Governance was defined earlier in this chapter as a process of overseeing the organisation’s accountability, mission focus and CEO. The review presented in the last two sections identifies seven factors contributing to governance effectiveness in independent schools and other non-profit organisations, as shown in Figure 2.6. This conceptual framework extends the frameworks of McCormick et al. (2006) for independent school governance and Ostrower and Stone (2010) for non-profit governance by incorporating findings from numerous reports and studies of governance. It is used to analyse boards in this study and can help guide boards in developing governance as discussed in Chapter 6.
The seven factors can be summarised as follows:
Focus: Keeping the organisation focused on its mission is the most important element of board governance in any sector. Boards should clarify the organisation’s mission, develop a strategic plan for fulfilling it and oversee the plan’s implementation and regular review. The mission and strategic goals should be developed in conjunction with key stakeholders, notably parents in the case of school boards, where educational outcomes are the principle concern. Previous research suggests many non-profit boards focus on operational management rather than strategic oversight.
Approach: Many prescriptive conceptual models of non-profit governance have been published. The most commonly used in non-profit organisations is Carver and Carver’s (2001) Policy Governance model, but Bradshaw et al.’s (2007) well-known framework identifies four prototypical models: the policy, entrepreneurial, constituency and emergent models, and the present review uncovered a further four
more specific models. Each model has its own focus and limitations. Non-profit boards often have very little understanding of the nature of governance and should begin by researching the major alternatives. They should choose one to suit their context and purpose, although given the relatively narrow focus and limitations of each, a hybrid may be more appropriate.
Roles: In most governance models, the board has ultimate authority for all aspects of the organisation, including the CEO’s operational management. However, in reality many non-profit boards see their role as supporting the CEO in day-to-day operational management. Role ambiguity is common, leading to tension between the parties and poor governance. Role clarity, a balance of power and realistic expectations of the CEO are key principles. Changing from a principal support role to a school governance role can constitute a significant paradigm shift in a school board’s outlook, competence and functioning, but may be the most important single step towards effective governance.
Relationships: Good relationships with key stakeholders are vital to effective governance. For school boards, relationships with parents (and other school community members) are critical to ensuring the school understands and meets the needs of its service recipients, the students. Relationships with any founding body, such as a church, are also obviously important, and boards may need to develop working relationships with key government agencies.
The board’s working relationship with the principal is also critical. Policy and other governance models can result in a distant ‘line management’ relationship, but governance is better understood as a partnership between board and principal (within the formal reporting arrangement). Finally, a board should cultivate good relationships and a teamwork approach among its members. The board chair has a key role in overseeing all the board’s relationships and developing trust among all participants in the governance process.
Competence: Previous studies identify a wide range of competences for non-profit or school governance, including knowledge of governance and management, educational expertise, organisational and professional (e.g. accounting or law)
competences, and social or interpersonal skills. In part, this reflects the nature of non-profit governance as a complex activity dependent on social relationships.
How much non-profit boards should acquire generic business competences has been widely debated. Independent school board members are typically volunteer parents, who do not necessarily possess business experience but bring representativeness, enthusiasm and diversity to a board. Boards of smaller schools often have trouble recruiting members, although co-opting non-parents with specific areas of expertise can help. In this context, training is an important option for developing board competence, as is a good induction program for new members.
Processes: Good business processes underpin the effectiveness of any board but are even more critical in the complex and challenging process of governance. The literature identifies a wide a range of process issues relevant to governance, including policy development, meeting procedures, documentation, attention to human resources (recruiting, training and developing members), and building a board culture based on trust and teamwork. The board chair has a critical role in overseeing all these activities.
Board self-monitoring and self-evaluation is particularly vital given the complex nature of governance and the ongoing need to adjust board functioning to meet strategic goals and environmental changes. Boards should regularly consider all the GEFs (their focus, model of governance, role in the school, relationships, processes and competences for governance and environmental context), ensuring these further the school’s mission and strategic goals.
Context: Regular consideration of the external and internal environment is a key element of contingency frameworks of non-profit board governance. The literature suggests key external areas include trends in government, politics and the broader economic, social and technological developments that affect a school’s future. Internal aspects include staffing and the school’s culture. Boards may also review how their model of governance fits with an environment that may be simple or complex and stable or turbulent. Boards should regularly ‘scan’ their environment, and a number of simple tools for this were identified from the literature on strategic management and school culture.
Figure 2-6 Governance Effectiveness Factors
Consideration of Context
Internal & external influences
Governing Relationships
Relations with principal and parents, relations among board members
Competence to Govern
Members’ expertise & skills
Board Governance Effectiveness
Board Processes
Policies, processes, member recruitment & training, meeting procedures, documentation
Strategic Focus
Vision, mission, values, strategic direction Approach
Model of governance adopted
Roles