international co-operative governance symposium · source: david nadler, beverly behan and mark...
TRANSCRIPT
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International Co-operative Governance Symposium Competency-Based Assessments
September 2013
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Learning Objectives
1. Understand how to determine the appropriate skills and competencies for your governance environment and engage board members in the change process
2. Design a sample competency matrix and review tips for customizing a skills-based assessment to the needs of an organization
3. Understand how to assess governance performance including a skills and competencies approach that is non-biased
4. Understand how to anticipate and measure the positive impact that governance performance can have on your organization
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Methodology 3
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Methodology 4
Source: David Nadler, Beverly Behan and Mark Nadler, “Building Better Boards a Blueprint For Effective Governance” (Wiley, 2005)
The Passive Board The Certifying Board The Engaged Board The Intervening Board The Operating Board
• Functions at the discretion of the CEO
• Offers limited activity and participation
• Has limited accountability
• Ratifies Management preferences
• Certifies to shareholders that CEO is doing what Board expects
• Emphasizes independence of Directors
• Stays informed as to performance
• Establishes orderly succession processes
• Partners with CEO to provide insight, advice, and support to CEO on key decisions and implementation
• Recognizes responsibility to oversee CEO and corporate performance
• Two way discussion on key issues and decisions
• Time spent defining roles and behaviours required to enhance contributions
• Typical mode during a crisis situation when the Board becomes intensely involved in discussions of key decisions facing the organization
• Intense Board meetings called on short notice
• Board makes key decisions, Management implements
• Not uncommon in start-up situations
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Board Leadership
• Clearly articulated rationale
• Board member buy-in
• Board champion
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Competency Matrix
• Tool for deliberate discussion
• Ties competencies to the vision/mission
• Used for assessment, recruitment and development
• Includes: – Experience
– Expertise
– Personal characteristics
– Definitions
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Skills and Competencies
• Consistent with fiduciary, regulatory and strategic objectives
• A range of levels: – Basic
– Good
– Strong
– Expert
• Gaps are used to inform recruitment an development activities
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Governance Assessments
• Activity-based
• Results-based
• Competency-based
Insights Generated • Based on competencies
• Gaps to be filled
• Plans for how best to fill the gaps
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Process
• Self-assessment – 4 point scale
• Third-party interview – 12 point scale
• Consistent approach across directors
• Discussion about personal contributions and “value” from skills and competencies
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Sample Credit Union Attributes
• Leadership
• Board and CEO Performance Management
• Regulatory Environment
• Credit Union Operations
• Financial Literacy
• Strategic Planning
• Governance and Ethics
• Risk Management Oversight
• Audit and Compliance Oversight
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Drop off your business card if you would like me to email you a sample assessment matrix with definitions
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Recruitment and Elections
• Responsibility to inform voters of the competencies that will drive value
• Recruit and nominate against the required skills and competencies
• Education and development plan for each director and the board overall
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Role of the Governance Committee 12
• Reviews the inventory of skills
• Considers director succession issues
• Identifies competencies for focus during recruitment
• Board approval
• Nominating Committee
• Endorsement (or not) of candidates
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Director and Board Development
• Matrix results identifies the gaps
• Development responds to the gaps and the results of recruitment
• Measureable outcomes
• Continuous improvement
• Succession
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Achievements
• The board is “engaged” in the strategies of the organization’ clear lines can be drawn between the discussion of the board and the strategic outcomes of the organization
• The board has the competencies to focus on substantive issues
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Four Disciplines of Execution 15
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Methodology 16
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Kim Andres, FCUIC, MBA, CMC, ICD.D