Each Sunday I receive an email blog1. There’s a mix of quotations and short paragraphs. Always thought-provoking, often insightful, sometimes motivating. A while back I read the following quote from Geoff Colvin:
“When we learn to do anything new—how to drive, for example—we go through three stages. The first stage demands a lot of attention as we try out the controls, learn the rules of driving, and so on. In the second stage we begin to coordinate our knowledge, linking movements together and more fluidly combining our actions with our knowledge of the car, the situation, and the rules. In the third stage we drive the car with barely a thought. It’s automatic. And with that our improvement at driving slows dramatically, eventually stopping completely.”
I read this and I thought – this is an interesting metaphor for a board learning to use Policy Governance.
Before it has reached Stage 1, the board probably concluded that its current approach wasn’t serving the board’s desire to govern effectively. The roles of the board and CEO overlapped too often. The board seemed to be constantly reacting to crises. It depended too heavily on the CEO to provide direction. It was spending its meeting time hearing reports and discussing minutes. Most frustrating, the board rarely if ever had the time to talk about the future.
And so, after researching different possibilities, the board decided to implement Policy Governance. Doing so would help it to lead the organization towards a meaningful future. And so…it embarks on a learning journey.
In Stage 1, the board needs to learn the ten principles of Policy Governance because they are the basis of everything the board does. They shape how a board writes policies to set strategic direction (Ends policies) and to protect the organisation (Executive Limitations policies). They give the board the tools to evaluate the CEO’s achievement of these policies. So, the board learns how to determine if the CEO’s monitoring reports provide verifiable evidence of compliance. It can be a steep learning curve.
The board must also identify on whose behalf it is governing. It must gain the skills to engage with them to understand their values and priorities. It must learn how to translate those values into policy. Learning to use the many tools of Policy Governance gifts the board with the assurance that it will be able to shape a meaningful future.
In Stage 2, the board has all of the pieces in place necessary for a board to lead the organization. Its policies are complete. It regularly monitors their achievement and checks that the wording remains current. It has policies that directs its own processes. It has a plan for regularly engaging with its principal stakeholders. Importantly, the board understands the interrelationships of the principles. The board can apply this understanding to work out what it needs to do in various circumstances.
Stage 3 is where the metaphor doesn’t hold. For some functions, an experienced board using Policy Governance may be on automatic pilot. For example, it has the skills for engaging with those on whose behalf it governs. It competently develops and revises policy and evaluates organizational performance. The board is confident that the operational organization is functioning as it should.
But – the board doesn’t stop improving. It knows that is not ‘good enough’ to provide leadership – it needs to build a legacy for the future.
The board allocates time to learn and apply strategic foresight skills. It scans the horizon and learns about the risks and opportunities that may be part of the organization’s future context. The board considers future scenarios and how the organization and the board’s leadership needs to evolve. Continuing with the driving lessons analogy, the board in stage 3 learns to shift gears. In doing so, it sets the organization on a course for a relevant, resilient future.
If your board wants to take Policy Governance driving lessons, book a Discovery Call[.
[1] About FS