1. Governance as a Spiritual Practice North Texas Association of Unitarian Universalist Societies June 1, 2013

2. Definition of Governance A shared ministry of the board and staff with processes and structures implemented by the board to enable the achievement of the congregation’s vision Jim Key Seeing to it that the organization achieves what it should and avoids unacceptable situations Carver June 2013Jim Key2

3. Benefits of Good Governance Provides continuity through hard times Maintains a framework to ensure all members will be represented Offers stimulation for member participation Creates methods for urgent action that can foster responsiveness Builds methods of review to avoid unproductive reactivity among members June 2013Jim Key3

4. Benefits of Good Governance Allows leadership to be transferred with continuity Fosters community Integrates new members into the community Provides transparency in decision making Protects leaders Produces gains in democracy June 2013Jim Key4

5. As a Spiritual Practice What are the spiritual dimensions you see in governance? June 2013Jim Key5

6. Board Effectiveness “Effective governance by a board…is a relatively rare and unnatural act…(and) are often little more than high-powered, well-intentioned people engaged in low level activities.” Chait, Holland, and Taylor, 1996) “Boards tend to be…incompetent groups of competent individuals. ” John and Miriam Carver, 2001 June 2013Jim Key6

7. Six Primary Functions of the Board Visioning Policy making Stewardship Sponsorship Advocacy Consultancy June 2013Jim Key7

8. Visioning and policy-making Should be at the forefront of the board’s work, in collaboration with the congregation’s professional staff. June 2013Jim Key8

9. As stewards … Board holds the congregation’s assets in trust, including moral and other intangible assets. June 2013Jim Key9

10. As sponsors … Board should collectively be among the most generous supporters of the congregation with both time and money June 2013Jim Key10

11. As advocates … Board represents interests of the congregation as an institution both to its own members and, even more importantly, to the wider community. June 2013Jim Key11

12. As consultants … Board members are available to the staff – at the staff’s invitation – to provide counsel and encouragement from their particular areas of expertise June 2013Jim Key12

13. Some Best Practices Leadership development replacing nominating committees Annual board retreat to update long- range plan Continuing education Fund leadership development June 2013Jim Key13

14. Governance as Leadership Type 1: Fiduciary Type 2: Strategic Type 3: Generative June 2013Jim Key14

15. Models vs. Modes Richard Chait and his colleagues argue that we should shift emphasize to 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) June 2013Jim Key15

16. Type I: Fiduciary Governance Safeguards the mission against unintentional drift and unauthorized shifts in purpose Speaks with one voice. Promotes lawful and ethical behavior. Ensures that resources are deployed effectively. Prevents theft, waste or misuse of resources. June 2013Jim Key16

17. Type I: Fiduciary Governance Type 1 Questions Can we afford it? Is the budget balanced? Is it legal? Should we move resources from one program to another? Is insurance coverage adequate? Are we treating staff equitably and respectfully? Do we have professional audits periodically? June 2013Jim Key17

18. Type II: Strategic Governance Builds authority, responsibility and accountability into the system. Crafts forms and structures to mirror the congregations priorities and values. Aims to construct a consensus about what the congregation’s strategy should be. Oversees strategic planning process and articulates what matters most for the future. June 2013Jim Key18

19. Type II: Strategic Governance Type II Questions What’s the plan? What other congregations are doing this and what can we learn from them? What can we do to improve the congregation’s image in the community? How can more people know we are here? How can we address the growing number of children in our congregation? June 2013Jim Key19

20. Type III: Generative Governance Engages others within (and beyond) the congregation in generative thinking. Chooses and uses new frames of reference. Reflects on the big issues facing the congregation. Thinks retrospectively and constructs the congregation’s “dominant narrative.” Defines what knowledge, information and data mean. June 2013Jim Key20

21. Type III: Generative Governance Type III Questions How do we meet people’s spiritual needs? How do we gain cultural competencies? 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? June 2013Jim Key21

22. Going from Good to Transformational A functional board is a Level 1: Fiduciary A good board moves to Level 2: Strategic A great board becomes a Level 3: Generative June 2013Jim Key22

23. Considerations Fiduciary Role of Boards

24. Fiduciary Considerations Advocate for stewardship and development Obtain professional audits  Annually for most congregations  Change in Treasurer Set term limits of Treasurer Separate duties of receiving, disbursing, reconciling, recording June 2013Jim Key24

25. Fiduciary Considerations Review financials monthly  Balance sheet, income and expense, budget YTD and outlook, reconciliations Disclose periodically  Report to the congregation at least quarterly  Make available on members' section of website monthly June 2013Jim Key25

26. Fiduciary Considerations Establish covenants (board, staff, congregation, meeting) Educate congregation on giving, estate planning Provide board training on financial competence Understand resources available in District and at the Association June 2013Jim Key26

27. Fiduciary Considerations Manage child-safety policies Establish property use and rental policies Establish charges to committees Establish policies for small-group ministries June 2013Jim Key27

28. Considerations Strategic Role of Boards

29. Benefits of Strategic Thinking Precipitates theological thinking Stimulates creative thinking Creates opportunities for conversations within the congregation and the community Aligns leadership and the congregation with future plans Positions the congregation for growth and change June 2013Jim Key29

30. Benefits of Strategic Planning Creates congregational connections Assigns ownership of activities Establishes blueprint for change Sets milestones to measure and report Drives understanding of external factors June 2013Jim Key30

31. Strategic Considerations Confirm sources of authority and accountability Assess sources needs Reaffirm values Assess the mission Create a vision Perform a gap analysis June 2013Jim Key31

32. Strategic Considerations Determine strategic goals vs. near-term objectives Identify risks/threats/inhibitors Establish milestones and metrics Name owners Develop a monitoring and communications plan Acknowledge capacity of congregation June 2013Jim Key32

33. Sources of Authority and Accountability Members Current and future generations of Unitarian Universalists The heritage, traditions, and ideals of Unitarian Universalism The vision of Beloved Community The Spirit of life, love, and the holy June 2013Jim Key33

34. Considerations Generative Role of Boards

35. What is Generative Thinking? A cognitive process for deciding what to pay attention to, what it means, and what to do about it. June 2013Jim Key35

36. UUA Shared Vision (draft) A healthy community of Unitarian Universalists, alive with transforming power, moving our communities and the world towards more love, justice, and peace, in a manner which assures sustainability. June 2013Jim Key36

37. Generative Thinking Train boards in generative thinking Practice it  Board retreats  Meeting agenda item June 2013Jim Key37

38. Implications for the Board Scale governance model to the size of the congregation Consider annual board retreat Acquire governance training periodically Consider voices not at the table Acquire cultural competency June 2013Jim Key38

39. Implications for the Board Acknowledge ownership of the governance process by the board Acknowledge the power and authority granted to board via representative democracy Require a rigorous process observation report for each meeting June 2013Jim Key39

40. Closing Reading Take courage, friends. The way is often hard, the path is never clear, and the stakes are very high. Take courage, for deep down there is another truth: You are not alone. Wayne B. Arnason June 2013Jim Key40

41. Jim Key jckey@hargray.com 843.812.6647 Governance as a Spiritual Practice