2015-09-29 creating a high performing strategic thinking board

Thrive. Grow. Achieve.

Creating a High Performing Strategic Thinking Board

Robert Nelson, NSC Strategies

September 29, 2015

Transitioning a Board into a Strategic Thinking Entity

25 Tips Creating High Performance Governance

Robert Nelson, CAE

www.NSCstrategies.com

High Performing Boards

§  Culture of candor, respect and inquiry

§  Appetite for continual learning & improvement

§  Think and act strategically

Think Strategically

Key Recommendation §  The greater the strategic

orientation, the better the board performance

§  Even boards that spend just a moderate amount of time on strategic thinking & planning perform better than those that do not

Expected Outcomes

§  Knowledge to develop a strategy for transitioning your board to a strategic thinking entity

§  Tools to increase the frequency & quality of strategic thinking / dialogue in board setting

§  Identify 3 key components of good strategy

Strategic Thinking

Why do board members take off their strategic thinking caps when they enter the boardroom?

The First Step

Recognize that executives are not necessarily strategic thinkers

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Strategic Thinking

Thinking conceptually, imaginatively, systematically, and opportunistically with regard to the attainment of success in the future, while simultaneously considering the larger environment or broader context, and the immediate environment.

Strategic Thinking Experiences

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Intentional

3

Change in Culture

Revolutionary §  Rapid, dramatic change §  Sudden transformation §  Can lead to dramatically

improved (or changed) performance in a relatively short period of time

Evolutionary §  Slow, continuous change §  Incremental §  Over time, can lead to

significant improvement in performance

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Transition

Managing Transitions, William Bridges

Understand the Purpose

§  Build the strategic capacity §  Strengthen governance §  Improve board performance

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Remember: You’re not correcting a wrong

Vision

§  Future state §  Well articulated §  How much to share §  Timing

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Champions for Change

§  Early on §  5 to 10 percent §  Support need for transition §  Support behavioral change

needed to transition §  Chair person – chief change

agent

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Create Change Strategy

§  Roadmap §  Barriers §  Forces to exploit §  Execution Plan §  Not everyone will change

at the same rate

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Barriers

Barriers

Change the Agenda

Traditional Agenda §  Approve Minutes §  Committee Reports §  Financial Reports §  Old Business §  New Business

Strategic Agenda §  Strategic Dialogue §  Strategic Actions §  Performance Oversight §  Consent Agenda

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Strategic Issues

§  Big issues with strategic significance §  Invest time in identifying the issues §  Environmental scanning §  Non-board stakeholders §  Off-line board member discussions §  Board meetings

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Strategic Dialogue

§  Doesn’t require action or decisions

§  Intentionally carve out time §  Agreement that no decisions

will be made §  Creation of new ideas §  Formation of shared

meaning §  Free flow of diverse

perspective 11

Dialogue

§  Free flow of meaning between board members §  Explore with honest curiosity and understand

the meaning of what people are saying §  Seeks to understand and build upon what has

been said §  Understand the assumptions of others and

recognize your own

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Tools of Inquiry

§  How does this align with our strategy? §  How does this program align with our Core

Values? §  How does this reflect our priorities? §  I am curious, what assumptions did you base

your decision on? §  What are the opportunity costs? §  What will the net financial impact be? What

impact will this have on our budget? §  In your view, what are the risks associated

with this decision? §  How do you intend to evaluate the success

of the program?

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Knowledge-Based Decision Making

What do we know about our stakeholders needs, wants and preferences that is relevant to this decision?

Knowledge-Based Decision Making

What do we know about our the current realities and evolving dynamics of our organization’s environment that is relevant to this decision?

Knowledge-Based Decision Making

What do we know about the capacity and strategic position of our organization that is relevant to this decision?

Knowledge-Based Decision Making

What do we wish we knew, but don’t?

Knowledge-Based Decision Making

What are the ethical implications?

Generative Thinking

§  Bring data, information and knowledge to the board un-packaged

§  Frames issues §  Produces sense of what

data, information and knowledge mean

§  It is where goal setting and direction-setting originate

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14

Loyal Opposition & Support

§  Pre-designate §  Use tools of inquiry §  Strategic arguments

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Strategic Dialogue is the goal. Script out your Loyal Opposition and Loyal Support. Use Tools of Inquiry.

Chair Preparation

§  Development, ongoing §  Practice §  Pre-meeting prep call §  Post-meeting debrief §  Talking points §  Strategic questions §  Manage the meeting

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Protect Against Group Think

§  Awareness §  Chair can play an important role §  Create a culture where

disagreement and diverse opinions are valued

§  Encourage an atmosphere of open inquiry

§  Challenge assumptions §  Always consider unpopular

alternatives §  Devil’s advocate §  Agenda design §  Breakouts

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Briefing Material

§  Must be intentional §  Information and knowledge

that stimulates strategic discussion

§  Informed decisions §  360 degree review

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Governance Structure §  Aligned with the governing

work of the board §  Not aligned with

administrative / operating or program functions

§  Benefits: Ø Facilitates a focus on strategic

level issues Ø Protects against micro-

management Ø Protects against silos

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Model Governance Structure

Board of Directors

Planning & Program

Development

Performance Oversight & Monitoring

External Relations/ Resource

Development

Audit Committee Governance Committee

Extraordinary Board Leadership, Doug Eadie

Governing Mission

§  Primary governing responsibilities and functions

§  Disciplinary tool §  Clearly defines what the

mission of the board is

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Clearly Defined Roles and Responsibilities

Board §  What §  Policy §  Strategic Direction §  Ensuring outcomes

Staff

§  How §  Execution §  Operational / Tactical §  Empowered to work

through details

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§  Job descriptions §  Strong volunteer / staff partnership §  Respecting decision maker §  Annual board orientation / briefing §  Fuzzy line

Board Diversity

§  Key element of good strategy §  Goal: Diversity of thought §  Enriches generative dialogue §  Positively impacts issue framing §  Diversity profile statement §  Inclusion §  Diversity Champions

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Board Candidate Selection

§  Current and future needs §  Diversity §  Selection criteria

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Click here for full list of attributes

Governance Development

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Cycle of Strategy Development

§  Strategy development is an ongoing process, not a retreat

§  Engaging with components throughout the year Ø Ensures solid market

position awareness Ø Contributes to development

of good strategy Ø Builds the strategic capacity

of the organization

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Strategy Components

§  Core ideology Ø Core purpose Ø Core values

§  Mission §  Stakeholder audit §  Environmental

scanning §  Competitor analysis

§  Competitive advantages

§  Strategy document §  Operations

integration §  Strategy review §  Board meeting

materials and dialogue

Strategy Development Formula

PERSONAL ACTION PLAN

What will I commit to do differently? How will I know if I am making progress? What are my next steps?

Email: Robert@NSCstrategies.com Twitter: @Rbt_Nelson Web: www.NSCstrategies.com

Phone: 475-235-1210