Good Governance Series #1
“We have sound governance practices and have successfully built and continue to govern four outstanding private schools. But we understand that practices change and community expectations change.” PMSA website, “Governance Review”, 3 March 2018.
The all-too-familiar PMSA-code for ‘There’s nothing to see here. It’s your fault, not ours.’
The PMSA’s governance is dreadful and it requires fundamental reform. To be frank.
To understand the reality of the PMSA’s terrible governance, we first need to understand what ‘governance’ is, why ‘good governance’ is important, and what ‘good governance’ looks like.
What is ‘Governance’?
Despite what the PMSA wants you to believe, governance is not restricted to “the role and composition of” the PMSA Council and its powerless sub-committees of which each ‘school council’ is one; and good governance principles and practices are not recent phenomenon.
The governance of an organisation is best described by the following quotes:
"Simply put "governance" means: the process of decision-making and the process by which decisions are implemented (or not implemented)."
United Nations Economic & Social Commission for Asia & the Pacific (UNESCAP), “What is Good Governance?”, 10 July 2009.
"Governance encompasses the system by which an organisation is controlled and operates, and the mechanisms by which it, and its people, are held to account. Ethics, risk management, compliance and administration are all elements of governance."
Governance Institute of Australia, “Adding Value to School Governance – Toolkit”, 2015.
"Corporate governance is a broad-ranging term which, amongst other things, encompasses the rules, relationships, policies, systems and processes whereby authority within organisations is exercised and maintained."
Australian Institute of Company Directors (AICD), “What is corporate governance?”
Why ‘Good Governance’ is important
Good governance offers numerous benefits, with some of the more important ones listed below. Others will begin to crystallise the further you read.
Failure to implement good governance will produce the opposite. Poor actions, decisions and outcomes do not ‘just happen’ – they will always be traced back to poor governance. Poor governance has also generated many a corporate scandal, crisis and collapse. A few of recent times include:
What does ‘good governance’ look like?
The Eight (8) Elements of Good Governance
It is internationally recognised that there are eight (8) elements of good governance that, together, will ensure that decision-making occurs in such a way that:
corruption is minimised,
the views of those affected are heard and taken into account, and
the community’s present and future needs receive appropriate responsiveness.
So, how is good governance achieved in an organisation such as the PMSA? It’s not that hard. There is freely available and easily accessible a plethora of information and other resources that answer that question. You don’t need to be a Company Secretary, or a lawyer, or an accountant. It’s straightforward, common sense stuff. One just needs to be willing.
"Good governance is embedded in the good behaviour and the good judgment of those who are charged with running an organisation."
AICD, “Good Governance Principles & Guidance for Not-for-profit Organisations”, 2013.
Ten (10) Principles that promote Good Governance
The AICD’s “Good Governance Principles & Guidance for Not-for-profit Organisations”, published 5 years ago, is one such resource.
It provides not-for-profit organisations with a well-thought out road-map of what is needed for an organisation’s governance arrangements to feature the eight (8) elements of good governance. Each of the ten (10) principles are set out below, together with highlights of the most important and relevant features of the guidance to the PMSA ‘situation’.
