What do we mean by governance experience?
Most private or community organisations are governed by a board or committee, which directs the chief executive or management team.
Difference between governance and management
The board of directors governs the organisation. A chair (chairman, chairwoman, chairperson) leads the board. The board’s role is to ensure that the organisation is well-run, financially sound, complies with relevant legislation, sets the strategic direction and policies of the organisation, and hires the chief executive.
The management team manages the organisation. The chief executive (or equivalent title such as CE, CEO, Managing Director, Executive Director) leads the management team. The chief executive is responsible for the day-to-day running and the staff of the organisation.
Core Requirements
Boards and committees require their members to have:
- personal qualities such as common sense, leadership, good judgement, integrity, courage, forming your own opinion, energy and commitment
- an understanding of the responsibilities involved, including legal obligations
- specialist knowledge, experience in business or a profession, or extensive community knowledge and experience.
General responsibilities
Boards and committees require their members to:
- have time to devote to the role - the Institute of Directors recommends two hours of preparation time for every one hour spent in a board meeting
- play an active role in meetings - contribute, ask questions, request more information, and challenge assumptions
- maintain the highest personal and professional standards
- understand the issues facing the organisation and the environment in which it works.
Different skills and experience are required for different boards
The following table lists some of the skills and experience required for different types of boards:
| Type of Board | Examples | Requirements |
|---|---|---|
| Commercial | ● State-Owned Enterprises such as Meridian Energy ● Te Papa ● NZSO ● Crown Research Institutes such as the Institute of Environmental Science and Research |
● high level experience in one or more of the following: law, finance, banking, administration, business, accountancy, or investment ● high level experience in governance in the public or private sector. ● in some cases specialised knowledge e.g. arts management, dispute resolution, legal procedures, or product development |
| Quasi-judicial | ● Advertising Standards Complaints Board ● Human Rights Review Tribunal |
● a background in law and/or an understanding of regulatory procedures ● experience with hearings or tribunals |
| Professional | ● Nurses' Council ● Electrical Workers' Registration Board |
● current registration in the profession, e.g. registered electricians for the electrical workers’ registration board or ● some knowledge of the industry or profession ● some experience in governance e.g. serving on committees, voluntary organisations |
| Community | ● Community Trusts ● Conservation Boards ● Lotteries Distribution Committees |
● some experience in governance e.g. committees, voluntary organisations, or professional bodies ● good networks within the community ● the ability to manage large sums of money |
| Advisory Committees | ● Stakeholder Reference Group New Zealand Injury Prevention Strategy ● Recreational Fishing Ministerial Advisory Committee |
● good networks within the community or relevant sector ● respected expert or representative of the community or relevant sector ● personal qualities |