Five principles of good governance

Folk get anxious about governance. And that’s understandable – getting it wrong can be very costly both to the charity and trustees and people think it’s complex and challenging to get right. But in many ways it’s also fairly simple – it’s not about having the thickest Board papers, the longest risk register, or the ability to survive a four-hour committee meeting without checking your phone. 

It’s basically thinking – we exist in law to serve a cause – what should we do to make sure we’re doing it right. 

And these five simple principles that, done consistently, will make all the difference to your confidence as a board. 

1 – Purpose first   

Every decision should start with one question: How does this help us achieve our mission? Not, “We’ve always done it this way”, which is more like organisational archaeology than good governance. Boards exist to keep the organisation focused on why it exists, especially when the world becomes noisy and distracting. 

2 – Ask good questions

The best trustees aren’t the ones with all the answers. They’re the ones who ask the questions everyone else is quietly thinking. “What are we missing?” “Who isn’t in the room?” “What would success actually look like?” Not knowing and asking is one of the most underrated governance skills. Curiosity keeps complacency at bay and helps organisations stay honest. 

3 – Build trust before you need it

Governance isn’t about catching people out. It’s about creating relationships where challenge is welcomed, not feared. The healthiest Boards I’ve worked with can disagree robustly and still enjoy a cup of tea together afterwards. If every difficult conversation feels like a courtroom drama, something has gone wrong. 

4 – Look forwards more than backwards

Of course Boards need assurance. Finances matter. Compliance matters. Risk matters. But if you consider that the whole board only meets maybe four or five times a year for a few hours that means at most the whole board is thinking together for only 8-12 hours a year!  If every meeting is spent examining last month’s numbers in forensic detail, who’s thinking about next year’s opportunities? The rear-view mirror is useful. It’s just not where we’re going. 

5 – Remember that governance is a team sport

The Board, the Chief Executive and the executive team each have different roles, but they’re all trying to achieve the same goal. When those relationships are built on respect, clarity and openness, remarkable things happen. When they’re built on suspicion, everyone spends more time protecting territory than creating impact. 

One final thought: Good governance isn’t glamorous. There are no standing ovations for approving the audit or reviewing the reserves policy. Although if anyone ever wants to applaud a well-written set of minutes, I promise not to stop them. 

In fact getting your processes and paperwork right is a key part of good governance – but because folk are busy they often don’t take the time to ensure their agendas are structured well, their role descriptions make sense, their board review process is sound.   

Which is why at DSC we have produced Governance Tools and Templateswhich do the thinking for you so that you get things right. 

Because behind every thriving charity is usually a Board that quietly does the basics brilliantly. It stays curious. It stays courageous. It keeps purpose at the centre. It supports and challenges in equal measure. It makes sure its policies and procedures are sound and relevant to today. And it never forgets that governance isn’t an end in itself. It’s how we help great organisations change lives. 

Peter Drucker famously said, “Culture eats strategy for breakfast.” I’d add that good governance makes sure breakfast gets served in the first place.