What do we mean by governance?
Clarity of structures, processes and tools to ensure the board can organise itself effectively to discharge its functions.
This information may be contained in a fully comprehensive portal which is accessible to all board members, the chief executive and appointed staff. Its purpose will be to promote clarity to the board with respect to the overall strategic direction of the organisation, board roles and responsibilities and areas of accountability. Content may range from specific details such as to the frequency of board meetings, the quorum etc. to details of the organisation’s constitution and current strategic plan all in one location. Such a portal acts as an effective tool to encourage information sharing amongst board members and develop organisational transparency, especially to important stakeholders.
Goal: Effective structures and documentation.
The collective board should have the right range of skills and experience to set the strategic direction and uphold values and objectives.
The board should be well-versed on compliance issues, internal controls, policy and procedures. It is important then that good governance involves effective induction and training programmes. Also, the board should have a strategy for its own review and renewal to create a diverse and effective board that will be equipped to help the organisation meet its objectives.
Overall, the board must act prudently to protect the organisation’s assets, using them efficiently and at all times seeking to effectively manage any risks that would jeopardise the organisation’s ability to function effectively and meet its objectives.
Goal: Effective boards, effective chairperson
Implementation of the board’s strategy in a co-ordinated way. Ensuring the required efficiencies and performance targets are achieved and the board is open, responsive and accountable.
Board delegation is an important factor of implementation. The board should clearly define the functions of sub-committees, the chief executive and other staff and create measures which effectively monitor their performance.
Goal: Effective control, probity and risk management
Our governance assessment examines the above areas by asking the following questions: