INSIGHTS FROM INDUSTRY
WHAT DOES GOOD GOVERNANCE LOOK LIKE? YOUR GUIDE TO ACHIEVING QUALITY CARE THROUGH GOVERNANCE
G
overnance establishes requirements for how to achieve the proper balance of performance and conformance within an organisation to meet stakeholder needs and deliver value. Good governance is vital, because it directly impacts the ability of an organisation to achieve its goals effectively. The Aged Care Royal Commission highlighted instances where consumer expectations were not met, and failures to provide appropriate levels of care to our vulnerable older people. Rather than a result of a one-off failure, the Royal Commission’s final report identified systemic, organisation-wide failures that were a direct result of breakdowns in governance including poor risk management. There is no straight answer or silver bullet to good governance, but we know that it all starts at the top (the Board) and the phrase ‘Tone at the Top’ is paramount in establishing good governance practices in every organisation. The Board sets the tone from the top and each successive leadership layer should sound out the expectations with clarity, and echo back the understanding. Governance primarily answers four questions: •
Are we doing right things?
•
Are we doing them the right way?
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Are we getting them all done?
•
Are we seeing expected benefits?
The following four key elements are vital to create a platform where good governance can be achieved.
1. Board skills and composition
An effectively diverse Board should include Directors with experience in aged care, human services and/or clinical governance to test management and ensure that the organisation is delivering on its purpose. The majority of the Directors should be independent and free of any interests that might influence or reasonably be perceived to influence their judgement and ability to act in the best interests of the organisation. The Royal Commission also suggested that aged care legislation be amended in this regard.
2. Accountability
Effective reporting, clear communication and feedback mechanisms should form the basis of the accountability structure within an organisation, covering financial aspects Continued on page 60
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