Governance as leadership Reframing the work of noprofit boardsAuthor: Chait R.
Other authors: Teylor B.E.
Publishers: Wiley publishing
Year of publication: 2005
Number of pages: 226
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Reframing the Work of Nonprofit Boards
Hut Umx Effective Nonprofit Board
Governance as Leadership
Governance as Leadership___________________
Reframing the Work of Nonprofit Boards
RICHARD P. CHAIT WILLIAM P. RYAN BARBARA E. TAYLOR
Building Effective Nonprofit Boards
Formerly the National Center for Nonprofit Boards
John Wiley & Sons, Inc.
This book is printed on acid-free paper.
Copyright 2005 by Board Source, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008.
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Library of Congress Cataloging-in-Publication Data:
Printed in the United States of America.
We collectively dedicate this book to the memory of Judith OíConnor.
we offer these personal expressions of gratitude:
In memory of Henry W. Sherrill, my governance guru.
To Sue, Nick, and Peter, for governance respite. William Ryan
Always for David. Barbara Taylor
ABOUT BOARDSOURCE X
ABOUT THE AUTHORS XI
CHAPTER 1 First Principles 1
Principle One: Nonprofit Managers Have Become Leaders 2
Principle Two:Trustees Are Acting More Like Managers 4
Principle Three:There Are Three Modes of Governance,
All Created Equal 6
Principle Four:Three Modes Are Better Than Two or One 8
chapter 2 Problem Boards or Board Problems? 11
Problems of Performance 12
From Problems of Performance to Problems of Purpose 15
Some Official Work Is Highly Episodic 17
Some Official Work Is Intrinsically Unsatisfying 18
Some Important Unofficial Work Is Undemanding 20
Some Unofficial Work Is Rewarding but Discouraged 22
The Challenge of Reform 23
chapter 3 Type I Governing: Fiduciary 33
Type I Governing 34
The Type I Mental Map 38
The Type I Board 40
Assessing the Problems 45
CHAPTER 4 Type II Governing: Strategic 51
Nonprofits Enter the Marketplace 52
Boards and Formal Strategy: A Type I Approach
to Type II Work 54
Strategic Disillusionment 56
Strategic Thinking: Beyond a Type I Mindset 62
Governing in Type II Mode 65
The Evolution of Strategic Governance 66
Processes and Structures for Type II Governing 68
Implementing Strategy 75
Why Not Just Types I and II? 76
chapter 5 Type III: Generative Thinking 79
The Power of Generative Thinking in Organizations 80
Inside the Black Box of Generative Thinking 82
Toward Generative Governing 89
Leadership as Governance: Executives Displace Trustees 90
Governance by Default: Trustees and Executives Disengage 93 Governance by Fiat: Trustees Displace Executives 94
Type III Governance:Trustees and Executives Collaborate 94 Can Boards Do It? 99
CHAPTER 6 Type III: Generative Governing 101
Using a Type III Mental Map of the Organization 104
Recognizing Generative Landmarks 107
Generative Landmarks 107
Embedded Issues 108
Spotting ďTriple HelixĒ Situations 109
Working at the Boundary 111
Working at the Internal Boundary 111
Working at the External Boundary 115
Looking Back:The Future in the Rear-View Mirror 116
Deliberating and Discussing Differently 119
The Cardinal Rule: Suspend the Rules 120
Promoting Robust Dialogue 124
Mind the Mode 130
The Payoffs 131
chapter 7 Working Capital That Makes
Governance Work 137
Intellectual Capital 142
Reputational Capital 146
Political Capital 150
Social Capital 155
Capitalizing on Trustees 161
chapter 8 Where to Next? 163
Is the Game Worth the Candle? 163