Is Your Board Ready to Graduate?

If your board is not yet using the Policy Governance(R) system, January is a great time of year to consider whether or not you're ready to take your governance capacity to the next level. While there are myriad benefits to using Policy Governance (short video here: http://www.youtube.com/watch?v=X-oZiybuIh4), to truly know whether or not your board is ready to invest in training on what the principles are and how they work, check the extent to which board members agree with these five statements:

1. It seems logical that the board should use a set of clear principles, or a system, to do its job most effectively.
2. We need to make a difference on behalf of our legal or moral owners. Progress has been made and we have good board members and staff, but it feels like it is time to take things to the next level. Life is short!
3. The board values continual learning -- not just for staff, but also for itself.
4. We don’t just want to go through the motions of appearing accountable. We should embrace it, and be a model for others to follow.
5. We value people, and we want more for our board members, staff, and the lives we touch.

Seven Beliefs About Boards I'd Like to Change

Belief # 1: Boards exist to oversee management.

Instead, consider: Boards exist to lead on behalf of owners.

Belief #2: We improve governance by solving existing problems.

Instead, consider: Governance excellence demands a holistic, systemic approach.

Belief # 3: We need more women (or any other identifiable group) on boards.

Instead, consider: Boards must truly engage with their owners, and translate that input into performance.

Belief #4: Governance is a dry, boring subject.

Instead, consider: Governance is about people, communities, values, power, happiness, frustration, fairness, conflict, creativity, and making the world a better place.

Belief #5: To be a good board member, you have to have been a good manager.

Instead, consider: To be an excellent board member, you must be willing to invest your personal power into the leadership of a group.

Belief #6: To increase board accountability, we must sacrifice CEO/staff freedom.

Instead, consider: Accountability and freedom can be maximized simultaneously.

Belief #7: Board members don’t require job training; they know all they need to know or they wouldn't be on the board.

Instead, consider: Board members exhibit leadership by learning, and there is a lot to learn about governance.

Interested in hearing or understanding more, or have other board beliefs you'd like to share? Call me anytime at 1-877-847-4552 or e-mail me at susan@browndogconsulting.com.

My Wish for 2011: Pushing the Conversation About Boards

Comment Re: Beyond Optics: Why Board Diversity Really Matters http://huff.to/bdivlpm (by Lucy Marcus, CEO of Marcus Venture Consulting, and published by the Huffington Post on January 5, 2011)

When I read this article, I think yes, Lucy makes an excellent case for diversity on boards. Diversity of thought, perspectives, skills and backgrounds in the boardroom -- it's all good.

Then I read the comments below the article, consider my own perspective, and mull over these questions: Whether or not we agree that diversity is a good thing in the boardroom, why do we care? What draws us to the conversation, and what can take us, well, beyond diversity?

The need for diversity in the boardroom is being proposed as one possible means to something else, a level or two higher, and, admittedly, I'm impatient to jump into that "something else" as soon as possible. I just know that when people share enthusiasm and agreement for a big picture idea, it's so much easier then to sort out the details.

In my view, that higher-level, widely shared and inspirational goal is owner-accountable, effective, ethical corporations. We all see in our daily lives so many examples of flailing or corrupt or ineffective organizations, corporations, and levels of government. At the same time, we know that people working effectively together can achieve the most miraculous things!

If I had one wish for 2011, it would be to see the conversation about governance shift from discussions about this or that regulation or method for solving one piece of the governance problem, to meaningful, mind-blowing dialogue about governance theory, holistic systems for boards, and how we can create a world in which owner-accountable, effective and ethical corporations are the norm, not the exception.

I really appreciate how the conversation about boards has already moved -- thanks to contributions like this article by Lucy Marcus -- and my fervent hope is that it continues on a path that sparkles with brilliant discoveries about how organizations, corporations and democracies can prosper and thrive.

Seeking Diversity on Boards: Is it Enough?

BoardSource just released its Nonprofit Governance Index 2010 which contains interesting data collected from surveys of hundreds of nonprofit executives and board members. One finding highlighted by BoardSource is widespread dissatisfaction from those surveyed regarding the degree of racial, ethnic and age diversity on nonprofit boards.

My concern here is that people might think that diversity alone is the answer. Sure, it is nice to see boards and elected bodies look more representative of the population in which they exist. Furthermore, having board members with a variety of backgrounds, skill sets and perspectives should add important value to boardroom dialogue and decision-making ability.

For me, however, having ‘diversity’ in the boardroom is simply not enough. I advocate the view that the role of the board starts with understanding who the legal or moral ownership is, and then having meaningful conversations with the ownership about what results the organization should produce. To truly accomplish this function whilst exercising group authority, board members cannot simply sit back and represent their respective constituencies, regions, races or factions. True board leadership requires board members to, in effect, ‘transcend themselves,’ a concept brilliantly explored by Dr. John Carver in his 2004 speech, Transcending Ourselves: The Board’s Unique Contribution to Success.

If board members can become increasingly capable of transcending themselves in order (1) to be the owners and (2) to participate effectively as part of a group authority (not singular dictators or managers), they will achieve so much more than they would by creating boards that are visibly diverse. Diversity is fine if it happens, and, whether or not it is achieved, all board members should strive to become informed and effective stewards on behalf of all their owners.

Five Questions All Boards Should Ask

If your board is considering a governance audit or wants to evaluate its own performance, start by setting aside time on your next board meeting agenda for reflection on the five questions below.

1. Does everyone around the board table answer this question the same way: on whose behalf are we legally and/or morally accountable?
2. Do we have a regular way of engaging with our legal/moral ownership that includes listening to them as owners (rather than as customers or other stakeholders)?
3. Do we have a clear and transparent process for translating ownership input into direction that is delegated to our CEO/Executive Director?
4. Can we show that all authority our CEO/Executive Director is using has originated from direction (at some level) set out by the board as a whole?
5. Do we have an evidence-based way to show our owners that this organization is achieving what it should and avoiding what is unacceptable, further to their input?