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.