Governance – When it goes pear shaped

Dominic Cummings, the former senior strategy advisor to the then newly elected Prime Minster Boris Johnson was at the heart of government when the Covid 19 crisis folded and was privy to all that went on.

After being forced to leave government, he appeared before the MPs committee on 26 May 2021 to answer questions on how government responded to the Covid19 crisis, this was a fascinating and a shocking viewing.

 

This reminded me of issues I regularly experience in charity and business organisations.

 

I have never been a fan of the politics of Dominic Cummings but his fascinating insight and views on how the government machine worked really hit a nerve. He had many golden nuggets to share for those that understand the practicality of good governance in large and complex organisations. In crisis the cracks are all laid bare. 

 

In this blog, I will share some of these golden nuggets:

 

 1. The role of corporate planning

 

Yes, its important to have crisis management plans and risk registers. These should be regularly tested. A government can have all that in place at department level, however this is still not effective unless there is a central plan that brings it all together. 

 

In my line of work, often I see a silo working culture in large organisations. In this culture, staff in each department and division become inward looking and start to tick the box for their own sakes. They do not realise that when the organisation hits a crisis, it is not the department plans that matter anymore – the plan has to make sense in the context of corporate priorities and defense, led by the central leadership.

 

In my line of work, often I see a silo working culture in large organisations.

 

Organisations that often have an effective corporate strategy and plan backed by a corporate risk register are the ones that ensure work done at individual and department level is most effective for the wider organisation, its stakeholders and its beneficiaries.

 

There is no point of having a star performing individual or department, if it does not save the overall organisation from sinking.

 

There is no point of having a star performing individual or department, if it does not save the overall organisation from sinking.

 

2. Decision making in crisis

 

Cummings in his appearance talked about finger pointing of key roles and government departments at each other. He spoke about some great work and talent at junior levels that were being ignored. All this accumulated to a culture of chaos, as the government formulated a response to the pandemic.

 

In normal times, large and complex organisations can have conflicting priorities and policies between departments and official positions. However, in a crisis these can become a hurdle and hold back when there is culture of silo working.

 

The one strong leader needs to become the pilot taking over the reins while switching off the auto pilot.

 

It is at these times; the one strong leader needs to become the pilot taking over the reins while switching off the auto pilot. Those that have the titles may no longer be suitable anymore – others may need to be upgraded to speed up the decision making. Policies that governed the organisation in normal times, may now need to be flexed, removing red tape to create breathing space. All this is needed to respond to the crisis and to save the ship.

 

 

Consultation for decision making is good but it is a means to achieve a greater good not the end goal. Consultation should be meaningful in a crisis, not just for sake of it to please individual egos.

 

The leader and the wider executive may be appointed through a robust and fair recruitment process – these are for normal times. When the crisis hits the fan, the leader is expected to rise to the challenge taking difficult decisions and making most of the tools at his / her disposal. There is no time for hiding behind or blaming others.

 

An important consideration for those that appoint leaders and CEOs is this question: “Does this leader have the ability to steer the ship in a crisis”. Such focus can have an effect of changing the selection criteria and the value of the leader to the organisation.

 

The leader must be a leader for all times, not just for the happy times.

 

3. Data does not float in air

 

Having worked on data quality audits in the NHS and local government, I recognise the mechanism by which data is generated and checked. Data is not born from thin air, it requires fit for purpose systems, people and infrastructure.

 

The use of data for normal times can be different from its use in abnormal times. To make the data available in abnormal times, it is not always easy to train people, install systems and infrastructure at short notice – these changes require time and investment.

 

In my experience, organisations that invest in their IT and data infrastructure in good times are the ones that have readily available information to take the right decisions at the right time in a crisis as well as normal times.

 

Often organisation neglect the value of investing for the bad times and end up “stop” and “searching” for solutions during a crisis – this is the worst time for investing.

 

Often organisation neglect the value of investing for the bad times and end up “stop” and “searching” for solutions during a crisis – this is the worst time for investing.

 

A good leader needs to be able to “see” to navigate through the storm, using the tools at his / her disposal. This is only possible with advance planning and investing.

 

4. Be careful on who your advisor is

 

A strong leader will attract strong advisors. The leader will respect them and will know how and when to use their advice, maxmising their value to the whole organisation. Whereas weak leaders either disrespect their advisors and their advise or are led and controlled by them.

 

When the going gets tough, these advisors are not the ones taking responsibility for the decisions their leaders take. The buck will always stop with the leader. If a leader has to rely on the advisors to look good then the foundations are on shaky grounds.

 

If a leader has to rely on the advisors to look good then the foundations are on shaky grounds.

 

Leadership is about the grand plan, vision and strategy – the role of the advisor is to fill in the gaps on how this is best achieved.

 

If the leader lacks what it takes to lead than you can’t blame the advisor when it goes all wrong and the carpet is pulled under the feet when it was most needed.

 

Many lessons are to be learnt from this controversial advisor of a controversial Prime Minister during one of the most controversial times in British history.

 

Author: Nasir Rafiq is a widely experienced Fellow Chartered Accountant (ICAEW) and a Charity Financial Governance Expert.

He is the Managing Partner of Dua Governance, a Charity Governance specialist accountancy firm.

Nasir has held many senior finance positions within the UK charity sector and continues to advise many charities on financial governance matters.

Email: info@duagovernance.com

Accountability of Muslim charities – We talk to British Muslim TV (Sky 752)

“Accountability of Muslim Charities” – Nasir Rafiq talks to Mohammed Shafiq on BMTV Questions live during Ramadan 2021, Wednesday, 28 April 2021, 4pm.

 

Nasir Rafiq is the Founder Director of Dua Governance Chartered Accountants and Business Advisors. He is Financial Governance Expert and provides a wide ranging accounting, internal audit and financial advisory services to a large portfolio of Muslim charities of all sizes in UK.

 

Nasir regularly writes a professional blog for those involved in the charity sector. He analysed the accounts of top 20 Muslim charities to assess the impact of lock downs during Ramadan. Link https://bit.ly/3bPB4a6.

 

He also analysed the overheads of Muslim charities. Link https://bit.ly/3veyX7p.

Gardening and International Relief – a strange relationship

Once, after weeks away, decided to cut the grass and bring some order in the garden. It was a jungle, an impossible task. This is how INGOs approach relief work – disasters are like overgrown gardens in a bad shape, an impossible task. The decision to take on this task should not be taken lightly.

 

Is it the responsibility of INGOs or should it be the responsibility of Governments to use their resources fairly and justly? Setting the right objectives is the most important part in setting the right strategy. INGOs often fail at this hurdle, impacting the resulting approach.

Before cutting the grass, I put on gloves to avoid splinters, a cap to avoid direct sunlight, I took an allergy pill, as pollen was high. Each time before cleaning the lawn mower, I disconnected the electrics to avoid potential accidents. Risk Management should be part and parcel of INGO work, this should not be seen as a burden. Tie the camel first and then expect God to protect it.

 

Recruiting able staff, budgeting effectively, enforcing banking and procurement controls, installing proper systems and having a good marketing / PR strategy are all signs of risk management – without these Insha’Allah and Masha‘Allah alone do not work.

I took regular breaks to assess my progress and cleaned the garden on the go. The INGO sector is a fast moving sector sometimes delivering impossible tasks. There is a lot of learning that needs to happen. Better governed INGOs have effective Internal Audit and Evaluation functions, continually develop their controls and better their performance.

 

Effective Boards don’t get excited on-to-date achievements, they keep the bigger picture in mind – it is not the distance “traveled” that matters but the distance “to travel” that matters – this attitude changes the way INGOs are run.

I uprooted many established weeds with deep roots, they had become part of the garden – they did not add any value, the process looked ugly.

 

Fast growing NGOs should review the impact of the workforce, those that do not add value should be trained, reallocated or removed – difficult and ugly but a necessary evil. Weeds effect healthy plants and their growth.

After a difficult day the garden was clean – objective achieved.

Nasir Rafiq, BA, FCA is the Founder and Director of Dua Governance Chartered Accountants – A charity finance and governance expert