Introduction to the Module

This session is the Introduction to the Module: Governance and Leadership

This module recognises that Governance and Leadership for social enterprises, if implemented well, is a means for them to reach their highest potential. It is essential that Board Members are enabled to contribute by offering their fullest potential toward the social enterprise meeting or exceeding its Mission and Goals.  Unfortunately, not all social enterprises adopt appropriate Governance and Leadership strategies and practices to deliver stakeholder expectations.

Before we go ahead with this module, ask yourself the three questions and consider what answers you would give to each.

a) What are the differences between governance and leadership?
b) What are the keys to successful governance and leadership?
c) Why are vision driven enterprises making all the headlines?

The role of Governance of a social enterprises to safeguard the Mission [or purpose] of the enterprise while Leadership should enable the management team in meeting or exceeding the demands of stakeholders as investors, employees, clients and beneficiaries, as well as comply with public policies and regulations.  Leaders are thus considered in this respect as operationally driven, while governors act as controllers of the enterprise.

weight scale, equal-arm balance, scale

This module recognises that no single Governance or Leadership structure fits all social enterprises. Rather, Governance through Leadership should be agile thus ready to adopt new practices and adapt to the changing needs of the management team.

When Governance incorporates a good risk management approach the social enterprise will be best suited to the ever changing operating and regulatory environment, and the Mission, Goals and Vision of the social enterprise over its lifespan.

This module recognises that Governance and Leadership, not only need to work together but, must be able to adapt with the changing needs of the internal and external forces of change. The process of environmental scanning, such as PESTEL Analysis is best suited to appraise changes within the external environmental with respect to Political, Economic, Social, Technological, Environmental and Legal changes and initiatives.

handshake, regard, cooperate
The module also offers social entrepreneurs an opportunity to assess enterprise wide risk and thus evaluate and mitigate the needs, focus and culture of their social enterprise. Risk Management is a crucial activity within Governance. Governance and Leadership using enterprise wide risk management will aim to identify which systems, processes, controls and structures of management will help their enterprise achieve its Mission.

Additional reading on the topic you can find here. Also, the Lucid Chart team provide some really straightforward advice regarding carrying out risk management. Their text you can find here.