Star Op Ed article

As I See It

(Published in the Op Ed section, Kansas City Star, June 7, 2002)

During the attention to the Enron collapse an anonymous review of yet another book on governance at a popular web site stated, “If the 19th century was the age of the entrepreneur and the 20th century was the age of management, the 21st century will be the era of corporate governance.” The issue of board governance is rapidly growing in interest and in recognition of its importance, ranging from the popular press to the halls of Congress. The cover subject of the May 6th Business Week magazine was about the crisis in corporate governance. The venerable institution of the governing board, as we know it, is being rethought.

flawed and in need of overhaul?

Charitable organizations have not been left out of societal scrutiny. Henry Goldstein, writing in a recent issue of Chronicle of Philanthropy, writes, “governance counts…Boards are entrusted with the task of acting, first, in the public interest, as the stewards of funds and other assets. The board not only sets the ethical tone, but also has an obligation to make sure the charity lives up to the highest ethical standards.” He makes the telling point that; “The role of the charity board is even more critical, because it is the public’s only real protection.” Sobering words for a board. Sobering times for directors and trustees.

Robert Greenleaf, author of Servant Leadership and father of the contemporary servant leadership movement, repeatedly calls trustees to leadership integrity and excellence.

Unfortunately, one’s personal experience on boards rarely lives up to anything near that level of rewarding performance, much less leadership. Should we capitulate to our less than satisfying board processes and assume there is nothing better? Or, are our usual concepts of board governance

Sadly, most current boards, while composed of good and dedicated people desiring to do well, don’t have an effective mental model for truly governing in the full or ideal sense. All that board members have is their previous experience on boards.

Dissatisfied with the lack of governance excellence, effectiveness, and integrity in the old way, a growing number of boards are switching to newer models such as Policy Governance® as set out by Dr. John Carver in Boards That Make a Difference and his other writings. I have served on dozens of boards, consult to boards, and I, too, have become convinced of the power and effectiveness of Policy Governance® to enable a board to meet good governance criteria. Based on principles of governance it teaches a board how to be an effective steward of the organization on behalf of the ownership through the expression of clear board values, policies and monitoring. When implemented fully, it is extremely effective and satisfying for both a board and a president or CEO.

The Kansas City, Missouri City Auditor last year, in a prescient move, studied the issue of governance quality. He developed a list of the components of good board governance. They proved close to those of Carver’s. He also put City boards and commissions on notice that he will be reviewing their quality of governance. Boards could do worse than study that checklist. Happily, trustees can learn to truly govern and become the leaders organizations need today.

Richard M. Biery

Kansas City, Missouri

816-931-7750

rmbiery@broadbaker.com