correct insufficiencies but do not look forward and prevent new problems. That is the goal of a policy manual – to wisely design a future and not just patch past problems. The task is to go beyond just helping the organization and instead to focus on owning the organization, being accountable for the future and for results - to go beyond simple voluntarism to ownership on behalf of those we serve. A policy manual provides a structure to capture the thoughts, values, and activities of the governing board. Vision is the highest priority. This leads to addressing fundamental values, forcing an external focus (rather than only internal matters), separating larger from smaller issues, emphasizing outcome-driven goals, concentrating on forward thinking and proactive strategies, balancing over/ under control (either too weak to accomplish anything or too strong and wind up managing everything), and using board time effectively.
There are several types of boards: Governing board – sits at the top of organization and has ultimate authority and accountability Advisory board – gives advice but does have accountability Working board – does all the work itself, often for small or startup organizations Line board – has authority but is not the top of organization, may be overruled by Exec Director Profit and non-profit board – obviously we are a non-profit. Because we do not use profit as a measure, it is a necessary function of the board to represent the interests of both the consumer and the public who chartered the organization. If we are to be a governing board, then it is necessary to have a policy manual. You cannot hold people accountable if there is no standard or procedure or priorities. Therefore, we need for written policies. These policies should reflect the needs and interests of those we serve. The board must perform this function. Intelligent, caring board members often exhibit procedures that are deeply flawed: Time on trivial matters Short-term bias (that matches there term in office) Reactive stance to current situations (rather than proactive planning) Reviewing the past rather than providing for the future (e.g. after the fact budget questions) Leaky accountability – letting others or the Exec Director and staff take over Diffuse authority – lack of clarity on boundaries of authority creates gaps and overlaps Boards try to fix these problems with these prescriptions: More / less involvement – over managing or failing to manage Board as watch dog, sniffing everything Board as cheerleader - “support” activities and “rubber stamping” Board as manager – going beyond governing to over managing Board as planner – engaging in the details of implementation Board as communicator – more “human relations” activities The methods above are reactions to problems. They are sensible but still miss the mark. All look backward and correct insufficiencies but do not look forward and prevent new problems. That is the goal of a policy manual – to wisely design a future and not just patch past problems. The task is to go beyond just helping the organization and instead to focus on owning the organization, being accountable for the future and for results - to go beyond simple voluntarism to ownership on behalf of those we serve. A policy manual provides a structure to capture the thoughts, values, and activities of the governing board. Vision is the highest priority. This leads to addressing fundamental values, forcing an external focus (rather than only internal matters), separating larger from smaller issues, emphasizing outcome-driven goals, concentrating on forward thinking and proactive strategies, balancing over/ under control (either too weak to accomplish anything or too strong and wind up managing everything), and using board time effectively.
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