4.3 Capacity building for governance
- What is capacity building?
- Important capacities for effective governance
- Building skills and understanding for governing bodies
- Dealing with change and continuity
- Succession planning
What is capacity building?
Capacity building is all about helping individuals and organisations develop their own capabilities so that they can achieve their goals.
It is about giving people the chance to improve and strengthen their skills so they can perform tasks better and become more independent.
Capacity building is much more than just formal training. It is not just about improving the people in the organisation but also its other assets.
An organisation’s assets include:
If capacity building is carried out well in all of these areas then the confidence, motivation, skills and performance of staff and members will improve.
Important capacities for effective governance
Building skills and understanding for governing bodies
New members of governing bodies need to have an orientation or induction session covering both the organisation and their governance responsibilities. A good induction will help prevent problems later on.
Members of the governing body need to understand:
- the goals and objectives of the organisation
- the governance policies they will be expected to implement
- how to run proper meetings
- their relationship to members and the community
- the cultural values, role and commitments of the organisation
- their relationship to the CEO, staff, funders and other stakeholders
- accountability procedures and ethical standards
- the financial structure of the organisation
- their role in reviewing reports from management and auditors
Inductions are best done face to face and each member should be provided with a copy of the organisation’s strategic documents. Developing a governance information kit that can be handed out or placed on your website is also a good idea.
See: Resource 4.6 Check-up—Good capacity building practices for leaders
See: Resource 4.7 What can we do?—Capacity development practice for leaders
See: Resource 4.8 Tips—Policies to promote effective governance in governing bodies
Dealing with change and continuity
Organisations need to be able to adapt and respond to change. Governance arrangements therefore need to be flexible.
An organisation will need different kinds of leadership at different times.
This means that it is important to think about:
- the mix of leadership skills and abilities your organisation might need in its leaders
- what kind of leadership is required at different phases of your organisation’s development
Is it time to re-evaluate your approach to leadership succession?
See: Resource 4.9 Check-up—Re-evaluating your leadership succession
See: Resource 4.10 Check list—Good practices for succession planning in an organisation
Good governance is about working out the balance between the need for stability and consolidation, and the need for renewal and experimentation.
Organisations can build their capacity to deal with changes and crises by:
Succession planning
Succession planning is about ensuring there are experienced and well-trained leaders to guide the organisation and keep it stable, so it can continue its good work in the future. Leaders today need to mentor and develop the leaders of tomorrow.
Traditional Indigenous societies have always had rules and processes for educating their next generation of leaders. This includes giving them the knowledge, skills and qualities they need to take on leadership roles.
Succession issues for your governing body
It is important to balance the need for experience with the need for new blood and renewal. Many governing body members suffer from burnout as a result of the workload and stress levels that often go with their role and responsibilities.
It is not effective to have all the positions on a governing body turn over at the same time. If you do, experience and knowledge are lost.
On the other hand, it is not good to have the same members serving on the board, term after term because decision-making becomes predictable and stale.
Some organisations have term limits for members of the governing body. For example, the organisation’s rules might state that an individual can serve for no more than three consecutive terms in the same position—and must wait for a certain period before they can serve again.
Sometimes these limits work, sometimes they don’t. It may be difficult to get people to move on and make room for new members, and it may mean you lose someone who is very capable.
There are many strategies you can use to get the right people for the job, at the right time. Some Indigenous organisations have a nominations process that seeks out new entries to the board while keeping experienced individuals with the right skills and attitudes on the ballot.
See: Resource 4.11 What can we do?—Strategies for succession planning
See: Resource 4.12 What can we do?—Building independence and managing growth
See: Resource 4.13 Tips—Creating a stable governance environment and strengthening leadership
See: Resource 4.15 Quiz—Do this quiz to check your understanding of what you have learnt in this chapter.
Read next: 5. The business of running an organisation
Read previous: 4.2 Roles and responsibilities of a governing body