How the Board Learns Strategy through Careful Ends Monitoring

 In the Policy Governance^® world a well done operational definition (previously referred to as a reasonable interpretation) of the intended End as part of the monitoring process should reveal to the board the essential strategy of the organization directed at creating the intended Ends. And, it should reveal the critical mileposts against which the board can assess the progress toward Ends.

There are times when achieving the Ends must take place through an uncertain and ambiguous world. It is not a linear sequence of predictable actions and results (it rarely is). This means that little steps are best experimentally taken toward the Ends. It also means that the organization must develop the competence at doing that — creating a theory of how things are and then creating a hypothesis on how to move forward, executing against that hypothesis and then analyzing the results. Progress? Theory confirmed? To what extent? —> Install the process that brought the improvement and repeat. Theory —> hypothesis for improvement —> try it out and measure results. Better results? Hang on to them and repeat. This is the essence of getting better and better, eventually excellent. Don’t be afraid to experiment —make small bets as the book by that title suggests.

This is the essence of the PDCA cycle that Deming taught. To pull this off, the organization must create a culture that permits, enables and strengthens its capacity to improve. A culture of curiosity, collaboration, not blaming, but a systems-focus, willingness to listen to negative information from employees and customers, a learning culture, etc.

How does the Board know all this is going on and what progress is being made? It certainly won’t wait for the Ends to be created. Reporting can be part of the incidental information report and/or part of an Ends monitoring report reporting on progress along the roadmap laid out in the operational definition. Further, I believe that these reports also be presented verbally to the board as well as in writing. The give and take, (not meddling nor “advice”), will clarify for the board the effects of the strategy as being executed. The board can assess the operational definition and the progress being made for completeness and desired effect.