Weekly Wrap – 3rd July 2014

 

Hi I am Tom McLeod, Co-Founder of McLeod Governance.

This is what I would be thinking about this week.

Fuel Poverty

In this last week we came across a concept that we had not seen before – the concept was called fuel poverty.

Essentially the term refer to when someone has to spend more than 10% of their disposable income to keep warm.  It is a term heavily used in the UK and places such as New Zealand but is increasingly being used elsewhere.

Governance Poverty

Now the purpose of today’s Weekly Wrap is to take that concept and apply it more broadly to areas such as governance and risk.

What does governance poverty look like and indeed what does it mean?

Well lets start with what does it mean?

For me governance poverty is when you spend an inordinate amount of your resources – whether it is financial or human resources – on addressing a particular issue; where there is a disproportionate spend on the issue at hand.

Examples of Governance Poverty

Do we see that happen?

I think we do see it happen in more instances than we care to acknowledge.

One would be around physical security – the governance over physical security is sometimes so disproportionate to the underlying issue or point at risk that we are actually pushing ourselves into poverty from a governance perspective.

Reviewing Operations for Governance Poverty

Now of course fuel poverty and my term of governance poverty are not related.  One relates to the ability of a person to keep warm during cold and dark winters.

The other – governance poverty – is a term that I have just thought up.

But it does raise a particular issue that is worthy of us all considering.

Are there particular areas in our organisation that suffer from governance poverty and what can we do about it?

 

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