Developing policies
'Policies are an expression of the values and perspectives that underlie organisational actions.'
John Carver. Boards that Make a Difference. San Francisco: Jossey-Bass, 1991
The board has a responsibility to ensure that appropriate by-laws, policies and procedures are developed to provide for the proper delivery and control of the sport and the protection of its participants.
What are policies?
Policies describe the course or general plan of action adopted by an organisation. Policies define what should or should not be done at all levels in the organisation. Effective policy writing uses words carefully in order to ensure precise meaning or intention, always aiming to convey the greatest meaning with the fewest words.
Policies can be written prescriptively -- stating what must or should happen, or proscriptively -- stating what must not or should not happen. (Refer also to page 22: Chief executive officer authority.)
Policies typically relate to two levels of the organisation:
Governance policies
These are developed by the board and relate to the board's role and functions, including its interrelationship with, and delegation to, the chief executive officer. These might, for example, include:
- chief executive officer remuneration policy
- financial delegation and procurements policy
- board-staff communications policy
- board conflict of interest policy.
Operational policies.
These are written by the chief executive officer and relate to
the organisation's operational functions. These might, for example, include:
- team selection policy
- staff development policy
- facilities maintenance policy.
Governance policies
The board develops its own governance policies.
The board establishes its leadership role via its development, adoption and review of
governance policies. Once adopted, the board should have in place a process which ensures that the policies are applied.
The board develops its governance policies to the point where it is confident that it
has said all it needs to say, and that users of the policy will be able to adequately interpret the policy in order to achieve the outcome intended.
Only the board can develop, adopt, amend or rescind its governance policies. The board should systematically review all governance policies on a regular basis.
It is recommended that the board should develop policies to address:
- its internal governance processes and procedures
- its delegation to, and relationship with, the chief executive officer
- its commitment to the organisation's strategic position and philosophy, that is, a strategic direction or strategic plan that includes a statement of the organisation's values
- its financial policies.
Board committees or working parties are often used to carry out the groundwork or
research leading to the development of a governance policy. Professional organisations (such as the Australian Institute of Company Directors) and government organisations may be a good referral point for assistance.
All board members are bound by governance policies, which help the board to speak
with one voice. The chief executive officer should report to the board on compliance with the chief executive officer delegation policies, together with the achievement of strategic
outcomes as defined in the strategic plan.
The board should regularly review its delegation to the chief executive officer to ensure that this remains current and facilitates the achievement of the best outcomes by management.
Operational policies
The chief executive officer is responsible for developing operational policies that complement the governance policies and carry out the actions or achieve the results stated in governance policies.
While operational policies are 'owned' by the chief executive officer, they must be aligned with the board's governance policies. The board should not adopt or approve operational policies. It can, however, seek to satisfy itself that operational policies are appropriate. The chief executive officer's ability to make necessary operational policy changes should not be restricted or delayed through a need to refer them for board approval.
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