governance good practice guide

clarity of vision and roles

introduction

This section looks at the importance of being clear about the college's vision, mission and values, and about the role of governance (and how it relates to college management) and how it is fundamental to effective college leadership.

clarity in the role of governance

The model of governance set out in the Instrument and Articles of Government makes a clear distinction between the role of governance – strategic and stewardship – and the role of the principal – operational and advisory to the board: clearly defined, non-delegable functions.

The area of strategic direction is perhaps the one where the distinction between governance and management can be most controversial.

Since incorporation in 1993 the college principal has become closer in role to a corporation chief executive and is the accounting officer.

governance and management

The governing board sets the strategic direction, determines the ethos of the college and how it conducts its business, approves, reviews and monitors the educational character, sets the policy framework, oversees the performance of the college and principal and safeguards the college's assets.

The principal makes policy and strategy proposals to the corporation, implements the policy and strategy set by the governing board and manages the day-to-day running of the college and its staff.

The distinction between governance and management is further explored in the GGPG.

Go to the section on governance and management distinctions

clarity in vision, mission and values

The governing board is responsible for approving, reviewing and monitoring the educational character and mission of the college, its services, and its vocational training and academic activities.

The principal and college managers are the education and training professionals, and make proposals to the governing board regarding character and mission, based on their knowledge and experience.

A significant part of the governing board's role is to act as a critical friend, on behalf of the current and future local community, bringing outside knowledge in, testing assumptions and checking out information from college managers with information from the local labour market, employers, learners and staff.

To some extent the vision and mission is influenced by government priorities, with governing boards using their powers to reflect and respond to local conditions and circumstances. To be effective, vision and values need to be owned and developed by the whole organisation. The Foster review and the FE Skills White Paper emphasise the need for a clear mission in the sector – providing skills for employability.

Go to the section on the Foster review

Go to the section on the FE Skills White Paper

Governing boards will need to strike a balance between:

• priorities for government funding
• what an individual local community needs and/or wants
• what an individual college or provider is good at.

accountability

Governing boards are part of the FE system of accountability. They have to account for the use of public funds and for the way in which they use the powers given to them through the Instrument and Articles of Government.

Their accountability is to the government, the LSC, learners, employers, the local community and, as an employer, to staff.

Governing boards also hold the principal to account.

Governing boards, board members, the chair and the principal do not own the college – they hold them in trust for the public.

This gives rise to the system of external and internal audit, assurance, inspection and accountability to the LSC – which acts as the FE system's regulator. The chief executive officer of the LSC and the Minister of the Department for Innovation, Universities and Skills (DIUS) are accountable to Parliament.

In this way, no individuals or organisations can use a college or its assets to further their own agendas.

accountability flow chart

risk management

The governing board's audit committee includes risk management in its remit. Colleges and other providers must demonstrate that they have a relevant policy and plan in place, with a register for identifying and managing risks to the business.

The LSC also now reviews colleges' funding allocations in terms of risk.

As well as being reflected at operational and committee levels, risk also needs to be built into strategic thinking. Governing boards need to review strategies through the twin lenses of:

• SWOT – strengths, weaknesses, opportunities, threats
  
  
• PEST – political, economic, social, technological factors

and to define their risk appetite when considering new ventures.

Governing boards must identify and manage risks as part of their accountability.