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HomeMy WebLinkAboutCuffs Rules of Good Governance CUFF'S RULES of GOOD GOVERNANCE Governance Rules o Rule #1 Clarity of Mandate Effective governance and administration requires the presence of a clearly established mandate (generally set in the legislation, bylaws or constitution. Each governing body (in most instances, the Council) must understand not only what powers it possesses but also what authority can be delegated to any operational or advisory boards and committees. o Rule #2 Clarity of Authority In addition to understanding the legislated mandate, the degree of authority of each of those roles must also be made clear. This authority may be conveyed by legislation but also will likely need to be clarified by bylaws, policies and procedures. o Rule #3 Public Accountability and Responsiveness An effective governance model (or decision-making system) must also reflect the basis of any democratic institution — reliance upon the endorsement of the public. Decisions must be based on a clear sense of what is in the best interests of the public (or the members of the organization or both). o Rule #4 Clear Sense of Purpose Organizations require a clear understanding as to its purpose as stated in its mandate, goals, objectives and strategies. This is essential for the organization to maintain relevancy and focus and to be accountable for achieving its targets. o Rule #5 Full Disclosure A basic principle of sound governance is access by the governing body to the necessary information which it must have in order to make informed decisions. This is one of the components of a sound decision-making process and is central ©George B. Cuff and Associates Ltd. 1 CUFF'S RULES of GOOD GOVERNANCE to the level of confidence exhibited between the governing body and its chief officer(s). o Rule #6 Sense of Integration Most organizations are multi-faceted and involved with many issues.. Each has the very real potential of reflecting confusion in purpose. An important principle is that all components must be viewed as operating from the same page. o Rule #7 Sound Relationship: Governing Body and Chief Officer The relationship of the governing body to its CEO/CAO (if any) is critical to how well the overall system is run. This relationship must reflect respect and confidence at a minimum in order to survive. o Rule #8 Independence of the Governing Body While the governing body may receive input from a wide variety of sources, the act of governing is its responsibility. The onus is clearly on it to ensure that the organization is being governed appropriately. o Rule #9 Orientation and Succession Planning This rule reflects two related and necessary "bookends" of sound governance- administrative system. At the outset of any term the governing body (should receive a thorough briefing from the senior administration as to expected roles, relationships, powers, key issues, etc. o Rule #10 Ongoing Performance Assessment Any system or model of governance must include a mechanism or process to ensure that it is performing as anticipated and, if not, that corrective steps are being taken. While it may be difficult for any governing body to conduct a self- assessment, it is not impossible nor all that unusual. ©George B. Cuff and Associates Ltd. 2