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Best Governance Practices

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“The Evolution of Boards of Directors.”

Boards of Directors typically follow an evolutionary path as the organization matures. This tool lays out three stages of Board evolution and identifies the characteristic behaviors of each stage. This tool can apply to Boards of Directors that oversee corporations, public agencies, and non-profits. Board members can use this tool to help clarify their stage of evolution and adapt their strategies accordingly.

LRI’s Organizational Governance Model

What:
Components:
Key Questions:

Strategic foundation
  • Mission/purpose
  • Vision
  • Core values
  • What does the organization exist to do?
  • What is its vision? What are the long-term results it intends to achieve?
  • What are the organization’s core values and/or business operating principles?

Strategic focus
  • Goals and strategies
  • Culture
  • Talent development
  • What are the organization’s goals and related strategies?
  • What is important to the culture of the organization?
  • What are we doing to develop people?

Roles and Responsibilities
  • Organizational structure
  • Roles and responsibilities
  • What is the structure of the organization?
  • What is the role of the Board and what decisions does it make?
  • What decisions are delegated to the chief executive?
  • What is the role and responsibility of committees?

Oversight
  • Performance measures
  • What is the Board’s role in providing oversight?
  • What is the chief executive’s role?
  • What are the ways we measure success?
  • What are related performance metrics and targets?

Infrastructure
  • Policies and procedures
  • Information technology
  • What are people’s job responsibilities?
  • What are key business processes?
  • What technology is needed to support the business goals and business processes?
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