Guiding Principles for Effective Sports Governance
Mahmoud Elbagoury, MBA, CIA, CFE, CISA, CCGP, GRCA, CRISC, CertDir
Chief Audit Executive | Board Director | Committee Member | Keynote Speaker | KPMG Alumni | IFC Nomination | McKinsey Champion | IIA Ambassador | ACFE Mentor
Sports Governance Definition
Autonomy is a key concept that drives governance in sports, both for Olympic and non-Olympic sports.
This has principally been developed by the International Olympic Committee (IOC) and is one of the Fundamental Principles of Olympism set out in the Olympic Charter.
Recognizing that sports occur within the framework of society, sports organizations in the Olympic movement chart the rights and obligations of autonomy, which include freely establishing and controlling the rules of sports, determining the structure and governance of their organizations, enjoying the right of elections free from any outside influence and the responsibility for ensuring the principles of good governance be applied.
Governance Structures in Sports Organization
There are different governance structures you may adopt within your sports organization.
These different structures will have significant impacts on how decisions are made in your organization.
They are helpful in making sports organizations think about their broad mode of operation that suits their mission and vision before developing specific formal policies that define organization structure and roles.
There are two broad board structures (or models): policy and administrative.
UK Code for Sports Governance
At the heart of the UK Sports Governance Code are five basic Principles of good governance. These set out high-level statements of good governance and provide the structure of the Code.
UK Sports Governance Principles are:
1) Structure: Organisations shall have a clear and appropriate governance structure led by a Board that is collectively responsible for the long-term success of the organization and exclusively vested with the power to lead it. The Board shall be properly constituted and shall operate effectively.
2) People: Organizations shall recruit and engage people with a diversity of background, thought, independence, skills, and experience to take effective decisions that further the organization’s goals and best serve their communities, stakeholders, and wider society.
3) Communication: Organizations shall be transparent and accountable, engaging effectively with stakeholders and nurturing internal democracy.
4) Standards and Conduct: Organizations shall uphold high standards of integrity, promote an ethical and inclusive culture, and engage in regular and effective evaluations to drive continuous improvement.
5) Policies and Procedures: Organizations shall comply with all applicable laws and regulations; consider the social and environmental impact of their decisions; undertake responsible financial strategic planning; and have appropriate controls and risk management procedures.
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AU Sports Governance Principles
AU Sports Governance Principles can be used throughout the Australian sports sector, from small local clubs to large national organizations, but the details and explanations tend to be most applicable to national sporting organizations and state/territory sporting organizations.
Those principles are implemented via 35 standards and measured by 140 measures.
The AU Nine Sports Governance Principles are:
1) The spirit of the game – values-driven culture and behaviors
An organization’s culture and behaviors should be underpinned by values that are demonstrated by the board and embedded in its decisions and actions.
2) The team–aligned sport through collaborative governance
Across a sport, boards should work together to govern collaboratively and create alignment to maximize the efficient use of resources and implement whole-of-sport plans.
3) The gameplan – a clear vision that informs strategy
The board is responsible for overseeing the development of the organization’s vision and strategy as well as determining what success looks like.
4) The players – a diverse board to enable considered decision-making
A board should be a diverse group of people who collectively provide different perspectives and experiences to facilitate more considered decision-making.
5) The rulebook – documents that outline duties, powers, roles, and responsibilities
An organization should clearly define and document its structure and the duties, responsibilities, and powers of members, directors, committees, and management.
6) The playbook – board processes that ensure accountability and transparency
Through effective processes and continual review of its performance, the board is able to demonstrate accountability and transparency to its members and stakeholders.
7) The defense – a system that protects the organization
To proactively protect the organization from harm, the board ensures the organization has and maintains robust and systematic processes for managing risk.
8) The best and fairest – a system for ensuring integrity
An organization should have measures and protocols to ensure the integrity of the sport and safeguard its participants.
9) The scorecard – embedded systems of internal review to foster continuous improvement
The board must have an appropriate system of internal controls to enable it to monitor performance, track progress against strategy, and address issues of concern.
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Manager, Internal Audit and GRC Consulting Services at KPMG Saudi Arabia
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