Governments set up boards to bring representation closer to constituents.
Boards are one of the foundations of decentralized decision making. This system works well when boards are provided clear guidance and the necessary resources to meet their assigned mandates. This system fails when governments are unable to support boards by providing the necessary information and guidance to enable them to fulfill their role.
More specifically, a government fails its boards when it
- Confuses management and governance in legislation, directives and policies
- Provides unclear mandates
- Refrains from defining the limits of the each board’s decision making power
- Rejects evidence and reverses decisions based on political reasons
- Appoints board members without asking their permission or reviewing the needs of the board
- Does not provide resources for the orientation of elected and appointed board members
- Fails to meet with representatives of the boards at regular intervals
- Has undefined communication channels
- Provides insufficient funding to fulfill the assigned mandate
To overcome these obstacles and avoid the pitfalls associated with governance, it is essential for each board to take the following steps:
- Review its legislation and clarify any potential areas of misunderstanding with the designated Minister or Parliamentary representative
- Discuss the assigned mandate, determine where there are differences in interpretation by board members and clarify those statements with the government representative
- Extract the decision making statement from legislation and other relevant documents, and determine where clarification is required
- Determine by whom and how conflict or ‘gray’ areas would be handled
- Decide in governance policy, who will be responsible for what (board chair, board as a whole, board committees, or CEO).
- Know which decisions the board can make independently, when it has to consult with a government representative, and when it is totally dependent on the government
- Outline how the board will react when a decision is overturned by the government and how it would affect future strategies
- Develop a common understanding with the government about the replacement of board members and cost of the orientation process for each board member who is appointed without consultation with the board.
- Review the board’s budget and assign funds for the orientation of the board members.
- Develop an orientation process
- Assign persons to carry out the process
- Evaluate the effectiveness of the process
- Determine how the board will communicate with the government
- Who will be responsible for what areas
- How the board will be apprised of the results of discussions with the government
- Develop a communication plan
- Clearly define the role of the board, the board’s chairperson, and the CEO
- Outline who will communicate with whom, how misunderstandings would be handled and the key messages to accompany each issue.
- Delineate areas which are underfunded, provide evidence, and outline the risks associated with the underfunding
- Ensure that risks are communicated in writing to protect this board or future boards.
Public-sector boards provide a very valuable service. Governments have a responsibility to provide the information and tools for boards to fulfill their mandates, maintain a positive relationship with their constituents, and leave a noteworthy legacy.
