Board Governance Stream: How It Works Speakers: Hon. Reg Alcock
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Transcript of Board Governance Stream: How It Works Speakers: Hon. Reg Alcock
Board Governance Stream:
How It WorksSpeakers:
Hon. Reg AlcockExecutive in Residence, I.H. Asper School ofBusiness
Sheryl FellerBoard Chair, Red River College; Fellow CertifiedManagement Consultant, Bluebear Enterprises
Session Overview
Key issues in board governance
A brief history of government and change
Session Overview
The board landscape in Manitoba“One size does not fit all” - why imposing post-Enron private sector processes and practices on public and not for profit boards may not work so well
Session Overview continued Recognizing how governance needs to change with the growth and maturation of the organization What this means for optimizing your board’s effectiveness including practices such as recruitment and retention
Quality The Rs Continuous ChngScientific Mgmt.
Knowledge-based Economy
First Commercial use of a Computer
1951
CBC TV On Air - 1952 1957 85% coverage
Internet 1969
IBM PC1980
WWW 1994
Digital TV Sats500 stations
Cable News, Drudge
Blogs, WikisYoutube,
Broadband
Three DeathsTime
DistanceDeference
Organizational Responses to Three Deaths Time:Speed, agility, responsiveness, Corporate reorganization,
Focus on Core LOB, Process re-engineering, Lean,6 sigma,
Distance:Globalization on Steroids, new competition, outsourcing,
supply-chain, J.I.T. new partnerships, new forms of governance,
Deference:Transparency, need to constantly prove value, PSAB,
IFRS - new forms of control/oversight, SOXs, Enhanced Role of Audit
Agencies, Boards & Commissions in
Manitoba
Crown Bus’n Ent’p
5
11,742
Crown Orgs
153
95,372
Gov’tLegisl’dRegul’d
60+
???
Gov’tFunded
?
???
Gov’tDep’ts
*
23
17,010*
Traditional View of
Government
PSAB Definition of Government (GRE)
Gov’tDep’ts
19
17,010
Crown Bus’n Ent’p
5
11,742
Crown Orgs
153
95,372
Gov’tLegisl’dRegul’d
60+
???
Gov’tFunded
?
???
Boards Boards Boards BoardsD.M.’s
InfluenceDirect
Control
AccountabilityIndirect Control
Where does your organization fit into the Manitoba landscape?
Looking beyond the simplicity of the private sector is essential
Consider the public sector and its unique characteristics
It’s Government not the Private Sector
We are not merely “customers” of government.
We are also - clients (who have complex needs)
- subjects (who have obligations)
- citizens (who have rights)
Henry Mintzberg: Professor of Management:McGill, in the Harvard Business Review.
Why do Governments Create Boards? Focus – Narrower scope – better qualitySpecialization versus equity – community empowermentValidation – community supportLeadershipOptimizing Org. Mission (replace markets) InnovationAssuming RiskStrategic Communication
In determining a governance model, consider ….
Organizational Size Matters
Complexity
Large
Micro
Medium
Small
GovernanceBoards
ManagementBoards
RegulatoryAdjudicative
Sector Matters
Private for Profit Not for Profit
Publicly Traded
Privately Held
Small
Personal
Medium
Large
Medium
Small
Micro
BusinessEnterpris
e
ServiceDelivery
PublicTrusts
Regulatory
Adjudicative Advisory
M ServiceDelivery
Public Sector
Function Matters
The Need To Evolve Think about where your organization is now - with
respect to complexity, function, depth and skills of staff.
Have you evolved?
Consider some local examples of evolution or the need to evolve – municipal councils, credit unions, WECM
The Challenge for Directors Complex Organizational StructuresWeak or non-existent market signalsMultiple Accountability RelationshipsMinister/LegislatureDepartmentCitizensProfession
Limited Time70 – 120 Hours per year
A Hierarchy of Board Activities
Oversight
Leadership
Hygiene Factors
A Model/StandardNot a GovernanceSystem
Allocating Board Time
Oversight
Leadership
Hygiene Factors
BoardGovernance
Activities
Time Allocated To Hygiene
Factors
Time AllocatedTo Leadership
Activities
Time AllocatedTo Oversight
Activities
AllocationOf
BoardTime
Leadership from the Board Holder of the Mission Planning ?? Years out Developing the Strategic Plan (with PS characteristics)
“Optimizing the mandate”Horizontally / Vertically
The Board is about: Culture, Ethics & PeopleThe Board owns Strategic CommunicationThe Board assumes Risk for the StaffThe Board helps the Minister be a champion of the organizationThe Board has a “mission”
What is your board’s mission? Imagine that your board disappeared for a year or two? Would anybody notice? Who?What would be lost?What do your answers tell you about your board’s key contributions, primary purpose?
Essentials of Effectiveness
Build the Board Mission Creating a Culture of Governance Changing tires on a moving car
Once mission is clear, consider impact of this on recruitment – do you need certain skill sets? Do you need critical connections?
Emerging recruitment practices: advertising and application processes
Strategies for involving the next generations
Essentials of Effectiveness
Moving to a new modelNew GovernanceNew LegislationNew Relationship with Government
Retention issues: We need creative ways to address them – typical challenges here include: Pluses and minuses of term limits - Do you have them?
Too short? Too long?– Compensation – Alternatives to money– Time – Provide supports to the board
Essentials of Effectiveness
Communication is criticalStrategicInternalBranding
To do’s:
• Be clear about what kind of board you are – a board is not a board is not a board
• Identify what actions you will take to strengthen your board’s leadership role and overall effectiveness
.
.
Suggested Ways to Take the Plunge…