Public Sector Governance

Hodges, Wright, and Keasey (1996) proposed that (a) CG is an issue of fundamental importance in the public services and (b) CG principles should be adapted to meet the many and various objectives and management structures within the public services. In support of Hodges, Wright, and Keasey, when Martinez, Jamieson, and Tillmar (2013) investigated 10 listed public utilities in Italy, they identified the existence of controversial problems in the governance systems of local public utilities (p. 829).

Drawing on the Australian National Audit Office’s (ANAO’s) guide, the performance of public sector entities and the outcomes desired by government can be greatly influenced for the better by having all public sector entities periodically review and refine their approaches to governance. At the same time, governance arrangements must focus each public sector entity on its performance to embrace the efficient and effective delivery of its responsibilities in a sustainable manner.

The 2014 guide Public Sector Governance: Strengthening Performance through Good Governance replaced the ANAO’s 2003 guide. Public sector governance has evolved since the ANAO’s earlier guide; where its content was significantly revised, it reinforced the basic elements required for good governance by addressing contemporary governance issues and challenges. In particular, it pays more attention to the importance of leadership, engaging in beneficial stakeholder relationships and collaborative relationships between entities, and traversing jurisdictional and sector boundaries to achieve better policy results. The guide stresses the importance of a high-performing public sector, especially in view of fiscal constraints and public expectations for public sector services to improve continuously; more transparent processes; and higher levels of engagement with citizens and other stakeholders. However, as stated by the Australian Auditor General Ian McPhee in the Foreword of the publication, the guide is not prescriptive and has no legislative status, but it offers concrete governance approaches for consideration by public sector leaders and their personnel staff. The guide is pertinent to all Australian government entities.