The “Better Place” Strategic Retreat
Are you leaving your Organization a better place than you found it?
No one is a board member, a chairman, a CEO, or a senior executive forever. Either the organization will outlive you, you will outlive the organization, or one of you will move on. That being said, while you are actively engaged and committed to your organization’s success, what impact are you making on it?
If you’ve ever taken any of our training classes or attended any of our seminars, one of our top themes has always been to “leave your organization a better place.” While this simple phrase is easy to understand on a surface level, it literally contains layers of benefits that may not be so apparent. We are often asked to expand on the topic – which we gladly do during our tailored retreats – in the meanwhile, here are a few words that just might pique your interest.
It all starts with the Board of Directors
Whether we
are speaking about a 7 member board at a publicly traded company, a 5 member board at a privately held organization, or a 20+ person board at a Not for Profit (NFP), navigating board dynamics can be challenging to say the least. At best, boards operate seemingly on auto-pilot, and everyone does their fair share and so much more. Other times, managing a board has been likened to herding cats, or worse yet, presiding over an orchestra where no one seems to be playing the right music – if they are even playing at all. Some say it is the nature of the beast. Board members may have been chosen or elected for subject matter expertise and leadership skills. They may have been invited in because they were friends of friends or had other close connections. On NFP boards, they were likely added largely due to their ability to donate money. There are a myriad of reasons people have found their way to the table. Whatever the case. if you make the time and effort to engage your board members and rally them around the Better Place concept described below, you may find that you can reap exponential rewards. For once the people in charge are all on the same page and committed, you are on your way to making some significant and meaningful improvements to your future – to making your organization a Better Place than you found it!
There are often diamonds in your own backyard waiting to be discovered.
Things change, circumstances change, economic pressures change, receivables change, administrations change, donors change, organizations change, people retire or move on. So it is imperative that board members maximize the time they actually spend working together. Yet few boards work in a truly coordinated effort. It seems that reaction often rules over action. Few boards truly understand just how amazing they could be if only they spent the time and effort necessary to learn more about themselves and their own capabilities. And how amazing would it be for the board to actually spend time thinking of ways to “put it all together.” It rarely happens. But it can.
All great accomplishments start with a small step in the right direction
Think back to any of the achievements that make you most proud today, and you will realize that each and every one of them, started with a small kernel of an idea – a small step in the direction of your goal. Likewise, when you finally decide that your board can (or should) be so much more, your first step is done. Realization is key. Congratulations! Now what?
Based on decades of experience, we have found that the best place to begin is with a facilitated dialogue among the board members. Because once discussions among members begin, smart people not only start to get those “aha” moments, not only do they rise to the occasion, but they often will surprise everybody (and even themselves) as they move to that “next” level.
First, let us point out that the consequences of not expending the effort at being the best board you can be are grim.
The Liabilities are Real
The reality is that while legal and financial liabilities for board members exist, few board members truly understand the extent of those risks. How many ask the questions that need to be asked? Quite a few of the unnecessary headaches could be avoided if boards took some time to look into and understand today’s best practices and protections. Again, it all starts with a conversation.
Red Flags that your Board is headed for trouble
Too many boards have one or more of the following internal challenges at play:
- formal “onboarding” for new board members doesn’t happen
- meeting agendas are set by management and thus don’t serve the board’s needs
- the board itself is under the control of a strong clique
- many members just want to “show up” and do their time
- some members rarely show up
- board members don’t critique their accounting firm’s performance regularly
- head-strong management steam rolls over the board
- no one has reviewed and updated the D&O coverage, especially A, B, and now C sides
- key members of management are not invited to meetings for Q&A sessions
- members don’t feel free to contribute opinions
- bylaws are not followed
- no one has read the bylaws
- the concept of “independence” is not understood
- there is no annual legal risks review and presentation to the board
- members are unclear of their fiduciary duties
- “governance” is not defined
- hard probing questions are not asked
- latest best practices aren’t routinely investigated and presented for consideration
- compensation studies aren’t kept up to date
- management isn’t held accountable for results
- continuing board-related education isn’t encouraged
You can’t treat it till you identify “it.” But you have to identify “it”…
If you recognize any of the red flags above at your organization, don’t panic. You are not alone. We have found many such issues at the organizations we have helped. Oh, and let us share something very interesting about board dynamics. For whatever the reason, we discovered that sometimes the hardest part was getting everyone to agree that there actually were issues to overcome and correct – call it “our child is perfect” myopia. So, the good news is that once challenges are properly identified, solutions are often rather straight forward and forthcoming.
Paradigm shift
It takes a lot for board members to move out of their comfort zones. Some will embrace the move, others will resist, most will simply try to watch. Yet once our Better Place process is implemented, everyone who participated will have been exposed to new potential and opportunities. They will also have been shown new ways of thinking about their roles, their commitments, and their responsibilities. Since all board members participating will also be given the opportunity to share a short but detailed overview of their own personal goals and business objectives, a new fresh sense of community and a better understood the board’s internal network will often arise. Similarly, with power and authority comes great responsibility, and board members will have started discussions about best practices. Conversations will be structured in such a way as not to threaten members but to open their eyes to new levels of possibilities.
Nose in, Hands off
Just so we are all on the same page, in our opinion the overriding concept in board dynamics is that boards should be engaged strategically but not operationally. Another way to say this is “Boards should have their noses in the business of the organization, but should keep their hands off the day to day operations. Management is there to run the business and needs to be empowered to do the same. The board is there to provide strategic planning assistance, oversight, and governance. Blurring these roles can often lead to trouble.
How does Better Place work?
The reason our clients say that they value our approach revolves around the fact that we don’t tell you what to do. Instead, we facilitate meetings in a controlled environment that cultivate growth and development through meaningful conversations and exchanges. Our expertise is in bringing out the best in your number one asset – you and your board members while leading everyone to see new possibilities and horizons – and then assisting you to make your own decisions to investigate and embrace best practices.
“Leaving the organization a better place” is an all-encompassing mantra. It is a mindset. It is a program for development. It is a way to gage what you do and what you spend your time on in relation to the good of your organization, now and in the future. It may be a subtle goal at first. It may be over-simplified or under-simplified. And it may be simply misunderstood and misinterpreted. But over time, as its essence becomes ingrained in everybody and everything, it can have some very powerful consequences.
All of a sudden, everyone at the organization has a piece in the success and growth of your organization. Everyone understands their roles at their levels. The class structure remains while the barriers – them and us – are removed and replaced with an all-encompassing goal.
While space constraints won’t permit us to expand upon the many steps and practices involved, correct implementation of the “leaving your organization a better place than you found it” program is designed to lead to:
- a strategic mindset
- more people joining in on growth and development
- less confusion about what needs to be done
- abundant transparency
- frank and open discussions designed to move the organization’s goals forward
- creation of board “ambassadors” and messaging
- a clearer understanding of current board skill sets and what areas may need bolstering
- a higher level of collaboration
- a new interest in governance and best practices
- a better understanding of risks and rewards
- an increase in opportunity sightings
The wonderful aspect of the program is that it works equally as well for smaller groups as it does for larger departments and organizations.
In a simple way, asking yourself “am I leaving the organization a better place than I found it?” has a profound effect on your thought process. You may find yourself starting to see the ramifications of every thing you do. Or don’t do. That’s when it gets really interesting. Actually paying attention to what potentially happens to your organization when you don’t meet a deadline or deliver on a promise is not only instructive, it can be very motivating. It may give you that extra push you need to go that extra mile.
WARNING: This is NOT a “fix everything in a day” program. There are plenty of consultants running around hawking those kinds of wild claims. And if you (yes – you) don’t intend to actively participate, walk the walk, talk the talk, et cetera, then this program is probably NOT for you. It is not suitable for groups or firms where the Chairman or CEO hires us to implement the program but then won’t support it, or will only support it in words but not deeds. Save your money. This is an ALL-IN program with plenty of follow-up and commitment. Period. We know this may come off as somewhat harsh, but believe us when we say that without support and follow-up at all levels, especially the very top, any program is doomed. These days, nobody has time to waste. However, since you’ve read this far, you are most likely exactly the kind of professional who will best understand what I am saying. You’ll even value the fact that we try hard to separate the “casual wishers” from those that are ready and committed to making profound and lasting changes to their organization. And you will excel at living the message.
The secret is FOLLOW-UP
The secret to success with any program is very simple, but it’s often the hardest part to accomplish – pure and simple it is “follow-up.” And lots of it.
Think back at all of the great concepts and ideas that you have come across in your career. How many did you follow-up on? How many times did you attend seminars and retreats, got all excited and motivated, and as you settled back into your daily routines, your drive and your resolve to “change the world” started to fade until it was less than a whisper? Frankly, it happens to most of us, most of the time.
By the way, that’s why so many consultants run around selling an endless line of training – few, if any attendees, actually follow through. Just look at all the binders and handouts you’ve collected over the years. Most people rarely ever refer back. So, baked right into our program is mandatory professionally facilitated follow-up over the course of one year – extendable for additional time-frames, as necessary.
Let’s agree that nothing will really change until you decide you want it to. Let’s further agree that it takes about a month or so to change any habit. Finally, regular reinforcement is invaluable. Using these metrics, our program has incorporated a follow-up program that is designed to frontload the creation of new “habits” through facilitated conversation and then to spread out those new “understandings” across an entire year. Now that’s empowering.
If you are interested in more details, we encourage you to contact Walter Timoshenko at walter.timoshenko@TotalBrandMarketing.com.
In the meanwhile, ask yourself, “What did I do today to leave my organization a Better Place?” The answer will be very telling.