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5 best books of 2011.

Here are the  five books that made the biggest impact in my role as a governance and organizational leader in 2011 :

  1. Henry CloudNecessary Endings: The employees, business and relationships that all of us have to give up in order to move forward
  2. Harrison Coerver,  Race for Relevance: 5 radical changes for Associations
  3. Stephen M.R. Covey, The Speed of Trust: The one thing that changes everything
  4. David L. McKenna, Stewards of a Sacred Trust: CEO selection, transition, and development for boards of Christ-centered organizations.
  5. Walter Issacson, Steve Jobs
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NonProfit Leaders — Get Rid of the Firewall

We often view the board as being distinct from the “rest” of the organization. The Board governs and the organization operates the programs. Many governance theorists support this approach. They suggested that there be a firewall between the board and the organization.

The firewall prevents meddling, chaos, and confusion. No meddling allowed. The board focuses on policy and the organization on implementation. The CEO should not be a member of the board nor should the board talk with staff.The firewall is there to prevent any viruses from contaminating the system.

This approach, however,  is old school. Emerging best practices suggest that the  firewall approach  must be replaced with a more constructive approach. Board Source suggests that the relationship between the board and the organization should be seen more as a partnership. My 20 years experience as a CEO and doctoral research that examined this relationship supports the partnership idea. In fact, the term governance partnership was developed as an alternative to the firewall approach. If you have any doubt, check out Peter Drucker‘s 1990 article entitled Lessons for Successful Nonprofit Governance. He states that boards and executives must be involved in both functions and must coordinate their work accordingly. They must work together…as a team…as a partnership.

So, nonprofit governance and executive leaders — it’s time to get rid of the firewall! Lets talk about what it means to have a governance partnership!

 

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Reframing Governance & Mission Success

It used to be that boards and governance were substantially the same: the two concepts overlapped. But with time and a radically changing environment,  the domain of “governance” has moved beyond the domain of “the board.”                               — Dr. David O. Renz

 

The Nonprofit Quarterly recently published a revised version of Dr. David Renz’s seminal article Reframing Governance. Dr. Renz reminds us (again) the governance and the board of directors are not the same thing. While the board is essentially a structure, governance is a function that extends beyond the board and the organization…into the community.

Historically nonprofit organizations were formed to address specific community problems.  And boards were put into place to ensure that those organizations actually addressed those problems as directed by their mission statement. The effectiveness of this single organization approach has increasingly been challenged due to the scale and complexity of the problems that communities now face. Many organizations do not have the resources or the size to effectively address these complex problems.

Dr. Renz points to the development of Inter-Organizational Alliances and Coalitions as a new tool to address these complex community problems. What one organization cannot address alone can often be addressed by multiple organizations working together. As these new alliances have evolved, Dr. Renz describes the need to create Extra-­Organizational entities that can govern the multi-organizational work. The structure of these new entities can be as complex as the alliances themselves and requires new thinking about governance.

If organizations do not enter into these new alliances and continue to address these issues alone they risk on-going viability and relevance. Not only will their effectiveness at addressing community problems likely diminish, they may face  decrease financial support which decreases organizational capacity. Some organizations may eventually starve and cease to exist.

As a board leader, your first responsibility is to ensure that the mission of your organization continues to meet the needs in your community.  Your second responsibility is to ensure that an effective governance system is in place that will ensure the success of your mission.

As we look to the future, Dr. Renz reminds you and your board colleagues that you may need to reframe your governance system and look beyond your organization to ensure continued mission success in your community. While this reframing process will  be uncomfortable and unfamilar, it is necessary.

As you go through this process of reframing you may feel like a fish out of water…but eventually your governance system capacity to ensure mission success will be enhanced.

Leadership & Succession

Succession is an issue that as a CEO I  have been thinking about for some time. I wonder who the new leaders are going to be? I wonder if we are properly developing our current leaders to be leaders of the future? I wonder, as does the board of directors, will my successor come from within the organization or from the community?

Succession is not easy to talk about….its very personal. It’s personal because it points our vulnerability and the fact that we are not indispensable.  It acknowledges that people will leave, and we don’t want to talk about that. When we do, it becomes uncomfortable.  Yet, on the other hand, there is agreement that  we must talk about succession. We have a responsibility as leaders…board leaders and organizational leaders…that we must prepare today for what might happen tomorrow.

So why don’t we do a better job with Succession?

Governance and the Dueling Cellos

We can talk about governance partnership and how working together improves mission and performance.

We can write about governance partnership  and describe the how a relationship between leaders improves governance.

Now we can hear what governance partnership might sound like when two leaders are playing together to govern and lead, extend the mission and improve performance!

Click here to hear the intensity, feel the intricacies, and imagine the possibilities of what I think governance partnership can be!

Is Governance a Board Activity or an Organizational System?

Every nonprofit organization has a governance system! More accurately, a governance operating system. Just as Windows 7 powers most PCs and Snow Leopard powers Macs, the governance operating system powers the nonprofit organization!

The Malcolm Baldrige Performance Excellence Program defines governance as “…the system of management and controls exercised in the stewardship of the organization. It includes the responsibilities of the organization’s owners, board of directors, and senior leaders… including administrative and operational leaders“.

The World English Dictionary defines governance as “the balance of control between stakeholders, managers and (board of ) directors of an organization“.

The Governance Operating System contains two essential components that come together like two pieces in a puzzle:

  1. The Board of Directors: When we talk about governance, we more than likely are referring to the organization’s governing authority — the Board of Directors. Improving governance generally is a conversation about improving the the work of the Board. The Sarbanes Oxley Act was adopted a number of years ago to improve the accountability of governance — the Board of Directors.
  2. The Organization: The governance operating system also includes the Organization. The Board employs an Executive Director, President, or Chief Executive Officer (CEO)to lead and manage the day-to-day affairs of the organization. While we  typically  see the work of the CEO and its senior leaders as leadership and/or management, their work is a part of and/or an extension of the system of governance.

The work of the Board of Directors and the Organization are part of the governance operating system that ensures accountability to its clients, customers and other stakeholders. An effective governance operating system will ensure the organization is strategically advancing forward to a preferred future while pursuing organizational excellence and sustainability.

Does your organization practice  governance as a board activity or as an organizational operating system?

Graphic from iStock

My Top Five Leadership & Governance Books of 2010

Of all of the books I read in 2010 on Governance and Leadership, here are my top five:

  1. The Truth about What Nonprofit Boards Want by June Bradham. The author identifies nine myths about boards and then responds with the truth. My favorite myth/truth was Myth#4: CEO and Board members are colleagues. Nothing more. Truth #4: Engaged boards have an inspired CEO who forms a partnership with board members and demonstrates a passion for the mission while keeping ego in check. 
  2. Clear Leadership: Sustaining real collaboration and partnership at work by Gervase Bushe. There were two concepts in the book that helped me develop additional insight — the interpersonal mush that occurs in organizations and how leaders can use the skills of clear leadership to develop clarity; and the nature of successful partnerships in organizations.
  3. Artistry Unleashed: A guide to pursuing great performance in work and life by Hilary Austen. The author builds on the Knowledge System developed by Roger Martin and develops the parameters of qualitative intelligence (QI). She demonstrates how qualitative intelligence will help leaders address those enigmatic organizational problems that defy quantitative solutions.
  4. The Practice of Adaptive Leadership by Ronald Heifetz, Alexander Grashow, Marty Linsky. I found this book to be very helpful in addressing difficult problems in organizations.  While we know how to resolve technical problems, adaptive problems can be challenging because they require changes in the way people think and organizations act. The authors offer new insight on how to successfully manage those adaptive challenges.
  5. Crush It by Gary Vaynerchuk. This little book introduced me to the role of social media and its impact on   business. The author reminded me of the power of passion and commitment as we continue to re-think and  re-frame how we  will do business in the future.

Leading nonprofits into the future: An interview

Jeff Hannah of Touchstone Executive Development interviewed me on his internet radio/video show called Leadership Cocktail. Over the course of the hour we explored topics in nonprofit leadership, the evolving role of the board of directors, creating a partnership between the board and the CEO, and developing the next generation of leaders. If you want to listen to the conversation you can check here.

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