# Three Modes of Governance > The authors of *Governance as Leadership* propose three domains for strong leadership in any nonprofit: fiduciary, strategic, and generative. RELATED FUNCTIONS: [[Governance]], [[Accounting]], [[People Operations]], [[Spaces & Systems]] The [[_FUNCTIONS | Ten Functions of Arts Management]] in this Field Guide describe the useful bundles of attention, perception, and action required for complex arts endeavors. But each of those functions can be explored and enacted in many different ways. The "Three Modes of Governance" described by Chait, Ryan, and Taylor in their 2005 classic [*Governance as Leadership: Reframing the Work of Nonprofit Boards*](https://amzn.to/3PZkHN3) are not only useful in understanding the primary tasks of board governance, but also useful in unbundling other essential functions, as well. In brief, Chait, Ryan, and Taylor proposed that governing boards must have three, equal, integrated modes of attention and action in their successful work: - Fiduciary – "where boards are concerned primarily with the stewardship of tangible assets" - being *responsible* about the organization's resources - Strategic – "where boards create a strategic partnership with management" - being *intentional* in the allocation and arrangement of people, stuff, and money - Generative – "where boards provide a less recognized but critical source of leadership for the organization," that is *making sense* of the world and the work of the organization and the relationship between the two – being *imaginative* about present and possible futures. Chait, Ryan, and Taylor were reacting to a world where rising professionalism in executive leadership had left many boards and CEOs confused about who was doing what. The authors also noticed that boards mostly focused on *fiduciary* and sometimes *strategic* concerns, but lacked curiosity and creative agency in a rapidly changing world. They wrote: > When boards overemphasize one mode to the exclusion of others (a common problem), the net results are worse, not better, governance. Balancing and building a board's capacity to operate in and across all three modes requires, fittingly, *strategic* and *generative* effort. Often the work begins with the board chair and the top executive (CEO, Executive Director, President, whatever the title). And it begins with a reality check of which modes the board currently favors or ignores. Key indicators for this reality check can include: - A review of each board meeting agenda, to see what kinds of board discussions are featured and favored. An agenda that focuses only on *fiduciary* topics is a red flag. - Regular board discussions, during scheduled meetings, about the three modes, and whether board members individually and collectively feel capable of all three, and accountable to build that capability. - An honest analysis of current board members and their strengths across four areas of concern: intellectual, reputational, political, and social. Finally, the "three modes" framework is not only useful to the [[Governance]] function, but also across the [[_FUNCTIONS | other Ten Functions]], as well. Functions such as [[Accounting]], [[People Operations]], and [[Spaces & Systems]] can particularly benefit from these three lenses of inquiry and action. As one example, in [[Accounting]], you could think about: - *Fiduciary* practice – Are we being responsible, consistent, and in full legal compliance with our accounting practices and process? - *Strategic* practice – Are we putting our resources (people, stuff, and money) to their best possible use? - *Generative* practice – Are we fully and deeply interrogating our changing world, and imagining creative ways to change in response? --- SOURCE: Chait, Richard, William P. Ryan, and Barbara E. Taylor. [*Governance as Leadership: Reframing the Work of Nonprofit Boards*](https://amzn.to/3PZkHN3). Hoboken, N.J: John Wiley & Sons, 2005. --- ## Tags (click to view related pages) #functions/governance #functions/accounting #functions/people_operations #functions/spaces_systems #sapling