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The Ministry for the Environment (MfE) engaged Allen + Clarke to complete a review of its governance functions. MfE had experience a period of rapid growth in responsibilities and personnel, resulting in approximately 34 different governance or advisory boards operating across the organisation. MfE was concerned that there was a lack of consistency or oversight of these boards and that this may be exposing them to organisational risk. There were also questions about whether the Ministry was meeting its obligations in relation to Te Tiriti o Waitangi commitments.
Allen + Clarke recommended a hybrid approach to governance where a risk assessment would determine if an advisory group was ‘enabled track’ (managed locally by the business group) or ‘controlled track’ (managed by a centralised function). We identified clear triggers for each track and designed a comprehensive framework for establishment, operation and closure of groups with clearly defined roles and responsibilities. This hybrid approach allowed MfE to continue to operate a large number of advisory groups with confidence that risks were managed appropriately but without requiring a significant investment in a larger centralised function.
MfE had identified that a potential risk for the organisation had arisen from its approach to governance and advisory groups. Business Units were setting up and using governance and advisory groups for various purposes without any centralised process or requirements. This had led to inconsistent definition and understanding of advisory vs governance groups, widely varying quality of Terms of Reference and potential inadequacies in appointment processes and conflict of interest management.
While the Ministry was not aware of any existing problems, the decentralised process raised concerns. Allen + Clarke was commissioned to complete a review of the existing arrangements and provide advice on how the governance functions could be managed to reduce risks. Our approach included a comprehensive stocktake of existing groups, research into best practice approaches in the public sector and identification of an appropriate model for future governance.
We recommended an enabled or controlled approach which would balance business unit autonomy with appropriate oversight.
The hybrid model we designed featured:
Risk-based assessment process - determined whether a group should follow the 'enabled track' (locally managed) or 'controlled track' (centralised oversight).
Clear triggers - specific criteria such as ministerial appointments or independence requirements to determine the appropriate levels of control to apply.
Comprehensive framework - defined processes for establishment, operating and closure of groups, with clearly identified roles and responsibilities.
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