Fundamentals of Public Sector Governance

According to the guide, public sector governance “refers to the arrangements and practices which enable a public sector entity to set its direction and manage its operations to achieve expected outcomes and discharge its accountability obligations” (ANAO 2003, 7). Furthermore, “good public sector governance is about getting the right things done in the best possible way, and delivering this standard of performance on a sustainable basis” (p. 7).

A public sector that is diverse and dynamic needs to combine tested administrative practices. In order to ensure reliable delivery of services, flexibility to achieve outcomes most efficiently, and an accent on innovation to take advantage of new and better ways to achieve outcomes, chief executives, directors, and senior executives should establish fit-for-purpose governance arrangements and be willing to adjust them to meet changing needs.

As the Australian Guide warns, important though it may be, it is not sufficient to simply have the right governance structures and processes in place because it is an entity’s people who achieve excellence and drive change. A crucial role for senior executives is to set the right tone from the top to reinforce entity values, enthusiasm for good governance, and a concentration on performance and accountability, two basic requirements of public sector entities within a risk management framework rather than trading one off against the other (McLellan 2011).

The guide lists the following fundamentals of governance that underpin the achievement of good public sector governance (see ANAO 2003, 10):

• • developing strong leadership at all levels of the entity, with a focus on ethical behaviour and continuous improvement,
• • maintaining governance systems and processes that are fit for purpose,
• • optimising performance through planning, engaging with risk, innovation, and performance monitoring, evaluation and review,
• • focusing on openness, transparency and integrity, engaging constructively with stakeholders and promoting accountability through clear reporting on performance and operations, and
• • where appropriate, participating in collaborative partnerships to more effectively deliver programs and services, including partnerships outside government. (p. 10)