Rajatarangini Englsh Translation - Ranjit Sitaram Pandit_Part2
Dave Sitaram Canadian Co-operative Association September 2009.
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Transcript of Dave Sitaram Canadian Co-operative Association September 2009.
Presentation overview
Why governance mattersRole of Boards and directorsCharacteristics of effective
board leadershipBarriers to effective
governance Trends in Canadian co-op
governance
Why governance matters
Co-op Boards must be accountable to members and abide by co-operative principles.
Not just about the “bottom line”
Role of directors
Role of Boards and directors
“The directors manage or supervise the management of the business and affairs of the co-operative.”
Canadian Co-operatives Act
Role of Boards and directors
Board: what is to be achieved? For whom and at what cost?
Management: how will it be achieved?
Role of boards and directorsBoard “owns” Vision,
Mission and Values (ends)
Management “owns” Strategic Plan (means)
Establishing Vision, Mission and ValuesVision: were do we want to be in the future?Mission: Why do we exist. And for whom?Values: What essential beliefs guide our
decisions/actions?
The Board’s role in strategic planningReview and approveUnderstand & challenge
assumptionsUnderstand critical success
factorsEnsure sufficient due diligenceIs the plan realistic/achievable?How will success be measured?Monitor performance
Key success factors for an effective BoardOutstanding leadershipUnquestioned legitimacy and effective powerEnlightened definition of function, role and
responsibilitiesOutstanding competenceA supportive, functional culture; andEfficient management of function, structure and process
From: MAKING BOARDS WORK, Richard Ivey School of Business, University of Western Ontario, Canada
Business know-how Dealing with people
Personal development
Strategicplanning & thinking
Finance
Co-op& industryknowledge
Marketawareness Corporate
governance
Leadership
Boardroom practice
Teamwork Influencing & negotiating
Self perception
Judgment & decision
making
Directing change
Managingworkload &
pressure
Interpersonalcommunication
Presentation
Being a Director
Directorship Competence Map
Barriers to effective governanceIneffective leadership“Representational mindset”Lack of sustained commitment to
Vision, Mission, ValuesUnclear definitions of functions, roles
and responsibilitiesLack of clarity between role of
management & BoardLack of mutual trust within Board
and between Board and management
Barriers to effective governance
Imbalance of skills/competencies
Poor information management (too much/too little)
Burnout of Board membersTurnover of Board members
and little/no corporate memoryLack of succession planning
Trends in co-op governance
Improved accountabilityBoard and committee
chartersBoard and director
evaluationsMember surveys and focus
groupsOn-line disclosures
Trends in co-op governanceAverage size of Board: 9.4
directorsAverage 2.5 women on the BoardAverage 10 meetings per yearAverage length of service:
Non-financial co-ops: 7.5 yearsCredit unions: 9 years
Most directors have 3-year terms