Executive View
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Don McKenzie, Chair
Five years on from the ground-breaking reform of the 1963 Royal New Zealand Foundation for the Blind Act, Outlook reflects on the effect of constitutional change. With the stroke of a pen at midday 30 April 2003 the Foundation was transformed to a member-driven provider of services to people with little or no sight.
There were two main reasons for rejigging the makeup of the RNZFB's Board. The primary goal was to empower members, those most affected by Foundation services, to elect the Board. Over a seven-year period of discussion, a set of rules based on self-determination was agreed that distanced control of the Foundation from Government and volunteers who were unaffected by Board decisions.
A second force for change was to make Governors more accountable for, and more in touch with, the needs of members; to bring policy-makers and service users closer together on common ground.
At present, a "Consumer Consortium" made up of eight separate consumer organisations meets regularly with two Board members, and members are able to participate in regional consultations on business and strategic plans. As an organisation accountable to members, the Foundation actively seeks out member feedback through regional forums and focus groups, and supports a network of Community Committees at the local level in which many members participate. Newsletters in various formats are released regularly. The outcome sought in changing the rules was to effect a culture shift toward a constructive set of partnerships focused on progressing the interests of the total blind and low-vision community.
The revised rules were based on the 1993 New Zealand Companies Act so as to preserve key business principles applicable to any worthy charity. Namely: to guarantee money is spent on the purpose for which it is raised; to focus Directors on thoughtful and independent assessment of organisation performance and conformance; to ensure top level commitment to a common purpose and set of values that characterise the business; to work for cohesion between service users, providers and donors, and to gain credibility and a reputation
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for honesty and doing a good job.
What do the revised rules mean?
1. Self-determination: members eligible for service from the RNZFB including parents of children under 16 years, elect eight of the nine governing Directors. Associate Members, that is anybody who supports the objectives of the Foundation, elect the ninth Director.
2. Accountability: the Constitution requires the Board to focus on the culture, key policies, strategies and the long-term direction of the RNZFB. The Board employs the Chief Executive and tasks the Executive with day-to-day operations and implementation of the strategic direction. The Executive is accountable to the Board, and the Board is accountable to electing members.
3. The right of members to be informed on governance matters: to receive the Annual Report of performance against objectives, audited accounts, full access to governance documents in the voter's preferred format, the right to attend Board meetings.
4. Proposals: the right to bring member proposals to general meetings.
5. The right to limit certain Board powers, and to appoint the auditor.
6. The right to alter the Constitution.
7. The provision for postal and proxy voting and a requirement for the Annual Meeting to move around the country.
8. Subject to the rules, any person, blind or not, is eligible for directorship on the basis of perceived merit.
Risks inherent in rule changes.
No constitutional system is ever perfect, and it is often the way rules are interpreted and applied that engenders debate. What can be said is that success and long-term sustainability of the RNZFB rests with the relationship between the Board and the recipients of service. The other key relationship is that between an active, independent and astute Board and its Chief Executive. These two key relationships are certainly more secure under the 2003 rules.
The role of Boards and the competencies expected of Directors are well established in the management literature and are constantly being modified by case law. One key point not well understood is that the Board in effect acts as an "agent" for all stakeholders. The Board is the interface between the stakeholders and the organisation and is accountable to the ballot box. In
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law however, Directors must act in what they consider the best interests of the Foundation which is not necessarily the same thing as acting in the best interests of a group of stakeholders.
The Foundation is wedded to best practice as agreed by the Institute of Directors. The challenge for Foundation Directors is to balance the competition for resources among calls of equal merit. In addition, mandatory policies require the Board to have special regard for children, the Tangata Whenua, minorities, and means of consultation, communication and community participation.
In a pluralist world it is the lot of most health, education and service agencies to bear the frustration of some users. Given the Foundation's commitment to continuous improvement, criticism is always welcome when constructive and based on fact.
What will the Foundation look like in the next five years?
The answer to this question is in the hands of members, which was the object of the 2003 reform.
The Foundation's focus will continue to be on servicing members. It's not enough that members have to accept service from the Foundation because there is no other choice. The Foundation wants to work in a world where members choose to partner and work with the Foundation. When there is relatively little choice and people have not got experience of other service providers, there is a tendency to set standards that are unrealistic. We must provide service that others will find difficult to match. The backbone of future development will be members with no or low vision who are prepared to work for a strong, affiliative Foundation based on agreed rules fair to all.
Five years on, and an external review of the rules is under way to check their fitness. Governance and the role of the Board is still not well understood in some quarters. The barricades blocking our way – inequitable access to life education, literacy, employment, transport and information – will begin to crumble when we, members, stand proud together on common ground. No one will listen until we do.
'The fault, dear Brutus, is not in our stars
But in ourselves, that we are underlings'.
(William Shakespeare, in Julius Caesar).
Don McKenzie.
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Sandra Budd, Chief Executive
It's been five years since the Foundation made the epic change from "For" the blind to "Of" the blind. It's a time to reflect and review but also to "keep paddling" to maintain our momentum. I think you will find Outlook's feature story, "Five Years of Of" and comments from the Chairman very interesting.
We've also seen two other significant happenings recently.
In January we broke ground on the new breeding centre at Guide Dog Services (see page 17). Hurrah!
On 1 March we hosted a facilitated workshop called "RNZFB 2020 – Sustaining our Future", which kicked off a process that will run throughout 2008. Over 80 people participated including Directors, Foundation staff, consumer organisations, Community Committees, overseas blindness organisations and Massey University.
Everyone who attended did some pre-reading, thinking and planning which enabled them to actively participate on the day. Our objectives may sound straight-forward, but everything involved in sustainability is an exciting challenge. Our objectives for the day were:
- to gather emerging themes from attendees
- to gain a shared understanding of the challenges facing the Foundation
- to agree a set of objectives against which potential solutions or scenarios would be assessed
More information about the day and what we achieved will be distributed through Foundation publications, emails, TIS, and the website, as well as through consumer organisations and Community Committees.
We would welcome input from any readers or stakeholders throughout this process, which will include other events as well. Comments can be made verbally over TIS (phone numbers on page 30), through the website (www.rnzfb.org.nz), by email (2020), by post (to RNZFB 2020, Pvt Bag 99941, Newmarket, Auckland) or via consumer organisations or Community Committees. If you are interested in joining our email interest group, please send your email address to 2020
In closing, I'd like to thank you all for your ongoing support and to encourage everyone to get involved in the Red Puppy Appeal, which this year is from the 4-6 April!