For "The GrAde" Tutor Only (All Others Will Not Be Accepted) THANKS

HMGT 601 WEEK 13 BOARD GOVERNANCE

THREE ESSENTIAL FIDUCIARY DUTIES OF BOARD MEMBERS

 The Duty of Care – making decisions based on the informaFon available in a reasonable way

 The Duty of Loyalty – acFng in the best interest of the organizaFon at all Fmes, puOng the mission above themselves

 The Duty of Obedience – adhering to all bylaws and the mission of the organizaFon

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BOARD RESPONSIBILITIES OWNERSHIP

RESPONSIBILITIES OF BOARD MEMBERS

 Understand the organizaGon. Board members need to understand and believe in the organizaFon’s mission, vision, goals, objecFves, and bylaws.

 Develop a broad knowledge of the healthcare industry. Board members are not necessarily expected to be experts, but they need to develop a broad knowledge of the healthcare industry and trends.

 Acquire a working knowledge of commiOee subject maOer. Individual board members should acquire a fundamental knowledge about the funcFonal areas related to their commiXee assignments.

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RESPONSIBILITIES OF BOARD MEMBERS

 Prepare. Before meeFngs, board members should read all provided materials so that they can deliberate intelligently during the meeFng.

 Regularly aOend meeGngs—on Gme. Board members are expected to aXend all board and commiXee meeFngs, arrive on Fme, and execute their assignments on Fme.

 Make a posiGve contribuGon. A board member must make a posiFve contribuFon to board discussions, always keeping in mind the best interests of the organizaFon.

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RESPONSIBILITIES OF BOARD MEMBERS AND CEO  Do not dominate meeGngs. Board members who dominate discussions, ignore the agenda, or digress to their own interests create problems for the board and for the CEO.

 Avoid rumors and gossip. Board members should ask the CEO or the board president about any rumors, gossip, or criFcism of the hospital they encounter before drawing conclusions.

 Avoid conflict of interest. In today’s turbulent environment, board members cannot have or give even the appearance of having a conflict of interest.

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RESPONSIBILITIES OF BOARD MEMBERS  Avoid interfering in hospital operaGons. This topic is a piZall for many board members. The board needs to look at the strategic direcFon of the organizaFon from 30,000 feet, where its members can see where the organizaFon is going without geOng involved in the details of geOng there. Board Members should not be involved with day-today operaFons.

 Maintain hospital confidenGality. Board members who share confidenFal informaFon with outside parFes present a real problem for the hospital and for the CEO.

 Be a partner to the CEO. Even though the board is responsible for hiring and evaluaFng the CEO, directors should act like partners and advisers to the CEO rather than supervisors.

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RESPONSIBILITIES OF BOARD MEMBERS

 Serve as a mentor/consultant. Any individual board member should be available to serve as a consultant or sounding board to the CEO and others in the organizaFon.

 Be alert for new opportuniGes. As hospitals are increasingly expected to assume some responsibility for their community’s health, board members are in key posiFons to idenFfy areas of need the hospital might fill.

 Interpret the hospital to the community. The individual board member should be a representaFve of the hospital, interpreFng it and its funcFons to the community.

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RESPONSIBILITIES OF BOARD MEMBERS

 Awareness and EducaGon: It is the responsibility of each Board Member to maintain an educaFon regarding health care industry in order to make sound decisions regarding the strategic direcFon and operaFon of the health care insFtuFon. The CEO may find it in his/her best interest to educate Board members to ensure that they can contribute to the long term sustainability of the organizaFon. They should understand trends, challenges, quality of care, paFent safety, strategy as well as other topics related to the current health care delivery system.

EXAMPLE: CEO SUCCESSION

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ENGAGEMENT WITH STRATEGY

BOARD MONITORING

SUMMARY

o  Boards must focus on a minimum of three main objecFves: finding the right CEO, finding the right board member, and evaluaFng both consistently

o  EffecFve boards can

accelerate organizaFonal performance and be a compeFFve differenFator

QUESTIONS

o  Many boards are not effecFve. Do you agree or disagree? Why or why not?

o  How can board chairs change the culture of the board? How can CEOs do it?

o  Have you ever served on a board? If so, what was the experience like?