Governance & Strategic Leadership

In this category you will assess your organization in the following three areas: strategic leadership, board roles and responsibilities, and board structure and operations. Listed below are the various standards within the main areas of Governance & Strategic Leadership. For a more in-depth overview of this category we encourage you to listen to the short video located in the right hand corner of this page.

Ways to Improve Leadership Skills

This article will assist you in developing leadership

When referring to an ‘organization’s leadership’, we mean the board, ED and senior management.

skills for your job.

Being responsible for the action and direction of the team is a perfect leader to achieve the organizational goals is important. These valuable points would be of great assistance to improve leadership skills.

When career development is borne in mind, leadership skills have a groovy role to play in it.

Technical skills would be able to take you just to a sealed point but soft skills are ones which can forge you as a good leader.

In order to get to more smashing heights in career, leadership traits are necessary. With perfect leadership roles, you can be easily employed or boosted to higher levels in professional life.

Here are some ways how to improve leadership skills in the workplace :

1. Taking on more initiatives

2. Improving communication skills

3. Gaining knowledge about leadership styles

4. Critical thinking

5. Advocate creativity

6. Effective listening

7. Following the role model

8. Motivating your employees

9. Being passionate about work

10. Well disciplined

11. Positive thinking

12. Possessing a clear vision

13. The talent for delegating tasks

14. Rewards and recognition

15. Dealing struggles

16. Learning from others

17. Try new ideas

18. End result

Board Profile Worksheet

BOARD/GOVERNANCE<

 A tool for nonprofits to identify and track desirable board skills and characteristics, spotlighting what to seek from new board members.

https://www.propelnonprofits.org/resources/board-profile-worksheet/<

https://www.propelnonprofits.org/wp-content/uploads/2017/12/Propel-Board-Profile-Matrix.docx

 

How to Build a Strong Governance Model

GOVERNANCERefers to the source of strategic thinking and decisions that shape and direct an organization and its work and where, ultimately, accountability lies. Includes anything related to non‐profit boards as well as strategic leadership issues. BEST PRACTICES

Best Practices / Good Practices / Promising Practices

Ways of working that are acknowledged as effective and deserving of emulation.

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How to Build a Strong Governance Model

Nicholas J. Price | August 9, 2018

There has been a recent emphasis in the corporate world on best practices for corporate governance. The increased focus on governance has many boards of directors looking for ways to enhance their governance practices. Many of them are committed enough to the governance process that they’re allocating financial resources to improving governance practices within their companies.

Boards that focus on governance are starting by re-evaluating their policies, establishing board-level risk committees and clarifying the goals of all their committees. One of the newer strategies of boards is to appoint a Chief Risk Officer< (CRO), and the preference is for the CRO to be an independent director.

For many boards, it’s back to square one with comparing their current governance model with how it functions in today’s marketplace, finding gaps and working toward optimizing it.

What Is a Governance Model?

Deloitte’s guide to governance models, “Developing an Effective Governance Operating Model,”< outlines in detail how to build and improve governance models.

Every company has unique circumstances and needs, and their governance models will reflect the uniqueness of their companies. There are four major components of a governance model, and each has important key subcomponents:

  1. Structure.The subcomponents under structure are organizational design and reporting structure and the structure of the committees and charters.
  2. Oversight ResponsibilitiesKey subcomponents under this component are board oversight and responsibilities, management

    Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

    accountability and authority, and the authority and responsibilities of the committees.
  3. Talent and Culture. Subcomponents under this section are performance management and incentives, business and operating principles

    Accepted bases of action or conduct. For the Organizational Standards Initiative, our guiding principles provide a value‐laden foundation on which our work can be based.

    , and leadership

    When referring to an ‘organization’s leadership’, we mean the board, ED and senior management.

    development and talent programs.
  4. Infrastructure. Policies and procedures, reporting and communication, and technology are the key subcomponents under this section.

Turning the Framework Into an Operating Model

Deloitte developed their Governance Framework as a tool to help corporations review and improve their governance frameworks. The governance processes they developed highlight the various elements of governance, clarify roles, and explain the relationships between governance, risk management

Risk management involves examining a situation and 1) identifying what can go wrong, 2) identifying measures to avoid such problems, and 3) if something does go wrong, identifying steps that can be taken to lessen the negative impact. These measures may include the use of policies, procedures, and protections (such as insurance or education). Risks can be related, for example, to financial loss, workplace safety issues including abuse & physical harm or injury, property damage, or loss of reputation.

and organizational culture<.

The infrastructure surrounds all elements of Deloitte’s governance framework. The infrastructure includes the people, processes and systems that management puts in place every day. The infrastructure includes communication processes to transfer information to the board, stakeholders and management.

To learn more about how to digitize your governance needs in the boardroom, check out the Governance Cloud and see how Diligent can meet your board’s needs.<

In addition to overseeing the company’s governance processes, boards need to play a role in developing parts of the operating model and participating in activities. The board’s role in development should focus on governance issues such as strategy, integrity, talent, performance and risk governance. Thus, the governance framework and operating model is a process for turning the framework components into policies and protocols.

What Are the Components of a Governance Operating Model?

The main components of a governance model contain some important key aspects:

Board Oversight and Responsibilities

The governance model offers boards a way to articulate the oversight process, engage management in communication about governance matters, and learn where governance activities occur at various junctures in the company.

Committee Authorities and Responsibilities

Much of boards’ work happens in committees. The governance model helps define the work and authority of its committees and outlines how committees communicate and report their efforts to the board and management team.

Organizational Design and Reporting Structure

Governance models should establish the authority that presides over compliance, risk, legal, finance and audit matters. The model should also define how the board will oversee risks across all regions and businesses. The organizational design and reporting structure should be made clear to employees and stakeholders.

Management Accountability and Authority

The governance model should specify authority and accountability for key roles and identify a governance process for managing disagreements. Governance models should bring balance and improved communication between those making decisions about risks and risk managers. The model should also ensure that individuals know the rights and limits associated with their decisions. Boards should acknowledge the control functions at the regional and global levels.

Performance Management and Incentives

Incentives can enhance performance, but boards need to assess when incentives interfere with preserving assets and taking risks. A governance model should establish goals for performance, with the goal of getting the best value while considering risks and preserving assets. The goals should reflect the corporate tone and culture.

Three-Part Approach to Enhancing or Establishing a Governance Operation Model

Deloitte recommends a three-part approach to establishing a new governance operating model or enhancing an existing model. They’re not suggesting that the board take responsibility for every part of the governance model. What they are suggesting is that boards are uniquely positioned to form the governance model and to delegate duties to the appropriate parties to carry it out. The three parts are as follows:

Part I

Define the operating requirements for your governance model. Look for frameworks that will work best for your organization or design your own. Factor in any applicable regulatory, governance or legal requirements. Consider the scope of your operations and how governance factors in all aspects of it. Understand your current state of governance, including its strengths and weaknesses.

Part II

Design the governance operating model and its components. Define the key accountabilities, decision rights, and path for escalating matters up the levels of authority.

Part III

The final part is implementing the governance operating model. The completed model should define how boards will measure their success using standards

Desired and achievable levels of performance against which actual performance can be compared. Standards help to bolster public confidence, promote transparency and accountability, enhance performance and effectiveness, and help organizations achieve their mission, improve their practices, and educate board and staff about good practices.

and metrics. The model should tie governance requirements, organizational functions and business requirements together and allocate resources accordingly. Implementation should include a schedule of how often the board reviews the governance operating model and may suggest that a third party participate in reviewing the plan. The review process should include the components, the plan and the implementation.

Concluding Thoughts About Building Strong Governance Models

With so much at stake and so much to oversee, boards need the assistance of electronic board management systems to help them address the issue of improving governance practices. Diligent Boards and the integrated suite of governance tools in Governance Cloud< is the perfect solution for boards working on their governance models. Governance Cloud boasts high-level security in each of its programs, including the board portal, secure messaging, minutes program, board evaluations, D&O questionnaires and entity management software< programs. Having a fully integrated Enterprise Governance Management system< will aid board directors in developing governance frameworks that work for the benefit of the board, the managers, shareholders and stakeholders.

About the Author

Nicholas J. Price is the Content Marketing Manager at Diligent Corporation.

Organizational Systems Check List for Organizations

Organizational Systems Check List for Organizations

  The following comprehensive list of organizational systems and policies can be reviewed by governanceRefers to the source of strategic thinking and decisions that shape and direct an organization and its work and where, ultimately, accountability lies. Includes anything related to non‐profit boards as well as strategic leadership issues. and executive management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

to assess what systems and policies might need to be developed soon. Note that not all items are needed by all organizations. The suggested approach to using this checklist is: 1. Place a check mark next to each item below that has been completed and is useful in your organization. You may add items next to "Other items:" below. 2. From among those items that are not checked, mark each top priority item with a "1", bottom priority items with a "3", and consider remaining items to be "2"s. 3. Record all items marked with "1"s onto a separate list of items to be completed by your BoardYour board of directors provides governance to your organization. and/or staff

For our purposes, staff refers to agency employees who are neither managers nor executive directors.

soon. 4. Revisit this list each year to help identify top priority items to complete for that year.

Code of Ethics for Non-Profit

Code of Ethics for Nonprofits - Why your nonprofit may want to adopt a statement of values

Values are ideals, standards, or qualities considered worthwhile or desirable. See also “principles,” which are often shaped by values.

Does your nonprofit need a code of ethics or statement of values?

It's useful to adopt a set of principles

Accepted bases of action or conduct. For the Organizational Standards Initiative, our guiding principles provide a value‐laden foundation on which our work can be based.

to guide a nonprofit organization’s decision making and activities, as well as the behavior of its employees, volunteers, and boardYour board of directors provides governance to your organization. members. These principles could be called a "code of ethics" but they might be called the nonprofit's "statement of values" or "code of conduct," or something else. The purpose of adopting such a statement formally is to provide employees, volunteers, and board members with guidelines for making ethical choices and to ensure that there is accountability for those choices. When board members of a charitable nonprofit adopt a code of ethics, they are expressing their commitment to ethical behavior. Such a commitment goes a long way to earning the public’s trust. Honesty, integrity, transparency, confidentiality, and equityEquity is about fairness, justice, access to equal opportunity, recognizing inequalities and taking steps to address them. It requires eliminating barriers to economic, social and political opportunities and access to services. See also anti-oppression. are each examples of values that are typically expressed in a charitable nonprofit's code of ethics - but there may be other values that are very important to your nonprofit - and you may wish to spell those out so that the donating public, prospective employees, volunteers, and anyone who may be considering partnering with your organization, is aware of its values.

The Council of Nonprofits encourages all nonprofits to craft an appropriate "statement of values" or "code of ethics" for your nonprofit. For some charitable nonprofits it may be appropriate that their codes incorporate standards

Desired and achievable levels of performance against which actual performance can be compared. Standards help to bolster public confidence, promote transparency and accountability, enhance performance and effectiveness, and help organizations achieve their mission, improve their practices, and educate board and staff about good practices.

already adopted by certain professional groups. (An example might be a charitable nonprofit that employs licensed clinical social workers may incorporate the Code of Ethics of the National Association of Social Workers<into its own ethical code.) Other nonprofits may create their own statement that reflects that particular charitable nonprofit's unique mission, activities, and interaction with clients

This term is used here to refer to the service-users that organizations work for and with and provide services to. We have chosen to use clients because of its common currency and ease of use, while acknowledging that it may unintentionally connote a particular ideology of patronage or a purely financial transactional relationships between organizations and the people they serve.

, volunteers, and the public. Whatever the nomenclature, crafting (and revisiting periodically) a written document that articulates the core beliefs of the charitable nonprofit can be useful for practical as well as ethical reasons.

 

Assessing Organizational Performance

Assessing Organizational Performance

Organizational performance is a multidimensional concept, and wise managers rely on multiple measures of performance when gauging the success or failure of their organizations. The balanced scorecard provides a tool to help executives gain a general understanding of their organization’s current level of achievement across a set of four important dimensions. The triple bottom line provides another tool to help executives focus on performance targets beyond profits alone; this approach stresses the importance of social and environmental outcomes.

In this article you will learn:

1.       Understand the complexities associated with assessing organizational performance.

2.      Learn each of the dimensions of the balanced scorecard framework.

3.      Learn what is meant by a “triple bottom line.”

Is Your NOn-Profit Built for Sustained Innovation?

Is Your Nonprofit Built for Sustained Innovation? Here are (6) Six useful starting points for nonprofits that want to build their capacity to continuously innovate. Six Elements for Building Innovation Capacity

Organizations that excel at continuously generating innovations over time can look very different from each other. They can work in dissimilar fields or deliver poles-apart services; their assets and capabilities may vary widely. But through our research, we have identified six elements common to nonprofits with a high capacity to innovate:

  1. Catalytic leadership

    When referring to an ‘organization’s leadership’, we mean the board, ED and senior management.

    <
     that empowers staff

    For our purposes, staff refers to agency employees who are neither managers nor executive directors.

    to solve problems that matter
  2. A curious culture, where staff look beyond their day-to-day obligations, question assumptions, and constructively challenge each other’s thinking as well as the status quo
  3. Diverse teams with different backgrounds, experiences, attitudes, and capabilities—the feedstock for growing an organization’s capacity to generate breakthrough ideas
  4. Porous boundaries that let information and insights flow into the organization from outside voices (including beneficiaries) and across the organization itself
  5. Idea pathways that provide structure and processes for identifying, testing, and transforming promising concepts into needle-moving solutions
  6. The ready resources—funding, time, training, and tools—vital to supporting innovation work

Qualities of Effective Leadership and Its impact on Good Governance

Qualities of Effective Leadership

When referring to an ‘organization’s leadership’, we mean the board, ED and senior management.

and Its impact on Good GovernanceRefers to the source of strategic thinking and decisions that shape and direct an organization and its work and where, ultimately, accountability lies. Includes anything related to non‐profit boards as well as strategic leadership issues.<

Good governance and effective leadership are the essential requirements for an organization to be considered successful in the eyes of all stakeholders in the 21st century. There is a direct link between Good Governance, effective leadership and economic prosperity.

Depending on the sort of mechanism involved, accountability serves as an instrument to achieve various important elements Good Governance. Who is accountable to who varies depending on whether decisions or actions taken are internal or external to an organization or institution. What ever the case it cannot be enforced without transparency and the rule of law.

The Typical Non-Profit Organizational Structure

The Typical Non-Profit Organizational Structure

Organizations can be divided into three major areas that help it to fulfill its mission: governance, work and management (Grant & Crutchfield, 2007). Governance is the source of strategic decisions that shape the organization and its work and where, ultimately, accountability lies. Work refers to the implementation of activities and tasks that must get done to fulfill the organization’s mission. Management is the link between governance and work and includes the day‐to‐day direction of tasks, people, relationships, finances, and technology to get the job done. Organizational structure refers to these 3 areas and how they interact/work together to accomplish an organization’s mission.

<

The exact structure of a nonprofit organization depends partly on where it is incorporated–some states have their own requirements for the number of directors or other officers of the nonprofit. However, the basic structure of a nonprofit is generally the same everywhere. The structure is divided into three functional areas–governanceRefers to the source of strategic thinking and decisions that shape and direct an organization and its work and where, ultimately, accountability lies. Includes anything related to non‐profit boards as well as strategic leadership issues., programs and administration–and then further subdivided within each area, depending on the purpose and goals of the nonprofit.Unique Management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

Areas

Nonprofits typically have several types of management areas that may not exist in for-profit companies. These may include fundraising and grant writing, volunteer programs and public policy. Some of these areas, such as fundraising, may be handled by the executive director, or an entire department, headed by an assistant director. Some nonprofit organizations may also have a program director, or assistant director, in charge of ensuring the organization is meeting ethical requirements set out in its bylaws and is liaising with the local community

The broad group of people who are stakeholders of an organization. Extending beyond the people that enter our buildings and use our services, an organization’s community may include cultural groups, sectoral partners, and other groups of people joined together by common identity, geography, and other bonds. Often where we use ‘community’ the word is actually short for multiple communities.

.

Non-profit and Social Sector Management Course

Non-profit and Social Sector

Used broadly to define a group or cluster of agencies that share some commonality. Here ‘the sector’ refers to community based agencies that serve immigrants and refugees in Ontario. Other relevant sectors include the broader non‐profit sector (sometimes referred to as the voluntary sector), and the community social services sector.

Management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

Course

 

There are over 69,000 organizations employing almost 1.2 million people in the non-profit sector in Canada in areas such as health and social services; development and housing; arts and culture; sports and recreation; environment; international; religion; education and research; law, advocacy and politics; and, fundraising and grant making. Organizations that employ professionals, such as our graduates, are associations, non-profits, charities, advocacy groups, foundations, social enterprises and co-operatives. The non-profit sector accounts for over 7% of the GDP in Canada, making it larger than the auto industry in Ontario. Graduates will have the skills, knowledge and credentials to embrace management opportunities in any of the diverse array of organizations in the social sector.

http://www.senecacollege.ca/programs/fulltime/NPM.html<

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