Governance for growth
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#TRUSTEECONF2014 AM6: Governance for Growth Nigel Kippax, NCVO Alistair Lomax, NCVO
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Presented at NCVO's Trustee Conference on Monday 11 November 2014. The presentation was by Nigel Kippax, NCVO. These slides startsfrom the premise that governance is about compliance and performance; contending that good governance and leadership around risk requires responsible trade-offs. To learn more about governance: http://www.ncvo.org.uk/practical-support/governance To find out about NCVO's Trustee Conference: http://www.ncvo.org.uk/training-and-events/trustee-conference
Transcript of Governance for growth
#TRUSTEECONF2014
AM6: Governance for Growth
Nigel Kippax, NCVO
Alistair Lomax, NCVO
Introductions
Nigel Kippax – Head of Consulting and Training; NCVOAlistair Lomax – Senior Consultant; NCVO
Thank you
Stephen Lloyd
Introduction
• What did Stephen mean by ‘ Governance for Growth’?
• In what way is your organisation growing? • How is the organisation changing to get ready for
growth? • What sort of governance is needed for growth?
[Discuss]
Charity Commission
Charities & Risk Management
2. Avoid
3. Mitigate
4. Accept(Insurance)
1. Transfer
Risk strategies
What’s the underlying assumption?
Risk = Bad
Risk Orientation
Example Gains Losses
High Probability
(Certainty Effect)
RISK AVERSE. 95% chance to win.Fear of disappointment.
RISK SEEKING. 95% chance to lose.Hope to avoid loss.
Low Probability
(Possibility Effect)
RISK SEEKING5% chance to win. Hope of large gain
RISK AVERSE. 5% chance to lose. Fear of large loss.
Is risk a rational concept?
Flooded by Risk Aversion?
Risk paradox
Three modes of governance
Fiduciary Stewardship, compliance, mission, accountability, sustainability
Strategic Sets strategy, priorities, resources, general course
Generative (governance for growth)
Trustees work with Exec to frame problems, make sense of ambiguity, shape strategic planning and decision making
Ref: Lesirge: Chait, Ryan,Taylor, Governance as Leadership: Reframing the Work of Nonprofit Boards (John Wiley & Sons, 2004).
What risky issues is your Board facing?
How would you gauge yourBoard’s appetite for risk?
Risk – Group work
The role of the Board
Sir Terrance Conran interview
Control & Innovation
What could be the benefits of Risk?
Sir Clive Woodward interview
Performance & Fear
Board
\\\\
PerformanceCompliance
\
The role of the Board
Limit riskControlProtect
Manage riskInnovateChange
&
What will you leave behind?
\\\\
Hand Back
“Better”Hand Back
“Safely”
\
A Question of Legacy
Collective decision making
Reducing risk
Sub committeesRisk register
Role descriptionsFinancial authority levels
Performance dataAnalysis
Trustee reviews
Review & learnInnovate
Managing risks
Behaviours
Systems & Structures
PerformanceCompliance
‘Good’ governance requires action in all four segments
Introducing a third dimension
…. time
Context: The “S” curve
Impact;£
Time
Organisations follow a similar curve as they evolve/grow
Context: The “S” curve
Time
Maturity - Plateau
Growth – High Performance
Initiation – Period of high risk
Impact;£
Case study
Case study
You’ve been asked to advise the board:
• What governance issues are there?• What might happen if these governance issues
are not resolved?• What should the board do to break through? • If the board succeeds what could the
organisation look like?
Actions to consider
• Fresh mind sets – challenging assumptions• Fresh insight – review of the board• Fresh ways of working – process changes• Fresh faces – recruitment of trustees
Ref: “Board & Risk” Nigel Kippax; October 2014
Summary
2. Avoid
3. Mitigate
4. Accept(Insurance?)
1. Transfer
The 5th risk strategy
5. Embrace
Further growth/impact
The legacy challenge
Continue on the plateau?
Impact;£
Time
Board & Risk Article
http://www.ncvo.org.uk/consultancy
NCVO/BWB Trustee Conference 2014
