Capstone Training Boards updated [Autosaved].pptx

Learning Objectives:

Understanding Governance and Traditional Model of Governance
Stewardship and Why is steward leadership an important component to effective board governance
Defining and Connecting the three modes of Governance to Leadership
Connecting 3 modes to Steward leadership
Steward leadership is proposed.
Exploring new possibilities

1. The Steward Leadership Model for Effective Board Governance: Assignment 7b: Board Training about Governance as Leadership Capstone Project 1 2 Day Workshop December 3, 2022 Moderated by: Cheryl Clarke

2. Welcome to this 2 day Workshop and the Expectations shared Learning Objectives: Understanding Governance and Traditional Model of Governance Stewardship and Why is steward leadership an important component to effective board governance Defining and Connecting the three modes of Governance to Leadership Connecting 3 modes to Steward leadership Steward leadership is proposed. Exploring new possibilities 2

3. Governance Governance: consists of a combination of rules, procedures, and structures; as well as in a strategic and operational plan that enables organizational leadership to operate in a responsible and accountable way. The board governance is the responsible for supervising committees, setting rules, creating policies and managing the budget. They are responsible for hiring and assigning the CEO. Whom they are responsible for appointing, the majority of daily tasks. The governance structures used by non & for profits and also for boards that represent the organization’s owners.  3

4. Understanding of your current Governance Model Traditional governance model—which has been in use for over four decades ago and is still frequently utilized as the foundation for establishing governance. The Traditional Model of corporate governance is the most established. It can be consider little out of date by today's standards. In the traditional model, the board as a whole has legal duty and speaks with one voice. In business and especially Non-profit Organizations, what separates a successful and an unsuccessful one is the overall effective governance. Your Current Model is a Traditional governance model which in many structures for-profit organizations have adapted, however non-profits tend to lean into adopting a traditional governance model. 4

5. Understanding the 3 major weaknesses of the “non-profit traditional model” of governance Lacking partnership between the board and its CEO/President Fixed and unidimensional practices Lack of understanding of board roles and responsibilities 5

6. What is “Steward Leadership”? Steward leaders value building relationships through the entire organization that emphasizes high standards of integrity, trust and the result performances as a whole. Communicating effectively and setting outcomes to achieve success for the stakeholders become the primary duties of the board under this model. Dr. Robert Clinton in 1987, proposed the concept of a steward leader as “someone who manages the efficieny and grows the organizational resources, and leads the staff and activities of the organization as a steward, to achieve the mission according to the objectives of the owners or stakeholders.

7. Wilson. K. (2016) defines steward leadership as management and growth of organizational resources, through leadership of staff and activities as a non-owning steward-servant. In order to achieve the mission according to the objectives of the owners, the steward leader operates with a different mindset to fulfill the mission of an organization. Put simply, “the board focuses on the ends while the executive director focuses on the means” (Wilson 2016, p. 179). Steward leadership creates room for innovative ideas and thoughts for a bright future for the organization. Unlike traditional leadership made of control and domination, steward leadership creates spaces to build relationships intentionally and empower humanity to service with synergy and integrity.

8. The three modes of Governance

9. Fiduciary Mode Fiduciary Mode: It is intended to ensure that nonprofits are faithful to Mission, accountability for performance, and compliance with laws and regulations. Organizations assets must be safeguarded, resources must be used effectively and efficiently, and everyone including the board and management must always behave in the organization's best interests. It keeps an eye on how things are going and maintains financial accountability. Chait, Ryan and Taylor discusses three types of governance modes up are fiduciary, strategic, and generative; they are all created equally, (Trower, 2013). 9

10. Strategic Mode Chait, Ryan and Taylor discusses three types of governance modes up are fiduciary, strategic, and generative; they are all created equally, (Trower, 2013). 10 Strategic Mode: It is intended for the organization’s CEO and the board to manage problems by solving together, to discover strategic innovative ideas, and to implement the plans. This can open up to the challenge for strategic decision making.

11. Generative Mode Chait, Ryan and Taylor discusses three types of governance modes up are fiduciary, strategic, and generative; they are all created equally, (Trower, 2013). 11 Generative Mode essentially means how the board will generate: What is the insight and understanding about problems, challenges, opportunity or the environment and how the organization will seize an opportunity. Becoming effective in the generative mode is getting a deeper understanding on how the organization values their core needs of how they will frame and reframe a problem.

12. The three modes of Governance as leadership 12

13. Connecting the 3 modes of Steward Leadership The three modes of connecting to the steward leadership concept is with this example: A nonprofit organization, must make sure it has fiduciary (as an organization) and strategic (as a community), while also not losing sight on generative governance because there is a responsibility to multiply. Suppose the board of a nonprofit organization focuses too much on fiduciary governance. In that case, it certainly would not be bankrupt or engage in unethical behavior. Still, the board would have missed the point of what governance must be in terms of performing as a social organization. 13

14. Why is steward leadership an important component to effective board governance? Brinckerhoff (2004) emphasized board members being temporary stewards and making it a point to make their performance valuable for the mission outcome. The ultimate role of the board member as a steward is to work for the benefit of the community as a starting point, outcome, and process. They are to manage the organization’s resources effectively and efficiently to equip the organization to achieve the mission in the best possible outcome. The goal was not merely to survive as an organization but to thrive and grow. 14

15. Steward Leadership is proposed Traditional Leadership VS Steward Leadership 15

16. Traditional Leadership vs Steward Leadership Key Characteristics According to Wilson, traditional systems of leadership operates their organizations as pyramids in which power was distributed top down method. Wherein results for consistency and control are mostly achieved through coercion and dominance. Key Characteristics of traditional leaders often ruled Exclusion, often ruled without employee input Control, providing minimal to no flexibility Self-interest, CEO’s and managers can control an organization's entire decision-making process 16 Traditional Leadership Steward Leadership According to Wilson, traditional systems of leadership are concerned with delivering organizational results, steward system leaders are more focused on building relationships concepts with introduces the three fundamental lenses of stewardship: the lens of motivation and the lens of accountability. Key Characteristics of traditional leaders often ruled The lens of ownership, it all belongs to God no self-interest providing find meaningful solutions. The lens of motivation as a Partnership, CEO’s and managers facilitate a positive work culture helping one another to maximize their professional potential. The lens of accountability lead by example builds trust, manage and grow.

17. The Paradigm shift towards Steward leadership 17 To lead at your full potential, you need to have the courage to take an honest look at your current leadership style. Your leadership system is a vital part of your trajectory as you gain a deeper understanding of who you are and how your organization will impact others. Hierarchical vs Equitable Structures: Develop a deeper understanding of your leadership style, traits and values. Closed vs Open: How to discover mindful leadership as you build trust and accountability. Self-Invested vs Steward Driven : Deep dive below the surface of team dynamics and build high-performing teams.

18. Hierarchical vs Equitable Structures Operate on a higher level moves the organization from hierarchical to an equitable structure. Shifting to Steward leadership models often seeks to dissolve the hierarchical mindsets when it comes to position or titles. The leadership values building trust, moving with empathy as they build meaningful relationships. Holding a position or title commonly is used by a traditional leadership model for control. Here's how a leader can shift towards a more Equitability Steward leadership models shift: Everyone regardless of your position or title has the same rules Everyone's Skillsets can be considered Everyone's performance can and will be measured Everyone not just leadership will engage in strategic and generative work this will have a more engaging and collaborative organization is a positive results. 18

19. Closed vs Open Operating on a Steward leadership level moves the organization from the traditional leadership, which has a closed way of disseminating information mainly to upper management vs opening up to everyone for feedback. Steward leadership models shift: Everyone is notified! Everyone knows the details as soon as possible not just leadership. Opens doors and makes strategic connections. 19

20. Self-Interest vs Steward Driven Operating on a Steward leadership level moves the organization from the traditional leadership, from being just self-motivated by their own self-interest in order to increase their own influence, profit, and position. Wilson, said many organizations still have of a direct control system. Shifting to Steward leadership means: Valuing everyone! Prioritizes serving the organization and the community. The motivation is not money however the generative work. Open doors and making strategic connections. 20

21. Exploring new possibilities by Reimaging your leadership The way you lead yourself and others is more important than ever. Questions to Ask yourselves through reimaging your leadership: Are you moving as “we” versus “I” ? Are you embracing and empowering everyone's strengths? Are we mobilizing as a true team for financial sustainability and organizational growth? Are our goals aligned towards the overall mission and vision of the owners? Are we prepared for change? Do we have trust and confidence for the present and for the future? 21

22. Final Thoughts It rapidly becomes very clear that governance covers a wide range of an organization’s operations. Although the group may not agree on everything that was shared over the last 2 days. As a non-profit, it can differ greatly from one to another and that each governance model structure should be specifically tailored to the particular business and its industry. The BIG Takeaway is to consider creating a way to encourage, while building trust and confidence within your organization by adopting strong governance rules that leads not from the top down but with careful examination of the guiding principles for longevity. 22

23. Bowen, W. G. (2012). The Board Book: An Insider's Guide for directors and trustees. W.W. Norton & Company. Trower, C. (2013). The practitioner's guide to governance as leadership: Building high-performing nonprofit boards. Josey-Bass. Wilson, K. R. (2016). Steward Leadership in the Nonprofit Organization. Intervarsity Press.