Governance Matters

Book Review

Stahlke, Les. Loughlin, Jennifer. Governance Matters. Relationship model of governance, leadership, and management. Copyright 2003. Governance Matters . com Inc.
L.S.- has been in leadership positions in not-for-profit organizations for forty years. He has developed what he calls the Relationship Model of governance.
J.L.- has served various mission organizations in the U.K. in the area of governance. (M.A.F.) Her organization now is Creative People Solutions.

Comment. Henry
This is a manual, a text book if you please, that presents a specific model of governance and how this model should be implemented. It is a model that is recommended for not-for-profit organizations. Our church board is meeting with Stahlke this week to see how this model might be effective in our approach to governance.

“The most important principle contained in this book is that for an organization to be healthy, both staff and clients must be equally fulfilled.” (3) An overview is given of the “Default Model”. (4)

Healthy working relationships in an organization are characterized by “affirmation, involvement and servant leadership”. (14) At the extremes of the continuum of value systems are laissez-fare values and authoritarian values. These need to flow into a relationship-oriented value system.

Relationships are part of God’s original plan for man. They have three components, “authority, responsibility and accountability”. (61)

The relationship model of governance is illustrated by the metaphor of a tree. It is explained by ten statements targeting governance, leadership and management...

There are “six core processes of a healthy organization”. (90) They are, “communication, decision making, conflict resolution, planning, delegating and accountability-monitoring, and measuring”; (110) the first three are foundational to the last three. Each process is viewed as a “dynamic cycle”. (93) Achieving success in these processes will be determined by the values they support.

The differences between a managing board and a governing board are discussed. Governing is compared to parenting. Successful board members will demonstrate “achieving, thinking, leadership and personal competencies.

The relationships within a governing board are discussed. i.e. “the board and the members of the organization, the board chair and the board, the committees and the board, and the individual board member and the board”. (169)

A governing board has four quadrants of responsibilities. “1. Design board structures and processes. 2. Direct strategic plans and priorities. 3. Delegate management authority and responsibility. 4. Determine strategic results and exercise board accountabilities.” (204) Management structure of an organization becomes the responsibility of the C.E.O. Decision making should be done by consensus.

When there is good governance, strong leadership and effective management, an organization will reach its optimum potential.