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Posted by Sarah Brown on 27 Aug '24

Are you on the right bus route?

Life is a journey, whether in personal or organisational terms. When choosing the right organisations, consider legal structure decisions as selecting the best "vehicle" to achieve your vision. It's like deciding how you want to travel. (You can learn more about legal structures here.) This analogy can also help you consider how you actually undertake the journey.

Imagine your organisation as a bus.

First, the destination has to be clear, and then the route is decided. Charity trustees or the board, including non-executive directors of a CIC or company, are responsible for governance and strategic oversight; they are the "route planners." The executive directors and managers are responsible for day-to-day operations and implementation; they are the "drivers" ensuring the bus is well-maintained and passengers reach their destination. Both roles are crucial for the success and sustainability of an organisation. This can be confusing for small charities and CICs, as the same people are tasked with planning the route and ensuring the bus is ready and then driving it.

Don't grab the wheel

Trustees or non-executive directors often need clarification about their role in larger organisations. They try to be helpful by getting involved in the day-to-day operations. However, it is essential to understand that just like the chaos and danger that would result if a "route planner" were to take control of the vehicle once the "driver" has already begun the journey, trustees and non-executive directors should not overstep their responsibilities. The "route planners" can identify potential issues ahead and communicate them to the driver to adjust the route. However, the "driver," which represents the operational management, is ultimately responsible for the vehicle while it is in motion.

In addition to determining the route, "route planners" must also ensure compliance with legal and regulatory requirements and protect the assets and reputation of the organisation. For example, they should not set unrealistic timetables that can only be met by speeding or by leaving passengers at bus stops. Similarly, the "drivers" must follow the planned route unless there is an emergency that necessitates an immediate diversion. In that case, the "driver" should still aim to reach the agreed destination.

Be strategic

Just as bus routes offer many ways to get from point A to point B, various strategies exist to achieve your goal. Some prioritise maximum speed, while others take a scenic route or stop at key locations. Some meander to pick up as many passengers as possible to ensure the bus is full. Similarly, the fare structure and bus style are strategic decisions that must be made before the journey begins. Do you offer wifi and air-conditioning, or are you cheap and cheerful?

The bus analogy serves as a unifying tool, helping everyone involved in the organisation to understand the journey ahead. This includes trustees, non-executives, and operational staff, all of whom play crucial roles in the successful navigation of the route.

Here are some questions for people to consider :

  1. How will we know when we have successfully reached our destination?
  2. Who are the passengers we want to take with us?
  3. What do we want them to get out of the journey?
  4. Are we the only bus offering this destination, and if not, why are we needed?

Read more about governance and management issues

Five reasons you need to read this

Good charity governance - the highly tuned mechanisms that help you fulfil your purpose

How to produce a business plan that can really create success for you

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Tags: governance strategy vision

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