Focus

Board Development

Client

Public Utility (SMUD)

Work

Policy Development

Outcome

Clarity + Performance

A governance policy framework that clarified authority, improved trust, and strengthened results.

We work with many publicly elected boards, helping them gain clarity about their governance role so that they can manage decisions well. A good board development case study is the Sacramento Municipal Utility District.

Clarifying “Who’s Responsible for What?” Avoiding “rubber-stamp” governance Governance process policies Board-staff linkage policies Strategic direction policies
01

Clarifying “Who’s Responsible for What?”

A focal point of our work is defining in writing the SMUD Board’s role. How much responsibility does the elected board have for the strategic direction of the organization? What is the role of the staff? When do board members get involved in operational decisions? How do conflicts between board and staff get resolved? Who’s really in charge?

02

Avoiding “rubber-stamp” governance

LRI facilitated a joint strategic planning process to identify ways that the agencies responsible for assisting victims of crime can better coordinate their efforts and make sure victims are able to access services. Working with a steering committee composed of leaders from the two agencies, we developed a strategic plan and segued into developing an implementation plan.

Governance Policy Framework

Look
03

Governance process policies

LRI facilitated the development of a new governance framework and system for its elected Board of Directors. The resulting set of governing policies helped build tighter levels of alignment across the organization – and greater clarity of the respective decision-making authority of the Board and the CEO and executive team.

04

Board-staff linkage policies

LRI facilitated the monitoring of its governance framework and governance policies for its Board of Directors. As a result, SMUD realized measurable gains in alignment and performance throughout the organization.

04

Strategic direction policies

What are the results the Board expects the organization to achieve? How is the Board going to measure performance? The strategic directives define the specific measures and targets that SMUD is supposed to achieve for each goal, such as customer satisfaction or reliability or environmental protection. The policies also spell out exactly how often the Board wants to measure each result. SMUD’s board, for example, set a goal in its customer relations policy of achieving an overall customer satisfaction target of 95 percent. SMUD has consistently achieved that target since the policy was enacted in 2003. And it was great news to the Board when SMUD was named the number one public utility in the United States for customer service in 2006 and 2007.

Effective governance policies answer the question “Who’s really in charge?” The answer is: the Board has responsibility for defining the goals for the organization. The staff has responsibility for implementing and achieving goals. As the SMUD example illustrates, effective governance policies can instill a strong focus on results and performance. By coordinating the activities of the Board and staff, strong levels of trust can grow as well.

Strategic Policy Governance – a System That Works for Publicly-Elected Boards.


Thanks for reading our board development case study. LRI Board governance consulting helps Boards and other governing bodies develop best practices and clarity about their role and that of management – and achieve higher levels of performance.