Better Governance. Better Consequence – webinar recording Reply

Our Business Perspectives webinar on ‘Better Governance. Better Consequence’ took place on Wednesday 15 March 2017. If you missed the webinar or want to watch it again, it is now available to view on demand.

WATCH THE WEBINAR

During our webinar we used sport as a metaphor to explore governance. We explored multiple facets of governance and how, in an ever changing world, sport and business have similar qualities. We also explained how lessons from sport may be applied across business. The webinar also included video highlights from our masterclass in London on 23 February.

Professor Simon Lee, Professor of Law and Director of the Citizenship and Governance Strategic Research Area at The Open University joined as our speaker. The webinar was facilitated by Peter Wainwright, MBA alumnus and Consultant at Askyra Ltd.

You can also share your views and comments about the event or topic by following us on Twitter @OUBSchool, using #OU_BP

Video highlights from our masterclass on Better Governance. Better Consequence. Reply

During our masterclass in London on 23 February, Professor Simon Lee, Professor of Law at The Open University (OU), explored the links between governance and sport. Professor Simon Lee made the case that governance isn’t about being the referee, it’s about being the goalkeeper. Being able to take a step back from the central action allows businesses to anticipate potential risks and make a strategic plan.

Professor Lee used examples from the sport and business worlds to explain how:

  • Governance is an attitude of mind rather than a particular process;
  • Trust and responsibility are key to corporate governance success;
  • Anticipating change and making appropriate adaptations will stand businesses in better stead;
  • It is important to account for the fact there will always be situations businesses cannot plan for.

During the masterclass, Professor Lee was joined by Pete Winkelman, Chairman of MK Dons FC, who spoke about regulation in football, and Etienne Stott MBE, Olympic Gold Medallist (Canoe Slalom) from London 2012, who showed how the governance of his sport created the structure for success. Video highlights are available:

Regulation in Sport – Time and Money

Pete Winkelman – Chairman, MK Dons FC

Governance in the Goldilocks Zone: Structure of Success (Part 2)*

Etienne Stott MBE – Olympic Gold Medallist (Canoe Slalom), London 2012

*Part 1 of this video is available via our online webinar.

Further video highlights are available from:

  • Professor Simon Lee, Professor of Law and Director of the Citizenship and Governance Strategic Research Area at The Open University focusing on governance and current affairs;
  • Etienne Stott MBE, London 2012 Olympic Gold Medallist (Canoe Slalom) looks at the governance choices of his sport in nurturing athletes.

You can watch more videos on our one-hour webinar, which takes place on 15 March 2017, by registering online.

Webinar: Better Governance. Better Consequence – 15 March Reply

The complimentary webinar, from The Open University Business School, will use sport as a metaphor to explore governance. The one-hour online webinar will take place on Wednesday 15 March at 7pm (GMT).

During the webinar, we’ll explore multiple facets of governance and how, in an ever changing world, sport and business have similar qualities. We will also explain how lessons from sport may be applied across business.

Register now

The webinar will include video highlights from our masterclass in London on 23 February. We’ll draw on the contributions from our masterclass and further develop these discussion points during the webinar, and we invite you to contribute via our live online polls and Q&A forums.

Webinar panellists include Professor Simon Lee, Professor of Law and Director of the Citizenship and Governance Strategic Research Area at The Open University. The webinar will be facilitated by Peter Wainwright, MBA alumnus and consultant at Askyra Ltd.

For further information, please visit our website.

How can you set up your governance systems to achieve results? Reply

mark-johnson-imageGuest blogger: Mark Johnson is a solicitor and company secretary helping charities, social enterprises and SME businesses to flourish. His company Elderflower Legal offers a range of support packages to help organisations with legal compliance, managing risk and good governance. 

Corporate governance has received increased attention in recent years as a result of high-profile scandals involving abuse of corporate power and, in some cases, unlawful activity by corporate officers. Governance is all about the way the organisations are directed, controlled and held accountable to deliver their purpose over the long-term. The organisation’s practices and procedures should be organised so that the organisation achieves its mission and goals, whilst complying with the law and sound ethical practice.

Putting in place a well-defined and enforced governance structure can provide a structure which works for the benefit of everyone concerned, by ensuring that your organisation adheres to accepted ethical standards and best practices, as well as formal laws. However, it is important that the systems are proportionate to the size of the organisation and the risks it faces. We set out below our ten top tips for effective governance.

Positive benefits of good governance include:

  • People will trust your organisation (including members, service users, funders, suppliers and the public), leading to improved trading terms
  • The organisation will know where it is going
  • The board will be fully connected with members and wider stakeholders
  • Good and timely decisions will be made
  • The Board will be better able to identify and manage risks
  • The organisation will have greater resilience to cope with problems
  • The organisation should enjoy improved financial stability

In our experience, there are common areas that often cause difficulties for organisations. Here are our ten top tips for effective governance.

  1. Mistakes at the start

When setting up a new organisation it is important to have a clear shared view of the vision and mission for the organisation. It is important to plan ahead and bring your supporters with you. Think carefully about your strategy from the start and articulate the vision continually to all your stakeholders. (A stakeholder is any individual or group who depends on the organisation to fulfil their needs and on whom the organisation depends).

  1. Choose the right legal format and corporate structure

Think about what you want your organisation to achieve and choose the right format. Take professional advice and learn from what others have done. Don’t let the tail wag the dog. When selecting a legal format, form should follow function, structure follows strategy. First decide what you want to do, then choose the right structure which facilitates this. Don’t rush into setting up one particular format without understanding what the choices and implications are. It can be expensive to unravel the wrong choice. Professional advice is a sound investment.

  1. Clarity of roles

There may be many roles in a complex organisation. It is important to have clarity about the responsibilities of the Board, individual directors, officers and managers. Write down the key responsibilities and draw up a structure chart and scheme of delegation so that everyone knows who is responsible for what and who has the authority to take decisions. Role descriptions should be easy to understand and new joiners to the organisation should be offered an induction. Roles and responsibilities should be reviewed annually, perhaps as part of an individual appraisal.

  1. Poor Board performance

Board members may fail to perform effectively unless they have the right training and skills and a proper understanding of what their role is (in a documented role description). This can have a knock-on effect on the rest of the organisation, if it is not tackled effectively. There should be regular skills audits of the Board to ensure they are performing well. Group training session can be run to remind the Board of their role and continually improve their skills. A regular formal review of the Board’s effectiveness facilitated by an independent observer can be a useful tool for improvement

  1. Recruitment and succession planning

You need to attract good people onto your board with a wide range of skills. If you have skills gaps and vacancies this can lead to ineffective performance or lack of scrutiny. Cast the net wide in looking for new and diverse talent and plan ahead to refresh the Board at regular intervals. Proper training and induction should be provided to would-be recruits to the Board. Allow them to attend a few meetings as an observer before taking the plunge.

  1. Ineffective meetings

Regular meetings to enable a proper exchange of views are very important to good governance. In a fast world, where digital communication is becoming the norm, some of the nuances of physical meetings, body language and interaction can be lost. Meetings need to be properly run, with a clear agenda and board papers circulated in advance, at regular times and accessible venues. Attendees should not leave feeling unclear about what has been decided; concise minutes should be prepared and circulated promptly after the meeting. The Chair plays a vital role in running effective meetings, supported by a good company secretary.

  1. Dominant founders

Sometimes the original founder of the organisation, a long-serving Chief Executive or Chair may have undue power or influence. Sometimes they may take on too much responsibility and spread themselves too thin. It is important to document the roles and responsibilities of key officers, including the limits on any delegated authority to make decisions (e.g. financial limits on payments, requirements for second signature etc). It is a good idea to write into the constitution a requirement for certain appointments to be refreshed every few years.

  1. Mission drift

If an organisation starts to drift away from its core mission or principles, this can cause a sense of confusion and disengagement for board members, employees, members and customers. There could be a variety of reasons for this. Funding streams or contracts may encourage managers to move into new areas of activity. It is important for the Board to continually review whether the organisation is still fulfilling the objectives written into its constitution. The constitution may need to be reviewed and refreshed to cater for change and this will usually require the members to vote in favour of the change.

  1. Engagement with members and stakeholders

Members and stakeholders need to feel that their voice counts and need to be kept regularly informed about the organisation’s activities. The board must be accountable to and represent the interests of the membership and service users effectively, otherwise a division can arise. This relies on transparent rules and reporting lines, as well as effective regular communication by the Board to keep all stakeholders informed. Members’ meetings should be appealing and easy to attend – think about possible incentives to get people to attend. Cadburys used to give away free chocolate to shareholders who attended its AGM!

  1. Deal with conflict swiftly and decisively

Conflicts occur in most organisations from time to time. Unfortunately, disagreements can quickly escalate and cause rifts within the organisation as positions become entrenched. Conflicts are not always a bad thing- they can help to bring issues to the fore and lead to better debate. The Board, usually through the Chair, needs to deal with conflicts diplomatically, mediating between the different parties to achieve a positive outcome.

This blog was originally published by Elderflower Legal. Read the original article.

Better Governance. Better Consequence. 1

Our Business Perspectives masterclass will take place on Thursday 23 February 2017 at 12:00 – 17:00 in London. Join Professor Simon Lee, Professor of Law and Director of the Citizenship and Governance Strategic Research Centre at The Open University and other leading experts, who will use sport as a metaphor to explore governance.

In this masterclass, Professor Simon Lee will base his presentation on latest current affairs in the sporting world. We will explore multiple facets of governance and how, in an ever changing world, sport and business have similar qualities. Professor Lee will also explain how lessons from sport may be applied across business.

In this session, you will broaden your knowledge on governance rules, structure and regulations, which may help you and your organisation improve ways of working.

Places are limited. To book and for further information, please visit The Open University Business School website.