The board has to have a clear idea about its role before it can be effective. Good governance means the board has to keep its eye on the big picture, on the overall direction of the co-op. That means concentrating on

• planning (including financial planning) and setting goals
• having the right by-laws/rules and policies
• keeping up to date on the co-op's management
• watching the finances carefully
• making sure the co-op's legal requirements are met
• protecting the co-op from risk.

These are all high-level tasks, and that's where the board's focus belongs: on the view from above the trees, so to speak. The board makes decisions on these big-picture issues, often taking advice from the manager in the process. Then it's the manager's job to carry them out. This emphasis on a big-picture, or strategic, focus for the board, and not on the day-to-day operation of the co-op, is central to good governance.

The board does remain responsible for the operation of the co-op, though. It has to make sure that the co-op and its assets are not at risk and its plans and directions are being followed. That requires very good working relations with the co-op's management. We'll be talking more about this soon.

Here are signs that your board has a strategic focus:

• board meetings are spent planning and reviewing the co-op's business, not doing it
• the co-op has good management in place that reports to the board of directors.