October / 2011

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Board Governance Brief

By John Shelford

Shelford Associates

Member of FreshXperts

 

Executive Limitations

  • Policies communicating limitations to the CEO reflecting the organization's values and ethics in actions or means to achieve the Desired Outcomes.

Five areas of Board responsibility were outlined in the April newsletter.

(The archive of this newsletter is available at http://freshxperts.com/thepress.htm)

In July "Desired Outcomes" policy was discussed.

 

Principles for Board "Executive Limitation" policy:

  • Board has one employee - the CEO
  • Board speaks with only one voice
  • Board Chairperson or CGO (Chief Governance Officer) communicates board policy to CEO
  • Policy should reflect values of the organization
  • Policy limits undesired action, does not prescribe desired actions
  • Staff is responsible to the CEO only
  • CEO is responsible for staff actions to be within board established limitations
  • Effective policy communicates the organization values to be reflected in the "means" to achieve the Desired Outcomes

Consider CEO accountability in each of these scenarios:

 

Scenario One: The CEO presents the proposed budget or other action for board consideration and approval. The board probes the makeup of the budget and approves or rejects.

  • What is the basis of the board's budget review process?
  • Is it the priority of clearly defined "Desired Outcomes?"
  • Does it reflect the board's clearly defined written values of the organization to achieve the "Desired Outcomes?"

Scenario Two: The Board has clearly defined to the CEO the organization's "Desired Outcomes" and "Values" to be reflected in actions. The CEO reports to the board the budget or proposal affirming it advances achievement of the "Desired Outcomes" and in accord with the organization "Values."

 

Business Meeting

 

Accountability Result:

Scenario One - The budget/proposal is approved by the board, often based on undefined written values. The "board approval" is a transfer of accountability from the CEO to the Board. "The Board approved the budget" becomes a defense when Desired Outcomes do not meet expectations; regretfully often not well defined up front.

 

Scenario Two - The CEO reports to the board "This budget/proposal is designed to achieve the Desired Outcomes and complies with the Organization's Values." The board's response is "Excellent." Who owns and is accountable for this budget/proposal? The CEO!

 

Great policy requires the Board to think deeply, beyond the specific action in view, to write clearly define Desired Comes to be achieved within the boundary of the organization's values.

 

Next briefing will discuss the board's responsibility to "Monitor" the CEO's performance. Desired Outcomes and Values are a foundation of excellent monitoring.

 

Shelford provides Board development, training and coaching to Governance Boards of partnerships, cooperatives, LLC's and Corporations, profit and not-for-profit organizations. Contact him at [email protected].

FreshXperts:  WHAT WE DO Ron Pelger Photo

Watch this section for a general idea of the industry skills of each FreshXpert.

 

Ron Pelger

 

My FreshXpert artisanship is generally in the retail sector consisting of several specific levels of the produce industry. I've spent years of experience as a produce manager, produce superintendent, buyer, and an upper management director. I've rolled up my sleeves, put on my work clothes, and got my hands dirty. I'm still doing it today as a partner of FreshXperts.

 

Here is what I do:

 

  •  Retail Produce Merchandising - Set up produce departments from scratch based on the marketing area, clientele, banner theme, and economic trends. Plan, layout, and set up new store produce departments. Refurbish and reset existing produce departments to maintain competitive advantage.
  •  Conduct Produce Seminars - Train employees at the store level in a "show and tell" produce department presentation. Train salespeople and buyers by bringing them up to date on current ways to reach the decision makers.
  • Profit Margin Increase - Present expertise methods of planning, buying, merchandising, and selling produce by unlocking the potentials of "making a lot of money" for companies.
  • Produce Shrink Recovery - From my experience, I know the causes of shrink inside and out. I developed programs to control waste at every level of the produce industry, especially in the stores. I go directly to the source of the waste, identify it, cut it off immediately, and send the savings to the bottom line profit.
  • Grower/Shipper Assistance - Since growers and shippers need to understand retailers' thinking, I can educate, assist, and point them in the right direction to reach the decision makers. I sat at the retail decision maker's desk for many years and know how they think, what they need, and what they want.
  • Produce Journalism - I can write and edit any subject matter related to the produce industry. I have authored over 150 column articles in The Produce News. When it comes to what people want to know and read, I can write it and reach them in their communicative language.

That is "what I do" as a FreshXpert.

 

 Ron Pelger

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1. Identify and eliminate areas of waste

2.  Put strong business practices into effect

3.  Develop long-range marketing plans

 
4.  Optimize existing operations

5.  Implement short and long term goals
 

For a fresh take on every aspect of your produce business, click on the link below to meet the FreshXperts and then contact FreshXperts today!

  The Experts:
 
Anthony Totta - Business Development and Marketing Expert, Lee's Summit, MO

Jelger de Vriend -
Retail Expert,
The Netherlands

John Shelford - Organizational Governance and Berry Expert,
Naples, FL  

Mike Nicometo -
Cool Chain Expert,
Iron Mountain, MI

Ron Pelger -
Retail Merchandising Expert, Reno, NV
 

Tim Vaux -
New Venture and Product Launch Expert,
Fresno, CA

Mike Chirveno -
Social Media Expert,
Kansas City, MO

 
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