Transcript Governance as Leadership
William P. Ryan AJFCA/IAJVS Annual Conference New York City April 15, 2007
The Governance Futures Project
What’s the Problem?
Prevalent Diagnosis Response Objective Reframed Diagnosis Response Objective Problem of performance, ignorance.
Codify board’s role, clarify tasks.
Do the work better.
Problem of purpose, micro-governing.
Enrich the job, engage the board.
Do better work.
G o v e r n a n c e as L e a d e r s h i p
Key Propositions of Governance as Leadership
Boards need three mental maps to understand three different aspects of organizations.
Boards need three governing modes that reflect those maps.
Each mode serves important purposes, and all three sum to Governance as Leadership .
A board’s governing effectiveness increases as it: – Becomes more proficient in more modes; – Does more work in third mode; – Chooses appropriate mode(s) of work. G o v e r n a n c e as L e a d e r s h i p
Triple Helix Issue: An Example
Should Boston Museum of Fine Arts lend 21 Monet paintings to Bellagio Casino in Las Vegas?
?
G o v e r n a n c e as L e a d e r s h i p
Triple Helix Issue: An Example
Should Boston Museum of Fine Arts lend 21 Monet paintings to Bellagio Casino in Las Vegas?
Fiduciary: Travel-worthy? Insurance? Security? Donor restrictions? Financial arrangements? Timeline? Curatorial control?
Strategic: Effect on MFA attendance, image, audiences? Prototype deal? Competitive responses? Patron tie-ins? Vegas in Boston?
Generative: Mission related? What will MFA do for the right price? Public art/private dealer? Venue consistent with values? MFA conservative or iconoclastic? G o v e r n a n c e as L e a d e r s h i p
Three Organizations in One
Type II Strategic – Logical
Governance as Leadership
Type III Generative – Expressive Type I Fiduciary – Productive
G o v e r n a n c e as L e a d e r s h i p
Type I: Fiduciary Mode
Board’s central purpose: Stewardship of tangible assets Board’s principal role: Sentinel Board governs: The Productive Organization Board’s core work: Oversee operations Ensure efficient & appropriate use of resources Ensure legal compliance & fiscal accountability G o v e r n a n c e as L e a d e r s h i p
Type II: Strategic Mode
Board’s central purpose : Ensure winning strategy Board’s principal role: Strategic partner to senior management Board governs: The Logical Organization Board’s core work: Scan internal and external environments Set priorities Review and modify strategic plan Monitor performance against plan G o v e r n a n c e as L e a d e r s h i p
Generative Thinking
Definition: Familiar version: Less familiar: Implication: A cognitive process for deciding what attention to, what it and what to do to pay means about it.
, Paradigm shifts Organizational process Made explicit, generative thinking is governance G o v e r n a n c e as L e a d e r s h i p
Locating Generative Thinking The Generative Curve Problem-framing Sense-making Opportunity for Generative Work Strategy Plans, Tactics, Execution Time The opportunity to influence generative work declines as issues are framed and converted into plans, strategies, and problems.
G o v e r n a n c e as L e a d e r s h i p
The Generative Dilemma
Amount Generative Curve Typical Board Involvement Curve Time Trustee involvement is lowest where generative opportunity is greatest; trustee involvement increases as generative opportunity declines.
G o v e r n a n c e as L e a d e r s h i p
Inventing Generative Governance
Implementation Sensemaking Cues & Clues Frames Familiar Processes Policy making Strategic planning Problem solving Work at boundary Think retrospectively Deliberate differently G o v e r n a n c e as L e a d e r s h i p Familiar Practices “SWOT” Needs assessments Cost-benefit analysis Trial & Error Management Service delivery Evaluation
Generative Thinking: Four Profiles
Staff Engagement High
Governance by Fiat Shared Governance Governance by Default Executive Governance
Low
G o v e r n a n c e as L e a d e r s h i p
Governance
as
Leadership
The Payoff
Empowers the board.
Engages the collective mind.
Exploits board’s assets.
Enriches board’s work.
Enhances board’s performance. G o v e r n a n c e as L e a d e r s h i p
Learning More…
Governance as Leadership: Reframing the Work of Nonprofit Boards by Richard P. Chait, William P. Ryan, Barbara E. Taylor John Wiley & Sons, 2005 available at: www.boardsource.org
G o v e r n a n c e as L e a d e r s h i p
Practice Challenges
Entry points for practice:
Routine board meeting Reflection and retreats Relationship dynamics and conflicts G o v e r n a n c e as L e a d e r s h i p
Routine Board Meetings
Look for generative landmarks: Ambiguity. Multiple interpretations of what’s going on or what requires attention.
Salience. Issue means a great deal to a great many.
Stakes
.
are great.
Issue touches on core values or organizational identity.
Strife. Prospects for confusion or conflict G o v e r n a n c e as L e a d e r s h i p
Routine Board Meetings
Mind the mode:
Facilitate to avoid ‘cross-governing’ Deliberate ‘a la mode’ Promote robust discourse in all modes
G o v e r n a n c e as L e a d e r s h i p
Routine Board Meetings
Carve out generative space: Consent agenda Silent starts One-minute essays Mini-executive sessions Plenary as committee-driver
G o v e r n a n c e as L e a d e r s h i p
Practice Challenges
Entry points for practice:
Routine board meeting Reflection and retreats Relationship dynamics and conflicts G o v e r n a n c e as L e a d e r s h i p
Reflection and Retreats
High-curve practices
Catalytic questions Retrospective thinking Boundary work ‘Sensible foolishness’ G o v e r n a n c e as L e a d e r s h i p
Reflection and Retreats
Catalytic questions: What keeps us awake at night?
What nagging or intriguing thought have we had but not expressed?
On what list do we want to rank #1?
What would we do differently as a for-profit?
How would we respond to a $10M challenge for best idea to be greater public asset?
G o v e r n a n c e as L e a d e r s h i p
Reflection and Retreats
Retrospective thinking – dominant narratives:
What’s our ‘dominant narrative’ and is it working?
Retrospective thinking – strategy:
What’s the pattern?
What best explains recent successes/setbacks? What do we know now that we didn’t at last plan?
Where do we meet resistance and why?
G o v e r n a n c e as L e a d e r s h i p
Reflection and Retreats Board-to-board boundary:
What do you make of for profit competition?
How are you handling changes in funding?
How do you respond to consumerism?
What have you learned about leadership transition, capital campaigns, strategic planning, governance?
Board-to-staff boundary:
Why do you work here?
What’s your biggest challenge?
What’s most rewarding about your work?
What’s the organizational culture?
What are some powerful stories?
What one thing would you change if you could?
G o v e r n a n c e as L e a d e r s h i p
Practice Challenges
Entry points for practice:
Routine board meeting Reflection and retreats Relationship dynamics and conflicts G o v e r n a n c e as L e a d e r s h i p
Relationships: Dynamics and Conflicts CEO Danger Zone CEO Safety Zone Dangers in the ‘safety zone’
CEO is often: • Vested, slightly defensive • Handling (vs. engaging) board Board members often: • Feel uncertain of their value • Disengage • Second-guess, play ‘gotcha’ • Meddle or micro-manage Dialogue is often: • Technical or analytic • Aimed at finding one right answer G o v e r n a n c e as L e a d e r s h i p
Relationships: Dynamics and Conflicts CEO Danger Zone CEO Safety Zone Opportunities in the ‘danger zone’
CEO is: • Open, in a learning stance • Willing to engage (vs. handle) the board Board members: • See their chance to add value • Get deeply engaged in meaningful, consequential work Dialogue is: • Values- (vs expertise-) driven • Aimed at making judgments G o v e r n a n c e as L e a d e r s h i p
Relationships: Dynamics and Conflicts Shared governance To help board get to higher ground:
• Recruit to • Promote collegiality over congeniality • Detoxify ‘religion and politics’ • Use shared learning for shared meaning govern , not manage • Cultivate norm of mutual accountability G o v e r n a n c e as L e a d e r s h i p
Relationships: Dynamics and Conflicts Shared governance The personal leadership challenge for CEOs:
• Take risks • Resist need to be omniscient • Manage ‘dreaded’ and ‘desired’ images G o v e r n a n c e as L e a d e r s h i p