Robert Nelson, CAE Nelson Strategic Consulting · Board Culture and Strategic Governance Robert...

Board Culture and Strategic Governance

Robert Nelson, CAE Nelson Strategic Consulting

Looking into the Future

Are you committed?

Or just interested?

Awesome Responsibility

High Performing Boards

§  Culture of candor, respect and inquiry

§  Appetite for continual learning & improvement

§  Think and act strategically

LEGAL DUTIES

Legal obligation to be informed and active participants in governance May be personally liable for failing to comply

Duty of Care

§  Diligence, care and skill that a ordinarily prudent person

§  Prepare and participate §  Review financials §  Protect assets, expend

in members’ interest §  Ensure organization has

written polices and controls

Duty of Obedience

§  Remain faithful to and pursue the goals of the organization

§  Comply with laws and regulations

§  Comply with governing documents

Duty of Loyalty

§  Act in the interest of the organization and not for personal gain

§  Conflict of interest §  Confidentiality

HIGH PERFORMING BOARDS Strategic Thinking Boards

Think Strategically

Key Recommendation §  The greater the strategic

orientation, the better the board performance

Time Spent Thinking Strategically

Thinking Mode

Strategic Thinking

Non-strategic Thinking

Time Spent Thinking Strategically

Thinking Mode

Strategic Thinking

Non-strategic Thinking

Time Spent Thinking Strategically

Thinking Mode

Strategic Thinking

Non-strategic Thinking

Strategic Thinking

Thinking conceptually, imaginatively, systematically, and opportunistically with regard to the attainment of success in the future, while simultaneously considering the larger environment or broader context, and the immediate environment.

Strategic Thinking Experiences

Intentional

Change in Culture

Revolutionary §  Rapid, dramatic change §  Sudden transformation §  Can lead to dramatically

improved (or changed) performance in a relatively short period of time

Evolutionary §  Slow, continuous change §  Incremental §  Over time, can lead to

significant improvement in performance

Transition

Managing Transitions, William Bridges

Vision

§  Future state §  Well articulated §  How much to share §  Timing

Champions for Change

§  Early on §  5 to 10 percent §  Develop change strategy §  Support need for transition §  Support behavioral change

needed to transition and maintain new practices

Create Change Strategy

Change the Agenda

Traditional Agenda §  Approve Minutes §  Committee Reports §  Financial Reports §  Old Business §  New Business

Strategic Agenda §  Strategic Dialogue §  Strategic Actions §  Performance Oversight §  Consent Agenda

How would you describe

the your Agenda?

Strategic Issues

§  Big issues with strategic significance §  Invest time in identifying the issues §  Environmental scanning §  Non-board stakeholders §  Board meetings

Strategic Dialogue

§  Doesn’t require action or decisions

§  Intentionally carve out time §  Agreement that no decisions

will be made §  Create of ideas §  Form shared meaning §  Free flow of diverse

perspective

Dialogue

§  Free flow of meaning between board members §  Explore with honest curiosity and understand

the meaning of what people are saying §  Seeks to understand and build upon what has

been said §  Understand the assumptions of others and

recognize your own

Generative Thinking

§  Bring data, information and knowledge to the board un-packaged

§  Frames issues §  Produces sense of what

data, information and knowledge mean

§  It is where goal setting and direction-setting originate

Dialogue Before Deliberation

§  Common understanding §  Thoughtful consideration

& inquiry §  Promotes understanding

of beliefs, assumptions, values impacting how we see situation

§  Persuade §  Advocate §  Enlist §  Justify a position as right §  Come to a conclusion

Informed Decision Making

Process of Inquiry

§  What do we know about the strategic position of our organization related to this issue?

§  Does this really align with our strategy? How?

§  How does this reflect our priorities?

§  What assumptions do we hold about this issue?

§  What is happening in the environment that could impact this issue? Looking forward, how is the environment evolving?

§  Looking back over a period of time, what changes appear to be happening that might be associated with the issue?

Tools of Inquiry

§  What other ways could we handle this issue? §  Why is the issue occurring? Engage Toyoda’s 5 Whys

and ask the question multiple times. §  How could we get a broader perspective of the issue? §  What critical information do we need to know to

solve this issue? §  What do we know we know about this issue? §  What do we think we know about this issue? §  What do we know that we don't know about this

issue?

Loyal Opposition & Support

§  Pre-designate §  Use tools of inquiry §  Strategic arguments

Strategic Dialogue is the goal. Script out your Loyal Opposition and Loyal Support. Use Tools of Inquiry.

Protect Against Group Think

§  Awareness §  Chair can play an important role §  Create a culture where

disagreement and diverse opinions are valued

§  Encourage an atmosphere of open inquiry

§  Challenge assumptions §  Always consider unpopular

alternatives §  Devil’s advocate §  Agenda design §  Breakouts

Chair Preparation

§  Development, ongoing §  Pre-meeting prep call §  Talking points §  Strategic questions §  Manage / facilitate

meeting §  Post-meeting debrief

Governing Mission

§  Primary governing responsibilities and functions

§  Disciplinary tool §  Clearly defines what the

mission of the board is

Governance Structure

§  Aligned with the governing work of the board

§  Not aligned with administrative / operating or program functions

§  Benefits: Ø Facilitates a focus on strategic

level issues Ø Protects against micro-

management Ø Protects against silos

Clearly Defined Roles and Responsibilities

Board §  What §  Policy §  Strategic Direction §  Define & Ensure outcomes

Staff §  How §  Execution §  Operational / Tactical §  Empowered to work

through details

§  Job descriptions §  Strong volunteer / staff partnership §  Respecting decision maker §  Annual board orientation / briefing

Governance Development

Effective Board Leadership

Effective Leadership §  Define & Delegate §  Outcomes Desired §  What Happens Next §  Using Information

Leadership Failure §  React & Ratify §  Activity Required §  What’s Already Done §  Collecting Information

Strategy Development Formula

Cycle of Strategy Development

§  Strategy development is an ongoing process, not a retreat

§  Engaging with components throughout the year Ø Ensures solid market

position awareness Ø Contributes to development

of good strategy Ø Builds the strategic capacity

of the organization

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Dare To Dream

Are You Committed or Just Interested?

If You’re Interested… §  Perceived difficulty >

perceived value §  Do it if the circumstances

permit §  Reasons

If You’re Committed… §  Perceived Value is >

perceived difficulty

§  Do it no matter what

§  Results

§  What will I do differently?

§  How will I know I am making progress?

§  What are my next steps?

Email: Robert@NSCstrategies.com Twitter: @Rbt_Nelson Web: www.NSCstrategies.com

Phone: 475-235-1210