governance roadshow participant handout (mmm 2006)

8/14/2019 Governance Roadshow Participant Handout (MMM 2006)

1/18

creating a more sustainable arts & cultural sector

Mission Accomplished ensuring good

governance in challenging times

13/14 November 2006


2/18

Two Quotes:

1. Effective governance by a board of trustees is a relatively rare and unnatural act

because the tides of trusteeship carry boards in the wrong direction: from

strategy towards operation, from long-term challenges towards immediate

concerns, from collective action towards individual initiatives

2. The three most important lessons focus on making sure a trustee trulyunderstandsthe financial condition of the institution; is not hesitant to ask tough, probing

questions; and is willing to challenge management when something does not make

sense.

many boards operate in such a collegial, consensus-driven manner that

individuals are uncomfortable challenging management or questioning

inconsistencies or the quality of information they receive

you need a director on the board who will be a pleasant irritant, someone who

will force people to think a little differently. Thats what a good board does.


3/18

What is Governance?

The systems and procedures concerned with ensuring overall direction,

effectiveness, supervision and accountability of an organisation.

Good Governance: a Code for the Voluntary & Community Sector

Governance goes beyond notions of ethics, responsibility, accountability. It isan ethos enveloping an organisation causing everyone to think about not just

how, but why, they do what they do.

Foundation for Good Governance


4/18

What is Governance?

The systems and procedures concerned with ensuring overall direction,

effectiveness, supervision and accountability of an organisation.

Good Governance: a Code for the Voluntary & Community Sector

Not just about how the Board works The whole organisation:

Internal

External

Executive

Non-executive

MD/CEO Chair:

must learn to dance together

neither can stray far from each others gaze or proceed independently


5/18

What is MMM?

Mission, Models, Money (MMM) is a national action research programme and a

campaign for change which aims to ensure that artistic and cultural endeavour thrives

in the UK at a time of accelerating social, demographic, cultural and economic change.

MMMs mission

Engaging leaders of the not for profit arts and cultural sectorand theirfunders toaddress the challenges of developing mission-led, financially and organisationallysustainable businesses, by exploring and promoting a deeper understanding of theprincipal issues identified by MMM as enabling sustainability.


6/18

Whats emerging so far from the MMM Programme?

Recognition ofaccelerating change in external operating environment but

insufficient recognition of tectonic shift in global culture especially in relation to

demographics, environmental pressures, new technology, cultural identity, primacy of

marketplace

Governance behaviours not changing fast enough to reflect new operating context

the challenges faced are of a different order to those in the past

One-size-fits-all charity model may not be the appropriate corporate structure for

all A&Cos

Trustees should regularly revisit continuing relevance of the mission of their A&CO

and have to avoid mission creep forced upon them by funders and other stakeholders

In fast changing environment how to ensure the right people are hired with the

right talent to the right job specs; and how to manage executive and non executive

succession issues?


7/18

Today

Share actual experience and examples of governance:

Identify top quality and effective governance

highlight what is special to the arts/culture sector and what is universal

examine current changes and their impact and consequences contribute to MMMs wider agenda of research, signposting, influence, action and

campaigning


8/18

Today

Share actual experience and examples of governance:

The Case Studies

3 Key Governance Issues for the Sector:

1. Trustee Responsibilities for Supporting Artistic Risk2. Understanding and Applying Appropriate Business Models

3. Building Effective Relationships between Board and Executive


9/18

Todays agenda

10:00 10:20 Welcome & Introduction

10:20 10:45 Starter Questions

10:45 11:30 The Case Studies

11:30 13:00 Key Governance Issues for the Sector

13:00 13:15 Conclusions next steps

13:15 14:00 Lunch & Networking


10/181

Starter Questions:

1. (CEO/Chair pairs): What really frustrates you about governance? In your organisation whats a specific

obstacle to progress and high performance?

2. (in pair with a stranger) We got it Right share an example of good governanceof a high quality decisiona

process that met every objective. Why did it work?


11/181

The Case Studies:

Fabrica, Brighton: relationship between board members, staff, volunteers

Sadlers Wells, London: board role in balancing artistic risk with financial viability

Voluntary Arts Network:

Board using Good Governance Code for review and change

Watershed Arts Trust, Bristol: new legal structure as starting point for development as social enterprise

Wordsworth Trust, Grasmere:

succession planning and board development following stabilisation


12/181

The Case Studies:

Discuss the case studyFrom the issues raised: Make connections with your own organisation/experience How did you/might you tackle/anticipate/avoid these challenges?

Feedback from Group Discussion

Key practical lessons about the governance of Arts/Culture organisations:

What an organisations leadership must get right if it is to thrive


13/18

1

Key Governance Issues:

1. Trustee Responsibilities for Supporting Artistic Risk

2. Understanding & Applying Appropriate Business Models



14/18

1


1. Trustee Responsibilities for Supporting Artistic Risk

In relationship to:

Audiences/participants

Finances

Mission

Other stakeholders


15/18

1

The

IronTriangle

Programmes

Organisational

CapacityFinancial

Capacity

Mission

Mission

2.Understanding & Applying Appropriate Business Models


16/18

1



They must learn to dance together and neither can stray far from each

other's gaze or proceed independently. The quality of its leadership can make or break a board. Good

governance requires sound leadership and is inhibited by weak leadership.

Although an excellent board chair does not guarantee superiorgovernance, a poor or inadequate one nearly always thwarts it.


17/18

1


THE ISSUES; Trustee Responsibilities for Supporting Artistic Risk Understanding & Applying AppropriateBusiness Models Building Effective Relationships between Board and Executive

THE GROUP TASKS:

What Challenges are particular to Arts/Culture Organisations Recommendations for Tackling those Challenges What would Help you do so with Confidence?

FEEDBACK SELECT 2 CHALLENGES; ON EACH:

1. Two recommendations for Internal Action what organisations can do forthemselves?

2. Two proposals for External Assistance who could do what to help?


18/18

1

Conclusions

Recipe for disaster for a progressive 21st century arts organisation:

Be forced by circumstances and/or funding to take a legal structure developed to

encourage investment in railways 200 years ago, adapt inadequately for non-profit

distributing activity, and coat liberally with an antiquated, class-ridden status designedin 1601 to support chancery chapels, education for young boys and dowries for young

maidens.

Garnish with red tape and heavily prescriptive handbooks advocating one size fits all.

Stir annually with a highly paid consultant at a Board retreat.

Madeline Hutchins

governance roadshow participant handout (mmm 2006)

Documents