This presentation features the Governance Module of the Social Enterprise Learning Toolkit developed by Enterprising Non-Profits. The Toolkit offers a number of different learning modules and can be found on the enp website at www.enterprisingnonprofits.ca
2. 2
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
3. 3
We will look at how to implement
governance for your social enterprise
Source: www.enterprisingnonprofits.ca/learning-toolkits
Social
Enterprise
Learning
Toolkit
4. 4
“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
5. 5
Governance is focused on strategic
decisions which directly influence the
operational decision-making process
Strategic
Operational
6. 6
Governance is focused on strategic
decisions which directly influence the
operational decision-making process
Operational
decisions
Strategic
Decisions
Governance
7. 7
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
8. 8
What elements support good governance
within an organization?
Mission, Vision and
Strategy
Stakeholder
Engagement
Defined
Accountability
for Decisions
Data and
Information to
Inform
Decisions
9. 9
1. Start with your Mission, Vision and
Strategy
Mission, Vision and
Strategy
Stakeholder
Engagement
Defined
Accountability
for Decisions
Data and
Information to
Inform
Decisions
10. 10
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
11. 11
2. Identify your key stakeholders
Mission, Vision and
Strategy
Stakeholder
Engagement
Defined
Accountability
for Decisions
Data and
Information to
Inform
Decisions
13. 13
3. Identify who is accountable and involved
in making key decisions
Mission, Vision and
Strategy
Stakeholder
Engagement
Defined
Accountability
for Decisions
Data and
Information to
Inform
Decisions
14. 14
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 31
Every 2-3 years
Timing
By March 31
(year-end)
Annually
Within next 2
months
(one-off decision)
Strategic Plan
Business 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
15. 15
Social entrepreneur with an
advisory board
Social
Entrepreneur
Social enterprise within a
non-profit organization
Board of
Directors
Program
Manager(s)
Social
Enterprise
Manager
Advisory
Board
Social enterprises can have different
governance structures
Executive
Director
16. 16
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
17. 17
4. Gather data and information to inform
your decision-making
Mission, Vision and
Strategy
Stakeholder
Engagement
Defined
Accountability
for Decisions
Data and
Information to
Inform
Decisions
18. 18
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 31
Every 2-3 years
Timing
By March 31
(year-end)
Annually
Within next 2
months
(one-off decision)
Strategic Plan
Business 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
20. 20
How clear and effective is governance
for your social enterprise today?
Assess your governance
Using 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.
21. 21
Who is involved in the decision-making
process for your social enterprise?
Define your decision-making process
Identify 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
22. 22
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.
Hinweis der Redaktion
Definition from Governance as Leadership, p.16“the use of authority to set an organization’s purposes and to ensure it serves those purposes effectively and efficiently”
However, it does not necessarily divide the strategic and operational work by board and staff
However, it does not necessarily divide the strategic and operational work by board and staff
Duties of loyalty and care – prevent trouble rather than promote success?Fiduciary work of oversight
Example of Social Enterprise(s) within organizationCoast Mental Health is a non-profit organization with a mission to promote recovery of persons with mental illness. Their programs and services provide supported housing and employment services across the Greater Vancouver area.They also run Landscaping with Heart – a soft landscaping and maintenance social enterprise that provides people living with mental illness with professional landscaping training and employment – and Sewing with Heart – a social enterprise that supports employment of clients as sewers.Example of Social Enterprise owned by Non-profitAtira Women’s Resource Society is a non-profit organization with a mission to support all women and their children who are experiencing the impact of violence committed against them and/or their children.They provide housing, advocacy and support to women and their children. Atira Women’s Resource Society launched and is the 100 percent owner of Atira Property Management Inc – a social enterprise that deliver property management solutions for strata corporations, building owners, housing cooperatives, not-for-profit societies and developers in Greater Vancouver.Key Difference between Coast Mental Health and Atira examples – social enterprise is “in house” versus a legally distinct entity – separate governance (board). When the social enterprise is “in house”, it is even more important to articulate how governance will operate.Example of Social Enterprise as the organizationPotluck Café Society is a registered charity and social enterprise with a mission to “transform lives by creating jobs and providing healthy food for people living in Vancouver’s Downtown Eastside.” In addition to its training and employment program, Potluck also delivers a low-income resident meal program and community kitchen program.Ask participants how many are using social enterprise as part of an overall organization’s strategy versus social enterprise being the organization.
It is important to understand how you:Measure success – both mission and money. Need a baseline and for setting targets.How this information will be used to drive decisions (Day-to-day management and Governance)Show your value to stakeholders.Identify where you are performing less than expected to inform risk management and to adjust operations and/or expectations4 steps to DV:Map information needs – what do you want to know and showDefine information collectionDesign an enterprise snapshotDevelop snapshot and implement collection improvements