Board governance in professional bodies
Lessons from the Association for Project Management (APM)
Good governance is fundamental to a non profit organisation’s success. It enables and supports their compliance with the law and relevant regulations and promotes a culture in which everything works towards fulfilling the charity’s vision.
For professional bodies, governance plays a critical role in maintaining credibility, accountability, and strategic alignment. It ensures that the organisation not only complies with legal and regulatory standards but also upholds its chartered purpose, financial stewardship, member trust, and reputation. Boards must be able to respond to emerging issues whilst ensuring that decision making is based on clear data and fulfilling the organisation’s public interest remit.
Effective governance is more critical than ever – there is the need to respond to the challenges of AI and emergent technologies as well as wider societal shifts in behaviours and attitudes. Clear decision making and accountability is required to maintain trust and support the organisation in achieving its objectives.
Good relationships = good governance
A key part of maintaining good governance is having the right environment for constructive relationships to be built between Board members and the wider Executive Team. The most effective Boards strike a balance between support and scrutiny, asking the right questions, listening actively, and working collaboratively. Poor communication risks the non profit operating in a cycle of mistrust and blame.
Our experience with exemplar organisations points to a number of recurring factors – there is mutual trust, the ability to challenge and willingness to listen to divergent viewpoints. There is also a need to ensure that Board agenda is managed effectively so that the time is focussed on the areas and decisions which require the most focus – this requires thought and preparation rather than recycling existing reports for multiple purposes.
While almost all Boards are filled with members that carry the right intentions, how this plays out in practice can be hindered by a number of factors, including competing visions, lack of regard and/or knowledge of past decisions, limited organisational memory, and continuous changes in direction. This can be a particular challenge in organisations like professional bodies, where election cycles lead to regular changes to Board composition.
Best practice in action: APM’s Board governance review
Crowe recently carried out an external Board effectiveness review for the Association for Project Management (APM), acting in accordance with its three-yearly cycle for external observation.
The review highlighted several areas of strength which can act as a reference check for other professional bodies:
- Demonstrable agreed board behaviours, including challenging courteously and constructively, consciously listening to each other, mixing point making, questioning and praise.
- The production of comprehensive board papers that enabled informed, strategic decision-making.
- A strong confidence in and appreciation of the professionalism and competence of its staff.
- Evidenced collective decision-making and a shared sense of purpose.
- A broad range of expertise on the Board, enhanced by the appointment of select trustees with specialist backgrounds and leveraged further by members acting as designated champions to support management.
While the review also surfaced areas for further development - such as other potential expertise to consider - what stood out was the Board’s openness to change and its pace to act. Indeed, at the point of the findings being formally considered at Board, a detailed action plan had been developed for endorsement and a number of actions progressed.
Amy Morley, APM Chair, said:
“We’re pleased that the hard work and positive contribution of APM’s Board Trustees is being recognised. Good governance is essential for APM because it ensures trust, creates accountability and helps us to deliver long term value for both our members and the wider project profession. We will continue to work collaboratively to make our governance even more effective so that APM can continue to lead and support the profession, because when projects succeed, society benefits.”
The Crowe perspective
Boards that are willing to reflect, adapt, and acknowledge different perspectives are better placed to lead effectively. As evidenced with APM, this requires Board governance to be underpinned by a joint focus across the Board and the Leadership Team that allows for transparency where change is required and encourages constructive debate.
Undertaking an external board effectiveness review represents best practice in the non profit sector and is a valuable way to build upon existing internal processes of self-assessment and provide an independent voice. The Charity Governance Code provides a useful framework for the assessment, alongside consideration of wider sector good governance. A further key factor to consider is the 'cost to serve' regarding governance – how much Executive, management and volunteer time is spent on the governance cycle and does it deliver the value of this investment? Mapping the governance cycle provides a useful barometer for this assessment.
If you would like to instruct an independent review for your social purpose or non profit organisation, please get in touch or speak to your usual Crowe contact.
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