Dorothy Dalton says that over the past five years, charities have put much greater effort into developing effective governance. 

A pending election, like the beginning of a new year, is a time for reflection on the challenges of the past and for planning for a brighter future.

The last five years have been uncertain and challenging for organisations and have tested leadership at both the non-executive and executive level. In my experience most charities have risen to the occasion and as a result there is a much greater effort being put into developing effective governance.

Recent research carried out by Alvarez & Marsal on corporate boards dealing with turning their organisation around, planned change or with a crisis, found there are five dimensions of boards that add value to an organisation. These are: the board’s confidence and trust in the executive team, the relationship between chair and chief executive, the chair’s leadership of the board, the engagement of the non-execs and the board’s environment and culture.

The research also found the key characteristics needed by chairs at such times were:

• a deep understanding of the business and of the capability that the organisation has to respond effectively to difficulties;
• proactively preparing the organisation for change by enabling open communication and frank discussion at board level;
• knowing how to attract and retain the best non-execs on their board;
• clearly defining the chair’s and the chief executive roles and developing the confidence of the chief executive as a leader in troubled times;
• providing ‘air cover’ in times of crisis for the chief executive and the organisation in order to create space for the chief executive to bring about the change;
• the ability to make and get the board to make difficult decisions;
• embedding values and creating a sense of common purpose; and nurturing a culture of active two-way communication with internal and external stakeholders.

Have your board and your chair risen to the challenges posed by the post-2008 era?

Editor's note: In the version of this article that appears in Governance magazine, Dorothy Dalton tells readers that she is planning to travel to Tibet, Nepal and Everest Base Camp. Following the earthquake last week Dorothy did not travel to Nepal and is safe and well.