1.2 Governance & Social Responsibilities

Case Study

Prerequisite for this Case Study: OE21 1.1 Senior Leadership Case Study.

DECISION: (1.2A Organizational Governance System): A Governance System is NOT normally required for organizations other than large public corporations, nonprofits, and some government organizations. If your organization is not one of these types of organizations then you are not advised (by the OE21 Provider) to implement this OE21 Standard 1.2. Citation: Wikipedia (2019): "Corporate governance may be necessary to align and coordinate the interests of the upper management with those of the shareholders. The shareholders and upper management may have different interests, where the shareholders typically desire profit, and upper management may be driven at least in part by other motives, such as good pay, good working conditions, or good relationships on the work floor, to the extent that these are not necessary for profits. Corporate governance is necessary to align and coordinate the interests of the upper management with those of the shareholders." 

Assumption: The (Elafino Sports Center) organization has decided to implement the OE21 1.2 Governance and Social Responsibilities​ standard, mostly to gain the advantages of the Social Responsibilities process. The outcomes and results are presented below.

OE21 1.2 Governance & Social Responsibilities Results

 

By implementing 1.2 Governance and Social Responsibilities, the following outputs were published on a password-protected section of the Elafino's INTRANET and made available to the organization's senior leaders and managers:

 

  • The organization governance system description (OGSD)

  •  The Elafino Governance board meeting minutes from the initial, and annual Governance Performance Evaluation meetings. Attendees include these key stakeholders:

    • Key investors (2) of Elafino Sports Center

    • Local Chamber of Commerce executive (1)

    • City Police Department manager (1)

    • City Manager (local city government (1)

 

To address and anticipate legal, regulatory, and community concerns with Elafino services, programs, facilities, environmental, and value-added to the community, the LFT conducts annual LFT 1.2 Community and Risk Assessments. The assessment identifies community concerns (if any). 

The most recent Governance Board members meeting minutes indicated that Elafino senior leaders should do the following:

  • Attend training in ethics and fiduciary responsibilities

  • Learn the proper disposal of medical waste (bandages from sports injuries)

  • Prepare for successful OSHA audits

  • Ensure compliance with ADA (Americans with Disabilities Act)

  • Review the results of the most recent 1.2 Community and Risk Assessment

 

The results of the 1.2 Community and Risk Assessment indicated the need for action and improvement of these areas:

 

  • Need to enlarge facility parking lot to avoid overflow into nearby mall parking areas

  • Need to invite the local police department to visit the facility and explain how enrolling more teenage youth will help reduce the local crime rate

  • Need to protect the facility floor around the concession stand to avoid water runoff from the risks. There have been a series of slip and fall accidents that have a possible severe negative financial impact on the Elafino organization.

 

The Elafino senior leaders incorporated additional tasks from the implementation of this Guideline, into the Leadership Excellence Action Plan. Some of these became strategic objectives in the Strategic Plan. (See Guidelines 2.1 and 2.2)

 

Input Item 1.2 Measures into PMS.  The Elafino LFT used the OE21 PMS workbook containing tabs for the input of dates, measures, targets, and two benchmarks (alpha and bravo competitor or comparative organizations). The result of data entry creates a Trend Chart for each of the measures selected. 

 

Figure 1.2-3 provides an example Elafino Trend Chart for Item 1.2.

 

Figure 1.2-3 Example Trend Chart for OE 1.2 Results

The Elafino LFT (IT Manager) published Guideline 1.2 Governance and Social Responsibilities output results on the Elafino INTRANET, and notified all focus teams and managers of these updates.

QUESTIONS AND IDEAS FOR MANAGERS AND LEADERS

  • If you were the CEO of your organization how would you feel about your organization taking time to conduct the OE21 1.2 Community and Risk Assessments?

  • If you were the CEO, would you keep the results of these community-related assessments to yourself?

  • Take a look at the Trend Chart (Figure 1.1-3) above. Take a minute to absorb these ideas:

    • The target has been raised from 80 to 95. Why do you think it was raised?

    • The most recent measure is 74 which is rising toward the target. Is that good?

    • When would you say the measure will cross the next monthly target? 

  • IF senior leaders do not take the time to help select measures and set the value of TARGETS for all measures, then how can leaders expect their managers to know leader expectations?

  • What did you learn from your studies of this OE21 Standard 1.2?

  • What do you think you should do to be a better manager?

Where we go from here: If you are reading this OE21 Case Study to help understand how OE21 works in a real organization, continue to Case Study OE21 2.1 Strategy Development.