Policy Development: The Basics

Transcription

1 IPGA Conference 2012 Policy Development: The Basics Policy Governance is a registered trademark of Dr. John Carver, the creator of the Policy Governance model; he and his wife, Miriam Carver, are the authoritative source on the model; any questions concerning model consistency or the accuracy of the information provided here may be checked with them at their website: Presented by: Eric Craymer and Sue Radwan Partners in Policy Governance (Eric) (Sue) eric.craymer@policygovernanceconsulting.com sue.radwan@policygovernanceconsulting.com

2 Introduction Policy Development is one of the three absolute job products of the Board. It is the means through which the Board can create a system of values to guide all aspects of the organization. It requires the discipline of doing so in a logical and artful way which allows the board to capture the underlying value accurately enough that it can accept any reasonable interpretation. Often a board will start with the Carvers Policy Sample Set to which they can add their own flourishes by editing them to match their organization s value system. Then, after that canvas is complete, they discover a new value that needs to be incorporated. Capturing the value in appropriate policy language and finding its appropriate place in their existing policy set takes both art and craft. Policy Governance is a principles based model. Beyond the principles, all of the other recommendations concerning structure and process are optional. But, the recommended actions, processes, and structures must be consistent with those principles.

3 POLICY TYPE: GOVERNANCE PROCESS POLICY TITLE: BOARD JOB DESCRIPTION Specific job outputs of the board, as an informed agent of the ownership, are those that ensure appropriate organizational performance. Accordingly, the board has direct responsibility to create: 1. The link between the ownership and the operational organization. 2. Written governing policies which address the broadest levels of all organizational decisions and situations. A. Ends: Organizational products, impacts, benefits, outcomes, recipients, and their relative worth (what good for which recipients at what cost). B. Executive Limitations: Constraints on executive authority which establish the prudence and ethics boundaries within which all executive activity and decisions must take place. C. Governance Process: Specification of how the board conceives, carries out and monitors its own task. D. Board-CEO Linkage: How power is delegated and its proper use monitored; the CEO role, authority and accountability. 3. Assurance of successful CEO performance. POLICY TYPE: BOARD-MANAGEMENT LINKAGE POLICY TITLE: DELEGATION TO THE CEO The board will instruct the CEO through written policies which prescribe the organizational Ends to be achieved, and describe organizational situations and actions to be avoided, allowing the CEO to use any reasonable interpretation of these policies. Accordingly: 1. The board will develop policies instructing the CEO to achieve specified results, for specified recipients at a specified cost. These policies will be developed systematically from the broadest, most general level to more defined levels, and will be called Ends policies. 2. The board will develop policies which limit the latitude the CEO may exercise in choosing the organizational means. These limiting policies will describe those practices, activities, decisions and circumstances that would be unacceptable to the board, even if they were to be effective and will capture values of prudence and ethics. These policies will be developed systematically from the broadest, most general level to more defined levels, and they will be called Executive Limitations policies. The board will never prescribe organizational means delegated to the CEO. a. Below the global level, a single limitation at any given level does not limit the scope of any foregoing level. b. Below the global level, the aggregate of limitations on a given level may embrace the scope of the foregoing level, but only if justified by the CEO to the board s satisfaction. 3. As long as the CEO uses any reasonable interpretation of the board s Ends and Executive Limitations policies, the CEO is authorized to establish all further policies, make all decisions, take all actions, establish all practices and develop all activities. Such decisions of the CEO will have full force and authority as if decided by the board. 4. The board may change its Ends and Executive Limitations policies, thereby shifting the boundary between board and CEO domains. By doing so, the board changes the latitude of choice given to the CEO. But as long as any particular delegation is in place, the board will respect and support the CEO s choices.

4 Understanding the Framework of Your Policy Manual (if developed using the Sample Set) Policies capture organizational values but more specifically the typical policy addresses: Embodiment of the Principles Example: 5. The board will develop policies which limit the latitude the CEO may exercise in choosing the organizational means. These limiting policies will describe those practices, activities, decisions and circumstances that would be unacceptable to the board, even if they were to be effective and will capture values of prudence and ethics. These policies will be developed systematically from the broadest, most general level to more defined levels, and they will be called Executive Limitations policies. The board will never prescribe organizational means delegated to the CEO. a. Below the global level, a single limitation at any given level does not limit the scope of any foregoing level. b. Below the global level, the aggregate of limitations on a given level may embrace the scope of the foregoing level, but only if justified by the CEO to the board s satisfaction. Definition of Structural Social Relationships Example: The CEO is the board s only link to operational achievement and conduct, so that all authority and accountability of staff, as far as the board is concerned, is considered the authority and accountability of the CEO. Accordingly: 1. The board will never give instructions to persons who report directly or indirectly to the CEO. 2. The board will not evaluate, either formally or informally, any staff other than the CEO. Processes Example: To accomplish its job products with a governance style consistent with board policies, the board will follow an annual agenda which (a) completes a re-exploration of Ends policies annually and (b) continually improves board performance through board education and enriched input and deliberation. 1. The cycle will conclude each year on the last day of September so that administrative planning and budgeting can be based on accomplishing a one year segment of the board s most recent statement of long term Ends. Unique Organizational Values With respect to the actual, ongoing financial condition and activities, the CEO will not cause or allow the development of fiscal jeopardy or a material deviation of actual expenditures from board priorities established in Ends policies. Example: The CEO will not: 1. Make a single purchase or commitment of greater than $50,000. Splitting orders to avoid this limit is not acceptable.

5 Developing Policy What is the Issue as a Value? What is this about? What is our interest? What do we hope to achieve? But why is that important (5 times) or what good would come from that (5 times)? Note: requires group deliberation: Telling Listening Understanding Creating Group Wisdom What is the largest way of describing this value or interest? What other issues might be related to this one? Looking at the other issues as a group, is there a higher level value that encompasses them all? Repeat until you reach the broadest way of stating the issue that is still relevant to your organization. Where does this value fit? Which of the 4 policy quadrants does it fit? Ends benefits, beneficiaries, value of exchange Executive Limitations prudent and ethical management conditions and processes Governance Process how board does its work and its ownership accountability Board-Management Linkage formal delegation of authority and accountability to CEO Which level is it at? Part of global (first level) Just below the global but by itself (second level) Below something that is already below the global (third level) What is the right way to express it? What words best capture the meaning? What grammatical structure makes it the most clear? How much detail is needed? Test the depth of definition against any reasonable interpretation of the policy as written? Can anyone think of any interpretation that would fit within the language but not be acceptable? Can anyone think of a commonly accepted definition, or one used by an outside expert group, of anything close to this policy concept? If so, which the Board would not find acceptable? Does the Board agree that this language could lead to a reasonable interpretation that would be unacceptable? If the answer is yes, add another layer of detail and then repeat this step until a majority of the Board can say that they can accept any reasonable interpretation of the policy as written.

6 Example of Organizational Values Expressed in Policy POLICY DRAFT: 2.11 Long Term Asset Planning Long Term Asset decisions shall not deviate materially from the Board s Ends priorities or the long term wishes and needs of the community, risk long term fiscal jeopardy, unduly limit the flexibility of future decisions, be made independent of other long term asset decisions, or be made without appropriate levels of planning. Further, without limiting the scope of the foregoing by this enumeration, the Superintendent shall not: 1. Make such decisions without ensuring that the community s long term wishes and needs are known. 2. Make such decisions without assessing how they fit within a larger plan for all long term asset decisions. 3. Make such decisions without assessing their long term impact on academics and curriculum. 4. Make such decisions without considering the impact of future demographic and psychographic trends in the District and how they will impact future needs. 5. Allow or cause material deviations from the original plan as portrayed to the community. 6. Authorize schedules and change orders which significantly change costs, reduce quality, or result in significant shifts in scope or focus. 6

7 WORKSHEET: Board Issue Presentation Preparation for Board Deliberation and Decisions The following form may assist the committee, task force, or individual asked to prepare information preparatory to a board deliberation or decision. What is the Issue? (Frame the underlying issue that lies at the core of this consideration or analysis) History and Background (Provide a brief explanation of the events or thinking that have led to the presence of the issue) Facts (A short list of pertinent facts) Analysis (An analysis of the issue in light of the facts) Alternative Courses of Action (Alternatives for addressing the issue, with pros and cons and potential criteria for choosing) Implicated Policy Changes: What have we already said about this issue? (An analysis of the policies or policy areas that may be effected in resolving the issue) 7

8 Board's Policy Development Tool 1. What is the real issue? a. What is this about? b. What is the underlying objective of taking action? c. What is our underlying interest (why is it important, what do we hope to achieve)? 2. Is this clearly an operational means that belongs to the CEO (previously delegated all operational means with limitations)? a. If yes, turn it over. b. If no, proceed. 3. Is this a shared concern of the board as a whole? a. If no, drop. b. If yes, when do we want to take it up (now, future meeting, retreat)? 4. If now, which policy area does it involve? 5. Looking in that policy area, have we addressed this or a similar issue already? a. If yes, read what is there and determine if it sufficiently covers the issue or if it requires adjustment. i. If it covers it you are done. ii. If it does not cover it, what kind of an adjustment is called for (different words, additional level of policy, removing a level of detail and making it broader)? b. If no, does the issue represent something important enough to develop a policy for? 6. If developing a new policy (or for making adjustments) the board has several options: a. Develop it on the spot (determine the board s intent and what underlying values or perspectives need representing, state them in the broadest possible fashion, determine where they fit, craft the language, and continue until any reasonable interpretation fully addresses the issue). b. Board determines its underlying intent (what are our objectives in writing this policy, what is our intended outcome, what value or perspective are we trying to capture?) and then delegates it to a task force or other team to draft the actual language. c. Board determines that it is not certain enough at this point to do (a.) or (b.) and needs to learn more. It defines what it needs to learn (what information are we missing, who we need to talk to, what do we need to know?) and delegates the learning program, most likely to the CGO. Once it knows what it needs to, it follows the process outlined in policy #3.1 and in number 6.a. above. 8

9 REFERENCES AND RESOURCES Boards That Make a Difference: A New Design for Leadership in Nonprofit and Public Organizations, 3rd Edition John Carver; ISBN-10: ; February 2006, Jossey-Bass Reinventing Your Board: A Step-by-Step Guide to Implementing Policy Governance, Revised Edition John Carver, Miriam Carver; ISBN: ; February 2006, Jossey-Bass The Policy Governance Model: An Introduction by John and Miriam Carver. DVD, Carver Governance Design and International Policy Governance Association, 2008 A Carver Policy Governance Guide, Set, 2 nd Edition John Carver, Miriam Mayhew Carver; ISBN: ; April 2009, Jossey-Bass Empowering Boards for Leadership: Redefining Excellence in Governance, Audio Tape, 120 minutes John Carver; ISBN: ; April 1992, Jossey-Bass John Carver on Board Governance: A Video Presentation, 120 Minutes John Carver; ISBN: ; October 1993, Jossey-Bass John Carver on Board Leadership John Carver; ISBN: ; October 2001, Jossey-Bass Corporate Boards That Create Value: Governing Company Performance from the Boardroom John Carver, Caroline Oliver; ISBN: ; August 2002, Jossey-Bass The Policy Governance Fieldbook: Practical Lessons, Tips, and Tools from the Experiences of Real- World Boards Caroline Oliver, Mike Conduff, Susan Edsall, Carol Gabanna, Randee Loucks, Denise Paszkiewicz, Catherine Raso, Linda Stier; ISBN: ; June 1999, Jossey-Bass Getting Started With Policy Governance: Bringing Purpose, Integrity and Efficiency to Your Board's Work Caroline Oliver; ISBN: ; January 2010, Jossey-Bass 9