Charity governance has been firmly in the spotlight in recent times. Financial pressures, restructures and, at times, serious failings have highlighted the strain boards are under. While that can feel unsettling, it also creates an opportunity for positive change.
That opportunity often starts when the trustee board asks a simple question: ‘should we review our governance framework?’ It’s a positive step, but one that quickly raises another question – ‘where do we start?’
A governance review doesn’t have to be daunting or disruptive. It certainly doesn’t mean that things have already gone wrong either.
However, to be an effective and worthwhile investment of both time and, often, money, a governance review should be approached correctly and with purpose.
This is about taking a step back and honestly appraising whether your current structures, processes and behaviours are helping – or hindering – the effective running of your charity.
But what do you need to consider as part of that honest appraisal?
The aim
The best place to start is with the aim. What has prompted the review? Are you responding to a specific concern? Or is this about strengthening best practice, how decisions are made, or how meetings are run? Perhaps there are concerns at play regarding culture or behaviour? Being clear on the ‘why’ will shape everything that follows.
The objectives
It is vital to set clear and measurable objectives as vague intentions rarely lead to meaningful change. Instead, define what success looks like. That might be clearer committee structures, better-quality board reporting, improved risk management, or stronger engagement between trustees and management.
The right people at the right time
It’s also important to secure the support of the entire board from the outset. Without it, there’s a risk that the process becomes simply a tick-box exercise rather than a genuine catalyst for change.
This shouldn’t, however, simply be an exercise for the board to be involved in. Engaging appropriate figures from the management team and those involved in the day-to-day running of the organisation can provide valuable insight into how board-level decisions play out in practice and highlight gaps between intention and reality.
In a similar vein, timing is everything. Scheduled when the board and management teams’ attentions are focused elsewhere is likely to result in the review receiving sub-par support, so avoid peak operational periods or major reporting deadlines. A well-timed review when key participants are available and focused is more likely to gain traction and deliver its intended value.
An internal or external exercise?
A governance review doesn’t have to be a hugely complex or costly exercise, depending on what the aims and objectives are focused on. Many charities find that benefits can be reaped and improvements identified via a process of honest self-assessment.
Other organisations, meanwhile, may prefer to engage with external expertise to conduct the review, especially where specialist knowledge or a greater level of independence are required.
Whichever method of facilitation is chosen, it’s important to stay focused on the aims and objectives set at the outset. While some improvements may be achieved relatively quickly, others – particularly those linked to culture and behaviour – will inevitably take longer to address. This can be the hardest part of a governance review to accept.
That shouldn’t, however, put any charity off considering a governance review. In a sector facing increased scrutiny, reviewing how your board operates is a proactive and valuable step. With clear aims, the right people involved and a willingness to act on what is found, a governance review can move beyond reassurance and become a meaningful driver of improvement leading to strengthened decision-making, improved oversight and greater impact.
If the question around a governance review has already been raised, that’s often the clearest signal that now is the right time to start.
If you’re starting to question your governance framework, now is the time to act. Take a moment to review your current approach, engage your board and explore where improvements can be made. If you’d like guidance on getting started, we’d be happy to help: Internal audit and risk – Sayer Vincent