Governance as Leadership

RICHARD P. CHAIT is a professor at the Harvard Graduate School of Education. His research and consulting focus is on nonprofit governance and college and university management. He was recently honored as one of Harvard University’s “outstanding teachers.” WILLIAM P. RYAN is a research fellow at the Hauser Center for Nonprofit Organizations at Harvard University, and a consultant to foundations and non-profit organizations. His work focuses on nonprofit organizational effectiveness and foundation strategy. BARBARA E. TAYLOR is a researcher and consultant to nonprofit organizations whose work focuses on trusteeship, executive search, and organizational planning and assessment. She is a senior consultant with the Academic Search Consultation Service and a former vice president of the Association of Governing Boards of Universities and Colleges.

"Governance as Leadership remains necessary reading for its intended audience as well as for the academic audience at large." (The Journal of Higher Education; Nov/Dec 2007)

• about boardsource xabout the authors xipreface xvacknowledgments xxvchapter 1 First Principles 1Principle One: Nonprofit Managers Have Become Leaders 2Principle Two:Trustees Are Acting More Like Managers 4Principle Three:There Are Three Modes of Governance, All Created Equal 6Principle Four:Three Modes Are Better Than Two or One 8chapter 2 Problem Boards or Board Problems? 11Problems of Performance 12From Problems of Performance to Problems of Purpose 15Some Official Work Is Highly Episodic 17Some Official Work Is Intrinsically Unsatisfying 18Some Important Unofficial Work Is Undemanding 20Some Unofficial Work Is Rewarding but Discouraged 22The Challenge of Reform 23chapter 3 Type I Governing: Fiduciary 33Type I Governing 34The Type I Mental Map 38The Type I Board 40Assessing the Problems 45Conclusion 49chapter 4 Type II Governing: Strategic 51Nonprofits Enter the Marketplace 52Boards and Formal Strategy: A Type I Approach to Type II Work 54Strategic Disillusionment 56Strategic Thinking: Beyond a Type I Mindset 62Governing in Type II Mode 65The Evolution of Strategic Governance 66Processes and Structures for Type II Governing 68Implementing Strategy 75Why Not Just Types I and II? 76chapter 5 Type III: Generative Thinking 79The Power of Generative Thinking in Organizations 80Inside the Black Box of Generative Thinking 82Toward Generative Governing 89Leadership as Governance: Executives Displace Trustees 90Governance by Default:Trustees and Executives Disengage 93Governance by Fiat:Trustees Displace Executives 94Type III Governance:Trustees and Executives Collaborate 94Can Boards Do It? 99chapter 6 Type III: Generative Governing 101Using a Type III Mental Map of the Organization 104Recognizing Generative Landmarks 107Generative Landmarks 107Embedded Issues 108Spotting “Triple Helix” Situations 109Working at the Boundary 111Working at the Internal Boundary 111Working at the External Boundary 115Looking Back:The Future in the Rear-View Mirror 116Deliberating and Discussing Differently 119The Cardinal Rule: Suspend the Rules 120Promoting Robust Dialogue 124Mind the Mode 130The Payoffs 131Chapter 7 Working Capital That Makes Governance Work 137Intellectual Capital 142Reputational Capital 146Political Capital 150Social Capital 155Capitalizing on Trustees 161chapter 8 Where to Next? 163Is the Game Worth the Candle? 163Diagnostics 167“Attractive Nuisances” 174A New Covenant 179Coming Full Circle 181references 183index 189