Generative Governance
In “Governance as Leadership”, Chait et al state that Type III governance is generative governance. This entails the board searching for new meaning in the organization’s and the community’s reality. The board looks to the future and considers what the organization might achieve and how it can respond in new ways to the changing environment in which it works. Board members believe that they can add value to the organization. They are not just there to rubber stamp CEO recommendations.
If boards really want to lead an organization, if they want to make a notable impact for the community or the shareholders, they will prove the maxim “two heads are better than one”. The diverse group of competent individuals will add great value to the organization by sharing insights, innovations, and wisdom. All board members will wear their thinking caps and generate and express valuable thoughts. The CEO can then determine the best way to incorporate the board’s ideas and direction for optimal organizational results.
This concept of generative governance is also seen in the “direct”, “reflect”, and “respect” disciplines in Strive!’s Governance Excellence Model (GEM). For boards to truly be leaders of their organizations they must fully engage in charting new ground that raises the organization to new heights.
Generative boards proactively position the organization to greet the future with notable success.
