How boards should approach policy review

It is often easiest to think of policy as the rule or position statement for the organisation ("This is where we stand on this issue") whereas procedure is the action ("That's how we make sure our position is implemented").

Now if the board was to get actively involved in every policy an organisation needs, it would never have the time to do what it really needs to do - to lead the organisation.

It is critical that every board member is aware of the policies that are linked to the governance role or where they have a direct legal duty or obligation.

Occupational Health and Safety is a good example. While in most cases this is operational in terms of its implementation, the board directors are obligated to take responsibility - and so they should.

This is clearly where the board needs to take the position that they value the role played by their staff and/or volunteers. But the implementation itself is something that would never be able to be completed by the board alone.

Just like a lot of decisions, the board can take some of the burden off itself by delegating the review of policy (particularly governance issues) to a sub-committee. This could comprise a board member, CEO, staff members or experts in the area.

In many not-for-profits, the board not only delegates the operational component to staff or the CEO, but the whole kit and kaboodle.

This is a dereliction of duty. Not only does this potentially put the organisation at risk of losing direction but it creates grey areas around setting boundaries between board/CEO and staff roles.

The board should:

• Ensure the governance policies are set and developed by the board with expert input where required (For example: conflict of interest, values, OH&S, board performance review).
• Ensure that the operational policies that are developed and implemented are required to deliver your services and/or programs.
• Ensure that policy framework exists ("What is our policy on policy, and how does it get established, modifed and reviewed?")
• Ensure that a programmed review or hierarchy of review is established and implemented. Not every policy needs to be reviewed annually but some may in fact need to be reviewed more frequently.
• The board should not and cannot spend time reviewing every policy. Look to our sample policies and remember, just like every bank, we take deposits as well as withdrawals - so if you have any policies that you feel other organisations can utilise, send them in.
• When you are required to review policy, treat it seriously.

The sneezing policy has now been added to our sample policies. If you want to see if your board is paying attention, slide this policy into your policy pack. No comments? It's possible no one's read your policies. What do you do when you do catch out the members who aren't reading policies? The best bet might be to cut down on how many policies you're making them read and only add policies that are vital for the board to see.