Good Governance in Government Entities - PowerPoint PPT Presentation

Loading...

PPT – Good Governance in Government Entities PowerPoint presentation | free to view - id: 7c6708-N2RiN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Good Governance in Government Entities

Description:

Good Governance in Government Entities Governance Matters Kate Costello Influence the right skill-mix Define who does what Maintain a relationship with the Minister ... – PowerPoint PPT presentation

Number of Views:107
Avg rating:3.0/5.0
Slides: 36
Provided by: Andrew1684
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Good Governance in Government Entities


1
Good Governance in Government Entities
Governance Matters Kate Costello
2
Effective Governance
  • understand the role of the Board
  • get the right skills and encourage the right
    behaviour
  • introduce effective processes

3
Understand the Role of the Board
Governance is what the Board does or should do to
be a value-adder to the organisation rather
than just a cost-centre. It is different from
what management does or should do.
4
What is Governance?
The Boards role is to create the future of the
organisation, not just mind the shop. John
Carver
5
The Role of the Board
Strategy Formulation
Outward Looking
Accountability
Compliance Roles
Appoint CEO
Performance Roles
Inward Looking
Monitoring and Supervision
Policy Making
Past Present
Future
adapted from Tricker, RI International
Corporate Governance (1994) p149
6
Accountability
  • Those you cant say no to!
  • the law and regulation
  • constituent document or
  • empowering legislation
  • creditors (eg. bank suppliers)
  • other contractors (eg government
  • funding sponsors)

7
Accountability
  • Those you need to listen to!
  • owners (shareholders members government)
  • customers
  • staff
  • the community

8
Good Governance in Accountability
  • listening to stakeholders
  • risk management
  • organisational culture

9
Strategy Formulation
  • what is Strategy?
  • Michael Porter
  • the gut, the head, the heart
  • answer the hard questions

10
Good Governance in Strategy
  • longer term strategic plan (with measures)
  • aligned operational/business/annual plan (with
    measures)
  • aligned budgets

11
Good Governance in Strategy
  • dedicate some board meetings to strategic matters
  • spend the first hour on a strategic issue
  • reorganise the agenda (decision discussion
    noting)

12
Policy
I define policy as the value or perspective that
underlies action. Of course that means everyone
in the organisation makes policy including staff
members, but boards must make the broadest and
most inclusive policies in order to control the
organisation. The trick is for the board to make
distinctions between the types and sizes of
policy, so that what is delegated is
clear. Carver J Reinventing Your Board, P41
13
Good Governance in Policy
  • Carver argues that the board only has one
    employee, the CEO.
  • The board will
  • instruct only the CEO
  • view all organisational performance as that of
    the CEO
  • view any organisational failure to comply with
    board policy as the failure of the CEO
  • require that the CEO keep the organisational
    performance within policy criteria and restore it
    to this state should there be policy violations
  • never in its official capacity, help the CEO
    manage
  • John Carver

14
Good Governance in Policy
  • Matters reserved for the board
  • Policy separated from minutes
  • Board Manual

15
Monitoring and Supervision
  • By strategic KPIs
  • By annual KPIs
  • By compliance with board policy
  • By agreeing what information will
  • come to the board, in what format

16
CEO and Succession
  • hire and fire the CEO
  • remunerate and reward
  • assess performance
  • plan for succession

17
Get the Right Skills
  • size of the board
  • board skill set
  • committees
  • the right ones?
  • clear terms of reference?
  • reviewed, or task forces?
  • amend constituent document to
  • make right

18
Board Member Knowledge
  • induction
  • management update sessions
  • expert reports
  • expert development sessions
  • Board and director
  • performance evaluation

19
Encourage the Right Behaviour Board Effectiveness
Research
Shey Newitt Compliant but not contributing why
Australian boards are being under-utilised
20
Working Relationships
  • Chair CEO relationship critical
  • behaviour and teamwork
  • a living Code of Conduct

21
Introduce Effective Processes
  • calendar
  • papers before meeting
  • clear, concise, precise papers
  • duration of meetings
  • calibre of minutes plus action list
  • receipt of minutes after meeting

22
Effective Governance
  • understand the role of the Board
  • get the right skills and encourage the right
    behaviour
  • introduce effective processes

23
Good Governance in Government Entities
24
Structure
  • Varies
  • department
  • statutory authority advisory or decision-making
  • wholly-owned or partly-owned company

25
Structure
  • Commonwealth and states have their own
    classifications
  • nomenclature may be confusing
  • the entity called the Board
  • the entity has a board
  • often two owners portfolio and shareholder
    ministers

26
Structure
  • skill mix on board if nominees
  • Chair/board to influence Minister to create the
    right skillmix on the board
  • conflicts may arise where board members appointed
    because of expertise from operating in the field

27
Structure
  • Audit Committee Auditor-General as auditor
  • Remuneration Committee where board sets
    remuneration of CEO and other senior executives
  • other committees?

28
Accountability
  • Legislative compliance
  • specific purpose legislation
  • legislation applying to certain types of
    government entities
  • legislation applying to all government entities

29
Accountability
  • prescriptive content and timing of reporting and
    disclosure obligations
  • triple bottom line reporting

30
Accountability
  • relationship with Minister department CE and
    Chair
  • Formal charter (or MOU) clearly setting out role,
    responsibilities and relationships between
    department and entity (and its board)
  • Ministerial direction in writing recorded in
    minutes referenced in annual report

31
Strategy
  • tension between financial and social objectives
  • Chair must agree with Minister the long term
    objective of the government
  • Statement of Corporate Intent may contain
    high-level policy on, eg. asset acquisition,
    capital structure, accounting policies

32
Strategy
  • Corporate Plan 3 plus years lots of analysis
    and information
  • Business Plan and Budget 1 year

33
Policy
  • may be tied to government policy eg. purchasing
    and tendering
  • grants for programs will require certain policies
    and processes
  • but, entity needs the freedom to develop policies
    without interference from department or
    Ministers staffers

34
In Summary
Influence the right skill-mix Define who does
what Maintain a relationship with the
Minister Your checklist
35
Good Governance in Government Entities

Governance Matters
governancematters.com.au
About PowerShow.com