It seems as though each week ( maybe its even once a day…) I get the question, Terry, our Board wants to be a policy board but, what is that really and what kind of board could we/should we be?
Most Boards in my 19 years of experience have issues from time to time about what kind of Board they are. There is absolutely no ‘one size’ fits all! For now, lets look at a couple of policy governance models and discuss other types such as operational of fundraising aside, we will get back to those and the many other models in the next few weeks.
The following are two general descriptions of policy boards however most well governed policy boards use a hybrid very specific to their needs.
Results-based (primary focus: governance) – This type of board is focused on setting a clear direction for the organization and getting the best results for the money invested. The CEO is a non-voting member of the board, carries substantial influence over policy-making and direction, is viewed as a full partner with the board and has a relatively free hand at managing to achieve objectives established by the board. Committees are used for monitoring/auditing the performance of the board, CEO and organization. Board members are selected for community representativeness and commitment to the organization’s purpose, and may be used for selected tasks in their area of expertise. or
Policy governance (primary focus: governance) – The board governs through policies that establish organizational aims (“ends”); governance approaches or processes; management limitations; and that define the board/CEO relationship. The CEO has broad freedom to determine the “means” that will be implemented to achieve organizational aims. The CEO reports to the full board. The board does not use committees but may use task teams to assist it in specific aspects of its work.
