Do you think governance is boring?

I suppose it can be, especially when board meetings are simply box ticking exercises or turn into detailed explorations of operational minutiae. In broad terms, “good governance” enables and supports an organisation’s compliance with relevant legislation and regulation but if all you do as a board is receive reports, examine past performance and/or scrutinise the Chief Executive’s travel receipts (it happens) then yes, being a non-executive director is pretty dull.

The board must of course exercise accountability and must be responsible to their organisation’s stakeholders, members and/or shareholders; but the board environment should always be a creative space that promotes positive attitudes and a culture where everything works towards fulfilling the organisation’s vision, mission and value. Simultaneously the board must exercise prudent control and be entrepreneurial, which admittedly can be a challenge but also presents a very exciting opportunity.

Why wouldn’t you want to be involved in your organisation’s business development and contribute to the creative energy required for long-term success?

Well, one major problem for people who serve on boards is understanding the term ‘governance’, and without adequate induction and an appreciation of the various governance codes (Policy Governance, Governance as Leadership, UK Corporate Governance Code, NETpositive Governance, BS 13500, Charity Governance Code, Wates Principles, etc), the challenge is to ensure boards govern rather than manage their organisations. Most boards find it easier to undertake fiduciary responsibilities rather than their strategic or generative roles, and whilst ensuring legal and regulatory compliance is critical, boards that spend all of their time focusing on compliance and not also on strategic development, are not performing adequately.

Research shows however that adopting and adhering to a clear basis for how a board operates (a model of governance) can lead to improved governance practice and there are many different models available. It is important that a board adopts a model that enhances the values and performance of the organisation by using one of these established codes or by choosing some principles from each and implementing a bespoke approach. This not only promotes effective governance but also ensures less confusion between the role of the board and that of its executive. Crucially, understanding and adhering to its governance model offers a board not only clarity around its legal responsibilities but acknowledges its pivotal function in leading the organisation’s development by permitting the board time to be reflective and space to be innovative.

Governance and innovation are not mutually exclusive. Effective governance is innovative, which is a central theme of the upcoming Cambridge Governance Symposium, where we have challenged speakers to reflect on their experiences of modern organisation governance and to share their pioneering views of progressive governance models. For more details and to register your attendance visit www.yourconsort.com/symposium.