Brim Report for June 2002

Thoughts About the Governance Model

Several years ago we ran a series of four articles in The Brim Report based on the book Boards That Make A Difference by John Carver.

These articles used Carver's model for governance to address the effectiveness of governing for public and non-profit boards, utilizing policy as a leadership tool, focusing on results by clarifying the organization's mission, and defining the relationship between the Board and the Chief Executive Officer. During this time I was elected to the St. Louis Park City Council and introduced the governance model to the organization in 1997.

This governance model has remained an important tool in The Brimeyer Group's consulting work with city, county, school boards and non-profit clients.

Five years later I would like to share what I have observed and learned by using this model from both sides of the table.


What It Is

The model provides a process, even a discipline, of decision making to help the Board define issues and focus on desirable results. It helps the CEO and staff by providing a method to identify the issues, consider the options and develop recommendations that meet the organization's mission.

The model talks about a Board focusing on the outside world and moving toward desired ends or outcomes. It also discusses how a Board needs to generate a powerful mission statement that includes:

· Results Terminology

· Succinct Language

· Recognition and acceptance in both in the community and within the organization

In St. Louis Park we feel fortunate to have such a mission: "Our Community of Choice for a Lifetime." Combined with eight guiding principles (value statements), our Mission Statement is clearly defined and serves the organization and community well.

However, when lacking this guidance, the model can still be effective if a board member will ask the following questions (at least mentally):

- Can I comfortably explain this decision to the 8th grade civics class?

- What will our successors say about this decision five to ten years from now?

- If this were your money, would you spend it on this program or proposal?

- If it were free, would it still be a good idea?


What It Is Not

The model discusses how Boards spend too much time on internal matters – methods, structures, means versus results. The model will not prevent these distractions from taking place. It will not automatically produce better decisions – but it can.


What It Provides

The governance model is more than strategic planning, which only succeeds by the push of individuals. The model takes control and builds the framework to motivate the organization by defining:

- A sense of mission, vision and values that is shared by the Board

- A philosophy, a process and/or discipline held by the Board that produces decisions resulting in desired outcomes

- A high level of trust between the Board, the CEO and the staff that holds the CEO/staff accountable for the achievement of end policies.


Futuristic Forecasts for 2002 and Beyond

The following thought-provoking forecasts were published in The Futurist magazine:

· By 2005 there will be just three major U.S. computer makers and three major domestic airlines. But watch out for the little guys: Micro-segmentation will produce greater numbers of highly specialized businesses and entrepreneurs seeking narrow niches.

· "Wind ranching" allows landowners to sell wind energy to electric utilities, earning as much as $2,000 a year from one turbine on a quarter acre of land, compared to $100 worth of corn on the same plot.

· Web-linked education services that offer franchised software and "college-in-a-box" courses from superstar teachers could lead to educational monopolies. Such "virtual" universities would have rigidly standardized curricula that undersell traditional courses in brick-and-mortar institutions.

· "Webcentric" universities will use the Internet to make it easy for all of a campus's constituents to stay connected -- faculty, administration, students, alumni, and parents, as well as business and research partners, donors, and the public at large. Those universities that fail to do so won't survive.

· Oceans will offer a renewable source of energy. Ocean wave power is now being tapped commercially in Britain. The waves are collected in a chamber and flow against turbine blades connected to a turbo generator, producing electrical power.

· Most of the major cities in the developing world will face severe water shortages in the next two decades, as will one-third of the population of Africa.

· Computer power and transmission speeds will accelerate. The world's fastest computer, IBM's ACSII White, may reach 16 trillion calculations per second by 2004, making it possible to transmit the entire contents of the Library of Congress in about two seconds