The Art and Science of  Governance 181‐C November 2, 2015

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• John Eby

Presenters

Board Chair, Landis Communities

• Jane Mack President /CEO, Friends Services for the Aging

• Laurie Neumann Nafziger President and CEO, Oaklawn Psychiatric Center Board Chair of MHS

• Wendy Waters‐Connell Executive Director, Quaker Heights Care Community Immediate Past Chair, Friends Services for the Aging

• Rick Stiffney, President/CEO, MHS 3

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Our Approach  Brief input  Storytelling  Dialogue

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Make no mistake: it is the board’s culture— the shared values and beliefs that delineate  acceptable behavior—that ultimately  determines how effective the board can be.  Unless you have a culture that supports the  active and independent participation of every  director, nothing else matters.

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David A. Nadler, former chairman of Mercer Delta Consulting (2006, 104-5) as quoted in The Practitioner’s Guide to Governance as Leadership, Cathy A. Trower (2012, 125)

Our boards will only be as strong as is  our vision as executives and board  members to make them strong.

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Governance as Leadership Context of

Mission/Values Generative

Strategic

“Why are we doing this?” “What are the possibilities?”

“What are we doing?” “Where are we going?”

Fiduciary “How are we doing?”

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Adapted from Governance as Leadership, Chait, Ryan, Taylor

The “Governance as Leadership” Framework  • Affirms the leadership energy of the board • Acknowledges that organizations experience  different seasons • Affirms the important role the board chair  plays as a facilitator, not a decider • Invites us to think more deeply about the  culture in the boardroom 8

The Contradiction of Clarity

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Clarity in… • CEO and Board expectations, evaluations, and  communication • Board member orientation and engagement • Approach to discernment/decision‐making • Board self‐assessment and improvement

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Resource material available at

http://bit.ly/1XfQtBs

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Clarity in Board‐CEO Expectations • Scope of authority of CEO • Role of CEO in Board meetings • Role of CEO in Board decision‐making • Mutually developing meeting agendas • Holding each other accountable 12

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Clarity in CEO Evaluation • How is CEO being evaluated? • Against what? • By whom? • When/How often?

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Clarity in Board‐CEO Communication • Guidelines for patterns of communication o Board Chair - CEO o Board members - CEO

• Expectations about communication • Who speaks for the Board?

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Clarity in Engaging the Board

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Unique skills of a chair • Not all good board members make good  chairs • The chair models the best practice – Mission‐focused – Prepared, involved, intentional

• Self‐awareness about your style and  experience (emotional intelligence is critical) 16

Understanding proper governance • Not management. Not operations. • High‐level fiduciary, strategic, and  generative work

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The chair shapes the culture • Facilitator, not a  decider • The keeper of proper  governance practice • The shaper of a culture  of engagement and  discernment 18

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Robust engagement • Chair creates safe place where all have voice • Goal is not polite agreement • Consider – Size of room, room set‐up – Size of board – Introverts, extroverts, dominators

• Ask questions. Poke around. • “Great minds think differently” 19

Clarity in Approaches to Board Discernment • What is being called for? – Fiduciary work – Strategic work – Generative work

• What does the board need to respond? – – – –

Discussion Dialogue Decision Generative thinking

• Where should what be done? 20

– Importance of agenda planning and committee  work

Technical Work vs. Adaptive Work Technical work: • Oriented toward fixing a problem • The problem and diagnosis are relatively clear. • Requires applying the right tools in the right way  at the right time. • For board, this kind of work is often fiduciary. Adapted by John Eby, from  presentation by Cathy A. Trower,  April 2015

Dr. Cathy A. Trower [email protected] http://www.trowerandtrower.com 21

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Technical Work vs. Adaptive Work Adaptive work: • The problem is less clear‐cut and difficult to define. • Technical solutions alone will not work. • Leadership that inspires learning is needed to  define the problem and find a solution. • Example: Generative governance, where problem  solving, sense making, and framing come into play. Adapted by John Eby, from  presentation by Cathy A. Trower,  April 2015

Dr. Cathy A. Trower [email protected] http://www.trowerandtrower.com 22

Ensure time for dialogue DISCUSSION

DIALOGUE

Different views are presented  Different views are presented as a  and defended. means of discovering a new view. Decisions are made.

Complex issues are explored.

Convergence on a conclusion  Divergence is the goal; not  of course of action occurs. seeking agreement, but a richer  grasp of complex issues. Action is often the focus of  discussion.

New actions emerge as a  byproduct of dialogue.

Focus is on reaching  agreement

Focus is on dialectical inquiry and  cognitive conflict

Adapted, Peter Senge, The Fifth Discipline: The Art & Practice of the Learning  Organization. New York: Doubleday (1990) .

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3 Conditions necessary for dialogue Senge quotes David Bohm…

1. All participants must "suspend" their  assumptions…[assumptions are open for  questioning and examination] 2. All participants must regard one another as  colleagues [in search of deeper insight and clarity] 3. There must be a “facilitator” who “holds the  context” of dialogue [keeps the group from drifting  into discussion] Adapted, Peter Senge, The Fifth Discipline: The Art & Practice of the Learning  Organization. New York: Doubleday (1990) p.243.

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Levels of Listening LISTENING 1: from habits

reconfirming old  opinions & judgments

Downloading habits of judgment

I-in-me Factual  LISTENING 2: listening  from outside noticing 

Open  Mind

disconfirming  [new] data

differences

I-in-it LISTENING 3: from within

Empathic  listening

Open  Heart

seeing through  another person‘s eyes emotional connection

I-in-you LISTENING 4: Generative  from Source listening

(from the future  wanting to emerge)

Open  Will

connecting to an  emerging future whole;  shift in identity and self

I-in-now

Field: Structure Of Attention

Field

Levels of Conversation

1 Downloading: Talking nice

Speaking from what they want to hear Polite routines, empty phrases

2 Debate: Talking tough

Speaking from what I think Divergent views: I am my point of view

I-in-me

I-in-it 3 Dialogue: Reflective inquiry

Speaking from seeing myself as part of the whole From defending to inquiry into viewpoints

I-in-you 4 Presencing: Generative flow

Speaking from what is moving through Stilness, collective creativity, flow Generative system

I-in-now

Four Levels of Change One‐off Band‐Aids

1. Reacting: quick fixes

Process,  structure

2. Redesigning: roles, policies,  practices, process and structure

Collective Thinking

3. Reframing: values, beliefs and mindset

Source  of energy,  inspiration  and will

4. Regenerating: sources  of collective commitment  and energy 27

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Clarity in Approaches to Decision‐Making • How will decision be made? – Voting – Non‐voting

• Role of Chair in decision‐making • Role of CEO in decision‐making

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Clarity, Clarity, Clarity • Have it in writing • Plan for robust board orientation • Do ongoing governance education and  reflection

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Board Assessment Opportunities for  Continuous Improvement

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Why bother to evaluate the  Board performance annually?

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The Process: Educative AND Evaluative 1. Do I know what my individual board member  responsibilities are to the organization and  do I fulfill these responsibilities to the  organization? 2. Does the full Board meet its collective  obligations to the organization?

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Board self evaluations may be  geared to track multiple areas: 1. Individual performance perceptions 2. Full board performance perceptions 3. Board relationships with the CEO This method can reveal blind spots.

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A Board’s willingness to be self critical  is one of the key indicators for  governance strength and resiliency.

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Board Evaluations Shine the Light: Example Story…

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Continuing exploration

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Presenters Websites • John Eby, Board Chair Landis Communities

• Jane Mack, President /CEO Friends Services for the Aging

• Laurie Neumann Nafziger, President and CEO Oaklawn Psychiatric Center

• Wendy Waters‐Connell, Executive Director Quaker Heights Care Community

• Rick Stiffney, President/CEO 37

MHS

THANK YOU

Rick Stiffney President/CEO 1112 North Main Street Goshen, Indiana 46528 (800) 611‐4007 [email protected] www.mhsonline.org

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