Nonprofit Board Governance Workshop
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- Andra Lynch
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1 Welcome! Nonprofit Board Governance Workshop Moving From Myth to Mission Presented by John Pearson JohnPearsonAssociates.com 1
2 1 of the 20 Management Buckets! The Board Bucket JohnPearsonAssociates.com 2
3 The 20 Management Buckets CAUSE 1. The Results Bucket 2. The Customer Bucket 3. The Strategy Bucket 4. The Drucker Bucket 5. The Book Bucket 6. The Program Bucket COMMUNITY 7. The People Bucket 8. The Culture Bucket 9. The Team Bucket 10. The Hoopla! Bucket 11. The Donor Bucket 12. The Volunteer Bucket 13. The Crisis Bucket CORPORATION 14. The Board Bucket 15. The Budget Bucket 16. The Delegation Bucket 17. The Operations Bucket 18. The Systems Bucket 19. The Printing Bucket 20. The Meetings Bucket JohnPearsonAssociates.com 3
4 The 20 Management Buckets The Life-Long Learner/Board Member: Level 1. I don t know what I don t know. Level 2. I know what I don t know. Level 3. I have an action plan to address what I know I don t know. Level 4. I am knowledgeable and effective in this core competency and can mentor others. JohnPearsonAssociates.com 4
5 The 20 Management Buckets 3 Benefits of The Buckets System: Comprehensive Integration Vision Implementation Detailed Execution JohnPearsonAssociates.com 5
6 The 20 Management Buckets Balls & Buckets! JohnPearsonAssociates.com 6
7 Nonprofit Board Governance THE BOARD BUCKET Peter Drucker: All boards have one thing in common. They do not function! JohnPearsonAssociates.com 7
8 Nonprofit Board Governance THE BOARD BUCKET Hot Topics! 1. Policy-making vs. Hands-on Boards 2. Clarifying Board/CEO Roles 3. The Board Member Generous Givers Circle 4. Board/CEO Standards of Performance JohnPearsonAssociates.com 8
9 John Carver on Policy Governance: Boards That Make a Difference: A New Design for Leadership in Nonprofit and Public Organizations By John Carver JohnPearsonAssociates.com 9
10 The CarverGuide Series on Effective Board Governance CarverGuide 1: Basic Principles of Policy Governance by John Carver and Miriam Mayhew Carver JohnPearsonAssociates.com 10
11 Basic Principles of Policy Governance The Taxi Ride! JohnPearsonAssociates.com 11
12 Basic Principles of Policy Governance The purpose of governance is: to ensure, usually on behalf of others, that an organization achieves what it should achieve while avoiding those behaviors that should be avoided. JohnPearsonAssociates.com 12
13 Basic Principles of Policy Governance What Goes Wrong! Short-term bias Reactive stance Reviewing, rehashing, redoing Leaky accountability Diffuse authority Complete overload JohnPearsonAssociates.com 13
14 Basic Principles of Policy Governance Inadequate Prescriptions: More involvement Less involvement Board as watchdog Board as cheerleader Board as manager Board as planner Board as adviser Board as fundraiser Board as communicator JohnPearsonAssociates.com 14
15 Basic Principles of Policy Governance A Good Model of Governance will: 1. Cradle vision 2. Explicitly address fundamental values 3. Force an external focus 4. Enable an outcome-driven organizing system 5. Separate large issues from small issues 6. Force forward thinking JohnPearsonAssociates.com 15
16 Basic Principles of Policy Governance A Good Model of Governance will: 7. Enable proactivity 8. Facilitate diversity and unity 9. Describe relationships to relevant constituencies 10. Define a common basis for discipline 11. Delineate the board s role in common topics (G.N.O.M.E.) 12. Determine what information is needed JohnPearsonAssociates.com 16
17 Basic Principles of Policy Governance A Good Model of Governance will: 13. Balance overcontrol and undercontrol 14. Use board time efficiently 15. Enable simultaneously muscular and sensitive use of board power JohnPearsonAssociates.com 17
18 Basic Principles of Policy Governance Many boards: The well intentioned in full pursuit of the irrelevant! The King has no clothes! JohnPearsonAssociates.com 18
19 Basic Principles of Policy Governance Example: A manager builds her activity around her secretary s systems. (Boards do the same!) JohnPearsonAssociates.com 19
20 Decision Levels Within Organizational Topics Policies Budgeting Personnel Other topics Board level of direct concern CEO level of direct concern Sub-CEO level of direct concern Further levels JohnPearsonAssociates.com 20
21 The Policy Circle Decisions about the board s own job Decisions about operational ends Decisions about linking governance to management Decisions about management means JohnPearsonAssociates.com 21
22 Example: A Church Ends Policy As a first priority, unconnected people in the surrounding communities will connect with Jesus Christ and our LCBC body of believers. JohnPearsonAssociates.com 22
23 Example: A Church Ends Policy As a first priority, unconnected people in the surrounding communities will connect with Jesus Christ and our LCBC body of believers. As a second priority, believers who are connected to LCBC as their church home will find a supportive community of believers and will grow towards becoming fully devoted followers of Christ. JohnPearsonAssociates.com 23
24 Example: A Church Ends Policy As a first priority, unconnected people in the surrounding communities will connect with Jesus Christ and our LCBC body of believers. As a second priority, believers who are connected to LCBC as their church home will find a supportive community of believers and will grow towards becoming fully devoted followers of Christ. As a third priority (not to exceed X% of resources), unbelievers in select communities on each continent of the world will accept Jesus Christ as their personal savior and grow in their faith through the efforts of believers of LCBC. JohnPearsonAssociates.com 24
25 Example: A Church Ends Policy As a first priority, unconnected people in the surrounding communities will connect with Jesus Christ and our LCBC body of believers. As a second priority, believers who are connected to LCBC as their church home will find a supportive community of believers and will grow towards becoming fully devoted followers of Christ. As a third priority (not to exceed X% of resources), unbelievers in select communities on each continent of the world will accept Jesus Christ as their personal savior and grow in their faith through the efforts of believers of LCBC. As a fourth priority (not to exceed X% of resources), other like-minded organizations will effectively reach non-believers and encourage the growth of believers through interacting with and learning LCBC s approach to local church ministry. JohnPearsonAssociates.com 25
26 The CarverGuide Series on Effective Board Governance 12 Titles in the Series: 1. Basic Principles of Policy Governance 2. Your Roles and Responsibilities as a Board Member 3. Three Steps to Fiduciary Responsibility 4. The Chairperson's Role as Servant-Leader to the Board 5. Planning Better Board Meetings 6. Creating a Mission That Makes a Difference 7. Board Assessment of the CEO 8. Board Self-Assessment 9. Making Diversity Meaningful in the Boardroom 10. Strategies for Board Leadership 11. Board Members as Fund-Raisers, Advisers, and Lobbyists 12. The CEO Role Under Policy Governance JohnPearsonAssociates.com 26
27 TO SUMMARIZE! Boards That Make a Difference: A New Design for Leadership in Nonprofit and Public Organizations By John Carver JohnPearsonAssociates.com 27
28 John Carver on Policy Governance: ENDS The board defines which human needs are to be met, for whom, and at what cost. Written with a long-term perspective, these mission-related policies embody the board s long-range vision. From: Basic Principles of Policy Governance (John & Miriam Carver) JohnPearsonAssociates.com 28
29 John Carver on Policy Governance: EXECUTIVE LIMITATIONS The board establishes the boundaries of acceptability within which staff methods and activities can responsibly be left to staff. These limiting policies apply to staff means rather than ends. From: Basic Principles of Policy Governance (John & Miriam Carver) JohnPearsonAssociates.com 29
30 John Carver on Policy Governance: BOARD-STAFF LINKAGE The board clarifies the manner in which it delegates authority to staff as well as how it evaluates staff performance on provisions of the ends and executive limitation policies. From: Basic Principles of Policy Governance (John & Miriam Carver) JohnPearsonAssociates.com 30
31 John Carver on Policy Governance: GOVERNING PROCESS The board determines its philosophy, its accountability, and specifics of its own job. The effective design of its own board processes ensures that the board will fulfill its three primary responsibilities: 1. Maintaining links to the ownership 2. Establishing the four categories of written policies* 3. Assuring executive performance From: Basic Principles of Policy Governance (John & Miriam Carver) JohnPearsonAssociates.com 31
32 Basic Principles of Policy Governance From: Basic Principles of Policy Governance (John & Miriam Carver) Principle 1: The Trust in Trusteeship Principle 2: The Board Speaks With One Voice or Not at All Principle 3: Board Decisions Should Predominantly Be Policy Decisions Principle 4: Boards Should Formulate Policy by Determining the Broadest Values Before Progressing to More Narrow Ones Principle 5: A Board Should Define and Delegate, Rather Than React and Ratify JohnPearsonAssociates.com 32
33 John Carver on Policy Governance From: Basic Principles of Policy Governance (John & Miriam Carver) Principle 6: Ends Determination Is the Pivotal Duty of Governance Principle 7: The Board s Best Control Over Staff Means Is to Limit, Not Prescribe Principle 8: A Board Must Explicitly Design Its Own Products and Process Principle 9: A Board Must Forge a Linkage With Management That Is Both Empowering and Safe Principle 10: Performance of the CEO Must Be Monitored Rigorously, but Only Against Policy Criteria JohnPearsonAssociates.com 33
34 Vision Implementation With Detailed Execution John Pearson, President JOHN PEARSON ASSOCIATES P.O. Box San Clemente, CA T. 949/ ManagementBuckets.com John W. Pearson 34
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