The Special Challenges of Association Governance

• Published date: 01 September 2015
• DOI: http://doi.org/10.1002/bl.30024
• Date: 01 September 2015

ALSO IN THIS ISSUE

ONE WAY TO GOVERN: THE

COMPLEMENTARY MODEL OF

BOARD GOVERNANCEE ............... 4

FOR YOUR BOOKSHELF ... ........... 6

NUMBER 141, SEPT.–OCT. 2015

www.boardleadershipnewsletter.com

(continued on page 2)

The Special Challenges

of Association Governance

by Bill Charney

The US Internal Revenue Service (IRS) recognized 92,331 trade and professional

associations in 2010, a 3.4 percent increase since 2001.1 Here, experienced

consultant Bill Charney, who has helped a wide variety of associations implement

governance improvements—often using the Policy Governance® system—

highlights some of the particular challenges they face.

BOARD LEADERSHIP

INNOVATIVE APPROACHES TO GOVERNANCE

View this newsletter online at wileyonlinelibrary.com

Board Leadership • DOI: 10.1002/bl • Sept.-Oct. 2015

“Governance Is Governance”

KENNETH DAYTON, a preeminent phi-

lanthropist and former chairman

and CEO of Dayton Hudson Cor-

poration (now Target Corporation),

gave his now-famous “Governance

Is Governance” speech to the 1986

Independent Sector leadership forum

(published in 1987).2 Dayton’s message

to nonprofit leaders confounded the

notions, common then and now, that

we still refer to as “traditional” board

practices.

Conveying his “deeply held convic-

tion” that governance is not manage-

ment, Dayton stated that chair and

CEO roles must be separated, that an

all-powerful chair or a weak CEO is a

threat to organizational success, and

that the governance job is identical in

both the nonprofit and for-profit sec-

tors. The only distinction, he noted, is

that nonprofit “trustees” also should

volunteer in service to, not exercising

authority over, the CEO.

These notions added great cre-

dence to John Carver’s Policy Gov-

ernance model. For critics grumbling

that a singular model cannot attend to

an organization’s uniqueness, Dayton

articulated brilliantly how failing to

recognize that “governance is gover-

nance” is itself detrimental to success

and sustainability.

Is Association Governance

Different?

“Associations” are formed when

people join together to advance com-

mon interests, be they business or

social. This article focuses particularly

on trade and business associations, in

which members may be individuals,

organizations, or both. Many of the

dynamics addressed are also common in

other membership organizations (e.g.,

clubs, guilds, fraternities/sororities,

homeowner associations).

The job of an association board is

no different than that of a charity or

SEPTEMBER 21, 22, 23, 2015

Advanced Policy Governance

Training for Board Members

and CEOs

— Toronto, Ontario, Canada

This will be a three-day session

with Catherine M. Raso, CMR Gov-

ernance Consulting.

For more information visit

www.CMRaso.com.

SEPTEMBER 26–29, 2015

NACD Global Board Leaders’

Summit

— Marriott Marquis,

Washington, DC, USA

The National Association of

Corporate Directors’ (NACD) 2015

Global Board Leaders’ Summit

will convene more than 1,200 of

the world’s leading directors and

industry experts, with a mission to

raise the bar for boardroom lead-

ership across the globe.

For more information see

https://www.nacdonline.org/

conference/index.cfm

SEPTEMBER 23, 2015

International Policy Gover-

nance Association (IPGA) Con-

sultants’ Forum (experienced

practitioners also welcome)

— 11:00 a.m.–1:30 p.m. Eastern,

via Fuze meeting videoconference

EVENTS

(continued on page 5)