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7. Board governance
7.1 Introduction
7.1.1 What is good governance in the public sector?
Public sector organizations have a responsibility to achieve results while also delivering value-formoney.
Like any organization, the best way for a public sector organization to meet performance
expectations is to actively monitor and review itself by practicing good governance. Governance refers
to the structures, systems, and practices an organization has in place to:
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assign decision-making authorities and establish processes for how decisions are made
oversee the delivery of objectives, implementation of policies and programs, and management of
organizational risk
report on performance in achieving intended results and use performance information to drive
improvements and corrective action 5
Governance in a public sector context is underscored by five key principles: accountability, leadership,
integrity, stewardship, and transparency. Governance is also exercised at different levels within an
organization, most commonly structured as a framework between Management and an oversight Board
or Committee. 6 Each level of a governance framework plays a complementary but distinct role,
separated to promote objectivity in decision-making. Using risk management, as an example, the
oversight body plays a valuable function by setting an organizational risk appetite and providing
oversight of key strategic risks, leaving the day-to-day monitoring, mitigation, and responsibility for the
upward escalation of risks to management. 7
A good governance framework requires not only a logical design to effectively exercise oversight
across an organization, but it also requires competent and adequate resources to implement the
associated governance practices in a consistent manner. Similar to how a strong school curriculum
needs a superiorly-skilled teacher to realize maximum student potential; a well-designed framework
needs to be operated as intended for it to be effective. Both Provincially and locally, the Canadian
public sector has established guidance on the importance of governance resources that is in line with
leading governance practices, including the Government of British Columbia’s Best Practice Guidelines
on Governance and Disclosure, the BC School Trustees Association’s Successful Governance: A
Resource Manual for Boards of Education, and the Canadian School Boards Association’s repository on
School Governance based on information and programs from districts across Canada in the areas of
good governance, effective boards, and the roles of Trustees. The key message and ultimately, the key
responsibilities of a public sector governance body such as a Board of Trustees include the ability to:
5
Canadian Comprehensive Auditing Foundation. (2014) Practice Guide to Auditing Oversight.
6
ibid.
7
Bader, B.S. (2008) “Distinguishing Governance from Management.” Great Boards (Vol. VIII, No. 3). Retrieved from:
http://www.greatboards.org/newsletter/2008/
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