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Appreciative Governance: Engagement and
        Innovation Throughout The Organization

            Bernard Mohr & Neil Samuels
                     April 11, 2012




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INTEGRATED PLANNING
            Advising nonprofits in:        www.synthesispartnership.com
            • Strategy
            • Planning                                    (617) 969-1881
            • Organizational Development   info@synthesispartnership.com


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Affordable collaborative data
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Today’s Speakers




                       Bernard Mohr                      Neil Samuels
Assisting with            Co-Founder                         President
chat questions: Innovation Partners International   Profound Conversations, Inc.
April Hunt &
Riley Croft,                                                                                  Hosting:
Nonprofit Webinars                                                    Sam Frank, Synthesis Partnership

A Service
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Appreciative Governance for Nonprofits:
           Engagement and Innovation
          Throughout The Organization




Bernard Mohr: Innovation Partners International
Neil Samuels: Profound Conversations, Inc.



                                                  5
GOALS & AGENDA

Takeaways from today’s Webinar:
• Understand the need for new models of governance
• Understand how Appreciative Governance (AG) differs from traditional
  forms of Governance
• Understand the benefits of adopting this new form of governance
• Learn about a set Principles to guide the design of Appreciative
  Governance for your organization
• Learn about a high-engagement methodology for designing
  Appreciative Governance models

Agenda:
1. The need for new models of governance
2. How Appreciative Governance (AG) differs from traditional forms of
   Governance
3. So what – Benefits?
4. Principles for Designing Appreciative Governance Systems
5. Implementing AG through co-design
Some Background Information
1.How would you rate current governance systems in the non profit
    sector?
   a) Very effective
   b) Moderately effective
   c) Slightly effective
   d) Ineffective
   e) Very ineffective
2. How experienced are you in designing governance systems?
   a) Very experienced
   b) Moderately experienced
   c) Slightly experienced
   d) No experience

3. How familiar are you with Appreciative Inquiry?
   a) Experienced practitioner of AI at whole organization level
   b) Have used AI a number of times to drive results
   c) Attended training and have tried it out a few times
   d) Have been exposed to it – read about it.
   e) I can spell AI
The Need for Governing Differently
1.An increasing pattern of Governance failure
   –   Roman Catholic Church, the United Way, The American Red Cross, NAACP, the
       American Cancer Society, and Toys for Tots (Gibelman & Gelman, 2000)
   –   Great Depression of 1929…. 2008 Wall Street crash
   –   Enron, MCI/Worldcom, Adelphia Communications, Arthur Andersen, Global
       Crossing, Tyco

2.The “new normal” - Nilofer Merchant
   –   "Leadership" has changed when a decentralized group of people can take down a
       government. E.g. Egypt, Tunisia
   –   "The Value Chain" has changed when the client is no longer just the “receiver of
       services" but also a co-creator.
   –   "Human Resources" have changed when many of the people who create value for
       your organization are neither hired nor paid by you.
   –   ”How work gets done and financed" has changed when individuals can create
       value through a centralized network of resources: for example, designing a product
       from anywhere, producing it through a 3D factory, financing it through community
       and distribution from anywhere to anywhere.
3.Need for full engagement of heads, hearts, and minds
   -- “within the existing paradigm of “direct and control” the people assumed to be most
      able to manage the accountability are those who sit at the top of the pyramid, the
      Board of Directors”
Governance Comparison
Dimension      Traditional View of Governance                 Appreciative Governance
Thrust         Emphasizes controlling or              Emphasizes mobilizing and encouraging
               preventing behavior that is illegal,   behavior that is legal, ethical, and positive
               unethical, or detrimental to the       to the long-term interests of shareholders
               interests of shareholders.             and stakeholders while maintaining a
                                                      posture of deterrence of behavior
                                                      antithetical to those interests.
                                                      AG illuminates and more broadly
                                                      accesses the organization’s strengths,
                                                      resources, and assets.
Key Actors     Views the board of directors as the    Acknowledges that everyone in the
               key actors in governing                organization carries out governance —
                                                      the board of directors, management, and
                                                      all other employees.
Focus          Focuses on board activities of         Focuses on the organization’s structures,
               senior management selection and        practices, and processes and the full
               compensation, advising senior          range of all employees’ behaviors as
               management, and reviewing              related to Parson’s four functions of
               accuracy of financial reporting and    governance (Adaptation, Goal
               adequacy of compliance efforts.        Achievement, Integration and Long Term
                                                      Development).
Orientation    Begins with a problem-prevention       Begins from a strength-based perspective
               point of view and is advocacy          and is inquiry driven.
               driven.
Appreciative Governance – Def’n


Appreciative Governance (AG) refers to structures, practices, and
 processes that:

• identify and align individual and organizational strengths;
• maximize collaboration, learning, and innovation; and
• create full engagement and accountability

…. resulting in an agile organization capable of rapid, effective
 decisions at the most local levels and an innovative climate that
 ensures mission sustainability.
Why Appreciative Governance?

What benefits do you see in adopting this
 new form of governance?
  – for employees and/or volunteer staff?
  – for management?
  – for clients/service recipients?
Benefits of Appreciative Governance?

• Increases adaptability through faster/better
  decision making
• Distributes and deepens accountability
• More fully engages staff and volunteers
• Illuminates and more broadly accesses the
  organization’s strengths and resources
• Broadens and deepens relationships
• Speeds knowledge transfer
• Encourages innovation
Principles of AG

How We Think of Principles:

1. A fundamental truth or proposition that
   serves as the foundation for a system
   of belief or behavior or for a chain of
   reasoning.
2. The basis for design choices.
Principles for Designing AG




• Interdependent
• Mutually inclusive
• Create the fabric of the system
Principles for Designing AG
Implementing AG through Co-Design

                                                   The Appreciative Governance Design Matrix
                                           (Based on Talcott Parson’s writings and adapted from work by John J Cotter and William O Lytle)




                                                Four “Surfaces” where Governance “Takes Place”
                                                                  2. Laterally –            3. Vertically –             4. Organization
                                           1. Within
                                                                 Work Group To                  Along                       And it’s
                                          Work Group
                                                                  Work Group                 Managerial                  Environment
                                                                                              Hierarchy
4 Governance Functions




                            Adaptation

                                  Goal
        (AGIL)




                           Attainment
                            Integration

                           Long Term
                         Sustainability
Implementing AG through Co-Design




 Board and Executive
   Mng’t explore :

1.What does the “there”
  that we most             Engage the organization in
  want/need look like?        making an informed        Start small, act
                           decision about where and       fast, reflect,
1.Why would we want to
                               with whom in your
  get to “there”? what
                            organization you want to
                                                        learn, adjust –
  would we gain? And
  why not just stay as         begin creating an            expand.
  we are?                   appreciative governance
                                    system.
3. What are the options
for moving from “here to
there” (i.e. what is the
design process for us?)

4. What are implications
for us and our
leadership
SUMMARY
1. Boards of Directors and Executive Management committees come to mind
   whenever we mention organizational governance. This premise that those at the
   top are the only ones “governing” has less and less face validity.

1. Wherever people work together, they make choices that set standards of
   relationship, behavior and accountability …with consequences for organizational
   success.

1. Why not then engage them in a governance system that explicitly supports
   Adaptation, Goal Achievement, Integration, and Long Term Development at all levels
   - i.e. – Appreciative Governance.

2. Appreciative Governance (AG) refers to structures, practices, and processes that:
    • identify and align individual and organizational strengths;
    • maximize collaboration, learning, and innovation; and
    • create full engagement and accountability
    …. resulting in an agile organization capable of rapid, effective decisions at the
    most local levels and an innovative climate that ensures mission sustainability.
Contact Information


Bernard Mohr:
Innovation Partners International
www.InnovationPartners.com
207-874-0118
bjMohr@InnovationPartners.com


Neil Samuels:
Profound Conversations, Inc.
www.profoundconversations.com
630-605-4610
neil@profoundconversations.com
An Accelerated AG Implementation Process
                                                 Refine the Model
                                                 And Design The
                                                   Act-Evolve
                                                                                                                         Review and
                                                     Process                                  Deploy
                                                                                                                         Reconfigure

                                                Mobilize

                                                                                                           Act – Evolve

                                         Model the New Governance
                                         Architecture Relationally &
                                                 Structurally

                                      Iterate
                                                             Stress
                                                              Test

                                    Imagine




           Create Shared Will
        • Identify Positive Core
        • Draft Shared Purpose



        Connect-Explore                                    AG SUMMIT Process*
•   Based on work by the STS RT “Designing the Adaptive Enterprise.” Discovery Sub-Team (Doug Austrom, Don De Guerre, Bob Laliberte, Helen
    Maupin, Bernard Mohr and Carolyn Ordowich), presented at New Orleans Annual Meeting of the STS Round Table, September 28 to Oct 1. 2011
Find listings for our current season
          of webinars and register at:

            NonprofitWebinars.com


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Appreciative Governance for Nonprofits: Engagement and Innovation Throughout the Organization

  • 1. Appreciative Governance: Engagement and Innovation Throughout The Organization Bernard Mohr & Neil Samuels April 11, 2012 A Service Of: Sponsored by:
  • 2. INTEGRATED PLANNING Advising nonprofits in: www.synthesispartnership.com • Strategy • Planning (617) 969-1881 • Organizational Development info@synthesispartnership.com A Service Of: Sponsored by:
  • 3. Affordable collaborative data management in the cloud. A Service Of: Sponsored by:
  • 4. Today’s Speakers Bernard Mohr Neil Samuels Assisting with Co-Founder President chat questions: Innovation Partners International Profound Conversations, Inc. April Hunt & Riley Croft, Hosting: Nonprofit Webinars Sam Frank, Synthesis Partnership A Service Of: Sponsored by:
  • 5. Appreciative Governance for Nonprofits: Engagement and Innovation Throughout The Organization Bernard Mohr: Innovation Partners International Neil Samuels: Profound Conversations, Inc. 5
  • 6. GOALS & AGENDA Takeaways from today’s Webinar: • Understand the need for new models of governance • Understand how Appreciative Governance (AG) differs from traditional forms of Governance • Understand the benefits of adopting this new form of governance • Learn about a set Principles to guide the design of Appreciative Governance for your organization • Learn about a high-engagement methodology for designing Appreciative Governance models Agenda: 1. The need for new models of governance 2. How Appreciative Governance (AG) differs from traditional forms of Governance 3. So what – Benefits? 4. Principles for Designing Appreciative Governance Systems 5. Implementing AG through co-design
  • 7. Some Background Information 1.How would you rate current governance systems in the non profit sector? a) Very effective b) Moderately effective c) Slightly effective d) Ineffective e) Very ineffective 2. How experienced are you in designing governance systems? a) Very experienced b) Moderately experienced c) Slightly experienced d) No experience 3. How familiar are you with Appreciative Inquiry? a) Experienced practitioner of AI at whole organization level b) Have used AI a number of times to drive results c) Attended training and have tried it out a few times d) Have been exposed to it – read about it. e) I can spell AI
  • 8. The Need for Governing Differently 1.An increasing pattern of Governance failure – Roman Catholic Church, the United Way, The American Red Cross, NAACP, the American Cancer Society, and Toys for Tots (Gibelman & Gelman, 2000) – Great Depression of 1929…. 2008 Wall Street crash – Enron, MCI/Worldcom, Adelphia Communications, Arthur Andersen, Global Crossing, Tyco 2.The “new normal” - Nilofer Merchant – "Leadership" has changed when a decentralized group of people can take down a government. E.g. Egypt, Tunisia – "The Value Chain" has changed when the client is no longer just the “receiver of services" but also a co-creator. – "Human Resources" have changed when many of the people who create value for your organization are neither hired nor paid by you. – ”How work gets done and financed" has changed when individuals can create value through a centralized network of resources: for example, designing a product from anywhere, producing it through a 3D factory, financing it through community and distribution from anywhere to anywhere. 3.Need for full engagement of heads, hearts, and minds -- “within the existing paradigm of “direct and control” the people assumed to be most able to manage the accountability are those who sit at the top of the pyramid, the Board of Directors”
  • 9. Governance Comparison Dimension Traditional View of Governance Appreciative Governance Thrust Emphasizes controlling or Emphasizes mobilizing and encouraging preventing behavior that is illegal, behavior that is legal, ethical, and positive unethical, or detrimental to the to the long-term interests of shareholders interests of shareholders. and stakeholders while maintaining a posture of deterrence of behavior antithetical to those interests. AG illuminates and more broadly accesses the organization’s strengths, resources, and assets. Key Actors Views the board of directors as the Acknowledges that everyone in the key actors in governing organization carries out governance — the board of directors, management, and all other employees. Focus Focuses on board activities of Focuses on the organization’s structures, senior management selection and practices, and processes and the full compensation, advising senior range of all employees’ behaviors as management, and reviewing related to Parson’s four functions of accuracy of financial reporting and governance (Adaptation, Goal adequacy of compliance efforts. Achievement, Integration and Long Term Development). Orientation Begins with a problem-prevention Begins from a strength-based perspective point of view and is advocacy and is inquiry driven. driven.
  • 10. Appreciative Governance – Def’n Appreciative Governance (AG) refers to structures, practices, and processes that: • identify and align individual and organizational strengths; • maximize collaboration, learning, and innovation; and • create full engagement and accountability …. resulting in an agile organization capable of rapid, effective decisions at the most local levels and an innovative climate that ensures mission sustainability.
  • 11. Why Appreciative Governance? What benefits do you see in adopting this new form of governance? – for employees and/or volunteer staff? – for management? – for clients/service recipients?
  • 12. Benefits of Appreciative Governance? • Increases adaptability through faster/better decision making • Distributes and deepens accountability • More fully engages staff and volunteers • Illuminates and more broadly accesses the organization’s strengths and resources • Broadens and deepens relationships • Speeds knowledge transfer • Encourages innovation
  • 13. Principles of AG How We Think of Principles: 1. A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning. 2. The basis for design choices.
  • 14. Principles for Designing AG • Interdependent • Mutually inclusive • Create the fabric of the system
  • 16. Implementing AG through Co-Design The Appreciative Governance Design Matrix (Based on Talcott Parson’s writings and adapted from work by John J Cotter and William O Lytle) Four “Surfaces” where Governance “Takes Place” 2. Laterally – 3. Vertically – 4. Organization 1. Within Work Group To Along And it’s Work Group Work Group Managerial Environment Hierarchy 4 Governance Functions Adaptation Goal (AGIL) Attainment Integration Long Term Sustainability
  • 17. Implementing AG through Co-Design Board and Executive Mng’t explore : 1.What does the “there” that we most Engage the organization in want/need look like? making an informed Start small, act decision about where and fast, reflect, 1.Why would we want to with whom in your get to “there”? what organization you want to learn, adjust – would we gain? And why not just stay as begin creating an expand. we are? appreciative governance system. 3. What are the options for moving from “here to there” (i.e. what is the design process for us?) 4. What are implications for us and our leadership
  • 18. SUMMARY 1. Boards of Directors and Executive Management committees come to mind whenever we mention organizational governance. This premise that those at the top are the only ones “governing” has less and less face validity. 1. Wherever people work together, they make choices that set standards of relationship, behavior and accountability …with consequences for organizational success. 1. Why not then engage them in a governance system that explicitly supports Adaptation, Goal Achievement, Integration, and Long Term Development at all levels - i.e. – Appreciative Governance. 2. Appreciative Governance (AG) refers to structures, practices, and processes that: • identify and align individual and organizational strengths; • maximize collaboration, learning, and innovation; and • create full engagement and accountability …. resulting in an agile organization capable of rapid, effective decisions at the most local levels and an innovative climate that ensures mission sustainability.
  • 19. Contact Information Bernard Mohr: Innovation Partners International www.InnovationPartners.com 207-874-0118 bjMohr@InnovationPartners.com Neil Samuels: Profound Conversations, Inc. www.profoundconversations.com 630-605-4610 neil@profoundconversations.com
  • 20. An Accelerated AG Implementation Process Refine the Model And Design The Act-Evolve Review and Process Deploy Reconfigure Mobilize Act – Evolve Model the New Governance Architecture Relationally & Structurally Iterate Stress Test Imagine Create Shared Will • Identify Positive Core • Draft Shared Purpose Connect-Explore AG SUMMIT Process* • Based on work by the STS RT “Designing the Adaptive Enterprise.” Discovery Sub-Team (Doug Austrom, Don De Guerre, Bob Laliberte, Helen Maupin, Bernard Mohr and Carolyn Ordowich), presented at New Orleans Annual Meeting of the STS Round Table, September 28 to Oct 1. 2011
  • 21. Find listings for our current season of webinars and register at: NonprofitWebinars.com A Service Of: Sponsored by: