Master Class in Good Governance presented by Mark Schultz, Governance Today Pty Ltd

www.digibiz.net.au

Learning OutcomesAt the end of this Workshop and Mentoring session you will• Have an increased awareness of how broadband technology

can benefit our region and your not-for-profit (nfp) • Be able to identify success factors and barriers to the good

governance of your nfp and your own performacne as a board member

• Have shared best practice examples of good governance in an

nfp environment.• Have determined strategic and operational improvements to

ensure personal and board improvement

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Benefits of broadband technology

Opportunity and potential of broadband technology Enhanced productivity and global competitiveness Transformative –TeleHealth- education -services- precision

agriculture

Broadband benefits Booming demand for data International competitiveness Productivity efficiencies

Enabling a more inclusive Australia Busting the ‘tyranny of distance’ for rural and regional Australia Social Media - source of venture capital - reducing social isolation

Online resources and tools - www.digitalbusiness.gov.au

DigiBiz - Training to get you online

The Central Highlands Digital Enterprise project is:• An initiative of the Centre for eCommerce and

Communications at FedUni• Supported by Local and State Government• Principally funded through the Department of

Communications www.communications.gov.au• Provides FREE workshops, mentoring and events that

promote the use of broadband technology

Governance principles

‘Systems and structures can provide an environment conducive to good corporate governance practices, but at the end of the day, it is the acts or omissions of people charged with relevant responsibilities that will determine whatever governance objectives are in fact achieved’(HIH Royal Commission, 2003)

ASX Corporate Governance principles

Principle 1 Lay solid foundations for management and oversight

Principle 2 Structure the board to add value

Principle 3 Promote ethical and responsible decision making

Principle 4 Safeguard integrity in financial reporting

Principle 5 Make timely and balanced disclosure

Principle 6 Respect the rights of stakeholders

Principle 7 Recognise and manage risk

Principle 8 Remunerate fairly and responsibly

General functions of the board

Foundation responsibilities of an NFP board member

Always act in the organisation’s best interest

Exercise appropriate power and discharge duties

With good faith and honesty for a proper purpose

Not use position improperly

Not use information improperly to gain personal advantage as a result of any

decision making process of the organisation

Prevent insolvent trading

Comply with other statutory liability provisions

Avoid conflicts of interest

The legal framework – the regulatory environment

Strategy to achieve viability

V

CSValue proposition

Capacity

Support

Strategy and change

Success factors: IBIS Research

Stick to one business at a time, do not diversify Aim to dominate some segment(s) of your market Be innovative, value the business IP Outsource non-core activities to enable growth Don’t own “hard” assets Have good and professional financial management Plan from the outside in, not the inside out Anticipate any new industry life cycle changes Follow world best practice for your type of business Develop strategic alliances Develop unique organisational cultures Value leadership first and management second

Risk management

Risk management begins with five basic questions:

What can go wrong?

How likely is it to go wrong?

What will be the consequences if it goes wrong?

What will we do to prevent it?

What will we do if it happens?

What is risk management?

Risks can be viewed and mapped in terms of probability and consequences:

Probability and consequences

Performance management

The process – The Balanced Scorecard

CEO / Management / Staff

Board performance review

Rationale

Process

Follow up

What makes a great board

Create a climate of trust and candor

Foster a culture of open dissent

Utilise a fluid portfolio of roles

Ensure individual accountability

Evaluate the boards performance

An effective board member should possess

Technical competency

Behavioural competency

Self awareness

Personal reflection

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More information and resources

Join the digital revolution

DigiBiz activities are funded by the Australian Government’s Digital Enterprise program and supported by State and Local Government

Click onto www.digibiz.net.au to register for workshops and mentoring

Online resources for business: www.digitalbusiness.gov.au