Internal governance

Corporate governance in central government

Effective corporate governance is essential to any well run organisation. Good governance leads to good management, good performance, good stewardship of public money, good public engagement and, ultimately, good outcomes. Government departments are not the same as for-profit corporations, but they face many similar challenges and they need to be business-like. They can do this by tapping into the expertise of senior leaders with experience of managing complex organisations in the commercial private sector.

Departmental boards should be balanced, with roughly equal numbers of Ministers, senior civil servants, and non-executives from outside government.

Boards will give advice and support on the operational implications and effectiveness of policy proposals, focusing on getting policy translated into results using the following precepts:

1. •

   leadership—articulating a clear vision for the department and give clarity about how policy activities contribute to achieving this vision, including setting risk appetite and managing risk

2. •

   effectiveness—bringing a wide range of relevant experience to bear, including through offering rigorous challenge and scrutinising performance

3. •

   accountability—promoting transparency through clear and fair reporting

4. •

   sustainability—taking a long-term view about what the department is trying to achieve and