Governance is a well discussed subject globally with many institutes dedicated to the discipline. Simply put, Governance refers to the framework that an institution applies to demonstrate internal governance and how it relates with external stakeholders.
Our experience with credit unions/SACCOs in Kenya reveal that this discipline is still maturing as SACCOs transition from social-economic to economic-social institutions.
At PKL we urge SACCO boards to be concerned first with fiduciary responsibility. That is the duty of care and value delivery to members. In our work with SACCO boards we review external environment in order to configure the internal environment to be fit to govern the challenges the SACCO faces in present time and the future.
We agree at present SACCO boards must build capacity and ability to lead SACCO transformations that develop internal capacity to drive SACCO business deliver value to members. We also agree with the Boards that it is their primary responsibility to maintain an environment where results can be delivered by the SACCO employees lead by the CEO.
In the process we agree the roles of the Chairman, CEO, Board Committees and how to drive demand for results. We agree on cardinal rules of performance such as:
- We entertain Results not Reasons
- We move with speed – the new normal way of doing things
- We do not negotiate integrity and performance issues
In addition, we help the board develop an overall framework of monitoring and tracking SACCO performance and a framework for succession planning. Lastly, we develop a framework for evaluating board’s performance and conducting governance audits.