Governance: Back to Basics

The recession will inevitably place extra strain and pressure on the CEO/Board relationship. To ensure that both sides are getting the most out of the relationship it may be worth taking some time to go back to the basics.

For a sector used to stepping outside its comfort zone, governance remains an area where it is easy for standards of practice to slip.

For example thinking strategically is a fundamental task for a board of trustees, as they hold ultimate responsibility for the direction of the organisation and form an integral basis to how the third sector operates and is held accountable. Yet many boards have forgotten how to think strategically and have to rely on the chief executive for this.

The recent Brooke Commission report found that only 40% of ACEVO members could agree with the phrase 'my board is highly effective in developing and reviewing our strategy'.

The confidence to think strategically is essential element of board health. An unstable and unsubstantiated strategy will impact at all levels within the organisation and promises inconsistency and a lack of accountability. Responding to change becomes difficult, especially if the board does not have common goals. Without investment in strategy, third sector organisations cannot define sufficient outcomes or measure performance effectively.Yet the reality is simply that board time gets taken up with on-the-ground matters; a common complaint is that too much time is spent in meetings on operational rather than strategic issues. Many of acevo's members have memberships that are bigger than any political party, yet in an environment where third sector organisations need to be more accountable then ever, strategic thinking remains inconsistent and reactive. A real challenge is posed in changing such behaviour.

Third sector organisations need to challenge their outlook and to work proactively, rather then simply reactively. Quick wins would include setting an agenda for board meetings that addresses upcoming issues or that actively looks beyond operational needs. External assessment can also shake things up. Assessment can aid the strategic capability of your organisation by challenging board composition, looking at what is needed to improve working relationships and encouraging strong leadership.

ACEVO looks to establish good practice across the sector and has developed a Governance Review Service in order to help CEOs and chairs review and then improve the governance of the board. Why not challenge your board's performance by assessment and using the feedback to instigate improvement? Ian King of NUSSL commented that their governance service review had 'created a framework within which colleagues felt able to offer some highly relevant comments which provided the basis for some fundamental thinking. It is a highly accessible framework process not least for people with limited trustee experience.'

To ensure good board health as a third sector leader it is your responsibility to take time to challenge your board. Going back to the basics may be seen as time consuming, yet it is often the areas where you feel most comfortable in which real change is needed.