From: An inquiry into good hospital governance: A New Zealand-Czech comparison
Principle | Application |
---|---|
1. Knowing what governance is. | CEO is responsible to board for implementing its policies plans and strategic directions. Board is responsible for developing corporate policies and pans; monitoring and measuring organisational performance against those policies and plans; and acting as a voice of the ownership of the hospital. Board's governance responsibilities are to provide a linkage between the hospital and its moral ownership; monitor the performance of the CEO; and develop an explicit statement of values for the hospital. |
2. Achievement of strategic ends | To be effective by providing the right service, at the right place, at the right time, and at an affordable cost. Hospital governance structure must be such that performance objective can be set measured and accomplished. |
3. Board-CEO relationship. | Relationship is typified by a high level of mutual confidence and trust throughout the organisation and particulalry between the board of directors and CEO. Governance viewed as a solemn partnership between board and CEO. Board members and the CEO are equals, colleagues. Organisations should be conceived of as a number of concentric circles with clients in the outermost circle and the CEO in the inner circle. |
4. Unity of direction | The CEO and board should function as a common body to pursue a common end. There should be only one board of governance, one CEO, one strategic plan, mission or vision, at any one time. |
5. Unity of command | Orders should be received from one superior only. Decision making authority should flow in a straight line from the top to the bottom of the organization. |
6. Unity of accountability and responsibility | Authority is a derivative of responsibility. Every employee, including the CEO, must be held accountable for the exercise of authority in executing his/her responsibilities. |
7. Ownership needs. | A hospital's board ultimate accountability is to the organisation's ownership. |
8. Self-improvement and quality management | Continuous improvement should be part of an organisational philosophy and should permeate all hospital management and governance practice. |
9. Understanding the cost of governance | These include; board member's personal opportunity costs, direct board meeting expenses, the costs of staff supporting boar activities, the costs associated with errors made by boards, and the costs of ineffectively structured governance-management-organisation relationships. |