What is good governance?
When I talk to people about governance they often assume I am talking about policies and committee structures. Of course, these are important, but there is more to governance than that.
Boards need to know that the right policies are in place (and being implemented). They need assurance that regulatory requirements are being met. They need a structure that will deliver this. Beyond this there is a lot more required for good governance.
Charity boards need to be clear about the purpose of their organisation, its vision and strategy. They need to know how to ask the right questions to gain assurance and to support the CEO to deliver (without stepping into micromanaging).
Good governance is about openness and transparency. It’s about robust, respectful discussion and debate. It’s about every board member bringing their skills and intellect to the discussion so that a wide range of perspectives inform decision making.
Good governance requires a good chair who manages meetings well, focussing on what’s important, preventing discussion of minutiae which so easily crowds out the big picture discussion. It requires trustees to have confidence in their role, who speak up. It requires a CEO and executive team who understand the role of the board, share their challenges, welcome questions.
There’s a reason why the review of the Charity Governance Code in 2025 put more emphasis on Board behaviours and culture. All the policies in the world can’t make up for a board that is failing in these areas.
So, if you are assessing your charity’s governance, don’t just ask are we compliant with regulations and requirements of the charity commission? Ask also:
Do all our trustees understand the purpose of our organisation?
Do our trustees approach their duties with curiosity and ask appropriate questions?
Is our board open to new ideas and perspectives?
Does our chair create a culture that encourages open engagement by all board members?
Does everyone listen and challenge respectfully?
These behaviours and culture are just as important to good governance as up to date policies and a perfect committee structure.
If you’d like to discuss any aspect of your governance with me, please get in touch.