Governance Synergy: Concepts for Success

Governance often gets a bad rap in chamber leadership, conjuring up images of tedious by-law reviews and unclear definitions that leave both directors and staff scratching their heads. However, some chambers have embraced a proactive approach to governance. Practicing a structured system, chambers can foster synergy, ensuring that governance is not just a formality but a foundation for impactful and efficient operations.

Why a Governance Model is Essential

A robust governance model is crucial for clarity, fairness, enjoyment, and impact. Effective governance turns a group of individuals into a cohesive team with aligned beliefs, values, and goals. This alignment creates synergy, where the collective output is greater than the sum of individual contributions. Achieving this requires trust, leadership, and communication—key pillars of good governance.

Introducing the TLC Synergistic Governance Model

The TLC Synergistic Governance Model is designed to elevate governance to the next level, ensuring that synergy and excellence are at the forefront. The model is built on understanding and adhering to the roles of the Board, key cultural imperatives, and strategic concepts.

Teamwork Makes the Dream Work

Trust, leadership and communication are imperative for achieving synergy and governance excellence.

Core Elements of the TLC Synergistic Governance Model

The 3 Success Imperatives

Most organizational leadership theories assert that success hinges on a balance of structure, talent and behaviour. Likewise and more specifically, in the context of chambers of commerce, my experience is that trust, leadership and communication are imperative.

1.     Trust (Structure): Adhering to clear roles and responsibilities, collaborative efforts, and staying true to commitments.

2.     Leadership (Talent): Requiring the courage to lead and adapt, especially in challenging times.

3.     Communication (Behaviour): Cultivating a culture of courteous, two-way communication.

These imperatives form the foundation upon which the governance model rests and create a positive working culture ensuring that both the Board of Directors and the CEO can work harmoniously towards the chamber’s goals.

The 7 Concepts of Governance Excellence

Trust

1.     The Chair and CEO are a Synergistic Team: The CEO, accountable to the Board of Directors, manages the organization while the Chair, the senior elected volunteer, oversees board activities, agenda preparation, and on behalf of the Board, the CEO’s performance. This is a special working relationship where trust can greatly enhance enjoyment and impact for both teammates.

2.     Ethical Standards Inspire: Three separate codes of conduct ensure accountability and high performance – codes for directors, the CEO and for members. We are all part of the same team, accountable to ourselves and each other. This clarity helps bridge the gap between expectations and actual performance.

Leadership

3.     Board Has a Dual Role: Simply put, the Board is responsible to direct and protect the chamber. That means responsibilities for both governance and the effectiveness of management. The Board both sets governance policy and oversees compliance with laws and regulations and ensures operational success, without directly managing day-to-day activities. That takes thoughtful, skill-full and well-informed leadership.

4.     Structure is Strength: A strong organizational structure has clear terms of reference for three distinct volunteer groups: board committees, task forces and CEO working committees. For example, Board Statutory Committees (e.g., Audit, Finance, Governance or Nominating Committee), Policy Task Forces (e.g., Advocacy & Government Relations, Diversity), and CEO Working Committees (e.g., Annual Gala, Member Recruitment). As well, leadership thought is evolving on the role of executive committees. Progressive chambers choose very limited mandates for their executive committee. This is in order to prevent mistrust and ensure clarity of roles. By deliberately choosing limited mandates (e.g. acting on behalf of the full board in emergency situations), executive committees are in a better position to not usurp the decision-making authority of the full Board of Directors. Likewise, an organizational structure with clear lines of authority and accountability to and from the CEO can greatly enhance synergy and success.

5.     Orientation Boosts Performance: How do you learn the nuances of governance? Board and CEO training is essential and is an annually budgeted priority for progressive chambers. Orientation should include highlighting and discussing key by-law clauses, important operating guidelines, directives in the codes of conduct and personnel manual. Creating and sharing committee orientation manuals with clear terms of reference and reporting structure can also be very helpful. Effective leadership and governance training correlates directly with committee and board performance, helping directors and volunteers better enjoy and understand their roles and responsibilities.

Communication

6.     Two Types of Policies: Confusion sometimes surrounds who is responsible for which policies. The need for clear two-way communication cannot be overstated. It builds trust, with a smart and healthy chamber as the outcome. Differentiating between governance policies (set by the Board) and operational policies (set by the CEO) prevents conflicts and clarifies boundaries. Yes, it is sometimes difficult to determine one from the other, underscoring the importance of courteous two-way communication. Governance policies involve issues such as strategic planning, budget approval, membership categories, CEO compensation and ethical standards. Operational policies cover administrative aspects such as staff HR policies, job descriptions, bank arrangements, sponsorship policies and office scheduling. Effective two-way communication builds trust.

7.     Evaluation is a Conversation: Good governance is an on-going conversation. Best practices include implementing what can be termed as "good governance hygiene." This involves a performance monitoring system with regular reviews of policies, by-laws, and other guiding documents. Monitoring also includes regular CEO reports, committee reports, financial statement reviews, and external audits. It is vital to maintain regular monitoring of the organization's progress, including assessments of both CEO and Board performance. Often starting the assessment process with self-evaluations, performance reviews should be collaborative, straightforward and focused on identifying successes and areas for improvement.

In summary, The TLC Synergistic Governance Model is a comprehensive approach to governance, ensuring that trust, leadership, and communication drive the organization towards excellence. By adhering to these principles and structures, chambers can achieve greater synergy and impact, transforming governance from a necessary evil into a powerful tool for success.