The GEM: Governance Excellence ModelTM
Shown as a diamond—a GEM—the Governance Excellence ModelTM has six facets or areas of responsibility, representing the Seven Disciplines that capture the board’s role in an organization's success.
THE SEVEN DISCIPLINES OF GOVERNANCE EXCELLENCE
Direct
... Organizational Performance
Define and refine the vision, mission, and values.
Determine key result areas.
Establish the governing policies that guide the organization.
Protect
... the Interests of the Owners
Ensure that key result areas and policies are met through appropriate auditing and reporting.
Maintain a culture of performance improvement for both the Board and the CEO.
Connect
... for Healthy Board Relationships
Agree upon, understand, and comply with the expectations of each other as board members.
Create and follow a communication process within the board.
Contribute to an effective team dynamic within the board.
Expect
... Great Board-Management Interaction
Articulate board expectations of the organization and CEO.
Establish and maintain the communication process between board and CEO, including confirmation of CEO performance.
Foster an effective team dynamic between board and CEO.
Respect
... Owner Expectations
Listen to understand owners.
Invite input from the owners.
Help owners understand board actions and organizational results.
Select
... Prominent Leadership
Choose people with the skills, values, and credibility to fulfill their key responsibilities.
Remove people from these roles if they compromise the organization's effectiveness.
Reflect
... on Organizational Results
Understand and think about the results of the organization's operations and the reasons for deviations from projections.
The role of the board is to Direct and Protect.
While in the past, board members were happy to let management set the direction for the organization while the board played
a role of approving and advising, this is not the role of the governing board. Set direction, Protect the interests of the owners rather than your own, and keep the Seven Disciplines top of mind to keep your board fulfilling its role and helpfully serving the organization.
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