© 2006. Not to be reproduced or distributed without the express permission of the author. Richard...

© 2006. Not to be reproduced or distributed without the express permission of the author.

Richard ChaitRichard ChaitHarvard UniversityHarvard University

California Association California Association of Independent of Independent

SchoolsSchools1/27/071/27/07

© 2007. Not to be reproduced or distributed without the express permission of the author.

2 GOVERNANCE AS LEADERSHIP

Effective boards…

Offer a strategic asset and comparative advantage. Add value/derive value from meaningful participation

in consequential discussions and decisions.

Macrogovern more than micromanage. Model behaviors trustees expect school to exhibit. Harness individual talent to collective effort. Provide leadership as well as stewardship. Ensure intergenerational equity.


What’s the Problem?

Classical

Diagnosis Problem of performance

Response Codify board’s role, clarify tasks.

Objective Do the work better.

Reframed

Diagnosis Problem of purpose

Response Enrich the job, engage the board.

Objective Do better work.


Emphasize modes, not tasks, of governance.

Think and work in three different modes.

All three serve important purposes.

Value added increases as board: Becomes more proficient in more modes; Does more work in third mode; Chooses appropriate mode(s) of work.

Core Concepts


Fiduciary: Type I

Str

ategic

: Typ

e II G

enera

tive: T

ype

III

Governance as Leadership


Type I: Fiduciary Mode

Board’s central purpose: Stewardship of tangible assets

Board’s principal role: Sentinel

Board’s core work: Ensure efficient & appropriate use of resources Ensure legal compliance & fiscal accountability Ensure accountability Oversee operations Select & evaluate CEO


Type II: Strategic Mode

Board’s central purpose: Strategic partnership with senior management

Board’s principal role: Strategist

Board’s core work: Scan internal and external environment

Resolve priorities

Review and modify strategic plan

Monitor performance


What Is Generative Thinking?

Makes sense of circumstances.

Invites prior questions and alternative hypotheses.

Places perceived problems/opportunities in new light.

Finds and frames new problems and opportunities.

Concerns values, beliefs, and assumptions.

Spawns policy, strategy, and decisions.


Opportunity to influence generative

work declines as issues are

framed and converted

into strategies, plans, and

tactics.

Opportunity to influence generative

work declines as issues are

framed and converted

into strategies, plans, and

tactics.

Opportunity for Generative

Work

Plans, Tactics, Execution

Strategies, Policies

Where Does Generative Thinking Occur?

THE GENERATIVE CURVE

Sense-making Problem-framing

Time


Gen

era

tive

Fid

ucia

ry

Stra

teg

ic

Align rewards with priorities

Understand assumptions of new generation

Modify pay plan & hours

The Generative Curve


Work

Time


Gen

era

tive

Fid

ucia

ry

Stra

teg

ic

Compete on amenities

Reconcile social purpose and business model

Approve new fitness center

The Generative Curve


Work

Time


Generative Curves


Work

Time


Trustee involvement lowest where generative opportunity greatest; trustee

involvement increases as generative opportunity decreases.

Trustee involvement lowest where generative opportunity greatest; trustee

involvement increases as generative opportunity decreases.

Typical Board

Involvement Curve

Generative Curve


Work

Time

The Generative Dilemma


Generative Strategic Fiduciary

Board’s purpose

Source of leadership for organization

Strategic partnership w/ management

Stewardship of tangible assets

Chief role Sense maker Strategist Steward

Core work

Find and frame challenges,

reconcile values and choices

Scan environment,

shape strategy, create

comparative advantage

Set mission, oversee

operations, deploy resources,

ensure compliance

Conducive process

Inclusive conversations

Task forces, ad hoc work groups

Standing committees

Power base Ideas, insightsTechnical expertise

Legal authority


Values

Mission

Beliefs Markets

SWOT

Image

Cost

Space

Legality

Generative Fiduciary

Strategic


Separate Perspectives


Comparative Perspectives


Integrated Perspectives

GenerativeGenerative

StrategicStrategic

FiduciaryFiduciary


State of Readiness

Wear “tri-focals.”

Be on the lookout for generative landmarks.

Situate propositions on the generative curve.

Do business “a la mode.”


Look upstream. Look downstream.

Decide what to decide

Engage in sense-making

Frame problem/opportunity

Suggest what staff should ponder

Decide what to do

Engage in decision-making Solve problem/opportunity

Ponder what staff suggests



Look backward. Look forward.

Make meaning of the past

Review actions to uncover goals

Discover emergent strategies

Shape organizational saga

Learn lessons

Make policies for the future

Set goals to guide actions

Design deliberate strategies

Leverage organizational saga

Apply lessons



Looking Backward

What best explains recent successes or setbacks?

If we are what we do, then who are we?

How have we reconciled tradition and innovation?

What’s been this organization’s theory of change?

Where has there been resistance and why?

What’s the storyline that drives the product line?

How are we smarter as board & organization than a year ago?


Catalyze. Analyze.

Raise introspective questions

Consider hypotheticals

Encourage collegiality

Promote robust discourse

Raise operational questions

Consider realities

Encourage congeniality

Follow parliamentary procedure



Catalytic Questions

What should we worry about?

What keeps Head awake at night?

What keeps trustees awake at night?

Whom would we serve in what ways if money did not matter?

What do we do peers would not and why? Vice versa?

What’s good for mission, bad for business? Vice versa?

What would we do differently as a for-profit?

On what list, yet to be devised, would we want to rank #1?

What will be this board’s legacy?


Organize to discern. Organize to decide.

Facilitate learning community

Tap collective wisdom

Plenaries drive committees

Craft the question

Sustain standing committees

Tap individual expertise

Committees drive plenaries

Call the question

Generative Strategic FiduciaryGenerative Strategic Fiduciary


Rules of Engagement

Macro-governance

Partial control of complete perspective

First guess upstream

Fusion of thinking

Micro-management

Complete control of partial perspective

Second guess downstream

Division of territory

NEW OLD


Empowers the board.

Engages the collective mind.

Exploits board’s assets.

Enriches board’s work.

Enhances board’s performance.

Governance as

Leadership

The Payoff

© 2006. Not to be reproduced or distributed without the express permission of the author. Richard...

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