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NPS Review of Operations and Governance July 2008

The NPS Trustees have asked Pamela Woods, the independent consultant who carried out the Review of Operations and Governance in 2007, to continue to assist them to implement developments within the Society to the benefit of all who have an interest in the NPS.

Over the next few months Pamela will be working on the following issues:

  • Revision of the NPS Memorandum and Articles of Association
  • Role, purpose and constitution of the NPS Areas
  • Evaluation of Trustees', Members' and Judges' procedures for complaint and discipline to ensure that they are being applied consistently as planned and proposals for any changes
  • Advice and information on implementing the recent Charity Commission guidelines on public benefit
  • A workshop for Resources Committee members on Human Resources matters

 

 

Review of Operations and Governance April 2007

Your Council has adopted, in principle, the Review of Operations and Governance April 2007 for your Society.  There are some aspects of this Review, that require further consideration and discussion.  These negotiations are now taking place.  Some of the aspects of this Review will require further professional assistance; this is being sought.  The Executive Summary of the Review of Operations and Governance is reproduced below. 

Anyone wishing to obtain the full Review of Operations and Governance should send an A4 sized SAE with 55p postage to the NPS Office, with a written request.

 

The National Pony Society Review of Operations and Governance
Executive Summary

The mission of the National Pony Society is to encourage the breeding, registration and improvement of Riding Ponies and Mountain and Moorland Ponies and to foster the welfare of ponies in general.

1. Introduction to the report

This Review of Operations and Governance was commissioned by the Council of the National Pony Society (NPS) in order to ensure that the Society is in the best position to meet current needs and future challenges.

The aims of the review are:

  • Ensure the Society is fulfilling its objects as listed in the Memorandum of Association
  • Conduct a governance review, and a review of the structure and proceedings of Standing Committees and Council
  • Conduct a management review of the processes within the Secretariat with reference to the Society's standing within the employment market.

The review has therefore evaluated structures, policies and processes within NPS, at both governance and operational levels. It is the beginning of a process that should allow the Society to fulfil its purpose more effectively in response to current and future demands and the consultant's report and recommendations provide a practical working tool and timetable for action.

2. Methodology of the Review

The consultant, Pamela Woods, has been a senior manager and professional adviser to Trustees within a large national charity and has many years' experience of management, development and governance at local, regional and national levels. Now operating as a free-lance consultant, her work has included many operational and governance reviews and she has a detailed understanding of the requirements that law and good practice place upon charitable companies.

She is completely independent of all parties within NPS and neither the consultant nor her family has any pecuniary or other interests within the equine world.

The primary stakeholders of the Review of Operations and Governance - i.e. those who have the most direct interest in the outcome of the process - are NPS members, Trustees, and staff. A number of secondary stakeholders, such as the Charity Commission, other regulatory bodies, animal welfare organisations, sponsors and other equine Societies are also likely to take note of the findings.

The consultant identified two interrelated elements within the NPS Council brief:

Strengthen NPS' governance  with reference to its objects, processes and procedures:

  • Analyse the strengths, weaknesses and risks within the current NPS governance structures and procedures in consultation with Trustees and members
  • Identify NPS' future governance requirements and make recommendations so as to ensure that the Society's operational needs, strategic objectives and legal obligations are fully and effectively met

Review staffing processes ensuring that the operational infrastructure supports the identified aims and charitable requirements of the NPS:

  • Appraise the procedures that apply to NPS staff, identifying any areas for development, updating or amendment to meet legal requirements
  • Evaluate the NPS' overall operational processes and structures, making any recommendations that will facilitate the most effective performance of the Society's functions    

The consultant's approach has been to engage primary stakeholders in a process they were able to trust and accept.

The consultant's methodology  has been consistent with studies of this type and included:

  • Desk research using all available sources
  • Consultation with Trustees through written surveys and telephone contact
  • Observation of operational processes at the NPS office over a three day period
  • Structured consultative meetings with staff, as individuals and groups, recorded on a non-attributable basis
  • Consultation with a random sample of NPS members and with Native Breed Society Chairmen
  • Qualitative analysis of current roles, functions and structures
  • Assessment of the future needs and aspirations of the Society
  • Provision of models and options that will facilitate NPS' organisational objectives to be met in the future

3. Context to the Review

Certain internal and external challenges have acted as catalysts to the review:

  • Amongst its main functions NPS maintains the Stud Book and Register for British Riding Ponies, issues equine Passports, promotes Native Breeds and British Riding Ponies at home and abroad, appoints and appraises judges, organises qualifying and Championship shows, agrees competition standards, acts as a point of liaison with DEFRA, other regulatory and related bodies and raises awareness about equine welfare.
  • Some members feel that the Society is not meeting its charitable objects. These, as expressed in its Memorandum of Association, are:
    • To promote the interests of pony breeding and to encourage the use and protection of ponies
    • To promote and facilitate the acquisition and distribution of the knowledge of the various arts and sciences connected with the pony and the use and management thereof
  • Over the past few years Council has had to deal with some serious issues of personal conduct on the part of a few key people within the Society. This has exposed Council's procedures and policies to scrutiny and many members feel that the credibility of NPS' governance has been undermined. It has also involved the Society in additional, unplanned expenditure on legal advice.
  • A number of members have also become increasingly frustrated with some aspects of the service they receive from the Society's operational team. Whilst it is acknowledged that staff are approachable and helpful, it is said that delays, non-performance of tasks and communication difficulties in the office have caused problems.
  • Since the Society was established, well over 100 years ago, the requirements placed upon equine bodies by domestic and European legislatures have increased considerably and it has been necessary for NPS to respond accordingly. This trend is likely to continue, with the introduction of the Animal Welfare Act and the National Equine Database and members expect the Society to influence policy and negotiate with Government at the highest level.
  • The Charity Commission has begun to take a more rigorous view of charities' effectiveness and fitness for purpose. Whilst the Charities Act 2006 has eased a few procedures, it has also placed an increased responsibility on organisations to ensure that they are meeting their charitable objectives.
  • Whilst it has achieved much as a national body, NPS' Council wishes to be confident that its governance processes and procedures are consistent with legal and good practice requirements and that its organisational functions will enable it to achieve its charitable objects.

4. Consultation with Primary Stakeholders

In order to determine current views about the operation of the Society, the consultant carried out consultations with three groups of primary stakeholders: members, Trustees and staff. In the light of repeated negative feedback about NPS' relationship with the Native Breed Societies, a short survey was also sent to the Chairmen of those Societies. The following synopsis summarises the stakeholders' own perceptions and experiences:

  • The Society's strengths lie in its longevity and its high status in the equine world. It holds the British Riding Pony studbook and also fosters the interests of Mountain and Moorland Ponies. It has the capacity to inform and influence Government policy.
  • It faces a number of challenges: poor organisational skills and office practices; the increasing cost of membership and competing; poor marketing; inconsistent enforcement of welfare issues. Some members say that the NPS has lost its way and forgotten the reasons for its existence and that Council's credibility needs to be restored. Many feel that the Society is losing its position of influence as a national organisation.
  • Chairmen of the Native Breed Societies felt, in the main, that NPS does little proactively to foster Native Breeds or meet the needs of members. Increasing NPS' accountability for decisions, greater office efficiency and stronger representation from each Breed Society could improve matters.
  • The Society's Council say that, whilst they understand their duties as Trustees, they perform them only moderately well overall. They feel that some functions, such as effective staff management, promotion of NPS, management of the organisation as a whole and strategic planning are underdeveloped and that this is a cause for concern. They support modernisation of governance structures and procedures.
  • Staff feel that they do their best and work hard, often under pressure and that the organisation's expectations are sometimes unrealistic.

There is a considerable degree of agreement about the strengths of and challenges to the Society and the experiences and aspirations of the stakeholders. This has provided a useful foundation on which to base the review's findings and recommendations.

5. Key Issues Arising from the Review

The consultant's findings are based on the NPS' own written documentation, observation, the consultation exercise, legal requirements and good practice models elsewhere in the charitable sector.

Clearly stakeholders do have different experiences of the Society. However there is strong evidence from all sources that NPS' governance and operational infrastructures are under severe pressure. Significant change is needed if the organisation is to deliver acceptable standards of service and play the proactive external role it has identified for itself.

Governance structures are over-complex and consume disproportionate human and financial resources. Decision-making and communication are complicated and errors ensue. There are few written terms of reference and this leads to confusion and suspicion, undermining Council's credibility and casting doubt on the propriety of its actions, whether this is justified or not.

The Society has limited resources and many aspirations, but no defined strategic direction or priority. Tensions between various interests remain unresolved, to the frustration of all.

The employment policy framework falls far short of good practice and current staffing structures do not serve the Society's needs. Without guidance as to NPS' priorities and lacking effective direction, staff often struggle to maintain the service they have been asked to provide.

The Society is at severe risk of not meeting its charitable objects and coming under the scrutiny of the Charity Commission. It is to the credit of NPS' Council that Trustees have identified many of the difficulties their Society faces in calling for this review.
 
The consultant's findings and recommendations deal with governance and operations separately although there is a clear relationship between the two.

6. Findings and Recommendations - Governance

As a result of consultation involving charitable organisations and the Charity Commission, agreement has been reached as to the essential role of Trustees. The following are not new duties, but it the first time that they have been agreed and codified across the sector:

  • Set and maintain vision, mission and values
  • Ensure compliance with the governing document
  • Ensure accountability
  • Ensure compliance with the law
  • Maintain proper fiscal oversight
  • Develop strategy
  • Establish and monitor policies
  • Maintain effective board performance
  • Promote the organization
  • Where staff are employed: set up employment procedures; select and support the chief executive; respect the role of staff and volunteers

The consultant has found that the Society's governance structures and procedures do not meet the necessary standards, and has made a number of recommendations to bring the society into line with legal and good practice requirements. The headings under which she has made her findings and recommendations are as follows and details can be found in the full report:

  • The constitutional framework
  • Council and its Committees
  • Tenure and election of Trustees
  • Duties and Conduct of Trustees
  • Communication, openness and transparency
  • Management of Financial and Human Resources
  • Strategic Planning
  • Judges

A diagram is attached to the Executive Summary showing the proposed Committee structure.

7. Findings and Recommendations - Operations

7.1     It is the role of the staff of any organisation to put into operation the plans, policies and priorities decided by the governing body. Staff skills and experience should help inform the Society's strategic direction and they must be consulted on matters that affect their employment conditions.

The Executive Secretary is the bridge between the staff group and Council. Trustees must provide clear direction and a supportive environment within which the Executive Secretary should operate and for her part she must actively manage the staff resource, ensuring that they receive training and support, comply with policy and deliver services in an effective and efficient manner.

7.2    From the evidence, there are a number of matters that affect service delivery within NPS. Because the consultant's operational findings raise sensitive issues, the detail has been made available to the Chairman in a confidential Addendum to the full report. The consultant has made her findings and recommendations under the following headings:

  • Role of the Executive Secretary
  • Personnel Policies and Procedures
  • Recruitment, Selection and Retention
  • Staff Development
  • Administration and the Office Environment
  • Financial Procedures
  • Information Technology
  • Work Practices
  • Staffing Structures
7.3    The consultant's operational recommendations should be carried out incrementally over an agreed period of time. If they are implemented as a complete package of modernisation, then members should experience improved services. Staff should also benefit from having a more structured working environment and a clearer understanding of the expectations of the Society and their own rights and responsibilities as employees.

8. Consultant's Conclusions

       8.1 Overall Findings:

The consultant's overall findings are that:

  • NPS is failing to meet some of its key charitable objects
  • The Society's governance procedures and structures no longer meet the internal and external standards required of a charitable company
  • Processes within the Secretariat urgently need to be updated and developed in order for the Society to operate effectively
  • Council has recognised these problems and has actively sought solutions that will help it move the Society into its next phase of development.

8.2 Risks to the National Pony Society:

  • Should NPS choose to take no action, the prospects for the    Society look bleak. Its position as a key influence on equine matters will decline further and its prestigious reputation for shows and competitions will undoubtedly suffer.
  • Members will be increasingly attracted by other pony Societies and diminishing membership numbers will seriously undermine its financial base.
  • If unresolved, the tensions between different interests within the Society will encourage division and it will be difficult for Council to identify and focus on its priorities.
  • Secondary stakeholders, such as the Charity Commission, sponsors and Government organisations will subject NPS to increasing scrutiny and this may well be detrimental to the Society's status.

8.3    Conclusion:

  • NPS has reached a critical stage in its evolution. If it accepts the recommendations for change it will strengthen its position within the equine world, attracting new members, retaining the experience of its current membership and performing an essential national role in negotiation with Government.
  • If it declines the opportunity to develop, it is difficult to see how it can meet either members' expectations or legal requirements and its viability will be severely undermined.
  • Some members are anxious not to lose the friendly and familiar traditions of NPS. Efficiency and approachability are not mutually exclusive and improved structures and practices need not become barriers to the informal culture that people value so much.
  • To be effective these recommendations should be applied as a whole rather than piecemeal. It will take time, patience and goodwill to implement the change programme. The consultant believes that these qualities are present within the National Pony Society and that it can succeed in its endeavour to ensure the future good health of the organisation.

Pamela Woods
Management Matters
25 March 2007