Boards Behaving Beautifully. How to actually look forward to Board meetings

Transcription

1 Boards Behaving Beautifully How to actually look forward to Board meetings

2 Jeannie Chaffin, CCAP Jeannie Chaffin, LLC David Tucker Brown Buckley Tucker

3 Three Types of Boards Fiduciary Strategic Generative

4 Fiduciary Board Focus on the fundamentals: Financial status and reports Performance outcome reports Ensuring compliance

5 Sarbanes-Oxley, GPRA, CSBG Organizational Standards, etc. There has been a renewed emphasis on boards as fiduciaries responsible for: Oversight, Performance accountability, Financial integrity, Conservation of assets.

6 Focus on Fiduciary This has caused boards to focus more on this fiduciary or oversight role where they are the monitors of management, and less on their role as a partner in leadership

7 Focus on Fiduciary Boards have become more: - Regulatory - Compliance-based - More like a police officer than a member of a leadership team.

8 Focus on Fiduciary Problems are meant to be spotted and beg the question: What s wrong?

9 Strategic Board Focus is on the environment and planning Community Assessment Strategic Plan Navigating a Changing Environment

10 Strategic Board Strategic boards focus on: The direction of the organization. Charged with seeing that the organization fulfills its mission.

11 Strategic Board A strategic board is one that mostly focuses on the strategic goals of the organization, looking out over a multi-year horizon.

12 Strategic Board Problems are meant to be solved and beg the question: What s the plan?

13 Generative Board Thinks outside the box, or refuses to admit that there IS a box! Engages in analytical thinking to probe assumptions and discern challenges.

14 Generative Board Governance as Leadership A different definition of Leaders: Leaders enable organizations to confront and move forward on complex, value-laden problems that defy a right answer or perfect solution.

15 Generative Board Asks board members to be sense makers interrogating current reality in anticipation of future challenges facing the organization.

16 Generative Board Problems are meant to be framed and beg the question: What s the key question?

17 What is the board s role? Another way to think about these three modes is that the board s role is distinct in each.

18 What is the board s role? When wearing their fiduciary hat, boards are watchdogs focused on compliance. In the strategic mode, boards are strategists setting goals and mobilizing resources toward execution. The generative mode asks board members to be creative in framing the questions at hand, questioning assumptions, and exploring options.

19 Generative Mode Requires the temporary suspension of: - The things we think we know about how we are supposed to think and problem solve... - To enter the discussion at an earlier phase - And have more philosophical, broader conversations before we discuss a course of action or push for a decision.

20 Generative Mode It s a more creative process that is not solution-oriented Has a freer conversation with no expectation other than having that great discussion Not seeking to identify how to get from point A to point B, instead stopping to just think and ponder.

21 Fiduciary Mode The Board's central purpose is stewardship of tangible assets. Its core work is to ensure legal compliance & fiscal accountability, ensure efficient & appropriate use of resources, and oversee operations. Sample fiduciary inquiry questions: What does the opportunity cost? What can we learn from the audit? How well does the budget reflect our priorities & mission?

22 Strategic Mode Board's central purpose is to ensure a winning strategy. Its core work is to scan the internal & external environments, set priorities, review & modify the strategic plan & monitor performance against the plan. Sample strategic inquiry questions: What's the plan? Is this business model viable? How well does this model fit with our strategic priorities? Who are our competitors?

23 Generative Mode Board's central purpose is to be a source of leadership for the organization. The core work is to decide what to decide; discern challenges & opportunities; probe assumptions, logic & values behind strategies; perceive & frame better problems & opportunities; and ask key questions. Sample generative questions: What key questions should we be asking? What are the decisions ahead of us and what process(es) should we use to make them? What can we learn from this?

24 Board Scenarios

25 What s the Right Mode? Depends on the status of the organization and the question at hand. The Right mode for a board should be different depending on circumstances. The Best boards change modes to meet issues at hand.

26 Barriers to Change Barriers to moving to generative governance. : Not enough time at board meetings The complexity of organizational purpose The pace of change Lack of new ideas on the board Fear of loss of control by the CEO A lack of creativity and bravery

27 Strategies for Board Meetings Have a consent agenda Use silent starts Use one-minute essays. Include time for mini retreat sessions. Look for "generative landmarks during discussions about even seemingly routine matters Have as few standing committees as possible.

28 Next Steps: How can you engage your board in Generative discussions? What can you do to remove barriers to engaging your board in Generative thinking? What one step will you take at or before your next board meeting to begin to move your board to acting in a generative mode?

29 Questions???

30 Jeannie Chaffin, CCAP Jeannie Chaffin, LLC David Tucker Brown Buckley Tucker