Governance deals with the structures and processes by which an organization is directed, controlled and held to account. Proper governance provides the means to help an organization achieve its goals and objectives.
The achievement of good governance is important for every public sector organization, including ministries, Crown agencies, health authorities and school boards, among others. Many of government's programs and services also cut across organizational or jurisdictional boundaries and if they are to be delivered in a seamless way then good governance needs to be in place.
The principles and ideas discussed here apply to cross-government initiatives as much as to individual public sector organizations. You may also wish to read our brochure for an overview of public sector governance principles.
"Government agrees that good governance is essential to the success of organizations, regardless of whether they are in the public, private or not-for-profit sectors."
Government of BC response to the Office of the Auditor General of British Columbia report, "Public Sector Governance: A Guide to the Principles of Good Practice" (p. 39)
Good governance is underpinned by five core principles. An organization that uses good governance is one that always, in word and action, demonstrates: accountability; leadership; integrity; stewardship; and transparency (the A.L.I.S.T.).
"Regardless of organizational type, corporate governance regimes are unlikely to be effective where there is a lack of clarity about the participants involved, their relationships with each other and their respective responsibilities."
Board Resourcing and Development Office of British Columbia,
Best Practice Guidelines, (February 2005, p. 3)
The elements that constitute good public sector governance, and upon which practices can be modelled, can be demonstrated as the components of a house, Click on sections of the house to find out more.
Source: Australian National Audit Office, "Public Sector Governance", 2003.
The implementation, evaluation and improvement of a public sector organization's governance structures and processes are the responsibility of leaders, and without such commitments, there would be no foundation to build on.
Understanding the various roles, accountabilities and needs of each stakeholder group contributes to strong relationships, and supports the success of the three central components, or "windows", of the "House of Governance".
This provides a public sector organization with the means to understand and address risks in order to better achieve its objectives.
An efficient and well-governed public sector organization will ensure that internal controls and accountabilities are clearly defined and consistent with the organization's objectives.
Governing bodies that review and foster better planning and performance monitoring will be more effective and relevant.
External scrutiny is an integral part of work in the public service and meeting these accountabilities is one of the measures of success for public sector organizations.
Information management is critical for a public sector organization to meet its objectives and accountabilities, namely by ensuring that the right information gets to the appropriate people in a timely manner.
Ongoing review, evaluation and adjustments of governance arrangements are a key process and this includes the governing body checking its own structures, processes and overall performance.
Good governance requires more than just a checklist approach and it is important that the following not be seen as an end in itself. The items listed below are a starting point for gauging the state of structures and processes that aid public sector organizations in achieving good governance and, in turn, obtaining stakeholder confidence.
Select one of the following areas to find out more:
"In some ways compiling a best practices model for public sector governance is the easy part. The next stage, incorporating the principles in this model, will be much more challenging for some. While the principles involved in our good practices model may appear to be obvious and common sense, considerable effort and commitment will still be required by many organizations to embed these principles in the way they conduct their business and deliver services to citizens."
- John Doyle, Previous Auditor General of British Columbia
To download the full report for Public Sector Governance: A Guide to the Principles of Good Practice, please click here - (PDF 1.1MB)
Contact Information
Office of the Auditor General of British Columbia
623 Fort Street
Victoria, British Columbia
V8W 1G1
250 419-6100