Jacqueline Williams 16 May 2012 Board Governance and relationships with staff Cass Centre for Charity Effectiveness Intellectual leadership: developing talent, enhancing performance

To start “The role and importance of the charity board has been transformed in the last 15 years” Centre for Charity Effectiveness

The importance of the charity board Charity law Company law Constitution Funding agreements Employment law Charity board= accountable. Centre for Charity Effectiveness

The role of the Board? 3 perspectives: The agency or stewardship model The political or democratic perspective The managerial model. Source: Boards that Work: A guide for Charity Trustees. David Fishel. DSC 2003 Centre for Charity Effectiveness

The role of the Board? The agency or stewardship model Board “controls” the behaviour of managers, who tend to act in own interest Board’s role is stewardship of organisation’s resources Source: Boards that Work: A guide for Charity Trustees. David Fishel. DSC 2003 Centre for Charity Effectiveness

The role of the Board? The political or democratic perspective Board members represent the interests of different stakeholders And to express or resolve the differences between those interest groups No particular expertise required. Source: Boards that Work: A guide for Charity Trustees. David Fishel. DSC 2003 Centre for Charity Effectiveness

The role of the Board? The managerial model The board is at the apex of a management hierarchy. Ideas and practice from management are considered appropriate to governance also. So board members should be chosen on basis of expertise and contacts. Source: Boards that Work: A guide for Charity Trustees. David Fishel. DSC 2003 Centre for Charity Effectiveness

The role of the Board? Applies Herzberg to Boards “Hygiene factors” need to be addressed first i.e. Law, finance, etc Then motivation making a difference, applying the managerial model. Source: Boards that Work: A guide for Charity Trustees. David Fishel. DSC 2003 Centre for Charity Effectiveness

The role of the Board? What makes a good trustee? “the most rewarding thing about being a trustee is seeing things happen in the community” The most rewarding thing about being a trustee is watching young people develop, grow in confidence and fulfil their objectives”. Source: The Charity Trustee’s Handbook: Mike Eastwood: CAF and DSC 2001 Centre for Charity Effectiveness

The role of the Board? Why refuse to be a trustee? “if you don’t agree with, or can’t become excited about what the charity is doing, don’t become a trustee.” Source: The Charity Trustee’s Handbook: Mike Eastwood: CAF and DSC 2001 Centre for Charity Effectiveness

Belbin’s team roles Monitor Evaluator : needed to provide a logical eye, make impartial judgements where required and to weigh up the team’s options in a dispassionate way. Centre for Charity Effectiveness

Belbin’s team roles A team is not a bunch of people with job titles, but a congregation of individuals, each of whom has a role which is understood by other members. Members of a team seek out certain roles and they perform most effectively in the ones that are most natural to them. Dr. R. M. Belbin Centre for Charity Effectiveness

Belbin’s team roles The Plant highly creative and good at solving problems in unconventional ways. Centre for Charity Effectiveness

Belbin’s team roles Shapers provide the necessary drive to ensure that the team keeps moving and does not lose focus or momentum. Centre for Charity Effectiveness

Belbin’s team roles The key is balance As well as the strength or contribution they provide, each Team Role also has an associated allowable weakness. Dr. R. M. Belbin Centre for Charity Effectiveness

How might this apply to charity boards? “..mixing professionally qualified trustees and beneficiary representatives” And “performance and relationships between the Board and CEO and staff have not always been trouble free”. Centre for Charity Effectiveness

Board and staff relationships The board is a team The board and staff are also a team? There is also a staff team The Board works in and with all these Teams. Centre for Charity Effectiveness

Board and staff relationships Ask the questions: Who do we need: Board, CEO, SMT? Who do we have: Board, SMT? Are we effective in how we work- meetings, information flow, interface? Centre for Charity Effectiveness

Board and staff relationships NDCS Do: Big Picture, Leadership, scrutinise, monitor, challenge Don'ts: manage day to day, bypass CEO A more managerial model? Centre for Charity Effectiveness

Board and staff relationships What model are we using, is it the right one? Understand role: CC3 (board primarily) Manage Risks: CC26 (Board, staff team) Understand and manage finances: CC8 (Finance Committee?) Assess effectiveness: CC 10, Governance Code, governance review (ALL). Centre for Charity Effectiveness

Board and staff relationships Managing change Managing change is about helping organisations, teams and individuals make sense of and adapt to the changes happening around them. More at:knowhownonprofit Centre for Charity Effectiveness

Board and staff relationships Managing change Successful change starts with understanding in detail the change you want to see. More at: knowhownonprofit Centre for Charity Effectiveness

Board and staff relationships Manage (and Avoid) conflict Understand each other’s role (Board, CEO, SMT) Delegated powers Roles, responsibilities Code of conduct Review regularly Make change. Centre for Charity Effectiveness

Have you got it right? Some questions: Do all stakeholders (board, staff etc) spend time occasionally discussing the ethos or values which underpin their work? Centre for Charity Effectiveness

Have you got it right? Some questions: Do all stakeholders understand how the organisation’s activities further organisational objects and reflect corporate values? Centre for Charity Effectiveness

Have you got it right? Some questions: Do we regularly consult with members, service users, staff, volunteers etc about how we could develop? i.e. just stewardship effective democratic/political model, ideal management model, service users + professionals on board Centre for Charity Effectiveness

Have you got it right? Yes Document Celebrate Share Beware: Centre for Charity Effectiveness

Have you got it right? RS6: - Milestones: Managing key events in the life of a charity From birth To death And everything in between!! Centre for Charity Effectiveness

Have you got it right? No What is wrong? Why? What needs to change? How will we change? How will we know we have got it right? Lessons learnt. Centre for Charity Effectiveness

Contact details Jacqueline Williams Principal Consultant Centre for Charity Effectiveness Cass Business School 106 Bunhill Row London EC1Y 8TZ T: +44 (0) M: +44 (0) E: W: Centre for Charity Effectiveness