How to get the best return on your board asset. (Governance)."Our board is a real asset." We've we've Contraction of we have. we've have heard it so many times, but do we know the value of this asset? Are we getting the best return? You can manage the asset represented by your board and you should expect a good return. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have all about visualizing visualizing, v 1., holding an image in one's mind. 2., forming an image of a goal or destination in one's mind before undertaking it, so as to facilitate success. the value and then practicing a few simple habits that will pay big dividends. Let's look at three ballpark-type models--expense, asset, and dividend--that can help you better understand your board's true value. The expense model views governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. as an operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. . It takes into account all the associated expenses of travel, hotel accommodations, meals, meeting rooms, entertainment, speaker fees, guests, equipment rentals, teleconferencing, special awards, gifts, and so forth. The asset model seeks to measure the collective professional value of board members. That is, what would be the value of the directors' professional time to their respective companies, organizations, or to other boards if they were not at this meeting? Most associations have conducted salary surveys of their members; this data can be useful in arriving at a ballpark figure ballpark figure n (inf) → chiffre approximatif ballpark figure (inf) n → Richtzahl f ballpark figure n ( . The dividend model, which is the most difficult to value, seeks to measure the value that board members bring to the table in terms of experience, skills, leadership, practiced analysis, and honed judgment. These are talents available to the organization every minute of every meeting. Are we using these talents fully or are we silencing them while we numb numb (num) anesthetic (1). numb adj. 1. Being unable or only partially able to feel sensation or pain; deadened or anesthetized. 2. directors with marathon reports and unproductive discussions? Taking all three models into consideration, let's assume that the total value of an eight-hour board meeting may range from $41,000 to $60,000. Every hour is worth about $5,000 (using the minimum value) and every 10 minutes of board time is worth about $800, available as a board asset. Associations can maximize the return on their board asset by following simple practices that ensure effectiveness. * Resolve to design and conduct board meetings for maximum gains and to regularly assess the work of the board. * Begin meetings on time. * Maximize board talk time; minimize staff talk time. * Prepare agendas and materials that lead to decisions. Use a consent agenda to dispense with To permit the neglect or omission of, as a form, a ceremony, an oath; to suspend the operation of, as a law; to give up, release, or do without, as services, attention, etc.; to forego; to part with To allow by dispensation; to excuse; to exempt; to grant dispensation to or for. routine business in the first two minutes and build a strategic agenda to focus the remaining time on substantive, priority issues that require the collective wisdom of the board. Avoid using meetings for "information only" reports. * Distribute all information needed for board decisions in advance of the meeting. * Distribute written reports in advance of the meeting and don't repeat them with oral reports. * Prepare draft motions to accompany the agenda so directors know what they are being asked to vote on. * Use your Web site to provide timely board access to information. * Request written evaluations of every meeting and track results. A few questions regarding meeting preparation and participation will yield improvements and give directors an opportunity for comments. * Engage the board in regular, formal self-assessments of its work. Making this an annual board activity keeps it in perspective and on the agenda. Submitted by Neil W Bohnert, CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. , president of Madison-Bohnert Associates, Meadvile, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , and an associate of Qm2 at Qm2.org. E-mail: neilb@erie.net |
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