Presented by Susan Stratton, Leading Edge Mentoring, Grand Ledge, MI (517) 627-1856 1 Creating...

presented by Susan Stratton, Leading Edge Mentoring, Grand Ledge, MI (517) 627-1856

1

Creating Accountability

in Governance

Presented by Susan S. Stratton, CAELeading Edge MentoringGrand Ledge, Michigan


2

Governance Defined

• Seeing to it that the organization achieves what it should and avoids unacceptable situations.


3

Critical Perspective of Policy Governance

• We serve the source of our communication.– Governance is a “downward”

extension of the ownership, – not an “upward” extension of

management.


4

How Can Accountability Be Created?

• Board accountability is NOT the same as staff accountability.

• The Board’s job product is different than the operational job product.

• What values-added role can the Board take that does not undermine accountability for the operational side of the organization?


5

Board’s Role in Creating

Accountability• Expected outcomes clearly defined • Clear roles & boundaries defined• Clear governance process defined• Demonstrate integrity to your own

policies


6

Board Integrity

• Undisciplined board:– undermines management accountability– violates boundaries it promised to keep– creates instability in the system

• Based in loss of trust, fear of surprises, unfair employment situation

• Honest and rigorous self-assessment upholds Board integrity


7

Board’s Role in Creating Accountability in Operations

• Requires systematic monitoring of achievement of previously defined outcomes, AND

• Data-based proof that we are achieving our outcomes and have avoided unacceptable situations.– Audit function for compliance with unacceptabilities

• Board’s integrity to its words.


8

Healthy Structure• Board’s relationship with the CEO is

formed around accountability of the position, not individual tasks.

• Board’s concern is for total organizational performance for which it holds the CEO accountable.

• CEO is accountable to the full Board, not individuals on the Board.


9

Policy Governance®•More than a structure...

–Policy Governance ® is a precise model of• structure • philosophy and • process.

• Only coherent, comprehensive model of governance known in the world today.


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Policy Governance’sPhilosophical Foundations

• Accountability• Servant-leadership• Clarity of group values• Empowerment


11

Process Required• Policy Drives Everything!• In accordance with this discipline, the board will only allow

itself to address a topic after it has answered these questions:– Whose issue is this? Is it the Board’s or the Executive

Director’s?– Has the board dealt with this subject in a policy? If so,

what has the board already said on this subject and how is this issue related? If the board has already addressed the matter, does the board wish to change what it has already said?

– If the matter is several levels below board level, what is the broadest way to address this issue so that it is still under existing board policy? Does that policy suffice to deal with our concern?

• It is out of order for board members to talk about content until these questions of appropriateness are settled.


12

The Structure of the Policy Governance

Model

Ends

Executive

Limitations

Governance Process

Board-CEO Linkage


13

The “Size” of A Policy• Alignment of policy comes from

alignment of policy by “size” or breadth– Global policies– Level 2 policies further define a

concept in the global policy– Level 3 policies further define a

concept in the Level 2 policies.


14

Operational Policy is Proscriptive• Defines minimum

level of what is NOT acceptable

• Opens possibility for creative solutions

• Empowers staff to use and leverage operational expertise.

• Executive Limitations are written in proscriptions--what NOT to do.


15

Executive Limitations Begins with the Board’s Worry List• Treatment of

customers/members

• Financial budgeting• Financial activities

& condition• Asset protection• Ends focus of

contracts or grants

• Treatment of staff • Compensation

and benefits for the staff

• Communication & support to the Board

• Emergency CEO Succession


16

Board-CEO Linkage• The CEO is the only employee of the

Board– The Board determines expectations for the

organization’s production and character.– The staff is the CEO’s employees who

pursue the attainments of those expectations.

– The CEO leads the staff.

• The CEO is accountable to the Board for the success of the entire organization


17

Board-CEO Linkage

• Describes the Board’s relationship to the CEO

• Board means policy that includes:– Global linkage statement– Unity of Control– Accountability of the CEO – Delegation to the CEO– Monitoring CEO performance

• The only way the CEO is evaluated


18

Governance Process

• Board means policy– How will we govern?– How will we discuss issues?– What do we believe in or dream?– How will we connect with our

ownership?– How will we connect with other

important entities?

Presented by Susan Stratton, Leading Edge Mentoring, Grand Ledge, MI (517) 627-1856 1 Creating...

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