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Effective Governance

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An undervalued route to cost-effective improvements

Governance failings can be a cause of major problems.  At a board level they bring incoherent strategy, lack of visibility, poor assessment of risk, loss of management accountability.   In a charity they can result in misuse of funds and Trustee exposure to penalties.  Failure to govern major projects results in overspend and missed deadlines.  It allows internal undermining of agreed goals, failed implementations and quality disasters.  In all cases morale is damaged and in most it results in increased and divisive internal politics.

House of cards

The particularly frustrating aspect of governance failure is that in almost all cases it can be easily avoided.  The keys lie in simple steps to ensure clarity of accountability, define reporting standards and visibility and create participatory processes to bring sustainable decision-making. 

If your organisation does not have strong sense of shared purpose, healthy morale, a track record of successful project delivery and a substantially co-operative  culture, then a review of your governance processes is likely to yield significant benefits.  Potentially it is one of the most cost-effective steps in aligning the organisation towards success.

“Global market forces will sort out those companies that do not have sound corporate governance.” - Mervyn King (Governor, Bank of England)

 
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