1. POLICY DEVELOPMENT GETTING TO VALUE-BASED POLICIES Presented by Sue Radwan, CAE, SMP, ARM Partners in Policy Governance® Grand Ledge, Michigan

2. Learning Objectives ■Participants will pull apart the content of values vs opinions ■Participants will play with policy content focused on values ■Participants who adopted their initial policies using a template of policies will consider right-sizing policies through values consideration

3. REVIEW OF POLICY GOVERNANCE LITERATURE RELEVANT TO POLICY DEVELOPMENT

4. What do the Policy Governance Principles say about Policy Development? 4. Ends Policies: The board defines in writing its expectations about the intended effects to be produced, the intended recipients of those effects, and the intended worth (cost-benefit or priority) of the effects. These are Ends policies. All decisions made about effects, recipients, and worth are Ends decisions. All decisions about issues that do not fit the definition of Ends are means decisions. Hence in Policy Governance, means are simply not Ends. 5. Board Means Policies: The board defines in writing the job results, practices, delegation style, and discipline that make up its own job. These are board means decisions, categorized as Governance Process policies and Board- Management Delegation policies. 6. Executive Limitations Policies: The board defines in writing its expectations about the means of the operational organization. However, rather than prescribing board-chosen means -- which would enable the CEO to escape accountability for attaining Ends, these policies define limits on operational means, thereby placing boundaries on the authority granted to the CEO. In effect, the board describes those means that would be unacceptable even if they were to work. These are Executive Limitations policies. 7. Policy Sizes: The board decides its policies in each category first at the broadest, most inclusive level. It further defines each policy in descending levels of detail until reaching the level of detail at which it is willing to accept any reasonable interpretation by the applicable delegatee of its words thus far. Ends, Executive Limitations, Governance Process, and Board-Management Delegation polices are exhaustive in that they establish control over the entire organization, both board and staff. They replace, at the board level, more traditional documents such as mission statements, strategic plans and budgets.

5. From the Governance Process Policies Board Job Description From the Governance Process Policies: Board Job Description “Specific job outputs of the board, as an informed agent of the ownership, are those that ensure appropriate organizational performance. Accordingly, the board has direct responsibility to create: 1.The link between the ownership and the operational organization. 2.Written governing policies which address the broadest levels of all organizational decisions and situations….” From the Governance Process Policies: Agenda Planning “To accomplish its job products with a governance style consistent with board policies, the board will follow an annual agenda cycle which (a) drives exploration of Ends concerns, (b) continually improves board performance through board education and enriched input and deliberation, and (c) re-examines for relevance the underlying values that support existing policy.”

6. GETTING TO VALUES-BASED POLICIES

7. What Drives Your Policy Creation? Your Policy Manual is the Statement of Values for your Organization

8. Why does establishing values belong to the Board?

9. Ethics ValuesIntegrity What Drives Policy Creation?

10. Policy Governance Boards Make Policy, not Decisions Creating policy involves decision-making, but the scope and content of the decision is very different in policy-making. Decision-makingPolicy -making ReactiveProactive SpecificGlobal Based in the majority’s opinionBased in values and what is important Has no impact beyond the specific question decided Has long-term impact for the organization Applies to only one situationApplies to many situations in the organization Usually about an operational concernEstablishes a consistent value system for the association

11. Compare and contrast … values and opinions? Beliefs Convictions held as true… derived from upbringing, culture, religious background & traditions. Values Deep- seated personal beliefs that shape behavior. Opinions Judgment based on facts. Interpretation of data. Prejudice Half-baked opinion based on insufficient or unexamined evidence.

12. Assessing the results of a “Policy Blitz” ■Intent is to go through policies and assure policies are driven by relevant values to the group. ■By examining relevant values, the organization might “right-size” their policies. ■Only address values that are shared by the group.

13. What is important to you about how you treat people?

14. Template - Treatment of Customers With respect to interactions with customers or those applying to be customers, the CEO shall not cause or allow conditions, procedures, or decisions that are unsafe, undignified, or unnecessarily intrusive. Further, without limiting the scope of the foregoing by this enumeration, he or she shall not: 1.Use application forms that elicit information for which there is no clear necessity. 2.Use methods of collecting, reviewing, transmitting, or storing client information that allows improper access to the material gathered or inappropriate disclosure of information protected under Privacy regulations. 3.Provide facilities that are inaccessible to all or do not provide for appropriate privacy. 4.Cause customers to be confused about what may be expected and what may not be expected from any service offered by the organization. 5.Discourage persons who believe they have not been accorded a reasonable interpretation of their protections under this policy from airing a complaint and being heard.

15. Getting to Values-Based Policy ■Values-based policy NOT back-door management prescriptions –How do you get to values rather than management prescriptions?

16. Is your policy too small? ■PG Boards often find themselves reactive to a situation. How do you speak to a situation at the broadest possible level?

17. Small Group Discussions A.What values are critical to sustain the board’s relationships among each other? B.What values are critical to sustain the board’s relationship with the CEO? C.What values are critical to assure the operational organization is avoiding unacceptable situations?

18. What about Ends? ■How do we integrate our values into development of Ends? –What really matters? ■Try using the five whys to get to the core of Ends. –Example:

19. Conclusion ■Agenda Planning To accomplish its job products with a governance style consistent with board policies, the board will follow an annual agenda which (a) drives exploration of Ends concerns, (b) continually improves board performance through board education and enriched input and deliberation, and (c) re-examines for relevance the underlying values that support existing policy.