Policy Development: The Basics

Transcription

1 Policy Development: The Basics Presented by Partners in Policy Governance ric Craymer, Friday, 11:15-12:30 Sue Radwan, Friday, 3:15-4:30 Learner Objectives By the end of this session, you will understand: The nature of policy as a statement of values How to approach developing policy What goes where and why How to use your policy system to guide your decisions and address your issues. What is Policy? n the Policy Governance model, the values of the whole organization are encompassed by the board s explicit enunciation and proper categorization of broad policies Policy is a broad statement of values and perspectives. Value: A belief, or relative importance. What is right or wrong, ethical or unethical, prudent or imprudent, acceptable or unacceptable Perspective: A way of looking at Guiding principles, approach, conceptual point of view Policies are statements assembled level by level. Cascaded broadest to smaller.

2

3 7 The 10 Principles that are the Foundation of the Policy Governance Model 1. Governance is a Function of Ownership 2. The Board is the Top Link of the Chain of Command 3. Board Authority is Only as a Group 4. nds Policies Prescribe Results, Beneficiaries, and Comparative Worth 5. Governance Means Policies Describe Board Methods and Discipline 6. xecutive Limitations Policies Set Prudence and thics Boundaries 7. Policies xpand in Steps from Broadest to Smaller 8. Delegations Are Unambiguously Assigned 9. Delegatees May Use Any Reasonable nterpretation of Policies 10.Policy Performance Data are Routinely Monitored (This list is only a quick reminder. For a complete description of the Principles, see the Source Document and, for a full explanation, Boards That Make a Difference 3 rd ed.) Applicable Principles 4. nds Policies Prescribe Results, Beneficiaries, and Comparative Worth 5. Governance Means Policies Describe Board Methods and Discipline 6. xecutive Limitations Policies Set Prudence and thics Boundaries 7. Policies xpand in Steps from Broadest to Smaller 8. Delegations Are Unambiguously Assigned Principle 4: nds The board defines in writing its expectations about the intended effects to be produced, the intended recipients of those effects, and the intended worth (cost-benefit or priority) of the effects. These are nds policies. All decisions made about effects, recipients, and worth are nds decisions. All decisions about issues that do not fit the definition of nds are means decisions. Hence in Policy Governance, means are simply not nds.

4 More on nds This includes at least: 1. nds policies at the broadest level contain all three elements of nds. What good? For which beneficiaries? At what intended worth? 2. nds policies are clearly separated from means policies. 3. nds must be broad enough to capture the fullness of the board s intent but realistically achievable. 4. Given principles 1 (Ownership) and 2 (Governance Position), because nds define organizational purpose, the link to owners intent must be clear. 5. Because nds govern the achievement of organizational purpose, the link to organizational implementation must be clear. a. The CO s plan must create that link. Global nds xamples 1. Those who desire to govern well connect with Policy Governance resources at a justifiable cost for PGA. 2. Members experience prestige and a return on their marketing investment of dues dollars. 3. Property owners and residents will enjoy a diverse and thriving community which offers a lifetime of healthy, active and rewarding opportunities to its residents at a sustainable and competitive cost. Let s Analyze This nd 1. Those who desire to govern well connect with Policy Governance resources at a justifiable cost for PGA. 1. ncreasing numbers acquire knowledge and skills to effectively execute and share the model. 2. They learn from others with similar interests. 3. They critically assess whether any governance practice or advice is model-consistent.

5 Principle 5: Board Means The board defines in writing the job results, practices, delegation style, and discipline that make up its own job. These are board means decisions, categorized as Governance Process policies and Board- Management Delegation policies. More On Board Means This includes at least: 1. The board is accountable for itself and must systematically and comprehensively establish, and review its adherence to, board means policies. a. The board will delineate expectations until it can accept any reasonable interpretation and then delegate further definitions and decisions to the Chair or other official bodies of the board. 2. Board members recognize their obligation to bring to the board s attention anything in board member or full board conduct that is inconsistent with Governance Process and Board- Management Delegation (or equivalently named) policies. 3. The board has clear written policies outlining its own processes, and regularly evaluates itself to ensure it is accountable to owners. Board Means Policies Board means policies embody the principles of Policy Governance. The template of Policies incorporate the principles. You may want to develop policy that addresses: your board s philosophy toward ownership linkage, values that the board holds dear, hopes and dreams of the board.

6 Principle 6: xecutive Limitations The board defines in writing its expectations about the means of the operational organization. However, rather than prescribing board-chosen means -- which would enable the CO to escape accountability for attaining nds, these policies define limits on operational means, thereby placing boundaries on the authority granted to the CO. n effect, the board describes those means that would be unacceptable even if they were to work. These are xecutive Limitations policies. 17 #6. xecutive Limitations The board makes policy with respect to operations only in a proscriptive (negative) way. xecutive Limitations set the boundaries that define what the CO cannot do. The CO can make any decision within those boundaries without board approval.. X C U T V L M T S nds CO X C U T V L M T S More on xecutive Limitations 1. Balancing control and empowerment 2. xecutive Limitations limit the CO s unilateral authority. 3. xecutive Limitations must cover all of the possible operational means that the board considers unethical, imprudent or unlawful and therefore likely to jeopardize the organization. 4. The board says all it MUST, not all it CAN, to a level of detail that board can accept any reasonable interpretation. 5. xecutive Limitations govern all staff means. NO Backdoor Management Prescriptions Limitations should not prescribe preferred means or attempt to provide management consultancy. For example using the outdated "shall not fail to" double negative or the "shall not... without board approval".

7 Sample xecutive Limitations 2.0 Global xecutive Constraint Typical Lower Level Policies The CO shall not cause or 2.1 Treatment of Customers allow any practice, activity, 2.2 Treatment of Staff decision, or organizational 2.3 Compensation & Benefits circumstance which is either 2.4 Financial Planning/Budgeting unlawful, imprudent or in 2.5 Financial Condition & violation of commonly Activities accepted business practices 2.6 nds Focus of Contracts and professional ethics. 2.7 Asset Protection 2.8 mergency CO Succession 2.9 Communication & Support to the Board xample: Notice the Values Defined! Long Term Asset decisions shall not deviate materially from the Board s nds priorities or the long term needs of the community as beneficiary, 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: Make such decisions without ensuring that the community s long term needs are known. Make such decisions without assessing how they fit within a larger plan for all long term asset decisions. Make such decisions without assessing their long term impact on academics and curriculum. Make such decisions without considering the impact of future demographic and psychographic trends in the District and how they will impact future needs. Allow or cause material deviations from the original plan as portrayed to the community. Authorize schedules and change orders which significantly change costs, reduce quality, or result in significant shifts in scope or focus. Principle 7: Policy Sizes The board decides its policies in each category first at the broadest, most inclusive level. t further defines each policy in descending levels of detail until reaching the level of detail at which it is willing to accept any reasonable interpretation by the applicable delegatee of its words thus far. nds, xecutive Limitations, Governance Process, and Board-Management Delegation polices are exhaustive in that they establish control over the entire organization, both board and staff. They replace, at the board level, more traditional documents such as mission statements, strategic plans, and budgets.

8 More on Policy Sizes The Board s job is to stay at the broadest levels of policy. f the board needs to say something more, it can step in to make a smaller, yet broad policy. Stop making policy when you can accept any reasonable interpretation. Alignment of policy comes from alignment of policy by size 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. Broadening Up a Concern Starting at the broadest level is not always easy: Since most xecutive Limitations are driven by the Board s worries, you often start with a smaller concern that needs to be broadened up to proactively address many situations that are similar in nature. xample Policy Drives verything! The 5 questions What is the real value? s this concern shared among the board? Whose issue is this? What have we said already? Do we need to change what we have said? Address new issues at the broadest level so the policy becomes proactive for similar situations, rather than reactive to one situation Stop when you can accept any reasonable interpretation of your words.

9 25 3 step evaluation: 1. What do we need to say? Our Position on an issue is supported by an underlying value Turn that value into a Policy following a logical structure Make it clear that that Policy (and its underlying value) are what direct all further decisions and behaviors until, and if, it is changed Reasoning with the Principles What value are we trying to capture or what outcome do we seek to assure? Which, if any, of the principles does our first proposed solution conflict with? How can we accomplish our desired outcome or capture our value in another way that will not compromise the principles? Where is its appropriate place in policy? Any Reasonable nterpretation (AR) Can anyone imagine an unwanted outcome based on this policy which could still be found to be reasonable? s there anything that you worry could result if this policy is left as written and then followed?

10 Starting from a Policy Template How did you/might you work through a policy template to assure that the policies you adopt actually reflect YOUR BOARD s values? Before you attend a policy blitz session, you might want to make a list of your worries about the organization you govern. Then as you read the policies included in the template,reflect on whether each policy is relevant to your organization. Does it address a legitimate value that drives your worry? Does the language need to be changed in anyway to more appropriately reflect the environment of your organization? Do you have worries in that area that are not covered by the language proposed? You Don t Always Have to Create a New Policy! Often, the addition of a single word or phrase to an existing policy can accomplish what you need. 1.Find the related policy. 2.Consider whether a simple amendment will do the job. 3.f not, locate the appropriate policy area based on the concern and add a lower level policy to cover your concern. Working xamples Where would these concerns likely be addressed? Your board wants to assure that the CO creates a culture of leadership inside the organization. How would you consider addressing this? Your board wants to receive and review the quarterly Quality Assurance reports. How would you consider addressing this? Your board wants to assure that the CO doesn t unilaterally change the brand of the organization. How would you consider addressing this?

11 xecutive Limitations Where would you likely add the policy? Typical Lower Level Policies 2.1 Treatment of Customers 2.2 Treatment of Staff 2.3 Compensation & Benefits 2.4 Financial Planning/Budgeting 2.5 Financial Condition & Activities 2.6 nds Focus of Contracts 2.7 Asset Protection 2.8 mergency CO Succession 2.9 Communication & Support to the Board Learner Objectives By the end of this session, you will understand: The nature of policy as a statement of values How to approach developing policy What goes where and why How to use your policy system to guide your decisions and address your issues.