Articles

The True Cost of Business

We commonly relate cost of doing business with the monetary cost of inputs to deliver an output. However, true or full cost and costing involves detailed identification, categorisation, measurement and valuation of ALL resource inputs required to achieve the objectives of the activity, program and ultimately, the purpose of an organisation. As part of good organisational governance, it is the Board’s role to establish the framework, methodology and approved policies under which service costing (and eventually pricing) is managed.

Not for Profit, Not for Fraud

We trust our staff. We are a values based organisation. We don’t have any fraud here. Let’s clear this up once and for all. It is likely that you do have some form of fraud or corruption happening in your organisation; you just don’t know about it yet. More often than not some of your staff will be either involved, or at the very least, aware of its existence. Any questions?

The Fish Rots from the Head — Book Review

Bob Garratt’s The Fish Rots from the Head: Developing Effective Board Directors is an impassioned treatise on achieving effective corporate governance. Garratt offers an enthusiastic discussion of how boards can develop the requisite skills and approach and defy the potential problems and failings of corporate governance. Garratt particularly focuses on how the serious insufficiencies of some boards have negatively affected or caused the failure of organisations they govern. Garratt asks readers to appreciate the board’s determinative role in the success and effectiveness of an organisation.

The Path to Effective NFP Board and Director Evaluations

In the past, board performance in the not-for-profit (NFP) sector was seen to not need to be at the same standard as that required in the commercial sector. Thankfully, this view is changing, as it is far from the truth. Whether an organisation is focused on obtaining a profit or not, its governing body (whether it is a board, council or other grouping) should be adding value to that organisation, not hindering organisational performance.

What are the different legal structures of non-profit organisations in Australia?

When establishing a non-profit organisation, founders can choose from a large range of legal structures. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. In 2010 The Productivity Commission investigated the non-profit sector in The Contribution of the Not-for-Profit Sector. It considered the value of transitioning from the current legal structuring of non-profit organisations to a single legal form in order to prevent confusion between different forms and reduce the restrictive nature of some current forms.

Practical Steps to Good Governance and Risk Management

For us tragic Essendon Football Club supporters, good governance is something that cannot be ignored. Governance and risk management go hand-in-hand, and provide a framework to ensure that an organisation meets its legal obligations, manages its risks and ensures appropriate accountability throughout the organisation. Some practical steps which a Board might consider as part of this framework include: Board Charter A Charter can set out the duties, responsibilities and expectations of the Board, the Chief Executive and the executive staff of an organisation.

Felt Leadership

I spent my formative years growing up in the ‘60s with a very much older set of parents. Older by a decade than probably most others, older in their world views and values, and older in their behaviours too. They were my ‘leaders’. They mostly said, and occasionally did, the things that they wanted or expected of me and like many other kids of the ‘60s – I did the things that I wanted to do.

Leading Change That Sticks: The Board’s Role

Are you part of the problem? It’s January and with New Year’s Resolutions fresh, it’s a time to contemplate change. Few would dispute that we are facing a time of what seems like increasing change and complexity. Failure to convert intention to action is a major risk in planning and responding to the changing landscape. What if as a director, and as a board, your own unconscious motivators around change were part of the reason for change being unsustainable in your organisation?

The Australian Guide to Chairing Meetings — Book Review

Years of experience have shown that the most efficient way to transact the business of a meeting is to have a clear set of rules that ensure that every decision is made in accordance with democratic principles, that minority opinion is respected, and that few dominating individuals cannot impose their will on the rest of the group.” Marjorie Puregger’s The Australian Guide to Chairing Meetings is a compact but comprehensive resource on the formal structures associated with holding a meeting.

Enabling Better Decisions at the Board Table

High performing boards make decisions At the recent Better Boards Conference, Nonie Wales and Morri Young of Matrix on Board gave a presentation on ‘Board Business: Sharing the load’. They defined a high performing board as one that: is well lead makes decisions has good information all members participate in board business Whilst other defining characteristics of a high performing board could be added to this list, few would disagree with what they outlined.