Roles in organizational governance matter

In this second of our five-part series on Excellent Governance, we ask the simple question of “Who Governs and what roles do they play?” 

While organizations and institutions will certainly vary in size, function, and mission, when it comes to identifying who governs, there are primarily three relational bodies inside of every board room. The full board, its chairperson, and the organization’s chief executive.

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In healthy organizations, having clear definition around the roles and responsibilities of each of these three stewards of the organization. is essential to a high-functioning board. The simple diagram above illustrates that each actor occupies a particular space in the governance ecosystem, and, at the same time of course, shares responsibilities and roles within that system.

In high-functioning boards, the CEO serves as the board's singular employee representing the day-to-day operations of the organization, oversees the professional staff, and is directly accountable to the board for progress within any strategic plan. The board chair represents the full interests of the board to the president, managing that work through an executive committee of the board and leading the full board in collaboration with the CEO through regularly scheduled board meetings. 

Finally, the full board shares overall responsibility for the oversight of the organization, including a fiduciary responsibility.  High-functioning boards understand that they must maintain clear lines of accountability, authority, and action within and between the three primary actors (board, board chair, and CEO) to ensure the ongoing success of the organization.

The Organization Governance Dance

 The imagery of a well-choreographed dance comes to mind when we think about the interplay between the CEO/President, the board chair, and the board. To create a beautiful balance of excellent governance, all three must understand their places on the dance floor, their positions and postures, the speed at which they must move – and all of this requires great coordination, skill, communication, and above all – trust.

The board chair and president are the most often paired dance partners. A strong relationship between the chair and president is essential to the overall success of the board. And this “dance” is a delicate one.

In most instances, ironically, it is the president who must take the lead in the dance. A president knows what is happening within the organization and understands the context (situational realities, challenges, opportunities, etc.) within which the organization operates.  Yet, it is a delicate dance, as the president is accountable to the board, and that starts with his or her partner, the board chair.

The board chair needs to be in step with the president. Constant communication, asking good questions, and encouraging the president in leading the organization. And remembering that, as chair, you are the agent of the board to the president. At the same time, the chair along with the president must always be looking back across the dance floor to the rest of the board, communicating to the entire board the work of the organization. This is the balance and the choreography of the dance, ensuring that the nature and frequency of communication keep the rest of the dance team engaged and informed.

Yet board members also need to be in the dance. They are not simply left to the side of the stage to occasionally drop in for cameo appearances. High-functioning boards identify the skills, aptitudes, and interests of each member, and engage them. They too know their place in the dance and need to engage partners in the production.

Excellent organizational governance may not always look like a well-choreographed dance. There are times and places where breakdowns in communication, stepping on one another’s toes, not dancing to the same music, or a myriad of other challenges can upset the delicate dance (e.g. ego, individual or hidden priorities, etc.) The responsibility to keep the dancing partners together and in sync, is a shared one. And when the dance is not going well, it may be important to go back to some of the basic dance steps, to remind each partner of their respective responsibilities and roles. Even the best dancers need to hone their skills and stay on their toes.

What about you and your board? Are you dancing well? Are the lines of authority and responsibility for each of the dance partners both defined and executed in good and helpful ways? 

We would love to hear about your experience in the dance – as a CEO, board chair, or board member.  What are you learning, and how is the organization learning to dance together? 

Reach out to Ron at RonM@DesignGroupIntl.com and by phone at 202-740-6344 and Lon at LonS@DesignGroupIntl.com and by phone at 616-516-9870. 

 

Walking alongside you,

Ron SignatureLon Signature_Cropped     

 

 

 

 

 

Lon L. Swartzentruber Headshot (300x300)

Lon L. Swartzentruber

CEO and Managing Partner, Design Group International

 

Ron Mahurin Headshot (300x300)

Ron Mahurin

Design Group International

Senior Consultant

 

Ron Mahurin
Post by Ron Mahurin
November 29, 2022
I walk alongside leaders, listening to understand their challenges, and helping them lead healthy organizations that flourish.

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