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Management article
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Reference no. 89101
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1989

Abstract

Executives who become trustees for nonprofit organizations frequently get bogged down in operating details while ignoring issues that could determine the enterprise''s success or failure. An administrative model, identifying six policy levels - major, secondary, functional, minor, standard operating procedures, and rules - can guide their interventions. In general, board members should devote their energies to policy levels having the most impact on the organization''s future and let the rest of the issues go. They also must attend to the four phases of policy development - establish objectives, formulate a statement, implement, and evaluate. Finally they must recognize that information is their most critical resource.

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Abstract

Executives who become trustees for nonprofit organizations frequently get bogged down in operating details while ignoring issues that could determine the enterprise''s success or failure. An administrative model, identifying six policy levels - major, secondary, functional, minor, standard operating procedures, and rules - can guide their interventions. In general, board members should devote their energies to policy levels having the most impact on the organization''s future and let the rest of the issues go. They also must attend to the four phases of policy development - establish objectives, formulate a statement, implement, and evaluate. Finally they must recognize that information is their most critical resource.

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