Policy Development

BTMAD 09

The work of creating policy flows from an initial global statement down graduated / expanding levels to more detailed declarations. There is a distinctive architecture, an outline format where the preamble carries the most general meaning. This is followed by narrowing statements and then further sub-statements – cascading when necessary to further clarify the board’s intent.

The board creates policy within each of the four established categories: Ends, Limits, Links, and Process. A policy is not to be made that falls outside these boundaries. Anyone can participate in development but only the board can vote for acceptance. Experts and staff may provide input and we should also consider past survey data and decisions. The board may need additional decision information from specific experts (e.g. auditors, real estate agents). Also, we can ask the staff about operational capabilities and hazards.

The board will address policy issues starting at the top global level and only then proceed to more detailed statements. Written policies will reflect this progression. Thus a policy may consist of a single sentence or possibly several comprising a preamble and followed by more indented sub statements. The broadest principles are voiced first, while those addressing a greater level of detail follow in descending order.

The key question in development of the Executive Director Limits is: “What are we afraid might happen?” We start with a general statement and progressively develop more specific and more detailed statements, Example:

2.0 Executive Director Limits – The ED shall not cause or allow any practice, or organizational circumstance, activity, or decision that is either imprudent or in violation of commonly accepted business or professional ethics.
2.1 Paid staff and volunteers shall not be subjected…
2.2 Assets may not be inadequately maintained, unnecessarily risked, or unprotected.
2.2.1 Not fail to insure against…
2.2.2 Not allow unbonded persons to…
2.3 Budgeting for any fiscal year shall not…
Etc.

Policy architecture is not merely cosmetic. It is an important terraced device that makes clear how broadly and narrowly the board expresses itself on topics. The board can expand or contract these policies at any time.

This supports a way of organizational thinking starting from the largest issues and working toward the smaller ones. This leaves the rest of decision making in a free field that belongs to the Executive Director and staff. In this field, the ED can make choices about Ends (but always with reference to the Limits and board Ends). This frees the board to then focus on the Board / ED relationship and the board process. At some point, the board has to leave remaining judgments to the ED. The rule is, the ED is empowered to use any reasonable interpretation of the board’s words within a field of interpretation the board finds palatable.

[There is only one more book chapter. Then the various committees must start the written development process. This information is on the web at ReachGovernance.blogspot.com]