Does your organisation have board policies?

Some small organisations don’t and find that things happen because “that’s always how we have done it”.  This is typical of the organisations that have people who have been on the board for a long period of time.  It’s also typical of a board that has been dominated by a strong personality, much as Robin led his Merry Men by sheer personality. Most organisations, however, will have some polices and depending on how well they are managed and relied upon will determine their effectiveness.

It is important for every organisation to have a strong policy framework as it establishes and clarifies the key responsibilities between the board and the Chief Executive Officer. (CEO) It puts boundaries around where these responsibilities begin and end.

The main importance of the board policies is that they give the CEO the parameters for how the board expects the organisation to be run.  The policies keep things consistent even when there is a change of CEO or board membership.

Board policies should also be linked to the mission and values of the organisation and reflected in the strategic objectives.  These board policies also determine the appropriate procedures for the day to day running of the organisation.  Those procedures are developed, implemented and managed by the CEO.  So in other words, your policies set the boundaries in which the CEO can lead the organisation.

Board policies also provide parameters for the reports provided by the CEO to the board.  Every board needs to know the organisation is complying with its own policies so a key component of any report must show how the organisation is performing against the policies.

The more clearly the board policies are written, the less likelihood of surprises. They should be easy for any member of the organisation to understand. Remember that it’s the board members who will be held accountable for any failings on the part of the organisation.  It’s worth getting the policies right.

A strong policy framework results in strong governance. That is good for you all.