5 Top Tips for Effective
Governance
Tesse Akpeki & Rosalind Oakley
15 May 2014
Governance is…
The systems and processes concerned with
the:
• Overall direction:
– effectiveness, supervision, and accountability
of an organisation.
• Current climate:
– culture, behaviours, transparency, reputation,
effective decision-making and delegation.
7 Primary Responsibilities of
Charity Trustees
1. Trustees are responsible for the proper
administration of their charity.
2. Trustees must accept ultimate
responsibility for everything their charity
does.
3. Trustees have to act responsibly and
prudently in all matters relating to their
charity.
7 Primary Responsibilities of
Charity Trustees (Cont/1)
4. Trustees must safeguard and protect the
assets of their charity.
5. Trustees have a duty to act collectively.
6. Trustees must act in the best interests of
their charity.
7. Trustees avoid any conflict between their
personal interests and those of the
charity.
(Source: http://www.bwbllp.com/knowledge/2013/08/12/duties-of-charity-trustees/)
Tip 1: Spend Time on Trustee
Recruitment
Good Governance A Code for the Voluntary
and Community Sector (Principle 3) states:
‘An effective board will provide good
governance and leadership by working
effectively both as individuals and as a
team’.
Tip 1: Spend Time on Trustee
Recruitment (Cont/1)
• Attract the skills, knowledge, attitudes,
behaviours and experience they need to
build an effective board.
• Encourage board diversity and minimise
the presence of group think. Board
members think together, rather than think
alike.
• The board arrives at the better decisions.
Tip 1: Spend Time on Trustee
Recruitment (Cont/2)
• Board members understand their role.
Roles descriptions and person
specifications are relevant, regularly
reviewed and updated.
• Board development and induction for new
trustees ensure that trustees are aware of
their responsibility to act in the best
interest of the charity.
Tip 1: Spend Time on Trustee
Recruitment (Cont/3)
• Safeguarding checks must be carried out
for trustees engaged in regulated
activities.
• Prospective trustees are encouraged to
disclose interests which might give rise to
conflict.
Tip 2: Role of the Chair
About the Association of Chairs
• Launched October 2013
• 4 aims:
– Support, challenge and stimulate Chairs;
– Develop knowledge and resources;
– Offer professional development and
standards; and
– Create a voice for Chairs.
Tip 2: Role of the Chair (Cont/1)
Literature review - what is
known about:
• Chairs influence on the
effectiveness of the
charity.
• Characteristics of effective
Chairs/chairing.
• How Chairs add most
value/cause most
damage?
Tip 2: Role of the Chair (Cont/2)
From trustee to Chair
• What’s different?
• Legally not much . . .
• But in practice . . .
Tip 2: Role of the Chair (Cont/3)
Managing the
Chief
Executive
Formal duties
eg. as
signatory
Meetings
management
Working with
other
Honorary
officers
Ensuring the
Board works
as a team
Appraising
individual
trustees
Ex officio on
committees
Ambassadorial
Tip 2: Role of the Chair (Cont/4)
Leadership
Tip 2: Role of the Chair (Cont/5)
Characteristics of effective Chairs:
• Motivation and style;
• Capacity to lead;
• Personal attributes;
• Ability to relate; and
• Ability to advance the organisation
externally.
Tip 2: Role of the Chair (Cont/6)
How can you help your Chair?
• Be clear about the role.
• Make expectations explicit.
• Plan succession in advance.
• Robust recruitment process.
• Support Chair once in post.
• Chair review.
Tip 2: Role of the Chair (Cont/7)
•
•
•
•
AoC – specifically for Chairs
Visit our website.
Come to events.
Subscribe to our free
newsletter.
• See our new Guide for
Chairs in the Autumn.
www.associationofchairs.org.uk
• Join us.
Tip 3: Board/Senior Management
Team Relationship
• There is appropriate power in the charity’s
constitution to delegate to the SMT.
• Enhance clarity about what is governance
and management. Board members agree
and capture the nature of the contact
between trustees and senior staff.
• Be intentional and purposeful - explore
how the board can work better as a
strategic team.
Tip 3: Board/Senior Management
Team Relationship (Cont/1)
• Recognise appropriate boundaries and
how they can work better together.
• More boards are introducing confidential
sessions attended by board members only
(or only the CEO) to discuss board
performance and matters that keep them
awake at night.
Tip 3: Board/Senior Management
Team Relationship (Cont/2)
• Terms of delegation are usually captured
in the job description, trustee minutes or in
terms of reference for sub-committees.
Tip 4: The Board as a Team
• Decisions and responsibilities are shared.
All trustees take an active role.
• Trustees are collectively responsible for
decisions made by the trustees.
• Implement strategies that promote good
teamwork, confidence and trust.
• Encourage appropriate behaviours.
Tip 4: The Board as a Team (Cont/1)
• A Code of Conduct can prevent problems
and set out the standards and
expectations expected from board
members.
• Utilise mediation and facilitated
interventions to help situations which are
spiralling into disarray.
Tip 5: Board Effectiveness
• Planning agendas, presenting quality
board papers leads to board members
focusing on strategic issues and dealing
with the matters that really matter.
• Board effectiveness reviews to reflect on
effectiveness. Where is the board
excelling? Where is it not doing so well?
• Utilise technologies appropriately. Board
should not stand on the side lines.
Tip 5: Board Effectiveness (Cont/1)
• An Onboard survey shows that 50% of
organisations are communicating using
electronic methods.
• The charity should ensure it has the
necessary power to make formal decisions
by electronic means. Clear rules of the
road, protocols and ground rules will guide
individuals and groups as they connect
with each other.
Tip 5: Board Effectiveness (Cont/2)
• 90% of organisations are using Twitter and
Facebook to raise awareness of the work
they are doing. 75% of individuals are
using LinkedIn to develop professional
connections.
• Trustee appraisals support board
members as they contribute to the
organisation.
Tip 5: Board Effectiveness (Cont/3)
• A mechanism to identify activities the
organisation needs to start, stop or keep
doing.
• Away days are used to explore emerging
strategic themes in sufficient depth.
• Trustees have regard to the Charity
Commissions guidance on public benefit
and include a public benefit statement in
their annual report.
Tip 5: Board Effectiveness (Cont/4)
• The Charity Commission in ‘Hallmarks of
an effective charity’ steers charities
towards continuous improvement.
• Celebrate success and build in time for
contribution, appreciation and recognition.
Contact
Tesse Akpeki
Rosalind Oakley
Onboard Governance
Development
Association of Chairs
020 7551 7724
07963 737854
t.akpeki-onboard@bwbllp.com
ros.oakley@associationofchairs.org.uk
www.on-board.org
www.associationofchairs.org.uk