1. The Governance Futures Project William P. Ryan AJFCA/IAJVS Annual Conference New York City April 15, 2007

2. G o v e r n a n c e as L e a d e r s h i p What’s the Problem? Prevalent DiagnosisProblem of performance, ignorance. ResponseCodify board’s role, clarify tasks. ObjectiveDo the work better. Reframed DiagnosisProblem of purpose, micro-governing. ResponseEnrich the job, engage the board. ObjectiveDo better work.

3. G o v e r n a n c e as L e a d e r s h i p Key Propositions of Governance as Leadership Boards need three mental maps to understand three different aspects of organizations. Boards need three governing modes that reflect those maps. Each mode serves important purposes, and all three sum to Governance as Leadership. A board’s governing effectiveness increases as it: –Becomes more proficient in more modes; –Does more work in third mode; –Chooses appropriate mode(s) of work.

4. G o v e r n a n c e as L e a d e r s h i p Triple Helix Issue: An Example Should Boston Museum of Fine Arts lend 21 Monet paintings to Bellagio Casino in Las Vegas? ?

5. G o v e r n a n c e as L e a d e r s h i p Triple Helix Issue: An Example Should Boston Museum of Fine Arts lend 21 Monet paintings to Bellagio Casino in Las Vegas? Fiduciary: Travel-worthy? Insurance? Security? Donor restrictions? Financial arrangements? Timeline? Curatorial control? Strategic: Effect on MFA attendance, image, audiences? Prototype deal? Competitive responses? Patron tie-ins? Vegas in Boston? Generative: Mission related? What will MFA do for the right price? Public art/private dealer? Venue consistent with values? MFA conservative or iconoclastic?

6. G o v e r n a n c e as L e a d e r s h i p Type I Fiduciary – Productive Type II Strategic – Logical Type III Generative – Expressive Governance as Leadership Three Organizations in One

7. G o v e r n a n c e as L e a d e r s h i p Type I: Fiduciary Mode Board’s central purpose: Stewardship of tangible assets Board’s principal role: Sentinel Board governs: The Productive Organization Board’s core work: Oversee operations Ensure efficient & appropriate use of resources Ensure legal compliance & fiscal accountability

8. G o v e r n a n c e as L e a d e r s h i p Type II: Strategic Mode Board’s central purpose : Ensure winning strategy Board’s principal role: Strategic partner to senior management Board governs: The Logical Organization Board’s core work: Scan internal and external environments Set priorities Review and modify strategic plan Monitor performance against plan

9. G o v e r n a n c e as L e a d e r s h i p Generative Thinking Definition:A cognitive process for deciding what to pay attention to, what it means, and what to do about it. Familiar version: Paradigm shifts Less familiar: Organizational process Implication: Made explicit, generative thinking is governance

10. G o v e r n a n c e as L e a d e r s h i p The opportunity to influence generative work declines as issues are framed and converted into plans, strategies, and problems. Opportunity for Generative Work Time Plans, Tactics, Execution The Generative Curve Locating Generative Thinking Problem-framing Sense-making Strategy

11. G o v e r n a n c e as L e a d e r s h i p The Generative Dilemma Trustee involvement is lowest where generative opportunity is greatest; trustee involvement increases as generative opportunity declines. Amount Time Typical Board Involvement Curve Generative Curve

12. G o v e r n a n c e as L e a d e r s h i p Familiar Processes Policy making Strategic planning Problem solving Implementation Management Service delivery Evaluation Generative Thinking ? Inventing Generative Governance Familiar Practices “SWOT” Needs assessments Cost-benefit analysis Trial & Error Generative Thinking Sensemaking Cues & Clues Frames New Practices Work at boundary Think retrospectively Deliberate differently

13. G o v e r n a n c e as L e a d e r s h i p High Low Staff Engagement Trustee Engagement Governance by FiatShared Governance Governance by DefaultExecutive Governance Generative Thinking: Four Profiles

14. G o v e r n a n c e as L e a d e r s h i p Empowers the board. Engages the collective mind. Exploits board’s assets. Enriches board’s work. Enhances board’s performance. Governance as Leadership The Payoff

15. G o v e r n a n c e as L e a d e r s h i p Learning More… Governance as Leadership: Reframing the Work of Nonprofit Boards by Richard P. Chait, William P. Ryan, Barbara E. Taylor John Wiley & Sons, 2005 available at: www.boardsource.orgwww.boardsource.org william-ryan@comcast.net

16. G o v e r n a n c e as L e a d e r s h i p Practice Challenges Entry points for practice: Routine board meeting Reflection and retreats Relationship dynamics and conflicts

17. G o v e r n a n c e as L e a d e r s h i p Routine Board Meetings Look for generative landmarks: Ambiguity. Multiple interpretations of what’s going on or what requires attention. Salience. Issue means a great deal to a great many. Stakes. Issue touches on core values or organizational identity. Strife. Prospects for confusion or conflict are great.

18. G o v e r n a n c e as L e a d e r s h i p Routine Board Meetings Mind the mode: Facilitate to avoid ‘cross-governing’ Deliberate ‘a la mode’ Promote robust discourse in all modes

19. G o v e r n a n c e as L e a d e r s h i p Routine Board Meetings Carve out generative space: Consent agenda Silent starts One-minute essays Mini-executive sessions Plenary as committee-driver

20. G o v e r n a n c e as L e a d e r s h i p Practice Challenges Entry points for practice: Routine board meeting Reflection and retreats Relationship dynamics and conflicts

21. G o v e r n a n c e as L e a d e r s h i p Reflection and Retreats  Catalytic questions  Retrospective thinking  Boundary work  ‘Sensible foolishness’ High-curve practices

22. G o v e r n a n c e as L e a d e r s h i p Reflection and Retreats Catalytic questions: What keeps us awake at night? What nagging or intriguing thought have we had but not expressed? On what list do we want to rank #1? What would we do differently as a for-profit? How would we respond to a $10M challenge for best idea to be greater public asset?

23. G o v e r n a n c e as L e a d e r s h i p Reflection and Retreats Retrospective thinking – dominant narratives: What’s our ‘dominant narrative’ and is it working? Retrospective thinking – strategy: What’s the pattern? What best explains recent successes/setbacks? What do we know now that we didn’t at last plan? Where do we meet resistance and why?

24. G o v e r n a n c e as L e a d e r s h i p Reflection and Retreats Board-to-board boundary: What do you make of for- profit competition? How are you handling changes in funding? How do you respond to consumerism? What have you learned about leadership transition, capital campaigns, strategic planning, governance? Board-to-staff boundary: Why do you work here? What’s your biggest challenge? What’s most rewarding about your work? What’s the organizational culture? What are some powerful stories? What one thing would you change if you could?

25. G o v e r n a n c e as L e a d e r s h i p Practice Challenges Entry points for practice: Routine board meeting Reflection and retreats Relationship dynamics and conflicts

26. G o v e r n a n c e as L e a d e r s h i p CEO Safety Zone Relationships: Dynamics and Conflicts CEO Danger Zone Dangers in the ‘safety zone’ CEO is often: Vested, slightly defensive Handling (vs. engaging) board Board members often: Feel uncertain of their value Disengage Second-guess, play ‘gotcha’ Meddle or micro-manage Dialogue is often: Technical or analytic Aimed at finding one right answer

27. G o v e r n a n c e as L e a d e r s h i p CEO Safety Zone Relationships: Dynamics and Conflicts CEO Danger Zone Opportunities in the ‘danger zone’ CEO is: Open, in a learning stance Willing to engage (vs. handle) the board Board members: See their chance to add value Get deeply engaged in meaningful, consequential work Dialogue is: Values- (vs expertise-) driven Aimed at making judgments

28. G o v e r n a n c e as L e a d e r s h i p Relationships: Dynamics and Conflicts To help board get to higher ground: Recruit to govern, not manage Promote collegiality over congeniality Detoxify ‘religion and politics’ Use shared learning for shared meaning Cultivate norm of mutual accountability Shared governance

29. G o v e r n a n c e as L e a d e r s h i p Relationships: Dynamics and Conflicts The personal leadership challenge for CEOs: Take risks Resist need to be omniscient Manage ‘dreaded’ and ‘desired’ images Shared governance