A leading federal financial regulatory agency looked to Censeo to perform an assessment of its internal governance functions and, in parallel, develop a plan for action. Censeo performed a comprehensive assessment of the current state of six governance bodies and the decision-making processes for which they are responsible, identified best practices based on a representative set of peer agencies, and developed 16 recommendations to improve the operational performance of these governance functions.
Situation
A federal agency hired Censeo to assess the current state of governance in its Operations division, identify gaps, and deliver practical and actionable recommendations for improvements. The client was only recently vested with authority to oversee certain aspects of decision making; as a result, effective practices had not yet been thoroughly established, and Censeo had a broad scope to recommend a wide range of improvements. The nascent nature of the client’s governance functions and the politicized environment in which the agency operates highlighted the need for an independent third-party review of governance practices.
Approach
The team utilized a 5-step qualitative approach, as outlined below, which led to the development of 16 recommendations. These recommendations were ultimately received well by the client and contributed to improved decision making performance and practices.
- Current State Analysis – Stakeholder Interviews:
Responses helped paint a picture of the current state of governance at the agency and informed the development of a handful of key themes and pain points in three categories:- Standardization;
- Leadership Structure;
- Knowledge Management.
- Current State Analysis – Governance Body Review:
Based on feedback from interviews, Censeo researched the current practices of all decision-making bodies holding governance responsibilities. This assessment involved reviewing governance body pages on the agency’s internal site as well as governance body charters to pinpoint the decisions and processes and overall responsibility of each governance body. - Gap Analysis – Peer Agency Research:
Censeo utilized themes uncovered in steps one and two to direct open-source research on the policies and procedures related to governance at a sample of a diverse group of agencies selected based on a broad range of functions, budget sizes, numbers of permanent employees, and other characteristics. The team ultimately identified applicable best practices based on a narrow core group of “best fit peer” agencies. Key takeaways of this research included the standardization tactics of the procedures and documents of governance bodies, need for cross-divisional coordination, and proper knowledge management strategies. - Recommendation Development – Governance Management:
Censeo delivered recommendations on general governance best practices based on governance functions at peer agencies. Key themes of these recommendations included, among others,- establishing a central location for all governance-related documents and procedures;
- aiding project management by establishing a roadmap towards approval and execution;
- and reviewing delegations of authority.
- Recommendation Development – Governance Body Realignment:
To complement governance management recommendations, Censeo delivered recommendations specifically pertaining to the management and organization of governance bodies at the agency based on governance functions at peer agencies. Key themes of these recommendations included, among others,- standardizing features of governance bodies such as charters, meeting cadences, and membership composition;
- establishing communication channels through which decisions of these bodies can be disseminated;
- and forming a new, cross-divisional governance body that possesses decision-making authority in the area of governance.