Models of governance and management

Governance theories or models can be very helpful for trustees in understanding their responsibilities and the pros and cons of different governance arrangements.

Some models or theories of governance focus on the role of the board and its relationship with staff. 

A traditional model of governance is where the board oversees the charity’s work via a series of sub-committees, with day to day functions delegated to a chief executive and staff team.

This model has the advantage of providing the board with detailed oversight of the charity’s work. However, too big a focus on committees might risk the board getting bogged down in committee reports and losing its overall, strategic focus. Committees might also risk duplicating the work of staff.

The policy governance model focuses on the role of the board in establishing the strategic aims of the organisation, and the role of management or paid executive in determining how the aims are achieved. 

In this sense, 'ends' (the board role) are distinct from the 'means' (the executive role) to achieve the ends. Detailed work is delegated to the executive rather than being undertaken in regular committees.

The New Work of the Board emphasises a much more dynamic and fluid relationship between the board and executive. The board focuses on ‘bigger picture’ issues crucial to the charity’s future. Old divisions between ‘governance’ and ‘management’ are blurred, with governance being about joint leadership between boards and staff. 

The Governance as Leadership model provides a new perspective on the creative role of the board in developing strategy. The role of the board is classified into three roles - strategic, fiduciary and generative. The ‘generative’ role is the ability of the board to stand back and look in a creative way at how the organisation can best further its purposes.