Good governance means that the board makes sure that all resources increasingly contribute to achieving the organization’s mission and vision. Our governance alignment program provides analytics and methodologies give boards and management with the tools to rapidly model, assess and optimizes your organization. This requires generative thinking and governing.
Good governance is accountable
Accountability is a fundamental requirement of good governance. The organization must report, explain and be answerable for the consequences of decisions it has made on behalf of the people serves — shareholders, customers workforce and other stakeholders.
Good governance uses generative thinking
Boards govern more effectively when they take a leadership approach to their work.
- The fiduciary mode — the stewardship of tangible assets. This mode is the bedrock of governance. Fiduciary work makes sure that organizations are faithful to its mission, accountable for performance, and compliant with relevant laws and regulations. Without fiduciary mode, governance has no legitimacy. If a board fails as fiduciary, the organization — not to mention its shareholders, stakeholder (i.e. donors, clients, employees, or community) — could be harmed. This is the central focus of most board work.
- The strategic mode — develop the strategy with management to set the organization’s priorities and course and to deploy resources accordingly. Without the strategic mode, governance has little power or influence. Some boards are more about staying on course than setting the course.
- The generative mode — boards and management frame problems and make sense of ambiguous situations. This shapes the organization’s strategies, plans, and decisions. Most organizations lack frameworks and practices for this work and boards become bystanders to it — even though it is central to governance. Governance must focus on optimized alignment of its structures to overall strategies. Few boards are good at being engaged in generative governing.
We view these structures collectively as “governance chains.” Good governance means that you make sure that all resources increasingly contribute to achieving your mission and vision. Our analytics enables you to align your governance chains for success objectively.
Good governance is transparent
People should be able to follow and understand the decision-making process. This means that they will be able to see how and why a decision was made clearly – what information, advice and consultation were considered, and which legislative requirements (when relevant) were followed.
Good governance follows the rule of law
This means that decisions are consistent with relevant legislation or common law and are within the powers of the board.
Good governance is responsive
The organization should always try to serve the needs of shareholders, customers workforce and other stakeholders while balancing competing interests in a timely, proper and sensitive way.
Good governance is fair and inclusive
Feelings of well-being results from shareholders, customers workforce and other stakeholders are considered by the board in the decision-making process. This means that all groups, particularly the most vulnerable, should have opportunities to take part in the process.
Good governance is effective and efficient
The organization implements decisions and follow processes that make the best use of the available people, resources and time to make sure the best possible results.
Good governance is participatory
Provide an opportunity for anyone affected by or interested in a decision to take part in the process of making that decision. This can happen in several ways:
- provide interested parties with information
- ask for their opinion
- offer the opportunity to make recommendations
- make them part of the decision-making process