Appendix one - Areas for evaluation
HOW OPEN IS OUR BOARD OF DIRECTORS AND OUR ORGANISATION?
The board has clear and open decision-making processes. There are ways for the board to communicate both directly and indirectly with all stakeholders of the organisation. There are effective and regular means of consulting with stakeholders, including service users. The organisation publishes an annual report which reports on annual accounts, the activities of the board of directors and how the organisation is meeting its targets. Information about the board and the organisation is made easily accessible and is widely disseminated to stakeholders and the wider public.
OPENNESS
KEY FACTORS | KEY QUESTIONS TO ASK | POSSIBLE SOURCES OF EVIDENCE |
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- There is effective communication between the board, senior officers and the staff of the organisation.
- The board has clear and open decision-making processes.
- The organisation knows who its stakeholders are.
- There is a communication strategy developed in consultation with stakeholders.
- There is effective and regular communication with stakeholders that informs planning.
- Policies and procedures are developed in consultation with relevant stakeholders.
- There is a clear system for complaints and there are regular reports to the board, any trends are made known to stakeholders.
- The organisation publishes annual reports and accounts.
| - Is it clear how and why the board reaches decisions?
- Are senior officers and staff clear about what the board decides needs to be done?
- How do we communicate this in the organisation?
- How do senior staff communicate to the board?
- Are the roles and relationships between board members and senior staff written down?
- How do we know who our stakeholders are?
- How do we consult with stakeholders and service users?
- What do we do with the results of these consultations?
| - Interviews with senior staff
- Focus groups with staff
- Interviews with board members
- Interviews/focus groups with stakeholders
- Survey of stakeholders
- Survey of staff
- Board meeting minutes
- Scheme of delegation
- Terms of reference for the board
- Senior officer job descriptions
- Role descriptions for board members
- Results/reports from consultation events
- List of the organisation's stakeholders
- Minutes of meetings with stakeholders and service users
- Annual report and accounts
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INTEGRITY
DOES OUR BOARD OF DIRECTORS OPERATE WITH INTEGRITY?
The board and individual members act according to high ethical and professional standards. All board members have clear responsibilities and functions which are reviewed regularly. Responsibilities and expectations are made clear to all new board members. The performance of the board and individual members are reviewed regularly. There are clear policies which govern the activities of board members. The board ensures that the whole organisation operates within an equal opportunity policy. Integrity is reflected in the organisation's decision-making processes and also in the quality of its financial and performance reporting.
KEY FACTORS | KEY QUESTIONS TO ASK | POSSIBLE SOURCES OF EVIDENCE |
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- Board members do not financially benefit from their contribution to the organisation.
- There are clear and thorough recruitment procedures for board members.
- Co-opted board members are appointed on the basis of the skills and experience that they bring to the organisation.
- The Board takes collective responsibility for its decisions.
- Board members are clear about their individual roles and responsibilities.
- Board members receive all relevant documents when taking up their role and there is a planned induction.
- Board members set, review and uphold the vision, values and aims of the organisation.
- The board ensures that there is an equal opportunity policy in operation.
- Regular reviews take place with each board member, conducted by either the chair or vice chair of the board.
- The board regularly reviews its own effectiveness.
- There is a clear whistle-blowing policy for board members to report any concerns.
- There is a policy for how board members should declare particular interests.
- Board members are well prepared for meetings and other activities undertaken on behalf of the organisation.
- Board members are familiar with all relevant policies.
| - What financial regulations and procedures do we have in place for the payment of board members?
- Do board members know what to do if they have a conflict of interest in any of our activities?
- How do we recruit board members?
- How do we ensure that they are the right people, offering the right skills for us?
- How do we maximise the effectiveness of board members?
- How do we ensure that board members receive the right support in their role?
- What administrative support do we have in place for board members?
- Do board members think that they receive the information they need when they need it?
- How 'fit for purpose' is our equal opportunity policy?
- How do we evaluate our effectiveness?
- How do we induct new board members?
- What is our charitable vision and how do we work to sustain it?
- Do board members know what to do if they are concerned about the activities of a colleague?
- Do we have a system for declaring outside interests, including membership of other organisations?
| - Board constitution and memorandum and articles
- Policies for harassment, whistle blowing, equal opportunity and diversity and bullying
- Recent board evaluations
- Induction pack for board members
- Recruitment procedures
- Minutes of board meetings
- Register of interests
- Interviews with board members
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ACCOUNTABILITY
HOW ACCOUNTABLE IS OUR BOARD OF DIRECTORS?
The board and senior officers of the organisation take appropriate responsibility for;
- the financial wellbeing of the organisation;
- making and implementing decisions and actions;
- developing and implementing policy; and
- delivering outcomes for service users and other stakeholders.
The board operates and models principles of regular monitoring. The board actively supports regular internal and external scrutiny of the organisation's activities through quality assurance, quality management and audit processes.
KEY FACTORS | KEY QUESTIONS TO ASK | POSSIBLE SOURCES OF EVIDENCE |
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- The board ensures the organisation is solvent whilst upholding its charitable mission.
- All board members are clear about the organisation's purpose, vision and mission.
- The organisation complies with all relevant legislation and charitable obligations.
- The board has approved a scheme of delegation governing expenditure.
- The board ensures that the organisation complies with all its governing documents.
- Sub-committees of the board are fully accountable to the board of directors.
- The board ensures accountability to the public and stakeholders for the organisation's performance.
- There are rigorous procedures in place for the reporting, reviewing and management of both financial and other risks to the organisation.
- There are clear and rigorous procedures in place for the reporting, reviewing and management of performance.
- The organisation has a clear system for reporting on and monitoring projects or services that are operating at a financial deficit or are of poor quality.
| - Do board members have the right skills and knowledge to understand and manage the finances of the organisation?
- What training and support do we make available?
- Do board members understand their responsibilities for the finances of the organisation?
- Do we have a clear purpose, vision and mission?
- How do we share that purpose, vision and mission within the organisation?
- How do we know what legislation and charitable obligations we are working to?
- How do we communicate this to the board and within the organisation?
- Do we have a scheme of delegation?
- Is everyone clear about their financial responsibilities?
- Are board members familiar with the governing documents of the organisation?
- How do we measure our performance?
- How do we report on our performance?
- What do we do when we are worried about the performance of one of our services?
| - Interviews with senior managers and board members
- Board constitution and memorandum and articles
- Annual reports and annual accounts
- Organisation's policies and procedures
- Board meeting minutes
- Communication strategy
- Terms of reference for the board and its committees
- Training policy for board members
- Scheme of delegation
- Observing board meetings and sub committee meetings
- Quality improvement assessments and/or plans
- Auditors' reports
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LEADERSHIP
HOW GOOD IS OUR BOARD LEADERSHIP?
The board leads the development and implementation of a strategic vision. This is linked with effective operational management. There is a programme of continuous improvement which ensures that the organisation delivers its current range of services to a consistently high standard. Board leadership also guides the organisation into the future by making effective strategic decisions. The board endorses operational decisions that ensures the sustainability of the organisation and the furthering of its charitable mission.
KEY FACTORS | KEY QUESTIONS TO ASK | POSSIBLE SOURCES OF EVIDENCE |
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- Board members promote and uphold the vision, values and aims of the organisation.
- The board establishes the strategic direction and aims of the organisation in partnership with staff, users and stakeholders.
- The board provides strategic leadership to the organisation.
- The board ensures the delivery of the organisation's business plan.
- The board has in place succession planning for key roles in the organisation.
- The board undertakes regular audits of the skill and experience of its membership.
- Board members can evidence that senior officers are implementing the strategic direction
- There is a clear division of labour between the board of directors and staff of the organisations.
- The board avoids becoming involved in day to day operational decisions and matters. 5
| - Are we clear about the vision, values and aims for the organisation?
- How are these promoted inside and outside the organisation?
- Do we have long term strategy?
- What was the board's role in developing this?
- Do we have a business plan?
- What was the board's role in developing this?
- What plans do we have for the succession of senior staff and board members?
- What skills and experience does our board have?
- How do we ensure that this meets our needs as an organisation?
- How do board members know that activity is happening in the organisation as they have directed?
- Do board members get involved in operational matters?
- If so, how is this managed to ensure an appropriate separation of roles?
| - Interviews with staff, senior managers and board members
- Reports from stakeholder events
- Annual reports
- Key strategic documents
- Annual business plan
- Role descriptions for board members
- Minutes of board and sub committee meetings
- Communication documents ( i.e. newsletters, emails sent to staff, board members and other stakeholders)
- Training policy
- Survey of stakeholders
- Survey of staff
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BOARD IN CONTROL
IS OUR BOARD OF DIRECTORS IN CONTROL?
The board is collectively responsible and accountable for ensuring and monitoring the overall performance of the organisation. Board members are able to constructively challenge, question and contribute to the activities of the organisation through regular reporting at board meetings and other meetings as appropriate. The board takes decisions for the organisation based on clear evidence that action is required for the sustainability of the organisation and the upholding of the organisation's charitable mission.
KEY FACTORS | KEY QUESTIONS TO ASK | POSSIBLE SOURCES OF EVIDENCE |
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The board: - Has the ability, skill and authority to make informed decisions.
- Ensures these decisions are effectively actioned.
- Upholds the mission of the charity while managing its finances responsibly and prudently.
- Acts as guardian of the organisation's assets.
- Has comprehensive plans for how to optimise the organisation's reserves.
- Ensures the overall sustainability of the organisation.
- Makes proper arrangements for the appointment (and if necessary dismissal), supervision, appraisal and remuneration of the chief executive or equivalent.
- Ensures compliance with all statutory employment requirements.
- Ensures that the organisation is performing well.
- Regularly reviews the organisation's system of internal controls, performance reporting, policies and procedures.
- Ensures that staff, volunteers and agents have sufficient delegated authority to discharge their duties.
- Regularly monitors the use of all delegated authorities.
- Provides appropriate and robust challenge to senior management whilst working within a framework of corporate responsibility.
| - What skills and experience do the members of the board have?
- Do these meet the needs of the organisation?
- What processes do we have in place to ensure good short and long term financial and asset management by the board?
- How do we know the board is effective in carrying out its responsibilities?
- What do we do if we think the board is not fully carrying out its responsibilities?
- How do we appoint, supervise and appraise our chief executive?
- How do we know how well our organisation is doing?
- What processes do we have in place to manage situations where we are not doing so well?
- How do we review and monitor our scheme of delegation?
| - Interviews with staff, senior managers and board members
- Board meeting minutes
- Annual reports and annual accounts
- Terms of reference for the board and its committees
- Scheme of delegation
- Focus groups or interviews with stakeholders - service users, purchasers, external auditors
- Strategic plans
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