Part one: external reviews of governance for schools and academy trusts

How to arrange an effective external review of governance for your school or academy trust, which can help to improve the performance of your board

What is an external review of governance?

An external review of governance (ERG) examines the effectiveness of your board based on the six features of effective governance, as set out in the Governance Handbook. These are:

• strategic leadership;
• accountability;
• people;
• structures;
• compliance;
• evaluation.

An ERG is conducted by an experienced governance expert who is external to, and independent of, your board and executive leaders. The review will examine your governance structure, operations and performance across the board, working closely with the board, executive leaders and the governance professional (previously referred to as the ‘clerk’) to improve the board’s performance. Governance operations could include a range of contributors, including the governance professional or equivalent, the school business manager, legal and HR support. and others.

A review should:

• consider the process and impact of decision-making;
• consider the impact of the governance support provided to the board;
• test compliance with mandatory requirements.

Ultimately, a review should enable your board to provide reassurance to stakeholders and others that it takes its responsibilities seriously and is endeavouring to carry them out effectively. In academy trusts, proving this assurance to members is essential for the members to carry out their roles. A review provides a board with:

• an independent, objective view of its strengths and areas for improvement;
• clear recommendations for future improvement;
• an opportunity for the board to review the strategic direction of the organisation and to evaluate the effectiveness of its processes and systems.

ERGs of multi-academy trusts

These reviews should explore governance across the whole trust – how the board of trusts ensures there is effective governance, and governance support, across the academy trust – not just at board level, but also how:

• the board works with the central team and any committees, including local governing bodies (LGBs);
• they ensure legal compliance and an effective structure for governance that avoids duplication or omission of duties;
• they promote a strategic vision which is shared and understood by all members of the organisation.

The scheme of delegation is an important document; an ERG should NOT be conducted into the activity of an LGB as a separate entity.

Prepare for a review

Before commissioning an ERG it may be useful for your board and senior leaders to reflect on their position, to understand what it believes is working well, where improvement would be beneficial, and to address any perceived areas of concern.

The Chartered Governance Institute (CGI)’s Review of the effectiveness of independent board evaluation in the UK listed sector, carried out for the Department for Business, Energy and Industrial Strategy, may be helpful background reading, particularly for chairs. Other resources to support self-review include:

• Twenty questions for governing board self-review – NGA
• Understanding your data: a guide for school governors and academy trustees – GOV.UK
• NGA skills audit and skills dashboard
• School resource management self-assessment checklist – GOV.UK
• View my financial insights tool – GOV.UK
• School resource management: top 10 planning checks for governors – GOV.UK
• The competency framework for governance – GOV.UK
• Board evaluation in the charity sector – CGI
• The board evaluation process – CGI
• Specimen charity board evaluation questions – CGI
• Specimen charity board observation sheets for charities – CGI.

Resources to support self- review specifically for academy trusts include:

• The MAT Assurance Framework – GOV.UK
• Twenty-one questions for MAT board self-review – NGA
• CST’s assurance framework for trust governance
• Academies financial management and governance self-assessment – GOV.UK
• MAT governance board effectiveness – CGI.

The outcome of self-reviews and ERGs should be shared with trust members.

Getting the most from a review

During a review it is important to:

• provide the reviewer with any documents and information requested;
• be open and receptive to challenge and constructive criticism;
• actively seek and consider new ways of operating;
• be reflective and honest during the process.

This will allow the reviewer to fully understand your context and organisational arrangements and make insightful, evidence-based recommendations. Boards and leaders should ensure a fair and accurate representation of their organisation in order to achieve a meaningful outcome that will effectively support development.

How to commission a review

1. Secure agreement with your board and senior leaders to commission an ERG.
2. Identify an appropriate reviewer.
3. Agree the areas for consideration in your review.
4. Agree costs and timescales for your review.
5. Schedule your review.
6. Choose and complete the resources required to prepare for your ERG.
7. Discuss the findings and recommendations of the review with the board and the reviewer.
8. Agree and implement an action plan.
9. Evaluate and assess impact and, if appropriate, schedule a follow-up.