The board is responsible for overseeing the development of the organisation’s vision and strategy as well as determining what success looks like.
What are objects and purpose, vision, and strategy?
The objects and purpose of an organisation, found in the organisation’s constitution, are usually quite broad. The objects and purpose provide legal permission for the allocation of resources towards the stated objectives. Vision outlines what an organisation is specifically trying to achieve, while the purpose describes what the organisation does. Strategy is the way in which an organisation will achieve its objects, purpose, and vision.
Why is strategy an important part of governance?
Strategy connects the objects, purpose and vision with the organisation’s operations and activities. A clear strategy guides the organisation and provides a framework for decision-making. When making decisions about investment, particularly large and impactful decisions, an effective board will ask how the proposed course of action contributes to the achievement of the strategy.
What is the role of the board with respect to vision and strategy?
A board leads a vision which is activated through good strategy developed in consultation with members. The scope of strategy may vary from organisation to organisation. Well-resourced organisations may have an ambitious strategy focused on growth requiring significant investment. Organisations experiencing difficulty may be better served with a strategy focused on consolidation or returning to stability.
The board should explore and understand the interests, aspirations and requirements of its members and stakeholders to develop a strategy for the organisation which is aligned with the overall strategy of the sport. The strategy should offer all stakeholders a clear picture of what success will look like for the organisation and how success will be measured by the board. The strategy should be reviewed annually by the board. Regardless of the method of development, it is the board which ultimately is responsible for monitoring the progress of the strategy.
Example behaviours and actions
A set of good practice suggestions, which should underpin the Board’s considerations in applying this principle.
Resources and tools to help
Head to the National Governance Resource Library for resources and tools.
For guidance, or to discuss how your organisation may best implement good practice in this area, please contact your State/Territory agency for sport and recreation.
For NSOs, email your query to SportsGovernance@ausport.gov.au and a consultant will contact you.