Contrasting the roles of the boards
Wednesday 19th August 2009, 4:07PM BST.
BY THE end of today, it should become clear just who has resigned from the political board of the Health and Social Services Department. What will be more interesting, however, is why they have chosen to go.
After the jump-before-being-pushed departure of Deputy Mike Hadley for being difficult and asking awkward questions, losing another member might start to look like carelessness.
And whether the decision to quit is over a matter of substance or not, it focuses attention on the political and management leadership of government’s biggest and most expensive department, with around 2,200 staff.
To run a large organisation well requires people with exceptional skills and motivation and is one reason why the two commercialised, States-owned utilities’ boards of directors include non-executives, who have particular skills and expertise.
The boards of States departments, by contrast, require one basic skill – to get elected.
That’s not to demean States members, all of whom offer a great breadth of knowledge and experience, but to contrast the difference of approach between the public and private sectors.
Non-execs are selected for their ability to challenge constructively and to develop strategy, scrutinise the performance of management against objectives, ensure that financial information is accurate, that risks are managed and to have a significant role in appointing and, when necessary, removing senior management, and in succession planning.
Political appointees are limited – and there are many who would say rightly so – to helping formulate policies, in other words expanding services and spending the budget. So if the deputies do not fulfil the key role of holding senior management to account, who does?
In the case of HSSD, retirement means it is looking for a new chief executive and he or she will almost certainly come from off-island with extensive relevant experience – and an agenda for change.
Introducing reform would be a challenge even without HSSD’s recruitment and retention problems and financial pressures, with an already highlighted £8m. possible overspend next year.
A strong and united political board is essential if a new CEO is to face the future with any confidence.
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