August 1, 2006
The Effect of Ends Monitoring on Empowerment
I occasionally interview CEOs who are running Policy Governance organizations concerning their reaction and adjustment to Policy Governance. Reactions and attitudes do vary particularly around the requirement for regular monitoring reports. Some CEOs see the requirement for monitoring as a necessary and tedious evil that must be complied with on a last minute basis but lends little value to their capacity for managing the organization. Some CEOs see monitoring as a powerful management tool that helps them assure performance and accountability so they, too, (besides the board) can sleep at night. Of all the monitoring reports, of course, ends monitoring is the most challenging and often call for the greatest creativity in order to create metrics that tell the ends story accurately and informatively (what results, in or for whom, and at what cost?).
As I was interviewing a CEO of a large Policy Governance worldwide compassionate ministry the other day concerning his reaction to ends monitoring he made an observation that had not really occurred to me before then. I had asked him about his reaction to the requirement to produce monitoring reports on progress toward the ends. (Some CEOs face this with consternation & resentment as a troublesome board requirement. I see this sometimes particularly with faith ministries that see their activities as spiritual activities that can't or shouldn’t be measured in terms of results.)
He responded that although identifying indicators for their ends had been a challenge for him and his staff, requiring careful thought, once done and the measurements available, he found such monitoring very empowering. At first I was puzzled. Then the significance of what he was saying sunk in. ...and why good ends monitoring is truly empowering. I mentioned this to another CEO friend successfully running a large ministry and he said, “sure,” as though anyone should get it.
Why would good ends monitoring be empowering for a CEO and how? Well, first the CEO has to have a passion for, and focus on, performance defined as results. (Sounds like Jim Collins, right?) Both of these did. They are not interested in just being busy. Consequently, their profound concern for results aligns with the board’s desire for ends accomplishment, and they bend their management attention to that end - and finding a way to measure it. With good ends metrics developed they then can see the results of their efforts, not just on the organization, but on the world they set out to change. THAT is empowering in the best sense of the word.
To use a simile, imagine you are at the helm of a big ship. Would knowing how busy the ship was, say in shaft revolutions per minute, how many crew were up and working, the amount of fuel being burned, etc. make you feel empowered if spinning the wheel had no effect? I hope not. It would lead to a growing sense of impotency! - no matter the rpm, crew activities, or fuel burned! It is when you turn the helm and the great ship changes course in response to your turning the helm that gives you that sense of authority at the helm. In fact, that is what it is called. And the ship’s action is called “responding” or “answering” to the helm. It is that which gives the helmsman a sense of empowerment. And that is what these CEOs were saying.
When they saw the effect the organization was having on the world because of their responsive organizational leadership to board ends policies, all sorts of other things began to happen as well. They could improve and sharpen their decision-making; they could improve effectiveness and efficiency by watching results vs effort; the entire organization began to perceive and respond to the metrics, and, top to bottom, began to align administrative and worker effort to better accomplish the ends. Everyone knew it and understood their contribution. The sense of empowerment spread!
That is total organization focus and alignment. I would hate to be a would-be competitor of either of these CEOs and their organizations.
Richard M. Biery, MD, © 2006
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(Policy Governance is the registered service mark of John Carver; the authoritative website for the Policy Governance model can be found at www.carvergovernance.com.)