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Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
Governance For NRECA
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Governance For NRECA

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National keynote presentation on governance basics for directors of electric cooperatives.

National keynote presentation on governance basics for directors of electric cooperatives.

Published in: Business, Technology
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  • 1. 1/12/2008 NRECA CEO Close‐Up Indian Wells, California Ellen‐Earle Chaffee, President Valley City State University January 16, 2008 • Great governance is a quest. • The basics are well‐known and change little.  • Greatness and misery lie in the human factors. • Prevent major mistakes. • Automate the basics. • Revisit them on a regular schedule. • Expect greatness. • Learning, partnership, values  • Applied to strategy and interpretation. 1
  • 2. 1/12/2008 Short Stories that Made Headlines • Board of Regents includes • three US Senators,  • three US Representatives,  • the Vice President, and  • the Chief Justice of the United States 2
  • 3. 1/12/2008 • Board member heads a teachers union,  pickets. k • Board member expected favors, coach was  fired. • Board member recommended hiring a  bodyguard investigated for child molestation. yg g http://www.ajc.com/metro/content/metro/clayton/stories/2007/12/15/clayethics_1216_3DOT.html • Board member heads a teachers union,  Conflict of interest Conflict of interest pickets. k • Board member expected favors, coach was  Personal power fired. • Board member recommended hiring a  Old boy network bodyguard investigated for child molestation. yg g http://www.ajc.com/metro/content/metro/clayton/stories/2007/12/15/clayethics_1216_3DOT.html 3
  • 4. 1/12/2008 • Spying on employee, misappropriation of Spying on employee, misappropriation of  resources, favors for friends, illegally large  surplus • Director arrested (felony), fired, 16 mo. pay • 5 whistleblowers; one fired, one suspended p • AG investigation of management • AG investigation of board chair • Roles and responsibilities report • New Chancellor to strengthen the “system ”  New Chancellor to strengthen the  system, supervise Presidents • One powerful President went renegade • Chancellor intervened 4
  • 5. 1/12/2008 • Support for Chancellor: 10/11 presidents,  statewide faculty, all but one newspaper • Board reaffirmed “roles and responsibilities” • Board negotiated Chancellor’s resignation.   Cost: $200,000 5
  • 6. 1/12/2008 • Four‐year terms, no board education • Trappings do not replace education • R&R report detailed the confusion, not  the expectations  • Power trumped policy We Know What To Do. We Just Don’t Always Do It. Why? 6
  • 7. 1/12/2008 • Too complicated • l Personality trap • Hunky Dory • Discourage questions • The buck stops where?? “Everything is perfect, Mr. Chairman. Blue skies.  Spring is right  around the corner.”                                      ‐‐CEO Jones • Oversimplify • Focus on decisions  d • Personality trap • Hero complex • Hold back Hey, this is FUN! I can do this! Chairman Smith 7
  • 8. 1/12/2008 Put it in Writing Co‐ Co‐op CEO Board 8
  • 9. 1/12/2008 Ensure  organization  • Are we doing what we  fulfills its  are supposed to do? mission Ensure  organization’s  • Will it exist and succeed  long‐term  for a long time? viability Duty of CARE Duty of LOYALTY Duty of OBEDIENCE • Decide and act in good  • Decide and act in the  • Faithful to founding  faith best interest of the  documents • Prudent person level of  organization, protect  i ti t t • Obey the law care and support Where does it say, “Focus on finances???” 9
  • 10. 1/12/2008 Transparency Roles Mission HOW WHAT • Codify it (policy manual) • Mission fulfillment • Annual calendar  • Organizational longevity • Flow chart it • Accountability • Hang it • Roles and responsibilities • Set criteria • Transparency • Make it into a form • Leadership succession • Assign it to a Board committee Assign it to a Board committee • Strategic goals Strategic goals • Measure it • Conflict of interest • Headline it • Legal issues • Review it routinely • Performance improvement Fiduciary, Strategy, and Interpretation I S F 10
  • 11. 1/12/2008 Governance Pyramid INTERPRETIVE Cultural, Social Systems Integrated Systems  Theory STRATEGIC Biological Systems FIDUCIARY Mechanical Systems E. Chaffee.  "The Concept of Strategy:  From Business to Higher Education."  Higher Education:  Handbook of Theory and  Research, Vol. 1.  New York: Agathon Press, 1985, 133‐171. Governance as Leadership: Reframing the Work of Non‐Profit Boards by Richard P. Chait, William P. Ryan, and Barbara E. Taylor, NY:: Wiley, 2004. Raising Rates Example INTERPRETIVE Re‐examine assumptions Contrarian scenarios Tell the story: Communication plan STRATEGIC New technologies Alternative sources FIDUCIARY Analyses Efficiencies 11
  • 12. 1/12/2008 There ELEVATION 100’ •Mission •Longevity Here ELEVATION 10’ I S F I S http://www.balancedscorecard.org/basics/bsc1.html F 12
  • 13. 1/12/2008 There Th •Customer Benefit •Internal Business Processes •Learning and Growth •Financial I S F • Learn • Governance, Industry • Communication skills • Values and priorities Expectations,  soft  • Expectations “soft automation” I S F 13
  • 14. 1/12/2008 • Written, reviewed, revised, enforced member  expectations; term limits • Focus on Quality • Speak the headlines • Round the table Round the table • Distinctly different Board candidates • Governance staff and budget I S F • Well educated board  Well‐educated board • Shared vision and strategies • 50+ percent discussion – no vote • Strong, trusted board committees • Consent agendas Consent agendas I S F 14
  • 15. 1/12/2008 Governance Pyramid Summary INTERPRETIVE LEARN TOGETHER, BUILD INTO THE AGENDA . STRATEGIC PARTNER, BUILD INTO THE BALANCED SCORECARD FIDUCIARY AUTOMATE, BUILD INTO THE CULTURE • Great governance is a quest. • The basics are well‐known and The basics are well known and  change little.  • Greatness and misery lie in the  human factors. • Prevent major mistakes. • Automate the basics. • Revisit them on a regular  schedule. schedule • Expect greatness. • Learning, partnership, values  • Applied to strategy and  interpretation. 15

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