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Tag Archives: Decision Making

This short paper sets out the overlapping features of effective leadership and of effective governance.

It highlights the key features of effective leadership and of effective governance, how leaders contribute to effective governance and how governance supports effective leadership.

Although aimed at organisations delivering children’s services, the messages within this short report are relevant to others.


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We cannot all accountants but as a leader in an organisation, it can be useful to have a basic understanding of some of the key financial terms and processes used to manage the organisation's finances. 

So, how does accrual accounting differ from cash basis accounting?

In simple terms, the main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognised.

The cash method is mostly used by small businesses and for personal finances. The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out.

On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been received or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses.


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McKinsey Board Services helps CEOs and boards of directors to improve board effectiveness and leave more time for value-enhancing activities.

This collection of Insights from McKinsey experts and board practitioners draws on interviews with successful chairs from around the world, global board-member surveys, and the personal experience of subject-matter experts.

The compendium is structured into three main sections:

The role of the board. Which activities should the board engage in, and how?

Board structure and foundations. What foundation do you need to deliver on increasing expectations?

Board effectiveness. How can you increase the overall effectiveness and impact of your board?

It will help you reflect on the effectiveness of your current Board and if it remains 'fit for purpose.


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We all have preferred ways of doing things – including solving problems and making decisions.

This questionnaire can be used to help you gain an insight into how you approach these key business activities.

Facilitator guidance on how the activity can be used within a team meeting or learning event is also provided.


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This is one of many models of how to solve problems and make decisions.

It can give you and your team some structure if you need to find a solution which everyone needs to buy implement and learn from.





1.  Identify The Problem

  • What is it you acutely want to change? It is remarkable how often a group of people sit down together to solve a problem and each has a different understanding of the issue and a different outcome in
    mind. It is essential that all the key stakeholders agree on the nature of the
  • You then need to analyse the problem in more detail. What factors are having an impact on the problem in question? What specifically is going wrong and to what extent? How should things be? Be careful not to define the problem too narrowly or too broadly, or in terms that place inappropriate emphasis on insignificant
  • You should also avoid the tendency to stick rigidly to your original definition of the problem. Things change and it is important to check that the problem still exists in the form you have defined



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A report by the CIPD (the professional body for HR and People Development in the UK) highlights how Governance and organisational culture issues have been apparent in many of the recent scandals which have rocked multinational organisations across the financial services, oil and gas, and major retail sectors.

In all cases, greater awareness at the board may have meant that the scenario which played out could have been very different.

The report, A Duty to Care? recommends that Bards should take full account of the culture of the organisation and well-being of their workforce, and take evidence-based steps evaluating, understanding, measuring and managing the culture of their businesses. It describes how:

  • It is the board’s responsibility to understand the culture of the organisation and how it is changing or evolving and to hold management to account.
  • There should be open communication channels across organisation boundaries, to ensure that stakeholders, including shareholders and employees, have an understanding of the importance to which the board holds culture. (more…)

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Finance is important to any organisation as the firm has to know how viable it is and balance profit with costs.

But sometimes leaders rely too much on the finance team to inform them about the financial health of the business.

There are many ways you can tell if a business is healthy, and ratios can be a simple way for the non-financial leaders / manager keep informed about how the money is flowing
through the business.

Although there are many financial ratios you can use to assess the health of the business, this resource includes the main ones you can use easily.



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