1. Applying Policy Governance® in Faith-Based Organizations
Applying Policy Governance® in Faith-Based Organizations
Policy Governance ® is a registered trademark of John Carver 1

2. First, Who’s the Owner?
Organizations have human “owners” (real, legal, moral, and/or spiritual)
Do faith-based organizations also have a divine Owner*?
What are the criteria for ownership?
The owners are the source of the board’s legitimacy, i.e., the Board has a moral obligation to them
Board governs on their behalf,
Board is able to have dialogue with owners primarily related to Ends issues.
*The presenters’ experience is with Christian organizations, so our examples assume a belief in a personal God with which one can communicate, and this presentation will use examples from a Christian perspective throughout.

3. Ownership Linkage Policy Example – Wycliffe Canada [WC]
The Sovereign Owner of Wycliffe Canada is God. The human owners, operating under God's authority, are members of the Canadian Church who demonstrate passion for and participation in the Ends of Wycliffe Canada, including voting members and all other Wycliffe Canada personnel.

4. Ownership Example Avant Ministries [AV]
Avant Ministries International is not a member-based organization and the board determined that the human spiritual owners are those who contribute/invest in some manner, including missionaries.

5. Experiences in Ownership Linkage
Wycliffe Canada [WC]
Experience in moving from the view of “members” as sole owners to “the church” as owners
Experience in linkage with God as “Sovereign owner”
Work in progress to become a community of discernment
Avant Ministries [AM] (Not a membership org.)
Missionaries, supporters, and churches (participating in some form as a partner)

6. Servant-Leadership More than just words on paper
While servant-leadership is increasingly espoused in the business and secular communities, for Christian organizations it is closely linked to faith
“Whoever would be great among you must be the servant of all” (Jesus Christ)

7. Characteristics of the Servant-Leader (Greenleaf)
Awareness
Conceptualization
Foresight
Commitment to Growth of People
Building Community
Stewardship
Listening Receptively
Empathy
Healing
Persuasion

8. Intentionality
How can a board be intentional about translating the faith-based values of its owners, including faith-based values - Biblical values, denominational values - in policies and governance practices?
How does a board assure doctrinal adherence?

9. Intentionality in Protecting Doctrine
The board must thoroughly understand the doctrinal positions of the organization, why they are considered important, and the risks of departing from them. This generally means that the board will need expert grounding, especially if it is an academic organization.
Seek outside expert input from like-minded people.
Board “homework” regarding the doctrinal position of a potential CEO is crucial.
Ensure board policies re: doctrine are in sufficient detail that any reasonable interpretation will be acceptable to the board.

10. Doctrine - Monitoring and Vigilance
Stringent monitoring.
For a college, make sure that, when values of owners are included/translated in policies, monitoring is about assessing that these policies are met in the organization (e.g. in the classroom and intellectual products if that is where proof is expected to be found).Faculty’s willingness to sign a doctrinal statement is not necessarily adequate.
Avoid too short board member terms, to ensure “board memory.”
Be sure that key values are in policies.
Place doctrinal statements in Bylaws rather than policies – can make harder to amend.
Consider using a like-minded “Board of Reference” or board of advisors.

11. Servant-Leadership and Intentionality Related to Ends
Greenleaf’s Test of Servant-Leadership: “Those served, while being served, grow as persons — become healthier, wiser, freer, more autonomous, and more likely themselves to become servants”
Ends focus on the effect of the organization’s efforts on people – how will they change, grow as described by Greenleaf

12. An Ends Example [WC]
The necessary personnel with appropriate attitudes, skills, and knowledge, are available at the right time to enable Operating Partners to fulfil their part in Bible translation and related ministries. *
Personnel are equipped to build intercultural communities of trust.
Personnel are servant-leaders, team players and capacity builders.
3. Personnel have the necessary skills to fulfill their roles, including language-related and support roles.
4. Personnel demonstrate a commitment to life-long learning in spiritual, professional and cultural domains.
Personnel are prepared to adopt an appropriate Biblical lifestyle.
*Note: This is a second-level End. The Global End contains all 3 elements of Ends, including “what cost.”

13. Ends Policies [Example: Grace International School (GIS)]
GIS students will demonstrate Christ-like character, and every aspect of their lives will be suffused with a Biblical worldview. *
Accordingly, students will:
Pursue a genuine relationship with God;
Know essential biblical truths and concepts;
Understand our personal identity from God’s perspective;
Critically assess issues and world-views in terms of biblical truths;
Impact their world by applying biblical truth;
Serve others compassionately and advocate for the oppressed; and
Exhibit genuine respect and cultural sensitivity.
*This End is missing the “at what cost” statement.

14. Ends Policies [Example: Avant Ministries]
Because of Avant… there will be Developing Churches Where There Is No Church.
1.1 Churches will be developed where most needed.
Peoples or areas with no available church will receive the highest priority for service.
The primary geographic concentration of ministry will be outside the United States and Canada.
Peoples of different cultures and languages will receive priority of emphasis.
1.2 Churches will be Biblically healthy, defined as or when:
Unsaved people are brought to Christ
Believers are discipled toward maturity
No longer being dependent on the mission or missionaries
There is inter-dependence & partnering with other churches
Missionaries are sent out cross-culturally

15. Servant-Leadership and Intentionality Related to Executive Limitations
If servant-leadership is a value, the board would find it unethical for people (those served, employees) to be treated in ways inconsistent with that value.
Executive Limitations can be used to restrict behaviour that is unethical.

16. Limitations Policies [Examples – Global EL Policy]
The Superintendent shall not allow any organizational circumstance that is either unlawful, imprudent, or in violation of Christian principles and professional ethics, jeopardize Thai, ACSI and WASC accreditation, or violate the Bylaws. [GIS]
The President shall not cause or allow any activity, decision, or organizational circumstance that is unlawful or imprudent, that violates Wycliffe Canada by-laws, Scriptural imperatives, or commonly accepted business and professional ethics. [WC]

17. Possible Language for the Global EL If You Operate Internationally
“The CEO shall not cause or allow any practice, activity, decision, or organizational circumstance which is unbiblical, imprudent, unethical, in violation of commonly accepted business and professional ethics and practices (or …of the agreed values and policies of Xxxxxxxx), unlawful in the United States or Canada, or unlawful in any other country, (except insofar that specific Biblical authority is to the contrary; e.g., Acts 5:29).”

18. Treatment of People - Examples
With respect to current or potential students, families and member organizations, the Superintendent shall not allow conditions which are unsafe, unbiblical, undignified or unfair, or are harmful to an organizational culture of excellence.
With respect to current or prospective staff members and employees, the Superintendent shall not allow conditions which are unsafe, unbiblical, undignified, disorganized or unfair [GIS]
[Discussion point: is “unbiblical” necessary – could a reasonable interpretation of the global statement be made that was unbiblical?]

19. Servant-Leadership and Intentionality Related to Board-Management Delegation
Using “standard” principles of Policy Governance is consistent with:
Commitment to the growth of people,
Real, not bogus empowerment,
A mentality of “leading leaders,”
Tolerance for reasonable risk,
Fostering personal & professional growth of everyone in the organization.

20. Intentionality in Recruiting New CEO
From the prior policy regarding protecting doctrine…
The board must thoroughly understand the doctrinal positions of the organization, why they are considered important, and the risks concerning them. This generally means that the board will need expert grounding, especially if it is an academic organization.
Seek outside expert input from like-minded people.
Board “homework” regarding the doctrinal position of a potential CEO is crucial.
Ensure board policies re doctrine are in sufficient detail that any reasonable interpretation will be acceptable to the board. And…
Research the candidate’s past education, papers, articles, talks, theses, and books, etc., besides the performance and references of the candidate.
Be sure those conducting the search are equally informed.
Interview carefully.

21. Servant-Leadership and Intentionality Related to Governance Process
Board sees itself as a steward
Board is obsessed with purpose. No board meeting should go by without debate or presentation on some facet of the Ends development process

22. Culture of Accountability
“Kingdom” accountability – demands excellence of itself.
Board culture is a climate of trust and candor – have clear policies and expect them to be followed.
Board holds its members accountable.

23. Development of Wisdom Board seeks foresight in decision-making
Board strives to follow Biblical principles re: development of wisdom
Humble receptivity
Teach-ability
Concern for sustaining virtue
Values excellence & diligence
Sensitivity to the Holy Spirit
Board seeks foresight in decision-making
Board accepts others and has empathy
Frames questions from a place of not knowing all the answers
Asks questions from a place of interest in and affection for others
Board allots sufficient time for development of wisdom
Board works to build community
Board includes spiritual input and development as part of discernment

24. Listening and Understanding
Board is a receptive listener
Board is aware – doesn’t settle for only “academic knowledge” --obtains experiential knowledge of those who are affected and served [WC example of board member field trips]

25. Conceptualization and Foresight
Board can conceptualize the “bigger picture”
Board exercises foresight
Failure to foresee is an ethical failure (Robert Greenleaf).

26. Governance Process Policies Governance commitment example - GIS
“Operating under the Lordship of Jesus Christ, the purpose of the Grace International School Board, on behalf of its legal owner, Grace International School Educational Foundation, and its moral owners is to assure that Grace International School achieves the Ends for which it was established and avoids unacceptable actions and situations.”

27. Governance Commitment - WC
“The purpose of the Board, on behalf of the owners, is to see to it that Wycliffe Canada (1) achieves appropriate results for appropriate persons at an appropriate cost and (2) avoids unacceptable actions and situations. In fulfilling these governance functions, the Board’s paramount desire is to glorify our Sovereign Triune God.”

28. Governing Style and Values [GIS]
“Board governance shall be marked by biblically-based integrity, outward vision , collective decision making through prayer and listening to God for His wisdom.
“If a majority of the board determines an impending decision is of major consequence, extended corporate prayer time will be scheduled.”

29. Guarding Against Defection from Core Beliefs
Board Commitment – Policy requiring the Board to assess every new policy against core values. Before vote, it must be verified that it does not contradict values/beliefs (GIS)
Vigilant monitoring
Another possibility: make it difficult to change certain policies: e.g. 2/3 majority plus 1, change requires two convened meetings, etc. 

30. Ownership Linkage [WC]
“The Board recognizes the necessity of corporately and individually communicating with God, Wycliffe Canada's sovereign owner. The Board will set aside planned times, including an annual retreat, for corporately listening to God and seeking his direction regarding Board issues through Bible study, prayer and personalized fasting. Individually, members will pray regularly about Board concerns at a minimum the first Monday of each month. Spontaneous times of prayer will be encouraged during Board meetings.”

31. Agenda Planning [GIS]
“To do its job effectively, the Board will follow an annual agenda that completes a re- exploration of Ends policies and Executive Limitations and continually improves board performance through board education and enriched input and deliberation. The agenda will reflect the spiritual dimension of our school.
“Effective leadership comes at the price of waiting on and listening to God. In order to ensure this takes place, the annual agenda will include a half day of prayer during the annual retreat.”

32. Addressing Conflicts Between Policy and Ministry Beliefs or Values
Potential conflicts between national law and Biblical values, particularly International missions where laws of the country may conflict with values of the organization
…(see prior example:
…“unlawful in the United States or Canada, or unlawful in any other country, except insofar that specific Biblical authority is to the contrary; e.g., Acts 5:29.”

33. Induction of New Board Members [WC]
New board members attend the meeting prior to their officially taking office as observers.
At the end of that meeting, there is a short “induction ceremony” in which they formally make a commitment to serve, believing that God has called them to this ministry. They make this pledge, which is then followed by the whole board making a commitment to support them, and praying together with them.

34. What does “Success” Look Like?
Using Avant Metrics as an Example of the Development of Results or Ends Metrics

35. The Development of Results/Ends Metrics and their Display
The challenge for Management in any ministry is measuring the apparently subjective…

36. Recall: As part of the Ends, the Board of Avant had further interpreted five characteristics that must be present in a cross-culturally healthy church :
Unsaved people are brought to Christ
Believers are discipled toward maturity
No longer being dependent on the mission or missionaries
There is inter-dependence & partnering with other churches
Missionaries are sent out cross-culturally

37. Avant International Board Policy Manual - Ends Policies
1.2 Churches will be Biblically healthy, defined as or when:
1.2.1 Unsaved people are brought to Christ
1.2.2 Believers are discipled toward maturity
1.2.3 No longer being dependent on the mission or missionaries
Self-governing
Self-supporting
Self-propagating
1.2.4 There is inter-dependence & partnering with other churches
1.2.5 Missionaries are sent out cross-culturally

38. Avant management developed a measurement process to assess those components, identifying 13 underlying “Biblically irreducible” metrics.
Developed a standardized survey instrument for on-location missionaries and local church leaders
Scoring “cascaded” up to a synthesized score for a given local church - both for the 13 irreducibles and the final five ends elements.
They then created radar charts from those scores as the graph of choice for presenting the data. (Radar charts are good for presenting entity characteristics, but little else. Entities can be then compared by pattern.)

39. Example - Ends Metrics - Avant
(A fairly young church)

41. (A mature church)

43. The patterns are very revealing (the advantage of the radar chart) and churches can be compared and good questions asked - leading to increasing strategic understanding and guiding strategy going forward.
Test yourself on the following churches. What further questions would you ask and want answered?

44. 60 years old
6 Months old

45. Seeing patterns in the radar charts for the 13 indicators
Struggling 10 y/o church
(re leadership)
New
Maturing (Using the 13 measures)
Time to move on

46. Belize Association Over 3 Years

47. Time for praise
A Mature Church in Belgium
Mature Standard

48. From the endeavor to develop metrics to provide ends monitoring data, Management is learning about the stages of church development, what methods works, what churches are delayed or stagnant in development, and in what areas, how missionary leadership affects church development, and much more.
Management comments:
“Field Council leadership minutes reflect an increasing focus on strategic issues.”

49. “The development of metrics has had a tremendous focusing effect…it drives self examination, both by missionaries and the indigenous church leaders…Leadership, both missionary and indigenous church, is compelled to think strategically”
“We know for the first time where to focus.”
“We thank the Board for going to Policy Governance and that it compels monitoring. It is transformational.”

50. A Christian School
The radar scale is grade

51. First Grade Academic Performance Compared to Association Averages

52. 2004-05 Academic Performance by Grade - Reading
Sometimes a pattern can be seen with a line added…

53. Other Issues More Likely to Occur with International Ministry Organizations
Multinational governance structural issues and complexity - can become complex & self-referential
Members (self-referential governance) vs. independent board
HR - special vigilance required with foreign located mission schools (molestation, etc.)
Special vigilance re: foreign located single women
Accountability across oceans:
Financial,
Operational and use of resources.
Sustaining virtue - the importance of independent monitoring (we sometimes trust too much)

54. Board Education Examples from Wycliffe
Corporate reading (board “assignments”) and discussion
Cultural orientation
Spiritual retreats
Task force preparing in depth materials on key issues (e.g., priority-setting criteria for Ends, theology of risk)
Understanding the nature of the wider context in which organization operates (joint meeting with leaders of Wycliffe Global Alliance)
Board member field trips to areas where partners work

55. Board Education Examples from Avant, use of experts
Dr. David Garrison on Church Planting Movements
Jean Cunningham on value stream cost accounting (author on lean accounting) (to address the issue of “At what cost?”)
Dr. Keith Small on reaching Muslims
An expert on mergers - their dangers & analysis
Studies in wisdom from Proverbs
Board retreats.

56. Board Succession Planning
Avant - (multi-national; each national board is responsible, but agree on criteria)
Wycliffe experience
Work in progress
Identify “Best Fit” criteria for potential board members
Nominating Committee process

57. PG as a Platform to Enable Mission
Growing pains
Danger of becoming mired in mechanics
Keeping things in perspective – not “doing” the model, but “using” the model to enable governing well so that mission is set and achieved
Optimizing the balance between mechanics and mission

58. Making the Most of Board Time Examples from WC
Meet only twice a year face-to-face [cost of bringing people together from international locations]
One video conference call
More committees than usual – importance of including entire board in key discussions so that they are not rubber-stamping committee work – most committee work via and conference call/Skype
Board decisions on “routine” items by

59. Policy Governance Board Example of Time Use

60. Policy Governance a Good Fit with Faith-Based Organizations
Policy Governance principles are consistent with Biblical principles:
Servant-leadership
Accountability
Empowerment with constraint
Clarity of values
Requires board integrity and excellence
Ends consistent with a purpose outside of oneself
Words count!
Board is expected to keep its word (consistent with covenants)

61. Contact Information
Jannice Moore
President, The Governance Coach™
Board Chair, Wycliffe Canada
Dr. Richard Biery
President, The Broadbaker Group
Board Chair, Avant Ministries
Jurrian van der Straaten
Board Chair, Grace International School