Tip #1 The Group Authority of the Board

October 1, 2015  |  tips for effective boards

When I was a CEO reporting to a Board of Directors making a transition to Policy Governance®, the principle of group authority (also called Board Holism) was the principle that impacted me as CEO most immediately and most dramatically in a very positive way.  The principle means that the authority of the board rests in the board as a whole and not in any board committee or individual board members. 

Only the board as a whole can provide direction to the CEO and in Policy Governance® boards, this direction to the CEO is generally expressed in policies formally approved by the board as a whole at its official board meetings.  As you can imagine this avoids a lot of confusion and potential conflict. The board’s expectations of the CEO are determined by formal action of the full board.  There are no competing or conflicting directions coming to the CEO from different board members or committees. 

Board members realize that as individuals they have no authority to tell the CEO what to do.  They have to work together through formal board process to create clear directives for the CEO.  The flipside is that since the expectations are clear and embraced by the whole board, CEO accountability is enhanced.  The CEO cannot hide behind unclear or conflicting expectations.  (The principle of Board Holism is the third principle of the Policy Governance® model.)