Governance

The Fundamentals of Good Governance, Post-Hayne

The recent Hayne Royal Commission highlighted some failures in governance in the banking and financial services industry and considered whether banks and financial services organisations had lived up to community expectations. Not-for-profit and for-purpose organisations have much to learn from the recent Royal Commission, as community expectations are crucial to their purpose and their viability. In essence, the Hayne Royal Commission advocates a focus on and a sharpening of good governance fundamentals: governing for purpose, role clarity, improved capability and the importance of culture.

Recruiting for Not-For-Profit Boards: Building Strong Foundations

With the landscape of not-for-profit governance constantly changing, it is crucial that boards recruit appropriately skilled and qualified directors who can help drive the organisation towards its mission and goals. Yet, boards continue to suffer from underperforming directors, ego-driven attitudes, and constant disagreements. While managing performance is an important part of maintaining a high-performing board, it is equally as important to have a clearly defined recruitment process for bringing in new directors.

An Effective Strategy Execution Framework

Realise your not-for-profit organisation’s vision in a simple yet effective way. Not-for-profit organisations generally have a strong sense of purpose. They passionately can put into words why they exist, what is important and what the future state of a better world will look like. However, many Not-for-profits struggle to articulate how they will achieve their vision. Development and execution of strategy is often seen as a complex, time-consuming and costly process, or there may be confusion regarding what strategy actually is.

A Positive Wind-Up For The Centre For Sustainability Leadership

After 13 years of training and support, the Centre of Sustainability Leadership (CSL) reached a natural end to its ground-breaking run. Under the guidance of the board, CSL is handing over its intellectual property, brand and the 1000+ alumni to the Monash Sustainable Development Institute (MSDI). ‘Sustainability’ was a word that offered optimism and opportunity when co-founders Larissa Brown and Jason Clarke kicked off CSL back in 2004. Larissa was the visionary who seeded the leadership training idea through the Greensteps Program for Monash Sustainable Development Program.

Reforming an NFP Service Provider: It Starts with the Board

Remember the halcyon days of government outsourcing, before the introduction of individualised, contract funding for social services? This was a time when the not-for-profit service provider could maintain ‘business as usual’ in the satisfying knowledge that the next government grant was due, in advance, for defined services, to a specific client cohort. Back then, governance and accountability were within the ability of community committees. There was little need for unitary costing, transaction cost economics, growth strategies and grand marketing plans.

Practical Ways To Improve Boardroom Dynamics

It is now widely recognised that board dynamics are a central driver in producing strong organisational outcomes. This involves not only the relationships among board members but also between the board and senior management. However, this can a difficult area for boards to deal with even when dysfunctional relationships are hindering good governance and impeding sound decision‑making. The following are some practical ways in which a board can reinforce or improve its dynamics.

From Inc to Ltd: Making the change to Company Limited by Guarantee

Not-for-profit (NFP) organisations face more demand for structure, accountability and transparency than ever before. Not only are there more NFPs that are growing into multi-million and multi-billion dollar entities, but there are also more public and government expectations of NFPs than in the past. In line with this trend, NFPs around Australia have been transferring from incorporated association to company limited by guarantee and this trend continues to grow, especially in increasingly competitive markets.

How to Embed Cultural Safety in Healthcare Governance

Cultural safety for Australia’s First Peoples (which includes the terms Aboriginal, Torres Strait Islanders, and Indigenous Australians) has emerged as a key principle to address for healthcare executives through organisational governance. However, there are no guidelines that Boards Directors can use to restructure their governance practices to become culturally safe. This article provides some cultural safety principles for Board Directors to consider when responding to the demands of legislators, accreditors, professional associations, and healthcare staff for healthcare governance to become culturally safe.

How Cost Effective is Your Board?

The job of the board is to direct. That involves making decisions about what to do, how to organise, and who to engage with to further the purpose of the organisation. Those decisions, if taken reasonably and well, will require management support. Increased demands for governance reporting and enhanced diversity will impact not-for-profit company boards in many ways. The three of the most feared are: a possible imposition of direct board costs as new independent professional directors demand recompense for the time, effort and risk involved in the role the increased cost of servicing a larger board, especially in the crucial first few months of each appointment when directors’ demands for information are often at their highest the ever growing costs of providing reports requested or expected by external stakeholders that are diligently reviewed by the board yet add little value to their decision-making.

Are you ‘Processful’ or ‘Purposeful’ – A Governance Dilemma

I recently went overseas to a country that I knew would challenge me in many ways… an experience I relished. I enjoyed what the country had to offer in attractions and experiences, and observed a growing economy striving to adopt as much western culture as possible. This seemed impressive on the surface, however, the more I got curious the more I noticed the ‘busyness’ of the people: they were busy trying to be efficient but, were failing to be effective.