paso del norte health foundation nov 3 afternoon

© Signature Resources Inc. 2015 1

Principles of 21st Century Governance:“CEOs and Boards”

Les Wallace, Ph.D.November 3, 2015


Thank You For Your Interest in Leadership

Most people tire of a lecture in ten minutes.

Clever people can do it in five minutes.

Sensible people never go to lectures at all.

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Leading in the 21st Century“When best selling authors bore you, you think it’s your fault.” Jim Collins

© Signature Resources Inc. 2015

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Our Best Seller…Right Behind Good to Great

30 dimensions of Contemporary leadership.

New research on leadership development and succession.

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Soon to Be Best Sellers…



Setting the Leadership Context

Perspectives on Leadership in the 21st Century.

Applied to “Board” and “Executive Team” Partnership.

Leadership Advice from a Wise Man

“These things happen naturally…

friction, confusion, underperformance.

Everything else requires leadership.”Peter Drucker 1909 - 2005

© Signature Resources 2015 7


What Are You Reading

Leadership?Management?Governance?


Warren Bennis, Learning to Lead: A Workbook on Becoming a Leader (2003).

Marcus Buckingham, et. al., Now Discover Your Strength (2001).

Robert Goffee and Gareth Jones, Why Should Anyone Be Led by You? (2009).

Daniel Goleman, Emotional Intelligence: Why It Can Matter More Than IQ (1995).

Steven Kaplan, What to Ask the Person in the Mirror? (2011).

James Kouzes and Barry Posner, The Leadership Challenge (2002).

Michael Marquardt, Leading with Questions: How Leaders Find the Right Solutions by Knowing What to Ask (2014).

Simon Sinek, Start with Why (2011)

Michael Unseem, The Leadership Moment (1998).

Les Wallace and Jim Trinka, A Legacy of 21st Century Leadership (2007)

Daniel Yankelovitch, The Magic of Dialogue (1999).

Jack Zenger, The Extraordinary Leader (2009).

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What to ask the person in the mirror?“There comes a point in your career when the best way to figure out how you’re doing is to step back and ask yourself a few questions.

Having all the answers is less important than knowing what to ask.” “What to

Ask the Person in the Mirror,” Steve Kaplan ( HBR 1/07)

Who am I / are we?What is leadership?

How well am I / are we leading?



Are leaders born or made?


Does Everybody Have Leadership in Them?

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Leading in the 21st Century“Leaders don’t create followers…

…they create other leaders!”



21st Century LeadershipAll humans struggle with two common

issues…

1. We want to be successful—with our work, our families and our lives.

2. We are unable to predict the future.

That’s why leadership matters so much!


People EverywhereWant to be respected.Want to feel valuable.Want to be successful.

They Are uncertain about their future.Get complacent when times are going well.

Wonder what their leaders are thinking.


Traditional Views of Leadership

Position of power over budgets and people.In charge of others. Directing decisions about the future.Leading the creation of new products,

services, processes, partnerships.Recognized by others as the “face” of the

department or organization.


21st Century View of Leadership

“Distributed Leadership”“Servant Leadership”

”A good leader inspires people to have confidence in the leader, a great leader inspires people to have confidence in themselves."


Points to PonderLeaders of the future are known less by what they control and more by what they shape.

“The leader of the past was a person who knew how to tell. The leader of the future will be a person who knows how to ask.” Peter Drucker, 1993

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Leading in the 21st CenturyFrom “Heroic” to “Transformational”

“Whereas the heroic manager of the past knew all, could do all, and could solve every problem, the post-heroic manager asks how every problem can be solved in a way that develops other people’s capacity to handle it.

Charles Handy, The Age of Reason



Everyday View of Leadership

Leadership is a personal commitment to yourself and others……to inspire vision and hope, …develop self sufficiency, …and assure outcomes valuing the quality of life and work.



Personal commitment—the will to lead.Inspire vision—not declare vision.Self sufficiency—not dependence.Assure outcomes of life and work—everyone has aspirations.


Everyday View of LeadershipPeople watch how you behave

everyday and it’s influential—good and bad.

We are all contributors at some point.

We all “lead” ourselves.Leadership requires micro as well

as macro contributions.Every professional touch you have

as a person is ripe for leadership.


Everyday View of LeadershipThere are a few elements of leadership

recognized in almost every research study of success, influence, and competency.

They show up in case studies, 360 Reviews of leaders, and are commonly recognized in the literature as critical to effective leadership.

None of them has to do with Charisma—the dynamic personality that can have people eating out of your hand.


Think About a Professional Role Model You Have…What one “leadership” characteristic of this

person is most impressive to you?Do you think you can become better by

watching how this person navigates professional life?

When you confront personal or professional dilemmas, ask yourself…

“What would they do in this situation?”


Think About a Professional Role Model You Have…What were some of their strengths?

Did they have weaknesses?

Now Discover Your Strengths, Marcus Buckingham and Donald Clifton (2001)


Everyday View of LeadershipLeaders are learners—they do not have the

same portfolio of capabilities and perspective year to year.

Leaders help others be successful—the servant part.

Leaders develop others—they teach, coach and share relentlessly.

The call out and appreciate the strengths of others and help them get in position to make those strengths count even more.



Leaders confront the brutal facts in a manner that informs rather than attacks, teaches rather than judges, is evidence based rather than emotional.

The art of the “question” does wonders in helping family, work teams, bosses and

organizations confront brutal reality.

Leaders truly think “transformation” rather than simple change.

Evolution keeps you alive. Revolution keeps you relevant.


Everyday View of LeadershipLeaders form coalitions.

A group of like minded individuals can move mountains.

Coalitions a critical “change” strategy.” John Kotter, Leading Change

Leaders deal with crisis and setback with calm and can-do actions.

Failure is not in the leaders vocabulary.

Less than optimal outcomes become your university not your Waterloo.


If You’re Fortunate Enough to Lead Others

Be inclusive.Your team will vary in personality, quirks, and

talent—but they all have a piece of the truth you need to be a successful leader.“What do you think?” may be the most frequently ask question by a leader.

Include “fresh eyes” in problem solving—outsiders frequently have breakthrough ideas you can’t see.

Signature Resources Leadership Competencies

© Signature Resources Inc 2013

Leadership Competency Leadership OutcomeVision

Critical, strategic thinkingCreating and energizing vision

New Desired FutureSeeing future opportunityEnergizing a future story

Adaptation/TransformationLeading transitions

Leading work process/systems re-design

Sponsoring continuous learningFacilitating creativity/innovation

Developing partnerships/alliances

Remaining relevant Helping people copeImproving work processNew knowledge appliedBreakthrough ideasInfluence / Transformation strength

Developing Leaders @ Every Level

Distributing accountability for outcomes

Creating involvement in decision making

Developing/leading cellular multifunctional teams

Leadership developmentLeveraging diversity

Taking responsibilityBetter employee decisionsEmployee ownership; creativityFluid, flexible teamsGrowing the next generationIdeas; Creativity

Signature Resources Leadership Competencies

Reference: A Legacy of 21st Century Leadership

© Signature Resources Inc 2011

Leadership Competency Leadership OutcomeCommunication

Openness/transparency of information

Coaching / mentoringInfluence/negotiating

Interpersonal competence (emotional intelligence)

Clearer information & goalsAccess to information people needTeaching, growing employeesSelling ideas; reduced conflictStrong relationships

Customer FocusCustomer value and satisfaction

measuresProducts/services designed with

customer inputQuality improvement

End user get valueEarlier diagnosis of troubleImproved valueReduce mistakes/waste

SelfValues/ethics

Continuous learningPersonal / professional balance

Integrity / credibilityTrust, respectIntellectual / emotional growthFamily life and work life


Developing Others“Mentoring” is helping people

navigate careers and learning pathways to embed the lessons of leadership and make positive choices along the way.

Mentors tend to ask more reflective questions than make declarative statements.

“Can I help?”

“Would you mind a suggestion?”


Developing Others “Coaching” is about specific feedback and

guidance around performance specific capabilities.

Helping with “clarity of expected outcomes.” Teaching techniques, approaches, strategies. Using reflective questions to help sort out

dilemmas: “How might you approach this differently?”

Appreciating strengths and how to leverage them.


Developing Others

TEACH / ExplainDemonstrate if possible. o Watch and provide feedback. o Show appreciation. o Suggestions for reflection.

“Think about this, …..”

“What might you do differently next time?”

“How do you think I might have handled that?”


Do You Think You Might be a Professional Role Model for

someone else?

ways people learn leadership:o Modeled behavioro Coached experienceo Self-study

Who do you think is watching your leadership most closely?

What do you hope they have seen in the last month that demonstrates good leadership?


360 Degree Feedbackas a Look in the mirror

The process whereby direct reports, peers, vendors provide feedback to you about how well you demonstrate “leadership competency behavior.”

Not to be used in evaluation.Only to be used for self-development.

How many have completed a 360 degree feedback process.


Leadership ContextB4 we move on to Governance partnership…


Executive Partnership with Boards Governance vs. management roles.

Strategic Planning Finance / budget Audit Operational excellence Community / Governmental relations Human resources Board development

Executive leadership contributions the four critical high performance governance domains.

Talent Strategy Performance Process



The board has legal and fiduciary responsibility for the financial health, ethical behavior and quality of services and products of the organization.

The board also has a responsibility to be a “strategic asset” to the organization.

These responsibilities require a leadership partnership of trustees (board) and CEO and executive team.

The board sets direction, tracks organizational performance, realigns focus as necessary, and works as a partner to help the CEO be as successful as possible.

The executive team informs strategic decision making and executes on organizational management.



As a “strategic asset” the board mix should have the competencies and experience to oversee and point direction for a complex organization.

“Think of governance as overseeing a forest rather than growing a single tree.”

Many boards make the mistake of looking for narrow specialties for their board such as HR, finance, marketing, technology, etc.

The 21st Century Board looks for members who can see the “forest” of how it is all integrated and helps the CEO find the “specialists” to execute.

Governance vs. Managerial rolesFUNCTIONS GOVERNING RESPONSIBILITY MANAGEMENT

RESPONSIBILITY

Strategic Planning

• Set mission & Vision.• Determine organizational values.• Identify Service philosophy. • Set strategic objectives (3-5 yrs).• Ensure operational objectives are

aligned with and support strategic objectives.

• Approve major org. realignment• Approve new services / expansion,

cutbacks, partnering.

• ID long range operational & strategic issues for board.

• Translate strategy into operation.

• Implement change & monitor progress.

• Provide timely market data.• Execute.

Finance /Budget

Audit/Sup. Committee

• Establish annual budget. • Approve working capital and capital

investment. • Approve variations from budget.• Ensure accounting system to track and

monitor use of funds.

• Ensure regular financial and operational audits by external sources.

• ID ERM priorities.

• Conduct feasibility studies.• Investment analysis.• Financial forecasts.• Develop / manage annual

budget.• Prepare Pro-forma budget

statements.• Justify budget exceptions.• Complete ERM plans.



RESPONSIBILITY

Operational Excellence

• Ensure robust constituent feedback and evaluation of products / services.

• Ensure adequate quality processes: planning, evaluation, improvement.

• Approve significant corrective actions & changes in service profiles.

• Determine preferred organizational culture.

• Regular review and update of policies.

• Collect constituent input.• Routinely monitor quality

indicators.• Special studies and corrective

action as needed.• Review/update procedures.• Translate all Board guidance

into procedures and operations.

Government / Regulatory Relations

Community Relations

• Develop strategic alliances and partnerships.

• Maintain appropriate government, professional and organizational relations.

• Ambassador for the organization.

• Support professional activities.• Establish & maintain

governmental., professional & organizational relations.

• Serve as communication link.



RESPONSIBILITY

Human Resources

• Evaluate performance/set CEO objectives.

• Approve org. salary & benefits plans.• Ensure legal & competitive human

resources policies.• Ensure a leadership succession plan:

emergency & longer term.• Define values of org. culture

• Hire Executive Team• Recommend salary ranges.• Develop/manage HR system &

records.• Performance management

system.• Recruitment & retention.• Management/leadership

development systems.• Measure / track org. culture

Board Development

• New member orientation.• Commit to in-service & conference

attendance.• Succession planning for board

positions.• Evaluate Board performance.• Assess committee functions.

• Assist new member orientation.

• Encourage / arrange training.• Support in governance

leadership development for potential and new board members.

• Assist board evaluation process.



Governance vs. Management

A Board Governance Puzzle: The Big Pieces

Board Talent Strategy

Performance& Risk

GovernanceProcess



Board Talent / CEOs RoleUse your connections in the community to

help identify leaders who might align with your mission.

Push “board development” opportunities to board members on a regular basis.

Support board assessments and development of officer capabilities.

Help find an outside board “coach.”Do not cross the line and offer your own

assessment of the board.


Strategy / CEOs RoleRegular “strategic thinking” conversations with

your executive team with reports to the board.Push information “benchmarking” your

organization’s efforts with similar organizations.Push industry information about issues, changes

and what others are doing to board.Working with the Chair, schedule a strategic

planning retreat one year in advance.Find, invite industry experts to speak to the

board.


Policy and Strategy Governance /CEOs Role

“Strategy” is about positioning the organization in an ever changing marketplace climate to remain viable, valuable and vibrant.

So what is the CEO and Executive Team’s Role in Developing Strategy?

Challenge assumptions & models; benchmark Sense and make sense of the changing business climate

Listen to the customer Commit to change

Move with deliberate speed Future Proof Your Board!


CEO’s Role in Future Proofing the Board

Spend 50-70% of your board agenda on strategy: updates, business environment shifts, customer data, benchmarks with other organizations.

Annual retreat to discuss strategy: ask paradigm shifting questions. bring in an expert to explore the future. invite outsiders to participate— “fresh eyes.” push books and articles on the future to the

board.

Strategy progress updates.Business environment discussions.New models / benchmarking.Tracking member value shifts.Developing partnerships / affiliations.Governance succession and development.


21st Century Leadership:Strategic Thinking

Strategic Planning: “What is our desired business position and how must we change to get there?”

Strategic Thinking: “How might we re-design our business to leverage leading edge marketplace and business models?”

Identifying an alternative future position Anticipating opportunity and threats Setting change priorities Designing change pathways Evolving / adapting systems Outlining formal plans Three-five year cycle Course corrections regularly

Challenging core business assumptions Re-inventing the business Exploration of new paradigms Sponsoring paradigm shifts/pilot tests Bold innovative movement Confirming stakeholder value shifts Projecting / anticipating lifecycles of

products, services, organizational model


“Permanent Whitewater,” Credit Union Management 12/1051

Expect Strategic Thinkingand Strategy Down to the

Department Level


Every department should do an annual review of the “lifecycle” of their offerings—yes everyone!

Every department should have a “departmental strategic plan” looking out three years.


Questions on Strategy?


Performance and Risk / CEOs Role

Create scorecards for all key organizational performance indicators.

Monthly tracking of financials.Outcomes vs. process: Quarterly

tracking of quality and program outcomes.

Identification of key organizational risks annually with quarterly tracking/updates.

Bi-annual tracking of organizational culture.

Managing partnershipCEO Work Priorities Summary should be available to

the board:CEO key strategic priorities and quarterly metrics.CEO key operational oversight/initiatives and

quarterly metrics.Amount of CEO time (e.g.15%) devoted to board

communication and liaison.CEO’s personal development plan.And please—expect all CEO and Executive team

reports in “executive summary” / dashboard formats!


Competent Performance Oversight:Uses a Balanced Scorecard/Measures Dashboard Monitoring a set of “indicators” across

the “balance” of the organization’s work.

Distilling the “cattle call” of numbers and progress reports from management into a visual report card.

“Balanced Scorecard: Measures that Drive Performance,” Kaplan/Norton HBR 2/1/2000.Research on Malcolm Baldridge Award Winners


Competent Performance Oversight:The Balanced Scorecard/Measures DashboardBusiness Performance Member Performance Employee Engagement /

Organizational Culture

Budget performance Capital investments Operating reserve Business expansion

performance Individual services

performance

Robert Kaplan, Balanced Scorecard

Client value tracking Client satisfaction Products / branch specific

metricsNet promoter score Community survey

Harry Beckwith, Selling the Invisible

Employee climate survey Employee retention Employee development Leadership development Talent succession Employee ideas adopted Internal customer surveys (tech., HR, purchasing, facilities, etc.)

Marcus Buckingham, First, Break all the Rules


Keeping the right “KPIs” in Sight

Financial Performance

Client Value/Satisfaction

Population impactStrategyCommunity Brand

Organizational Culture

Quality Risk managementGovernance

Excellence


http://www.cues.org/article/view/id/Good-governance-key-performance-indicator-tracking

http://www.cues.org/article/view/id/

http://www.cues.org/article/view/id/

Keeping the right “KPIs” in Sight:Governance in A Clinical Setting



Governance Process


Governance Process / CEOs Role

Work with Executive committee on agenda to assure board ownership.

All executive team reports in the consent agenda.All executive team reports and recommendations in

“flipped meeting” / “executive summary” format.Create an “electronic” board portal for pushing

information and regular updates.Board packets to board at least seven days ahead of

meeting.Staff supports committees by helping with “charters.”

research and annual reports.Board annual calendar of governance events / processes.

Agenda Setting CEO, Chair, Executive Committee set agenda. Agenda Order:

Convene Consent Agenda Financials Regulatory Strategy

Committee Update reports in Consent Agenda. Committee action items in appropriate section of agenda. Materials to Board 7 days in advance of meeting. Executive summaries commonplace.


21st Century Meetings: Using Executive Summaries

One pageBegin with the Bottom line:

The Recommendation, or The current status, or The seriousness of the dilemma

Then work backward to scope a “brief” context: High Level Data ($, surveys, history, trends) Strategic Implications Answer some “FAQs”

Further elaboration: see “Executive Briefings to Managers and Boards” in articles on www.signatureresources.com


Meeting Management:Executive Summaries

Essential components:① Recommendation or Current Status: 1-2 sentences.② The Context: 1-2 short paragraphs. ③ Briefly highlight supportive data and evidence. ④ Resource implications?

Exceptional executive summaries can be accomplished in one page. Some with more complex data may require 2.

Yes, it’s an art—but one which smart people can master and boards can feel comfortable with.


CommitteesCharters: purpose, makeup, annual responsibilities.Annual deliverables: in clear distinct language.Calendars.Completeness: Chair Vice-Chair as Coaches. Updates: no action reports; action reports.

DO NOT go around the room for updates! Use a “task force” for short term investigation, scoping of an issue, or fresh eyes on an issue. A Task Force is a short term assignment that concludes.


Committee Contributions to High Performance Governance

Speak to the deliverable you were asked to address. A clear annual work plan and specific individual assignments for

each meeting. Create a culture of inquiry: assure a broad spectrum scan has

supported your deliberations—this includes best practices everywhere. Challenge assumptions.

Remove Klingons, Divas, and other non-leader life forms. Never surprise the Board—inoculate early & seek advice. Allow for a minority report if the committee is split. Annually report accomplishment but also suggest future direction.


Committees

Committee “annual report.” Accomplishments. Review charter / suggest changes. Recommended future agenda or

other committee needs.


Committee Inventory & CheckupExecutive Committee.Finance.Quality / Safety.Risk management.Philanthropy.Others?

Checkup…. Charters up to date? Annual goals /

deliverables set. Annual report from

each.


Reflection on Governance Process

Board Competency &Recruitment

Governance Practices:MeetingsCommittees

StrategicFocus / Innovation

PerformanceTracking

Exec Team /BoardPartnership

Assessment& Development


Questions?



What Points will you Take Back to Your Team?Your Board?

Les Wallace, Ph.D.President, Signature Resources [email protected]

Dr. Wallace is recognized for tracking business environment and workplace trends and their impact upon business and government. His publications have appeared in Leadership Excellence, Personnel Journal, Credit Union Management, Public Management, and Nation's Business as well as numerous research and conference proceedings. His book, co-authored with Dr. Jim Trinka, A Legacy of 21st Century Leadership, outlines the leadership organizations need in a global, fast moving business environment. His book, Principles of 21st Century Governance (2013) is already being used by many boards to design governance development approaches. His newest book Personal Success in a Team Environment helps you become CEO of your own career.

Les is a frequent consultant and speaker on issues of organizational transformation and leadership, employee engagement, strategic thinking and board of directors development and governance. His clients include Fortune 100 businesses, Government agencies, and not-for-profit organizations world-wide. Dr. Wallace is also the host resource on the 9Minute Mentor, a series short video tutorials governance.

Les has served on the Board of Security First Bank and currently serves on the international Boards of the World Future Society and Counterpart International. He is a member of the National Association of Corporate Directors. Les writes an on-line column for CUES Center for Credit Union Board Education.

Preview his video series on governance: www.signatureresources “Dr. Wallace on Camera.”

https://twitter.com/9MinuteMentor


http://www.signatureresources/



paso del norte health foundation nov 3 afternoon

Leadership & Management