Propellor governance workshop_15mar2013

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Implementing Governance for your Social Enterprise

An enp Strengthening Your Skills workshop

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At the end of this workshop, you will have:

1 A working definition of governance and different options for your social enterprise.

2 An assessment of the areas where governance can be addressed further for your social enterprise.

3 An initial action plan for implementing the changes you have identified for your governance processes.

Workshop Objectives

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We will look at how to implement governance for your social enterprise

Source: www.enterprisingnonprofits.ca/learning-toolkits

Social Enterprise Learning Toolkit

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“Governance determines who has power, who makes decisions, how other players make their voice heard and how account is rendered.”

What is governance?

Governance defines who makes decisions and how decisions are made for your organization.

Source: Institute on Governance

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Governance is focused on strategic decisions which directly influence the operational decision-making

process

Strategic

Operational

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Governance is focused on strategic decisions which directly influence the operational decision-making

process

Operational decisions

Strategic Decisions

Governance

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What are the keys to good governance?

• Vision: envisioning the future and developing the mission

• Direction: setting the goals and policies for the social enterprise

• Guidance: providing advice and direction

• Commitment: being engaged emotionally and intellectually to the social enterprise

• Transparency: maintaining regular and meaningful sharing of information

• Due diligence: assessing and managing risks related to relevant legislation and regulations

Enabling outcomes

Ensuring compliance

Source: Establishing Governance, MaRS Guide

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What elements support good governance within an organization?

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1. Start with your Mission, Vision and Strategy

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Your Social Enterprise

Mission and Vision

Strategy

• a long term plan of action designed to achieve a particular goal

• differentiated from tactics or immediate actions with resources at hand

Source: http://www.websters-online-dictionary.org

Strategic Plan

Business Plan

Mission and Vision

• Describes your target beneficiary and outcomes you expect to achieve

• Explanation of what success looks like

Source: Business Planning for Enduring Social Impact

informs key decisions on your strategy

drives the decisions on what actions to take

1. Start with your Mission, Vision and Strategy

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2. Identify your key stakeholders

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2. Identify your key stakeholders

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3. Identify who is accountable and involved in making key decisions

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Mission and overall goals for the social enterprise

Key Decisions

Target outcomes and budget for the next 12 months

Extending hours of the social enterprise

By March 31Every 2-3 years

Timing

By March 31 (year-end)Annually

Within next 2 months(one-off decision)

Strategic PlanBusiness Plan

Info Required

Financials from last 2 years

Proposal for new hours and justification

Key Stakeholders

Responsible & Approve

Board CEO Staff

Input Input

Approve Responsible Input

Input Approve Input

3. Identify who is accountable and involved in making key decisions

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Social entrepreneur with an advisory board

Social Entrepreneur

Social enterprise within a non-profit organization

Board of Directors

ProgramManager(s)

Social EnterpriseManager

Advisory Board

Social enterprises can have different governance structures

Executive Director

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Why have a board?

• Expertise

• Consultation for technical matters – e.g. audits, investment strategies, legal questions, real estate, marketing

• Legitimacy

• Potential clients, funders, staff can look at the board as an indication of legitimacy

• Relationships

• Connection and influence with key stakeholders

• For discipline and rigour

• Simply having a board increases attention to regular reporting and management processes

Source: Governance as Leadership, BoardSource

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4. Gather data and information to inform your decision-making

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What data do you need to make your key decisions?

Mission and overall goals for the social enterprise

Key Decisions

Target outcomes and budget for the next 12 months

Extending hours of the social enterprise

By March 31Every 2-3 years

Timing

By March 31 (year-end)Annually

Within next 2 months(one-off decision)

Strategic PlanBusiness Plan

Info Required

Financials from last 2 years

Proposal for new hours and justification

Key Stakeholders

Responsible & Approve

Board CEO Staff

Input Input

Approve Responsible Input

Input Approve Input

Identify the specific data elements you need and the sources for this data

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Source: www.demonstratingvalue.org

Demonstrating Value is a framework and tool for getting the data to inform your

key decisions

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How clear and effective is governance for your social enterprise today?

Assess your governanceUsing the Governance Self-Assessment Tool, for each element:

1 Determine the current level your social enterprise is at

2 Assign a priority level

3 Capture any ideas for action that you have to implement or improve this element.

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Who is involved in the decision-making process for your social enterprise?

Define your decision-making processIdentify 2 or 3 key decisions that are important for your social enterprise.

Using the Governance Definition Tool, write down the following:

1 Description of the decision that needs to be made

2 The timing of the decision in terms of a specific date and, if it is a

recurring decision, the frequency

3 Identify who is/needs to be:• Responsible for making the decision

• Approver for the decision (who is ultimately accountable)

• Consulted and involved in the decision

• Informed of the decision once it has been made

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Identify your priorities

Establish your action plan by first identifying your top priorities

Refer back to your Self-Assessment.

• Which areas did you identify as either not existing or needing work?

• Of those areas, which did you identify as a priority?

Our Goals for Governance

1 .

2 .

3 .

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Take action – your next steps!

• Use the tools and templates provided: Governance Self-Assessment Tool Governance Definition Tool Action Plan Template

• What actions will you need to take within the next 4 weeks?

• Who will you engage and why?• Review of the status of your action plans

within 4 to 6 weeks.