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ACHD May 30, 2014
Nancy R. Axelrod
Founding President, BoardSource
www.nancyaxelrod.com
Healthcare
District
Other
Boards?
For Profit
Company
Local
Nonprofit
Charitable
Organizations
2
One size does not fit all.
Most boards don’t reach their full potential.
Good boards can always be better.
The board’s fiduciary role is essential --- but not sufficient -- for exceptional governance.
It’s not just about the right people on the bus.
www.nancyaxelrod.com
www.nancyaxelrod.com
Duty of care Duty of obedience Duty of loyalty
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• Personal agendas
• Acting independently as individual board members
• Micromanagement
• Disruptive behavior
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The Passive Board
The Certifying Board
The Strategic Board
The Intervening Board
The Operating Board
Source: Adapted from “Building Better Boards” by David Nadler,
Harvard Business Review, May 2004
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Responsible Stewardship
Intentional Governance Policies & Practices
Board Development & Renewal
Culture of Respect & Inquiry
Strategic Thinking
( www.nancyaxelrod.com
Low-Functioning Boards High-Functioning Boards
Passive and Reactive Highly Interested and Engaged
Unclear Priorities Sharp Focus on Well-Defined Governance Priorities
Spotty Attendance with Low Energy Level
High Attendance and Enthusiasm
A Lot of Listening and Little Discourse
Extensive Questions, Dialogue and Deliberation
Challenges and Disagreement Are Squelched
Constructive Dissent and Debate Are Welcomed
Decision-Making is Pro Forma Decision-Making is Enlivened
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Climate of trust and candor
Willingness to share information
Culture that invites multiple perspectives
Commitment to assessment of collective board as well as individual board members
Source: “What Makes Great Boards Great”, by Jeffrey
Sonnenfeld,
Harvard Business Review, Sept. 2002
www.nancyaxelrod.com
www.nancyaxelrod.com
www.nancyaxelrod.com
Governance
Designee
Volunteer
Other?
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3. Board meetings can impede strategic
thinking.
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From - To -
“supervision” “strategic oversight”
deciding how outcomes are to be achieved
focusing on what the outcomes should be
focus on operations focus on policy & future directions
attempting to run the organization
ensuring that the organization is well run
tactical work strategic thinking
micromanaging macrogoverning
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Help shape the organization’s priorities through the strategic planning process.
Align board meeting agendas with goals and priorities.
Focus board work on governing rather than managing.
Allocate time to what matters most to the organization’s future viability and performance.
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Collective commitment to mission, vision, and values, & priorities.
Mutually agreed upon roles and expectations.
Resources to walk the talk of a culture of respect and inquiry.
Allocating time to what matters most.
A governance information system to support the Board’s fiduciary & strategic roles.
Treat mission as a guidepost
Ask the right financial questions
Inform your ED and Chair about what you need to be effective
Practice a culture of respect/inquiry
Focus your time on governing vs managing
Help with board succession planning
Respect board/staff reporting lines
Think independently/Act Collectively
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Resources
•7 Measures of Success: What Remarkable Associations Do That Others Don’t, ASAE and the Center, www.asaecenter.org. •The Source: Twelve Principles of Governance That Power Exceptional Boards, BoardSource, www.boardsource.org. •Culture of Inquiry: Healthy Debate in the Boardroom, by Nancy Axelrod, BoardSource, www.boardsource.org. •Governing for Growth: Using 7 Measures of Success To Strengthen Board Dialogue and Decision Making, and •The Governing Board: Key Responsibilities for Association Boards and Board Members, by Nancy Axelrod, www.asaecenter.org.
www.nancyaxelrod.com
