These days, many are unhappy with misinformation about a subject they care about. Before social media boosted misinformation, “myths” often surrounded Policy Governance.”
If you’ve spoken with board members or staff about adopting Policy Governance, you’ve likely heard one or more objections and misconceptions.
We also hear them. We decided to address these objections and misconceptions in webinars. We held the first one November 20th.
We know that not everyone can attend a webinar. We thought it would help to share how to respond if you hear any of the three misconceptions in this blog.
If someone says, “Board members can’t talk to staff”, you might respond as follows:
Policy Governance principles state that the board as a whole is in charge. The board does not duplicate delegation to more than one point. Based on those principles, boards using Policy Governance typically have a policy that states that nothing a board member says to staff has directive authority. For example:
“When interacting with staff, board members must recognize that individual board members have no authority to instruct or evaluate employees, and no authority to insert themselves into employee operations.”
The policy does not say that the board is prevented from “talking to”, “sharing ideas” or “having coffee with” or “hearing from” staff.
If, beside the CEO having the authority to direct staff, individual board members can also direct or instruct staff, this is confusing and inefficient, In the worst case, it produces conflict.
Policy Governance clarifies roles. It allows board members and staff to communicate, except for exchanges that would disrupt the board’s delegation to staff.
A common objection from board members is: “We don’t want to lose control of the organization.”” If you hear this, one way you can respond would be:
As the highest authority in the organization, the board needs to control everything. Obviously, that doesn’t mean that the board needs to make every one of the thousands of decisions being made in the organization. That would be ridiculous for a part-time board controlling a full-time operation.
You control all of the thousands of moving parts in your vehicle of one or two tons while hurtling down the road at 70 mph/110 kph. And you do so with just a few controls.
You also need a governance system that enables your board to control everything in the organization with just a few controls.
So, your board should focus on what matters: the right impact, for the right people, at the right worth. And to do so within the board’s appetite for risk.
With Policy Governance, the board controls by getting its arms around the whole of the organization without getting its fingers in!
Another common misconception is a fear that “Policy Governance gives the CEO too much power.” You can try this as response:
For the Board to effectively control the organization, it must define the limits of the CEO’s “power”. It determines what the organization is to achieve and the boundaries of prudence and ethics within which results are to be achieved.
Then it delegates to the CEO the authority to use a reasonable interpretation of its policies. Does the CEO have the authority or power to make all further decisions about how to produce the board-defined results within those limits? Yes. But it does not mean that the CEO has free reign.
The Board holds the CEO accountable for organizational results and conduct. The board, per a set schedule, rigorously assesses the evidence. It verifies that the organization’s results match a reasonable interpretation of its desired outcomes. It also verifies compliance with a reasonable interpretation of its limits on organizational conduct.
A more accurate statement is that the CEO has sufficient power to achieve results within the boundaries of prudence and ethics. AND the board requires proof that the CEO’s “power” is being used accordingly. I hope this helps you show your board a new view on their objections.
If you’d like to explore similar questions, join our webinar: Policy Governance® – Objections & Misconceptions – Round 2
For more information or clarification, please book a Discovery Call with us! 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!
Or sign up for our upcoming virtual courses starting in 2025! Introduction to Policy Governance® and Assessing Monitoring Reports. Sign up here!