Boards and Boundaries - The Benefits to Boards in acting as Boundary Setters

It is not popular to speak of boundaries, particularly in an age when we break down organizational silos and make organizations flatter. Poorly conceived and poorly implemented boundaries have hindered organizations.

Even so, our experience proves the usefulness of boundaries. Roads are boundaries that help us safely get from one place to another. Office space boundaries greatly effect where and how we work. City, state and national boundaries help us to exercise proper authority, settle disputes and live peaceably.

Boundaries define organizations. A boundary defines what an organization does and does not do. It defines who is in and out. It defines what are acceptable an unacceptable behaviors. It defines owners, authorities, customers and beneficiaries. Whenever you speak of what is and is not true, you are describing an organization and its boundaries.

Defining boundaries may be the most important thing a board can do for an organization. There a several benefits to good boundaries.

1. Boundaries help you achieve desired results.

Every organization has a purpose, a goal. A goal, or mission or vision, is a type of boundary. It defines what you want to be in or out of the bounds of reality.

Just as boundaries can define the ends of an organization, it can define the means. There may be many good ways to get somewhere, but you want to stay out of the ditches, avoid accidents and stay under the speed limit. These means related boundaries help you achieve your goals in ways that are in keeping with your values and ethics.

2. Boundaries give employees empowerment and confidence with reasonable constraints.

Boundaries act like the playing field and rules in games like football, baseball or basketball. Coaches do not need to direct every move because the rules and physical bounds define what the goal is, what is in or out, and what means are acceptable for achieving the goal. The boundaries simultaneously constrain the actions of the players and empower them to act within those constraints.

3. Boundaries improve executive accountability because they are easier to monitor than an area.

Boards can get lost in the details of the organizations they oversee, even (or especially) in small organizations. You cannot watch every footfall of a runner. You cannot watch every location a tennis ball might land. You can more easily see if a runner is in his lane or if a tennis ball lands in bounds. The boundaries allow players to monitor and correct themselves. As a board, you can concentrate on the bigger issues instead of every action of your organization. Employees can make the calls and come to you when something is close to the line.

4. Boundaries help boards be more effective.

Some of the most important boundaries a board can set are its own. A board should know its purpose. It should know its role in operations and it relationship with executives. It should know how it will conduct business. By setting boundaries, you can stay out of things that are better left to others and concentrate on setting direction, planning, ensuring accountability and watching out for stakeholder interests. Boundaries on how you do business can make you meetings clear and effective, avoiding confusion and wasted time.

As a board, look at you role as a type of surveyor laying out the boundaries of your organization. Your well-laid boundaries will serve as positive constraint on you and your organization that will keep you on track and focused.

Keenan Patterson is a manager at Infra Consulting LC. He provides consulting and training services to nonprofit and association boards, governing boards of municipalities and special purpose districts, and regulatory commissions.

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