A key way to ensure that the organisation is performing well and achieving the high level goals is to set performance objectives for the organisation, which are linked to its core services and its strategy and business plans. Organisations should periodically undertake an evaluation of performance against its strategy or business plans.
Arrangements should be established for the executive to report to the Governing Body of the organisation’s performance, including through KPIs, financial information, internal control assurances, and progress against business plans and strategy.
Organisations should also ensure that decisions on major items of expenditure should be aligned with medium to long-term strategies to ensure that such expenditure is focused on clearly defined objectives and outcomes. A performance measurement system in place to assess the effectiveness/outcome of such expenditure.
The Governing Body should also monitor the performance of the executive. To facilitate this, performance measurements and indicators can be identified and on which the executive must report upon on a regular basis. The Governing Body should review its own performance every year, by performing a reflective exercise on the work that it has done, what it is doing well and should continue to do, and what needs to be improved and how that should be done.
In order to carry-out its activities effectively and deliver on its strategic goals, organisation should ensure that its business objectives should be translated into business unit objectives and ultimately to employee objectives. In this way the key objectives of the Board and the organisation are identified and implemented through divisional, team and individual allocation of responsibilities, authorities and accountabilities.