No doubt you’re all too familiar with what bad governance looks like. Institutions – be they public or private - being railroaded into decisions which quickly rebound on them. Confusion, conflicts of interest, unexpected legal issues; all can result in stakeholders paying the price.
For good governance, read good decision-making. That means a well thought-out process, with adequate resources and the right mix of people – each person knowing what their role is.
A second prerequisite is, of course, reliable, well-sourced data on which to base decisions – and consideration of the scenarios around them.
Finally, there needs to be a regular monitoring process in place to ensure that you are using the process you have designed effectively.
SORTING THE GOOD FROM THE BAD AND THE UGLY
So good governance will encompass good process, supported by appropriate documentation.
The former might include a process for ensuring that a diverse range of expertise is available to the decision-making body or that regular appraisals of decisions are made.
The latter might include a statement of investment beliefs setting out why particular assets are (or are not) included in the portfolio, or a governance policy statement setting out who is responsible for what and what rights are reserved to which party.
Beyond better decision-making and better returns, good governance also promotes longer term continuity and consistency, and a greater understanding of why things are set up as they are. It also makes it so much easier to brief new members of a committee when they join or provide an audit trail if needed.
So how can Linchpin help you achieve good governance? The answer goes back to our core value of integrity, our experience of what works and what doesn’t, and our ability to bridge the gap between investment and governance.
Linchpin’s founder, William Bourne, focuses on public sector pension funds, where he acts as the independent chair of two Local Pension Boards.
We can connect you similarly with expertise in private pensions, charities or private wealth. So to avoid the bad and the ugly, do something good:
Call William Bourne on 0203 637 6341 or email him at email@example.com or use the online contact form.