Governance is the way that people organise themselves to achieve a shared goal. We look at the 8 elements of governance that need to work together to be effective. We also explain the different stages of governance that organisations go through.

Definition of governance

Governance gives an organisation, community or nation the ways and means to achieve the things that matter to them. It’s the way that people organise themselves to achieve a shared goal.

“We use a very simple definition of governance, and it means to make sure things are run well.”
– Richard Weston, Regional Director, Maari Ma Health Aboriginal Corporation, NSW Finalist 2005 Indigenous Governance Awards
Indigenous Governance Awards

It’s useful to think of governance as being about how people choose to organise themselves to:

• manage their own affairs
• share power and responsibilities
• decide for themselves what kind of society they want for their future
• put those decisions into action.

We can see governance around us every day. For example:

• the club that runs the local footy tournament
• the community-controlled medical service that provides healthcare
• the ranger group that cares for land, sea and culture.

“Sports contain all the parameters of good governance. For example, what would sports be without rules, schedules and time limits? Without agreed values and discipline? What would sports be without the best of managers and coaches? Who would dream of entering a sport without being offered the opportunity to learn and develop the skills and tools to play the game? Yet, we do so routinely in the game of community governance.”
– Neil Sterritt, Gitxsan Leader, British Columbia, Canada

The 8 elements of governance

There are 8 elements of governance. All are equally important and linked together. For your organisation, community or nation to be effective, these elements need to work well together.

The first 4 elements – purpose, people, culture and the wider environment – are about your context: they set the scene.

The other 4 – structure, strategy, rules and resources – are about your governance model (content): what you do.

The 8 elements of governance

Governance is most effective when you use your knowledge about your specific context to design your governance model. That is, you design the structure, institutions, strategies and resources to match your peoples’ priorities and ways of working, as well as to meet legal obligations.

“Governance is not just a matter of service delivery, organisational compliance, or management. It is about the self-determining ability and authority of clans, nations and communities to govern: to decide what you want for your future, to implement your own initiatives, and take responsibility for your decisions and actions.”
– David Ross, Central Land Council Director, presentation to the ‘Strong Aboriginal Governance Summit’, Tennant Creek, Northern Territory, 2013

The 8 elements of governance are:

1. Purpose

Purpose is what brings people together. This could be:

• a cultural connection – such as family, community or nation
• your vision or mission
• a project, program or service.

Questions to ask yourself:

• What’s our shared goal? What do we want to achieve?
• Why are we coming together?
• What’s our shared history?

To read more about defining your purpose, see Assess your vision and purpose.

2. People

People is about who governs your organisation, community or nation (the ‘doers’) and, importantly, who you govern for (the beneficiaries).

The doers are:

• your leaders – Elders, directors, managers
• your team – staff, volunteers, partners.

The beneficiaries are those who you represent and are accountable to – such as:

• your members or clients
• your community or nation.

There may also be other people who play a role in your governance – such as stakeholders and partners.

Questions to ask yourself:

• Who do we represent?
• Who do we want to be involved with?
• Who will be the decision-makers?
• What experience, character, skills and qualifications do our team need?

To determine the key people in your governance, see Know your people.

3. Culture

Culture is the way you do things. It’s the system shared by the members of a group that guides their way of life. It’s made up of shared:

• knowledge
• beliefs
• ideas
• values
• powers
• laws and rules
• meanings
• relationships.

The system informs your:

• customs – the ‘right way’ to behave and treat one another
• traditions – a behaviour with special meaning passed down from generation to generation – for example, Welcome to Country.

Questions to ask yourself:

• What responsibilities do we hold?
• Who holds knowledge?
• Who can speak on behalf of others?
• How can we include language or cultural practices in the way we work together?

To read more on the importance of culture, see Centre your culture.

4. Wider environment

Wider environment is about other people, organisations or laws that affect your decisions. For example, deciding if you should team up with another organisation or community in your region if you have a similar purpose or offering. It also includes regulators – for example, Office of the Registrar of Indigenous Corporations (ORIC) and Australian Securities and Investment Commission (ASIC).

Questions to ask yourself:

• Who do we need to be considerate of?
• Who else do we want to work with?
• What legal or regulatory obligations do we need to think about?

To read more on your wider environment, see Monitor your wider environment.

5. Structure

Structure is about:

• the type of group you form – for example, club, corporation, association, peak body
• how you share power – a governing body that represents, speaks and makes decisions on behalf of the beneficiaries.

Different structures have different legal and financial benefits for the group and different responsibilities for the individuals.

Questions to ask yourself:

• How do we want to work together to achieve what matters to us?
• What structure best aligns with our purpose?
• Do we want to legally incorporate or stay informal?

Read more about how to Choose your governance model.

6. Strategy

Strategy is what you will do to achieve your shared goal. Strategy is often recorded in a plan that sets out the:

• activity – the different tasks
• timeframe – when you will do the tasks
• outcomes – the results of your activities
• impact – how it helps your purpose
• evaluation – track progress and revise.

Questions to ask yourself:

• What are our priorities?
• What are the steps to make them happen?
• How can we monitor to make sure we stay on track?
• What could go wrong and what can we do about it?

For help preparing a strategy, see Strategic planning.

7. Rules

Rules are the agreed way people behave and get things done. They tell people what to do – and what not to do – in a specific situation. For example, when they work together, communicate and make decisions, or when things go wrong.

Recording your rules helps everyone know what the rules are – so that everyone is treated with consistency and fairness. Rules are commonly recorded in rule books, constitutions, policies, processes and procedures.

Questions to ask yourself:

• How will we make decisions?
• If we don’t agree, how will we resolve disputes?
• How will we be accountable to our members?

To read more, see Develop your rules or constitution.

8. Resources

Resources are the things you need to achieve your shared goals, such as:

• knowledge and skills
• relationships
• funding
• technology
• infrastructure
• natural resources.

Questions to ask yourself:

• What resources do we already have?
• What do we need to achieve our goals?
• How will we get it?
• How will we manage it?

To identify what resources you currently have, see Map your assets.

The governance truck

Participants at Reconciliation Australia’s Sharing Success Indigenous governance workshop in Port Hedland in Western Australia (26–27 June 2007) compared their community governance to their faithful old community truck. The truck is a vehicle for the community to achieve their goals.

We have expanded on this concept. You’ll notice how the 8 elements of governance are interconnected and work together.

The Governance Truck

Knowing who owns the truck is important. Similarly, it’s important to decide who and what your group is for, and who’s responsible for what. This is your purpose and roles and responsibilities.

The truck has large bench seats – not bucket seats for individual people who think they can drive by themselves. Everybody can fit in, but only one person can drive – from the driver’s seat, not the backseat! Just as the truck has room for everyone, representation and inclusion are important. Governance is the responsibility of all people in the group, but each person has a different role, responsibilities and authority. The board and CEO drive the group in a certain direction.

Everyone in the family has an equal share in the truck. They all put in for petrol and repairs because they all get some use out of it. Everyone in your group has a share in your governance.

Having karaoke gives everyone in the truck the chance to have a bit of fun along the way and to share something. Your own group has certain shared values, traditions and culture that are important to them. Keeping people engaged and happy is also important. Your governance should consider your key people and their needs.

The truck’s registered and has its papers in order, and the driver needs a licence. It operates in a wider environment that has regulations and obligations. Different groups follow different regulations and obligations, depending on their structure and the industry they operate in. Staff may need a qualification – for example, a driver licence – to be in a specific role.

Yes, the truck’s got dents – it’s been through some tough country, but it can still move safely on any ground. It’s friendly, good in all weather and, although it’s a bit rusty, it carries any load. Your governance journey will not always be smooth or easy. Solid foundations and a strong structure means plans and processes that you can rely on during challenging times.

The truck may not be flash, but it can be push-started if it breaks down. It’s got a jerry can if it runs out of fuel and there’s a good set of tools and a spare tyre. These different supplies are your resources. This truck is economical – it has to be with petrol prices being so high. It’s a reliable old model with new parts. Your governance decisions and financial management need to be economical. You need to effectively manage your resources to make sure your group has a future.

Planning and having a clear strategy in place means that you can effectively manage your resources. With this in place, you’re ready to start a project and are prepared in case a crisis hits. Your governance doesn’t need to be perfect – but it does need to be fit-for-purpose, involve your community and have their support.

The towbar is there for anyone who needs to be pulled along – or if the truck goes off the road or breaks down, it can be towed back onto firm ground. These are your plans, policies and rules that keep your group on track, particularly when things take a turn.

The truck’s got clean windows so everyone can see the road and scenery, and they can be seen by others. Headlights light the path ahead. Governance needs to be transparent. This is done through communication, reporting and clear planning – including for succession. Transparency ensures accountability – for your members, community and any external regulators.

The truck gets routine maintenance to keep the engine and other parts in good nick. Occasionally it has to go in for a big service. With governance, it’s important to regularly check in and evaluate where you’re going. Big services are similar to strategy planning days or your AGMs. It’s important that as your group evolves, so too does your governance.

The organisation’s life cycle

All organisations go through a life cycle as they mature. At each stage, organisations need to reassess how they do things and make changes when needed. For example, changes in management and staffing, structure, objectives, strategies, rules or funding.

Organisations may not move through these stages in a neat progression. They may jump between them. It’s important to take time to assess which stage you’re in.

The stages are:

Stage 1: Imagine and Hope
Can the dream, the vision be realised?

Stage 2: Mobilise and plan
How are we going to pull this off?

Stage 3: Establish the foundations
How can we build this to be viable?

Stage 4: Grow and expand
How can we take up opportunities?

Stage 5: Consolidate and sustain
How can momentum be continued?

Stage 6: Review and renew
What do we need to redesign?

Stage 7: Decline
Where did we go wrong? Or, our job is now done.

Each stage brings its own challenges. How well leaders and managers address these challenges can mean either a healthy transition from one stage to the next, or further problems.

Although organisations don’t move through the stages in exactly the same way, you can learn and adapt from the experience of other Aboriginal and Torres Strait Islander organisations.

Organisations that responded to changing opportunities and crises with flexibility, and made informed decisions about the future, can adapt and grow.

No matter where your organisation is in its life cycle, at some point you need to start thinking about how to:

• keep culture at the centre of your governance
• develop new processes, rules or structures to manage change
• respond to new pressures or environmental changes
• achieve new goals.

Strengthening and building your governance is a journey. You can’t work on everything at once and there are no perfect ‘good governance’ solutions. Evolving your governance may need big, immediate changes or small, progressive ones.

– Adapted from Organising Aboriginal Governance: Pathways to Self-Determined Success in the Northern Territory (2015) by Dr Diane Smith.