Framework for Good Governance
High performance boards know the importance of understanding and committing to good governance. As a means to understand, communicate, manage and measure effectiveness as a board and an organization many boards have adopted this simple governance "framework" that encompasses the many dimensions of good governance. The framework defines the purpose and interrelationship of the fundamental components of governance. It also acts as a lens through which the board can pursue and monitor its compliance and performance responsibilities. The framework also acknowledges the related yet distinct roles played by the board as a whole, each member and the board structure in living good governance every day. It does this by asking "big questions" that boards are obligated to answer.
It is a board's responsibility to ensure that robust dialogue, clear documentation and careful on-going attention is given to all of the dimensions outlined in the framework. In doing so, boards can take the necessary steps to ensure a fully integrated way of governing, both for themselves and together with other provider boards.
Framework Components
The Good Governance Framework defines the purpose and interrelationship of the fundamental components of governance. Specifically it describes the following nine (9) elements:
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Stakeholder Relationships
defines the nature of the key stakeholder relationships; their influence, impact and expectations of the organization and its board
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Board Composition
defines how and why the board members are selected as well as the role stakeholders play in board population
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CEO Function
defines the nature of the relationship between the board and the CEO and the expectations regarding the CEO's roles and responsibilities
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Board Accountability
defines the expectations placed upon the board as a whole and each of its members
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Board Function
defines the primary role of the board in-service to the organization and its stakeholders
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Fiduciary Stewardship
defines the role of the board in overseeing the fiduciary interests and investments of its stakeholders
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Risk & Asset Management
defines the role of the board in overseeing the organization’s principal risks and assets on behalf of its stakeholders
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Strategic Leadership
defines the role of the board in establishing and evolving a clear, relevant, meaningful and well understood strategic direction
Board Performance Systems
defines the expectations for board processes, systems and mechanisms in supporting board performance