1. Annette Marquis Holston Valley UU Church February 26-27, 2010

2. To determine criteria of good governance so boards can evaluate themselves on their effectiveness in serving the congregation and its mission. To review advantages and disadvantages of various model of governance from the Carver Model of Policy Governance to other models of hierarchical and collaborative governance. To discover ways to work effectively with professional staff, boards, committees, teams, and members for the good of the congregation. To explore ways of organizing to assure everyone is working to fulfill the congregation's mission. To explore the key roles and responsibilities of congregation boards.

3. By Dan Hotchkiss Governance and Ministry Rethinking Board Leadership

4. Governance as Leadership: Reframing the Work of Nonprofit Boards Richard P. Chait, William P. Ryan, Barbara E. Taylor

5. There is no right way to organize a congregation. Some mistakes have been made often enough that it is only fair to warn against them. We can know good governance when we see it. Dan Hotchkiss, Governance and Ministry

6. A unified structure for making governance decisions: Articulating mission and vision Evaluating programs Ensuring responsible stewardship of resources A unified structure of making operational decisions Program leaders (paid and unpaid) work harmoniously to create effective programs with the support of a structure that delegates authority and requires accountability. A creative, open atmosphere for ministry Members take advantage of the many opportunities to share their talents and interests in an atmosphere of trust and creativity in which structure, goals, and purposes are clear. Dan Hotchkiss, Governance and Ministry

7. TJD Annual Meeting – April 30 – May 2, 2010 Standing on the Side of Love Penn Center, St. Helenas Island, SC Weekly webinars Right relationships and conflict – Dr. Helen Bishop Governance and leadership – Annette Marquis Faith development – the Rev. Sue Sinnamon What Works? – the Rev. Jake Morrill Southland UU Leadership Experience August 8-13, 2010 - The Mountain Anti-Racism Conference – October 8-10, 2010

8. A congregation easily becomes an end in its own mind – recruiting people to an empty discipleship of committee service, finance, and building maintenance. Institutional management is a necessary but ultimately secondary function of a congregation. If souls are not transformed and the world is not healed, the congregation fails no matter what the treasurer reports. Dan Hotchkiss, Governance and Ministry

9. The end

10. The Working Board ModelCommittee-Centered ModelStaff-Centered ModelGovernance and Ministry Dan Hotchkiss, Alban Institute

11. This is a functional system up to about 150 at worship. The Board is comprised of Officers and at-large members Chairs or representatives of committees

12. Board Officers and at- large Chair Clergy

13. Advantages Improves communication, everyone knows whats happening in the congregation People bring a lot of experience Can make overall decisions by involving major areas of the congregation Disadvantages It is prone to micro-management A lot to ask of individuals to chair a committee and be on the board – inherent conflicts of interest Different skills needed Boring meetings Not elected by the congregation

14. Clergy Board

15. Committees handle operations of the congregation in their area of specialty/interest Finance Facilities RE Membership Staff report to committees, at least functionally

16. Advantages People volunteer in area of specialty, Finance, Personnel, RE, etc Committees are free to operate as they choose – little oversight Lots of people involved in every decision so people feel included Disadvantages Not bond through a common vision Some committees become more powerful then others Tends to create triangles New ideas have to be run through multiple committees Maintains the status quo, can get a "no" at any step, no one can say "yes" Gives an illusion of accountability but authority generally resides with the committee Staff report to and are supervised by committees (Committees are very bad at being bosses)

17. Clergy Finance Building Board

18. Clergy Finance Building Board Staff Add a staff member

19. Clergy Finance Building Board Staff Add more staff Personnel Staff

20. Strong ministry-led congregations Ministers "cast the vision" Congregation does not have meetings of any significance The pastor can say yes or no Teams are picked who are in favor of the task NOTE: Uncommon in UU Congregations

21. Board Staff Clergy Staff

22. Advantages This model begins with the goal of saying "yes" Infinitely scalable-model of ministry teams Committees have nothing to do but ministry - teams rather than committees Disadvantages Congregation has little say in what happens When people are unhappy, they leave When the minister leaves, people leave

23. Elected Committees and Committee Chairs Staff Reporting to Committees Multiple governing boards Operations Board Programs Board

24. A unified structure for making governance decisions: Articulating mission and vision Evaluating programs Ensuring responsible stewardship of resources A unified structure of making operational decisions Program leaders (paid and unpaid) work harmoniously to create effective programs with the support of a structure that delegates authority and requires accountability. A creative, open atmosphere for ministry Members take advantage of the many opportunities to share their talents and interests in an atmosphere of trust and creativity in which structure, goals, and purposes are clear. Dan Hotchkiss, Governance and Ministry

25. Minister and Board share the vision Committees are used only in its original sense - to help a body to do its job - helps the board to do the boards work Program teams, ministry teams rather than committees Minister and board have unique responsibilities and joint responsibilities Staff Team (as Ministers) Practical work Board (as governors) Fiduciary Work Shared Functions (As discerners) Planning work Generative work

26. Board Staff Committees Teams GovernanceMinistry Accountability Policies

27. Board Staff GovernanceMinistry OversightManagement Discernment Strategy As governors As discerners As ministers Roles of Board and Staff Lay Leader Ministry Leader

28. Obey the law Obey your constituted documents, by-laws Make sure that anything a board member votes for is legal under the by-laws Obedience Be diligent Attend meetings Read board packets Care Be an advocate for the congregation Dont do anything to harm the congregation Loyalty

29. Governance Philosophy of governance Board covenant Board self- government Board agenda Board committees Conflicts of interest Discipline and removal of board members Discernment Mission Statement Who are we? What difference do we make, and for whom? Core Values What principles do we intend to observe, no matter what Open Questions What are the unanswered questions about our mission that we will reflect upon in the coming year? Strategy What major choices have we made about how we will fulfill our mission? Program development plan Membership development plan Capital Plan Staffing Plan Vision of Ministry In what new and different ways will we transform lives in the next 3-5 years? Program development goals Membership development goals Capital budget Operating budget Management Delegation to staff Global Delegation Staff Structure Delegation to Others Care for people Health & safety Nondiscrimination Universal access Congregational covenant Care for staff Compensation & benefits Creating and filling staff positions Discipline and discharge of staff Whistle-blower protection Grievances Personnel manual Care for resources Financial controls Insurance Capital reserves and endowments Document retention Powers reserved to the board Oversight Monitoring Financial reports Staff reports Board inquires Financial Audit Evaluation Program evaluation Board and head of staff evaluation Staff evaluation Clergy leader performance review

30. Advantages Congregation views leadership as working together as a team Moves away from having bodies who do both policy-making and do the work Vision is shared by board and minister Clarity of roles of ministry teams Disadvantages Requires trust between the board, the minister, and the ministry leaders Members are less involved in decision-making Dan Hotchkiss, Alban Institute

31. Basis for the governance system is policies Board has limited role. Their purpose is to answer three questions: Whom do we serve? For what reason? At what cost? Board handles their own governance Sets executive limitations - a fence around the paid staff. Staff is free to act as long as they operate within those limits Board speaks with one voice

32. CEO - Chief Executive Officer Does not truly exist in organizations with congregational polity. The CEO in our congregations is more of a general manager. Congregations have the final word. COO - Chief Operating Officer The individual who guides the day-to-day operations, usually with an administrative emphasis. Highly functioning church administrator. CSO - Chief Staff Officer (General Manager) Charged with responsibility for general oversight of the staff system. In reality, most of our senior ministers have supervisory management responsibilities but must involve the board in senior level hiring and firing. A congregation and its lay leaders grant authority to staff in order for it to morally hold staff accountable for its actions.

33. CongregationBoard of Trustees Minister or Executive Team Program Ministry with children and youth WorshipPastoral CareDevelopmentFundraisingInvestmentsGrant-writingOperationsFinanceHuman ResourcesFacilities

34. Ends An end statement is a big mixing bowl - an outcome to be achieved, for whom, and for what cost? A congregation might have 7 or so end statements. Executive limitations sit in smaller bowls inside the end statement in order to restrict actions in completing the end statement. For example, can't misspend money to achieve the end. If it's not spelled out as a limitation, anything can be done once. Based on past history, board might create a limitation based on failure.

35. Our members and friends will enjoy a deeply, meaningful, transforming liberal religious experience through inspirational worship, education and individual spiritual practice. Outcome: "will enjoy a deeply, meaningful, transforming liberal religious experience" For Whom: "Our members and friends" At what cost: "inspirational worship, education and individual spiritual practice"

36. Advantages Board is free to focus on vision questions Volunteers are engaged in meaningful ministry Staff and the minister are evaluated on pre- established goals Disadvantages Minister is focused on running the church, not much time left for ministry Gives significant control to the minister

37. Richard Chait and his colleagues argue that we should shift emphasize modes over models in seeking to govern well. Richard Chait, William Ryan and Barbara Taylor, Governance As Leadership: Reframing the Work of Nonprofit Boards (Hoboken: John Wiley & Sons, 2005)

38. Type 1: Fiduciary Type 2: Strategic Type 3: Generative

39. Prevent theft, waste or misuse of resources. Ensure that resources are deployed effectively. Promote lawful and ethical behavior. The board speaks with one voice. Safeguard the mission against unintentional drift and unauthorized shifts in purpose.

40. Can we afford it? Is the budget balanced? Is it legal? How much money do we need to raise? Should we move resources from one program to another? Is staff turnover reasonable? Are we treating staff fairly and respectfully? Type 1 Questions

41. Oversees strategic planning process and articulates what matters most for the future. Aims to construct a consensus about what the congregations strategy should be. Crafts forms and structures to mirror the congregations priorities and values. Builds authority, responsibility and accountability into the system.

42. Whats the plan? What other congregations are doing this and what can we learn from them? What can we do to improve the congregations image in the community? How can more people know we are here? How can we address the growing number of children in our congregation? Type II Questions

43. Defines what knowledge, information and data mean. Thinks retrospectively and constructs the congregations dominant narrative. Chooses and uses new frames of reference. Engages others within (and beyond) the congregation in generative thinking.

44. How do we meet peoples spiritual needs? How do we make this a great place to work? How to we assure our children incorporate liberal religious values into their lives? How do we live our values in our community? Why did our minister leave? Type III Questions

45. Type 1: Board as Control Mechanism dam : river curbstone : roadway air traffic controller : pilot landlord : tenant Type II: Board as Direction Setter compass : navigation headlights : automobile rudder : boat guidance system : satellite Type III: Board as Meaning-Maker inspiration : poet conscience : ethical person spirit : higher purpose

46. Type 1: Board as Control Mechanism dam : river curbstone : roadway air traffic controller : pilot landlord : tenant Type II: Board as Direction Setter compass : navigation headlights : automobile rudder : boat guidance system : satellite Type III: Board as Meaning-Maker inspiration : poet conscience : ethical person spirit : higher purpose

47. 1. Your facility is crowded on Sunday mornings and there is parking and limited space for religious education. 2. A Board member was arrested for public exposure in a children-focused restaurant. 3. Your canvass campaign was 10% over projections. 4. Two African American men were arrested in your community for protecting an African American woman from being beaten by a white man 5. You were left an undesignated bequest of $20,000. 6. It was just discovered that your treasurer has not made any deposits from the Sunday collection in 6 months. 7. Three youth were caught drinking in the building. 8. Your minister announced his/her resignation. 9. A member sent out an email to selective members of the congregation - the email used derogatory language to blast the president and the board.

48. What are the board questions? Fiduciary Strategic Generative

49. Board researches models Invites wider conversation with committees Reflection Stage A tentative decision about what we are going to try. Decision (1) Try the new model. "permission to play" rather than suspending the by-laws. Appoint a special committee called the Policy Board-delegate all authority to them. Trial After the trial, make the changes necessary to implement the new model Decision (2)

50. It's easier to start a new thing than to replace something in existence. It's easier to create new norms of behavior for new people than it is to change norms of behavior for old people. If you tell people what's being discussed, who is discussing it, when a decision will be made, people will tolerate a lot of top-down decisions.

51. Special thanks to Dan Hotchkiss and Richard Chait for their valuable work in the area of governance and to the participants of the Art of Governance workshop for their commitment to improving the quality of governance in their congregations in order fulfill our grand Unitarian Universalist vision of world community with peace, liberty and justice for all.