Festivals Without Borders

WITH ROBERT BAIRD

WHO’S RUNNING THIS SHIP?

Now that the world has more or less righted itself and, given the stresses and strains of recent years, perhaps it is time to reflect on our organizations and see what improvements, if any, need to be made to how we run things.

Every organization needs a system of rules, practices and processes, called Corporate Governance, to determine its direction and control. After all, every organization has a number of constituent stakeholders whether internally or outside of it which require attention and satisfaction or the organization may be subject to unwanted change or even eventual dissolution.

But all successful organizations realize that it is imperative to have solid corporate governance because it is the only way to meet any and all challenges that will arise in an organization. And Corporate Governance is just not directed at such areas as bylaws, board makeup, compensation, and all internal policies, but encompasses environmental awareness, ethical behaviour and fair and transparent inclusionary practices.

The benefits of good corporate governance are indisputable:

1. It creates understandable rules and reasonable controls

2. It helps the leadership of the organization

3. It ensures that everyone is “on the same page”

4. It builds trust internally and in the community

5. It can help to prevent problems

6. It promotes long-term success

So, who is responsible for this? The Board of Directors is always the primary force in providing corporate governance, but they must be guided by the mission of the organization and the basic principles of corporate governance: accountability, transparency, fairness, responsibility, and risk management.

A Board of Directors must make many important decisions including officer appointments, staff compensation, organizational planning and growth, succession planning and more. In order to be most effective, a Board should represent its community in terms of diversity, skills, knowledge and experience. Boards need fresh perspectives not only from outside the organization but also from outside the industry.

How can a Board reflect the basic principles of corporate governance to ensure the smooth running of an organization?

1. The Board must ensure that everyone in the organization treats other employees, volunteers, vendors and communities with respect, fairly and with equal consideration.

2. The Board must ensure that guidelines in all areas are transparent and provide timely, accurate and clear information in all matters. This principle of transparency should be expected at all levels of the organization, from top to bottom.

3. The Board must determine risks of all kinds for everyone involved in the organization and provide information on these risks, how they might be mitigated and how they will be handled to protect personnel and property.

4. A Board is responsible for the oversight of the organization, especially corporate matters and management activities. It must know when successes are achieved and provide performance rewards where possible and appropriate. It must always act in the best interests of the organization.

5. A Board is accountable for explaining what the organization does and how it does it. It assesses what the organization can do, what it should be striving to achieve, and how well things are going. It must communicate clearly.

How will we know if the ship is running well? You can take a good hard look at your organization to determine whether or not it’s practicing good corporate governance. These areas include:

1. Disclosure practices. Are there activities or policies that are “understood” but never put in written form?

2. Is the compensation structure fairly determined and reasonably applied?

3. Is staff assessment clear and fair?

4. Are there protections that cover risks in the organization for property and personnel?

5. Are there clear policies on conflict of interest situations? Can the organization reconcile practices that conflict with its stated mission?

6. Are the members of the board of the directors or other administrative leadership a diverse and representative group?

7. Are there clear policies for dealing with contracts for services? Is bidding for providing services a transparent process?

8. What are the organization’s policies on current social issues such as climate change, the indigenous community, and other community stakeholders?

9. What is the relationship with vendors like? Is it cordial, respectful and fair?

10. How are complaints addressed, either from employees, contractors or the community?

11. Does the organization utilize outside expertise, such as an audit firm, to advise?

We know who should be running the ship and our goal should be to ensure that our organization has a good captain and staff along with clear sailing.

Robert Baird is President of BAM! Baird Artists Management Consulting in Toronto, Canada and an acknowledged expert in international touring including visas, withholding and taxation. He offers free advice to artists, agents, managers and venues and has an international clientele. He served for many years on the Executive Board of Festivals and Events Ontario (FEO) and is a former Vice-President of that organization. He can be reached at: P: 1-800-867-3281 E: robert@bairdartists.com or for more information go to: www.bairdartists.com

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