A sound governance structure which takes ultimate responsibility for an organisation’s affairs, vision and strategic direction is essential for sustainability and effective service provision. Good governance concepts change over time and so any governance improvement programme needs to develop capacity to create a sustainable and evolving model of good governance. The aim is to create a strong, sustainable future for an organisation, by continually steering it towards its vision, and making sure operational leadership and management are implementing policy and practice in line with the organisation’s strategy and goals.
Key elements include:
- Board member recruitment, review and monitoring
- Board policy development, review and implementation
- Strategic planning and stakeholder engagement
- CEO recruitment and relationships
- Meeting processes and planning
- Financial, legal and risk responsibilities
CDNZ has developed a range of useful resources to support governance review , planning and policy processes. These are available to members.
Our Approach
Working with an organisation on governance matters will require an initial scoping of current practice to establish areas for review and development. Once identified CDNZ will work with the board to review and develop policy and practice in areas of need, working towards creating a competent, sustainable governance model.
Board Member Recruitment, Review and Monitoring
Like any great recipe, the important ingredients that make up an effective Board are the skill-mix and experience of its Trustees. Choosing an appropriate mix is often over-looked when a Board is established, there are some generic governance skill areas every board should aim to cover and each organisation will also have it’s own specialist areas of focus it wants represented including service user voices. While intentions will normally be admirable, a truly rounded and unbiased perspective may not be readily available without the right mix.
Resources and tools specifically designed for New Zealand NGOs and NFPs to help with the recruitment and induction of board members are readily available from CDNZ. While the actual process of board recruitment is not often required, it is a critically important function, as is the continued health and effectiveness of a Board. Therefore, methods of reviewing and monitoring the board trustees have also been designed to help with retention and board effectiveness.
Checklist for the Chairperson of an NGO or NFP
Board Policy Development, Review and Implementation
Similar to Trustee recruitment, board policy development and review are functions that don’t occur that often during the life of an organisation. However, this topic is again a vitally important part of the successful backbone of an organisation, and needs to be completed with due care and diligence. However, it is not necessary, or efficient, to start from scratch, so CDNZ has designed templates that cover most of the key issues that can be easily adapted to suit your organisation. With changing times and legislative requirements, it may be worthwhile reviewing original policies, especially if they are older than 5 years.
Strategic Planning and Stakeholder Engagement
Development of strategy is the link between operational and governance parts of the organisation. It sets the direction of the organisation. Strategic Planning is frequently driven through the CEO and their relationship with the Board
Key elements include:
- creating a vision and mission
- goals
- objectives or actions
The process for developing the plan usually involves stakeholder consultation, internal and external, and the development of communication tools such as publishing the Strategic plan, development of website information, hosting a launch, and implementing a targeted dissemination plan.
The board of a NFP holds responsibility for setting the strategic direction of the organisation, therefore their role in leading and developing the strategy is vital. It is also vital that the CEO actively participates as it will be their role to implement the strategy and their knowledge of the operational side of the organisation will be critical in understanding the previous strengths and weaknesses and the opportunities for the future.
An important component of your strategic planning process is consideration of the stakeholders that may be affected or influenced by your organisation. As well as the individuals directly utilising your services, and of course your staff and funders, consideration should be given to working with the local community, consultation on policy, partnering with community organisations, and collaboration with other agencies. Some of the CDNZ resources that may help with guidance on building active relationships and working with specific population groups, include:
- Supporting active citizenship
- Measuring progress more effectively
- Improving the quality of policies and services
- Helping solve complex problems
- Helping create an inclusive society
- Ensuring Māori participation
- Building trust and understanding
- Building staff skills
CEO Recruitment and Relationships
One of the critical aspects of a successful organisation is having clearly defined responsibilities between the Board and the CEO (or whatever title used for the lead operational role). Quite simply, a Board should never involve itself with the day to day operation or management of the organisation; and similarly, the CEO should not be involved with critical steering and strategic decisions established by the Board. To ensure there is no misunderstanding, clear written guidelines should be available, and regularly reviewed. CDNZ has templates and resources designed for the NGO/NFP sector and based on best practice frameworks that can be readily adapted to suit your organisation.
Meeting Processes and Planning
Have you ever attended a meeting that has achieved very little, wasted time and had no real structure? Unfortunately, this can be a common experience. There are some core principles of how to hold successful meetings. CDNZ has put together some straightforward resources and templates that will help put meetings back on track.
Financial, Legal and Risk Responsibilities
Many small and medium sized NGOs and NFPs do not have the luxury of having financial or legal personnel on their staff or Board. Yet these fundamental areas, along with risk management, are key building blocks of an organisation and are critical to its sustainability and ultimate success. It is crucial to have a properly laid platform supporting the services of an organisation. One of the most common challenges in New Zealand is key management and operational staff having to waste hours (sometime days) of time, effort and resources on these basic components, instead of focusing on the service. CDNZ has developed resources and tools to help support these important functions, as well as developing an advice line to help with ad hoc enquiries.
