The ethics of governance or a SMF (Sound Management Framework)?
27
like it- 1 comment
- ‹ Back to all posts
It seems that it’s not possible to replace the traffic regulation with an ethical code…even if it’s just a joke!
But for the governance, the ethical code is enough; and if not, prison will do the job when they cross the line. We’ll beg the kings of robbery and the princesses of dodgy dealing to submit to the ethical code. Vincent Lacroix and his fellows will have a good laugh!
The cemetery full of the deprived organizations and of the victims of a financial fraud will soon have to hang the ‘no vacancy’ sign. But, who cares? It’s enough to follow an ethical code and be reasonable; it’s just a matter of adjustment.
But there is another category: those who aren’t afraid of integrity. This blog is for you!
The ISM’s Sound Management framework: a functional alternative to the governance’s condescendence.
Management and governance are still considered accessory activities to other professions. Traditionally, the management activity is related either to the leader or to the performer. It’s difficult, even impossible to associate an ethical judgement as long as we only know the mission and we have no idea of the traffic regulations, in others words their fiduciary role, their authority, and their authorized or ethical means used to reach their objectives.
In this context, the Sound Management framework offers an analysis framework, thus implementing an ethics-based management as part of the decision-making processes within organizations. By specifying the powers and responsibilities of the governance, the ethical values, but not the moralizing ones, will become evident. This is one of the characteristics of a management framework. But, before analysing the ethical concepts of management, we’ll first examine the Sound Management framework.
This article is the first one of a series of articles presenting the Institute’s Sound Management framework with its functional and practical aspects. Therefore, we’ll publish a generic version with several important elements for the public organizations. The ISM members will be able to download the complete version of the SMF for free, starting this fall.
This version will mostly interest the members of the Board of Directors who want to organize their participation and play their role in guiding, supervising, and being in charge of the management in their organization. It offers an analytical and operational framework for the organization by implementing an easy and non legalistic approach to remind the administrators of the Sound Management rules.
Defining the management framework
According to the OAAQ’s definition, the role of the management framework is to establish a set of rules and ensure the operational framework for the managers while using and controlling the resources entrusted. (2) The governance’s first step in organizing will therefore be to implement, approve, and modify the management framework to be used in their management.
Let’s start by the definition I gave in my book, Le cadre de Saine Gestion, un modèle de gouvernance intégré. Therefore, “a sound management is a set of rules and values chosen by the managers of an organization to guide them in supervising and defining the organization’s policies, its business process and management practice.” (1)
Analyse, evaluate, control or audit of the management
It would be almost impossible to proceed with an accounting audit if a company or organization doesn’t have a reporting system duly structured. By analogy with the accounting field, in management, the management framework is for managers what the reporting system is for accountants.
Defining the Sound Management framework (SMF)
The Sound Management framework (SMF) suggested by the ISM is a tool as well as a practical and functional guide for the analysis and operation of the public and private organizations. It combines two realities of the day-to-day management: Governance and management ethics.
The SMF is a management framework that complies with the Sound Management matrix. For the OAAQ, a Sound Management framework or sound governance is a framework with politics, directives, and management processes in conformity with the Sound Management model and principles.
(…) To be in conformity with the Sound Management principles, a management framework has to comply with the following criteria:
- To express clearly a series of action to be taken for each cell (41 cells) of the Sound Management model;
- To respect the corresponding principles and norms;
An organization’s management framework in conformity with the Sound Management model is made up of three sections:
- Interpretation of the Sound Management fundamental principles;
- Managerial functions;
- Combinations between the managerial functions and the fundamental principles.
Risk management
Taking risks in management is like a link chain. As the old proverb says, “A chain is only as strong as its weakest link.” If only one manager took the time to make sure that the organization is in conformity with the SMF, this would considerably diminish the risk of major omissions.
Certainly, the conformity and non-conformity of certain elements included in the 41-cell matrix have a different impact, depending on the type of organization and its mission. Therefore, the manager will have to evaluate the degree of incidence of a non-conformity regarding the organization’s ability to cope with the stakes, threatens, opportunities, and the fulfillment of its mission, in order to diminish the possible risks related to the management.
The SMF structure
The SMF is a binder of rules, processes, methods, means, and tools, which follow the 41-cell Sound Management model. For each cell of the model, the ordering method is based on the answer to the following question: What should we do to be in conformity with the Sound Management? Thus, the manager gets a systematic guide to avoid omitting the important steps in the business and management process.
Managers have, therefore, access to some expertise that can be developed by academicians, experts, and professionals. They’ll have to make use of the means to reach the objective of being in conformity with the GASMP.
At this level, there is no generic method, means, or recipe. No matter what the tools may be, all they need is to aim at being in conformity with the Sound Management values for each managerial function. To this end, it is the manager’s or the administrator’s responsibility to research, to look for advice, to develop, and to implement these means.
Example of a section of the SMF
The ISM’s SMF emphasizes the management rules by using an orderly and systematic approach based on the Sound Management model. The SMF is made up of 41 sections based on the 41 cells of the matrix. Here is an extract referring to the combination between the Organise function and the Abnegation principle:
_______________________________________________________________________
EXTRAIT DU CDSG version générique ( OSBL )
|
Règle de l’art
ORGANISATION ET ABNÉGATION
On entend par cette combinaison l’élaboration ou la mise à jour de politiques et directives visant la prévention de conflits réels ou potentiels
______________________________________________________
Actions à prendre :
Au niveau du conseil d’administration
Faire élaborer et approuver ou réviser au besoin un code de comportements des règles éthiques (Code de comportement éthique du conseil d’administration, des bénévoles et des employés) comprenant :
a) Des règles sur les conflits d’intérêts
b) Des règles relatives au comportement envers les clients, les fournisseurs, les partenaires et les collègues
c) Des règles de confidentialité
d) Des règles de loyauté, diligence et bonne foi
e) Une clause concernant la criminalité, fraude et autres infractions au code civil
Faire élaborer et approuver ou réviser au besoin une politique (Politique de divulgation d’intérêts personnels et pécuniaires) exigeant une divulgation d’intérêts personnels et pécuniaires (le cas échéant) de la part de chacun des dirigeants et membres de l’Organisme pouvant entrer en conflit d’intérêts réel ou potentiel avec l’Organisme
Au niveau de la direction générale
a) Établir un formulaire « à remplir » de déclaration d’intérêt personnel et pécuniaire
b) Établir un formulaire « à remplir » de déclaration de conflit d’intérêts potentiel ou réel
Élaborer et faire approuver ou réviser par le conseil d’administration une politique (Politique d’utilisation des biens en communs dans l’Organisme à des fins personnelles) précisant les limites de l’utilisation des biens mis en commun de l’Organisme à des fins personnelles pour tous les employés de l’Organisme, par exemple :
a) Internet, le matériel informatique, le matériel, le mobilier et les fournitures de bureau
b) L’utilisation des locaux communs de l’Organisme à des fins personnelles par les employés.
__________________________________________________
(1) BRAULT BERNARD, Le cadre de saine gestion, un modèle de gouvernance intégrée. CCH 2007
1 comment
Vous connaissez l’expression latine panem et circenses, du pain et des jeux pour le peuple, ainsi les Vincent Lacroix et les ministres de l’arnaque vont continuer à rouler le peuple dans les embrouilles qui vont s’en désintéresser parce qu’ils mangent et se divertissent. Les dirigeants l’ont bien compris. Pourquoi faut-il attendre la catastrophe pour agir ?
