A governance review is a holistic view of an organisation’s systems, which creates alignment between the governance practise and the strategic objective of the organisation. Effective Governance uses a modified version of our Corporate Governance Practice Framework to assess how authority is exercised and controlled below the board in an organisation by delving further into the roles of the board, committees and that of senior management. We assess whether everyone in the organisation:
- Is empowered to do what they need to do.
- Understands their objectives and how they contribute to progressing the organisation’s objectives.
- Understands what they can and cannot do, and how decisions are made.
- Complies, and holds others to account.
To achieve this harmonisation between strategic decision making and governance, we the following methods in this review:
- Surveying key stakeholders (both internal and external) to find what is working well and where there are areas for improvement with an emphasis on how the current structures support the strategic decision making process.
- Interviews with board, committees members and senior management to delve deeper into focus areas identified in the survey.
- Reviewing both organisational and senior management KPIs to check if they align with the strategic direction.
- Reviewing relevant organisational documentation to assess the alignment of decision making with strategy.
- Reviewing the committee structure to align their purpose with the strategic direction.
- Reviewing the organisational structure to guarantee that it is capable of supporting the strategic direction and associated decision making.
- Reviewing the position descriptions of the CEO and senior management to ensure that the authorities are aligned with the decision making processes to implement the strategic direction.
The outcome of the review is a report which provides both a review of an organisation’s governance practices through both a macro and the micro lens. Our report will detail what changes need to be made from a whole-of-organisation perspective to what certain individuals can do to better support the strategic decision making of the organisation.