E2. Developing the entity’s leadership
The leadership of a public sector entity is usually made up of its governing body ( either elected, appointed, or a combination of the two) and its senior management ( the executive ). Good governance requires clarity over the various organizational roles and responsibilities between the governing body, management at all levels, and employees. Their respective responsibilities also need to be communicated to stakeholders. Clarity about roles helps stakeholders understand how the governance system works and who is accountable for what and to whom. The governing body should, therefore, publish a formal statement that specifies the types of decisions that are delegated to the executive and those reserved for the governing body.
All members of the governing body and senior management should be appropriately qualified to meet the needs of their roles and responsibilities. They also need opportunities to develop further their skills and update their knowledge. Their competency and attendance record are critical success factors for the effective functioning of the entities that depend on them. This is also the case for those people who occupy these positions but are not, or only notionally, remunerated ( volunteers ).
Providing adequate and appropriate strategic direction and oversight is challenging and demanding, so governing body members need the right skills for their roles. The governing body needs to review its composition and effectiveness on a regular basis to ensure it continues to have the correct balance of skills and knowledge to continue to perform its role effectively. It is also important that governing bodies are stimulated by fresh thinking and new challenges and that they avoid lapsing into familiar patterns of behavior that may not best serve the entity’s purpose. Where gaps in capability are noted, the governing body will need to consider how such gaps can be filled. At the same time, governing bodies need continuity in their membership in order to make the most of the pool of knowledge and understanding and the relationships that have been formed, both within and outside the entity. Membership turnover that is too frequent can mean that the entity loses the benefit of longer serving members learning and experience.
Encouraging a wide range of people to stand for election or apply for appointed positions to the governing body will assist in developing a membership that has a greater spread of experience and knowledge. This should include the establishment of fair, transparent, and effective election and recruitment processes.
A governing body can improve its collective performance by periodically taking the time to step back and consider its own effectiveness. Where it is clear that the governing body will be losing a particular skill set within a defined time scale, it may have the opportunity to make plans to fill the gap accordingly. There will need to be regular reviews to address changes in skill set following elections.
Where other organizations nominate people to join a certain governing body, that governing body should communicate clearly to the nominating body the set of skills and perspectives that are most helpful. A governing body with elected members should commit itself to developing the skills it has decided its members need to carry out their roles effectively.
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