Tip #27 Policy Governance(R): All or Nothing???
Do Boards have to implement the whole Policy Governance® system as a total system or not implement it at all? Well, Yes and No. It is true that a board will not derive the full benefits of the Policy Governance® system if it only implements selected components of it. It is also true that if a board implements only components of the Policy Governance® system, then that board is not truly using the Policy Governance® system. And of course, if a board implements the "empower the CEO" component of the Policy Governance® system but not the "oversight and evaluation" component of the system, that can be disastrous.
On the other hand, several of the individual principles can be incorporated into the governing practice of any board wishing to enhance its performance. Such quality enhancements can provide immediate value to a board and may also become stepping stones to implementation of the total Policy Governance® system.
The following components of the Policy Governance® system are examples of components that a board can choose to incorporate into its governance style without adopting the whole Policy Governance® system:
Ends and Ends Monitoring. Develop board policies that define your organization's purpose, your organization's reason for existence, in terms of specific benefits or results your organization is to achieve in the lives of the people it serves. Such policies do not focus on activities or services to be provided by your organization but the actual intended differences to be effected in people's lives. Measureable indicators are identified for each outcome to be achieved and organization performance is monitored with respect to these indicators. Your board becomes a Results-Driven Board.
Community/Ownership Linkage. Your board identifies its organization's owners, that is, those key stakeholders on whose behalf your board governs and to whom your board is accountable and develops a plan for ongoing two-way communication between your board and your organization's owners. Your board becomes an Accountable Board, engaged with the community of persons on whose behalf it governs and to whom it is accountable.
The Board-CEO Relationship. Clarify the Board-CEO relationship and restructure board operations in support of the board group authority principle and the clear delegation principle involving respect for the integrity of the CEO position. Your board establishes and maintains a Constructive Board-CEO Partnership.
Through a brief board training session, I can help your board explore the Policy Governance® system and decide whether to implement the total Policy Governance® system or one or more of its individual components.
For more information about the Policy Governance® system, please go to www.BoardsOnCourse.com/policy-governance.