April 8, 2011
Go Ahead, Change
I run into a Dallas client at a networking meeting having worked with his board of directors on implementing Policy Governance. Previously, the board directly ran the entire organization which led to serious problems. There were questions of poorly managed funds, self-dealing, and a lack of accountability. But now, the board focuses on strategic issues and oversight while the executive director runs the organization.
Once we changed the nature of the board, we needed to create the executive director’s management team since previously, board committees ran everything. We established a few volunteer “middle managers,” who answered directly to the executive director.
Sitting at the networking meeting, I ask how the management system is working. He tells me, somewhat apologetically, that he did away with the middle managers. “It just didn’t work in our organization.” I ask if the committees still report to him. “Yes,” he tells me, “this works much better.”
Organizations benefit in several ways by removing the board from managing the organization. The board can focus on strategy; it can hold the executive accountable more easily. But one of the unappreciated benefits is that the organization can change its management structure more quickly.
Imagine that the board had created this management structure. Chances are that this structure would probably be described in the bylaws of the organization which are very difficult to change, or, at the very least, the entire board would need to be convinced that changing the management structure is important. Organizations are often stuck with poor management structures because they are written into governance documents or because board members may not understand the management dynamics. By allowing the executive director to shape, and if need be, reshape the management structure, he is able to experiment and adjust, key principles in continuous improvement.
The the executive director I say, no need to feel sheepish about making changes. You are the executive and you are accountable. If you think it is necessary, go ahead, change.
