thinking & planning strategically - svcreates · •reconcile value propositions, ... •the...
TRANSCRIPT
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Workshop Objectives:
• Understand the three Modes of Governance and when each is applicable
• Learn to distinguish technical problems from adaptive problems
• Get ideas for incorporating strategic thinking into your organization
• Learn how a strategy map can help identify your key strategic issues
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Primary Board Responsibilities
Provide Oversight
Ensure the Necessary Resources
Set Organizational Direction
© 2013 BoardSource
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The 3 Modes of Governance Type I
Fiduciary Type II
Strategic Type III
Generative
Board’s role
Steward
Strategic
Sense-maker
Key question
What’s wrong?
What’s the plan?
What’s the key
question?
Problems are to
be:
Handled
Solved
Framed
Way of deciding
Reach resolution
Reach consensus
Reach understanding
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Fiduciary Governance
• Fiduciary
• Oversee operations, monitor organizational conformance, and ratify policy.
• Approval of Budget
• Give meaningful financial contribution, open doors for funding opportunities
• Policy approval
• Assure legal and ethical standards
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Strategic Governance
• Strategic
• Scan environments, review/modify the strategic plan, and monitor organizational performance.
• Mission, vision, values and planning
• Address issues strategically
• What drivers and associated performance will allow the organization to achieve its goals?
• Board actively participates with staff
© 2013 BoardSource
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Generative Governance
• Generative
• Reconcile value propositions, discern and frame challenges, think creatively, and make sense of circumstances.
• Collaborative approach between executive staff and board
• Gives problems and challenges a framework and definition
• Looking back helps shape the future. Asking why were we successful, or unsuccessful?
© 2013 BoardSource
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The Generative Thinking Grid B
oar
d E
nga
gem
en
t Governance by Fiat Governance as Leadership
Governance by Default Governance by
Observation
Executive Engagement
Source: “Governance as Leadership: Reframing the Work of Nonprofit Boards” by Richard Chait, William Ryan, and Barbara Taylor, John Wiley & Sons, 2005
When the engagement of board members and the
chief executive in generative work is high
the result is optimal:
Type III Governance
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In Practice • CEO or Executive Director Hiring Process
• Fiduciary Mode—What is a competitive salary range? Approval of Position Description.
• Strategic Mode—Hiring the right executive director. What strategies will assure a successful hire?
• Generative—What qualities are needed in our new staff leader to move the organization forward?
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Adaptive vs Technical Problems • Technical problems tend to be those we have
encountered before (or someone else has) and have experience, resources and understanding to successfully solve.
• May be very complex and important
• Solutions come from experts/authority
• Solutions are grounded in current structures, processes and ways of doing things
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Adaptive vs Technical problems • Adaptive challenges are those that we usually have
not encountered before and a clear solution may not be present.
• Solutions require changes in priorities, beliefs, habits and loyalties
• Expertise of people in authority is not enough; others must be mobilized in problem solving
• Likely to involve organizational or individual loss
• Requires generative thinking
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Adaptive vs Technical Problems Technical Problems Adaptive Problems
Fiduciary Governance
Strategic Governance/
Planning
Generative Governance
“If you want to change the culture, change the dialogue.”
Annette Eros
Discussion Dialogue
Different views are presented and defended
Different views are presented as a means of discovering a new view
Decisions are made Complex issues are explored
Goal is convergence on a course of action
Goal is divergence, not seeking agreement, but a richer understanding of complex issues
Action is the focus of discussion
Possible new actions emerge as a by-product of dialogue
The Practitioner’s Guide to Governance as Leadership
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The Devil's Inquisitor In what ways could we be wrong? In what ways are we uncertain? What did we miss? What is different than in the past? What is the same? What information do we have that supports an
alternative solution? How would our constituents frame this issue? How will we know if we are wrong? What are you concerned about? How much risk are we comfortable with? What is the most important question we should be
asking?
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Generative Questions • 1. What question, if answered, could make the most difference to the future of (your specific situation)?
• 2. What’s our intention here? What’s the deeper purpose that is really worthy of our best efforts?
• 5. What opportunities can you see in this ?
• 6. What do we know so far? What do we still need to learn about it?
• 7. What are the dilemmas/opportunities in it?
• 8. What assumptions do we need to test or challenge here in thinking about it?
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Exercise: Technical vs Adaptive Problems • Identify two issues currently facing your
organization.
• Are they technical problems, adaptive problems or a combination of both?
• What are the most important questions you should be asking about each issue?
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Identifying Strategic Issues
• What makes it a strategic issue? – Directly impacts our ability to achieve the
Mission
– Is customer or stakeholder driven
– Affects entire organization
– Has high consequence if not addressed; likely to get bigger, more urgent
– Requires change to effectively address
– Creates an opportunity for improvement that will have a long-term impact
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The Strategy Map
• Dr. Kaplan & Dr. Norton, HBS
• The Balanced Scorecard
• A performance management system balances:
Financial and non-financial
Leading and lagging
Planning Execution
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Linking Strategic Objectives
Cause and effect linkages vs opposing objectives How do we want to serve our clients?
In order to meet the needs of our clients/customers,
what do we need to do well?
In order to meet our customers’ needs and perform
well, how do we need to look financially?
In order to achieve our Mission and objectives, how
must we invest in our employees, Board and
volunteers?
MISSION
Customer /Client objectives
Customer /Client objectives
Process objectives
Process objectives
Process objectives
Financial objectives
Financial objectives
Volunteer
objectives
Maintain
effective,
skilled staff
Maintain
Relationships
with Funders
Business
Processes
People
Provide accurate,
up-to-date, actionable
information
Provide
scholarships
for survivors
Deliver information
in person, one-on-
one
Develop & execute an
effective Fundraising Plan
Financial
Utilize the web to
inform and create
community
To support and empower young women by increasing
their awareness and knowledge of breast cancer
Create a community of
support for those affected
by breast cancer Clients
Mission
Maintain an
engaged
Board
Cultivate and
utilize
volunteers
Protect &
expand the
B4BC brand
Use donations
efficiently
Boarding 4 Breast Cancer
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Exercise: Identifying Key Strategic Issues
List a few strategic issues facing your organization in each of the four perspectives:
Constituents
Processes
Financial
Board/Staff/Volunteers
How do the issues relate to each other?
Start to build your strategy map
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• Governance as Leadership
• By Chait, Ryan and Taylor
• The Practitioner’s Guide to Governance as Leadership
• By Cathy Trower