One of the key findings from studies of successful Māori organisations is the need to keep a clear distinction between board and management responsibilities.
The board sets the overall direction for the company and management carries out the day-to-day running of business. Management then reports to the board with all the information the board needs to be sure that operations are running well and in line with the organisation's purpose and direction. The board's job is not to manage the daily operations directly, but to make sure that it is well-managed.
As most partnerships involve the partners in running the business it is very difficult to keep a clear distinction between governance and management responsibilities. Some partnerships are large enough that governance functions are delegated to a board made up of some of the partners.
If the partnership employs a manager then the partners set the overall direction for the firm and management carries out the day-to-day running of the business. Management then reports to the partners with all the information the partners need to be sure that operations are running well and in line with the partnership's purpose and direction.
The partners need to run the organisation as a business. They should:
Some charitable trusts are large enough to employ a manager.
If a manager is employed then the board sets the overall direction of the trust and the management carries out the day-to-day running of the organisation. Management then reports to the board with all the information the board needs to be sure that operations are running well and in line with the trust's purpose and direction.
An effective board will contain a balance of experience and skills, follow the philosophy of collective responsibility and communicate appropriately with stakeholders.
The board must give clear direction to management, and help create and support a climate where people within the organisation and outside can see and support the direction.
Some societies are large enough to employ a manager.
If a manager is employed then the board sets the overall direction of the society and the management carries out the day-to-day running of the organisation. Management then reports to the board with all the information the board needs to be sure that operations are running well and in line with the society's purpose and direction.
The trustees hold the assets of the trust for the benefit of the beneficiaries.
Trustees are required to properly administer the trust. This includes:
Trustees should hold meetings and record their decisions in written minutes. At the least there should be a yearly meeting.
Last modified: 26/05/2011
