Friday, March 27, 2009

Who Speaks and for Whom?

Whether the organization should create one opinion all the leaders can support, or whether it should be a CEO's place to speak, if not for all, for self, is a governance question.

Should a CEO, on such weighty matters as involve positions of the national association, positions or actions of regulator(s), or the political arenas of the Statehouse and the U.S Capitol, be out front alone, or are such questions better handled with input, advice and consent from the Board? Look for direction in your bylaws and in your existing governance policies.

As often is the case, there is more than one right answer. If your organization has not decided, why not make this a "Strategic Issue" at an upcoming board meeting?

Here is an excerpt from my II-B if the next version of the Board Governance Policy model manual for credit unions (also good for other nonprofits):

  • The CEO is the primary spokesperson for the organization on operational issues, micro issues affecting this organization; designate one or more alternates to speak in your absence.
  • As spokesperson for the organization on macro matters, issues affecting organizations in this community, in the state, in the nation or the world, on matters of legislation and politics, of positions taken by our trade association, the position and actions of regulatory agencies, the CEO will seek the advice and consent of the Board – we will speak with one voice. This policy, however, does not prohibit the CEO from expressing opinions and taking positions as an individual as long as they carry the note that the opinions and positions expressed are not those of this organization or its board.