Have you ever pondered the “DNA” of your board? Simply described, DNA is the unique genetic code or instruction manual that helps our bodies thrive. What should be in the DNA of a thriving board?
The structure of DNA is a “double helix” – two intertwined strands, with several bonds holding them together.
The purpose of governance is to DIRECT and PROTECT the organization on behalf of those the board governs. Let’s use those two purposes as the intertwined strands of the double helix.
What holds them together, allowing the board to fulfill those dual purposes?
I suggest three things:
First, ROLE CLARITY. A clear distinction between the role of the board and that of management is crucial. Without that clarity, there cannot be accountability. If both the board and the CEO are accountable for the same thing, in reality, no one is truly accountable. Mixed messages about accountability are likely to result in lack of action, missed opportunities, or undesirable results.
Second, PROACTIVE RISK MANAGEMENT. The board’s job is not to do the risk management itself, but to govern the management of risk. To do so, the board sets clear parameters for management about unacceptable risks, not just today’s risks, but potential future risks. It also rigorously monitors to ensure that level is not exceeded. This allows the board to fulfill its responsibility to protect the organization.
Third, FUTURE FOCUS. The board is responsible for setting the organization’s direction – what it is there to achieve. This requires a continuous eye, not only on today or tomorrow, but also on the longer term. When done well, this strategic foresight sets the organization up to sustain long term achievement of its purpose.
These three bonds: role clarity, risk management, and future focus, hold the dual strands of direction and protection. In other words, they hold a thriving board’s DNA together.
We’ve worked with hundreds of boards as they developed their DNAs to thrive.
__________
P.S. When your board is ready to develop a DNA for thriving, here are three actions you can take – at no cost.
1. Book a discovery call
This is a free no-obligation conversation to learn how working with us could support your board in achieving role clarity, proactive risk management, and future focus. Learn if a customized workshop, online learning course, or ongoing coaching might be just what your board needs. Book your call today!
2. Sign up for our upcoming webinar
We offer regular webinars on topics important to boards who seek to thrive. Sign up for October 2nd and learn what to include in a board education plan and why it’s important. Sign up here!
3. Learn even more about becoming a governing board
Check out the January 2023 issue of REALBoard™ Advisor which had several great articles about developing proactive risk management that you can download at no charge. REALBoard Advisor™