Is Your Board on ‘Cruise Control’?
- Posted by Jannice Moore
- On August 12, 2021
- Executive Limitations
A number of years ago, a family member was in the hospital, and I set out in my car to visit her. But I was preoccupied with a work-related matter, and before I realized it, I arrived, not at the hospital, but at the office! My reflex brain had put me into auto-pilot mode. It was unnerving. It was also a wake-up call to pay full attention when driving, or risk arriving at the wrong destination, or worse.
Boards of directors often face a similar danger. They become preoccupied with operational details. The direction of the organization – to which they should be paying full attention – is by default relegated to auto-pilot mode. As a result, their organization may end up at an unintended destination, or even worse, may self-destruct or become irrelevant.
There is a solution. Place the operational details on cruise control. Then your board will have the capacity to give the direction of the organization its full attention. Policy Governance is a system designed to do just that. Once the board sets clear policy parameters within which the CEO can manage operations, with regular monitoring to ensure compliance, it can place that set of concerns on cruise control. The lion’s share of the board’s time and energy can then be focused on exercising strategic foresight, so that the direction set for the organization is clear, and remains relevant.
To learn more about this system, contact us.