Is Governance Ever ‘Good Enough’?

Written by Sheena Horgan, Director of Advisory Services, 2into3.

 

There is a certain pragmatic logic in the phrase, don’t let the perfect bully the good, but can this be applied to governance?  Especially when the organisation in question is non-profit.

However, socially good the credentials of a charity or organisation, they are no excuse for poor governance.  That said, the nature of the sector does require it to balance best practice deliverables, with what is feasible given an organisation’s capacity and resources. Focusing on achieving functional and effective governance, as opposed to striving for perfection, can ensure accountability, transparency, and inclusivity while being adaptable to contextual challenges.

 

Scoping your Governance Pathway

Good governance in the sector, is less about idealistic behaviour, and more about best practice.  It should be realistic, first off recognising resource and capacity constraints, and then planning to address these in a coherent and incremental way that prioritises the most detrimental deficits.

Whilst it’s fair to say that not all governance gaps need to be tackled immediately, it is beholden on Boards to scope, articulate and navigate their organisation’s governance pathway. This likely means breaking down the complex governance agenda into manageable and context-sensitive steps.  There will inevitably be trade-offs on what can be achieved now and what might be deferred.  Asking the key question, ‘what will this governance task achieve?’, in relation to the organisation’s vision and mission and values, can be a helpful lens when considering which aspects are tackled first.

 

What is ‘Good Governance’?

A cautionary warning though, agreeing what good or good enough governance entails, may be influenced by the Board’s entrenched views, group think and biases, and even ‘founder syndrome’.   There is a reason why independent external Board Reviews are recommended on a regular basis within the Governance Code.  Charities that rely only on internally conducted reviews, run the danger of reenforcing and perpetuating poor governance practices.  Over the years, I’ve witnessed light-touch evaluations with little depth or robustness to be a genuine assessment.  And I’ve seen how “governance” vocally weaponised in the Boardroom to sustain certain positions and viewpoints.

There is an abundance of case studies on poor governance and therefore no excuse for it to be brushed over.  But to offer some guidance that might lessen the fear or enormity of “Good Governance” for charities and non-profits, here’s some simple principles of Good Enough Governance:

Pragmatism over perfection

Governance structures should enable good decision making, so they need to be effective in practice rather than in theory.  Consider policies and processes in this light, asking are they readable, accessible and implementable

Improvement by increments

Clarify the scope of what’s needed and design a time-line and pathway that allows for continuous progress and iterative governance capacity-building

Form follows function

Governance procedures should reflect, state and deliver their desired outcome e.g., integrity, accountability, etc.

Allow for agility

New and revised governance practices are emerging all the time – take hybrid meetings, DEI and AI as cases in point.  Taking an agile approach and adapting where required means having governance on Boards’ radar as well as agenda.

 

Get in Touch

If you’re seeking governance support, visit our webpage for more information, or contact Sheena Horgan, Director of Advisory Services at sheena.horgan@2into3.com.