What Is a Governance Review and What Should Be Included?

Governance is one of those terms that organisations talk about constantly, but often struggle to clearly define. Many people associate governance purely with compliance, policies, or board responsibilities, when in reality, good governance is much broader than that. It shapes how decisions are made, how accountability is maintained, how risk is managed, and how organisations operate strategically and sustainably over time.

This is why governance reviews are so important.

A governance review provides an opportunity for an organisation to step back and assess whether its structures, systems, processes, roles, and decision-making frameworks are genuinely supporting the organisation to function effectively. It is not simply about identifying problems or ticking compliance boxes. A good governance review helps organisations understand whether their governance arrangements are practical, fit-for-purpose, aligned with strategy, and capable of supporting long-term success.

At Wander, we often describe governance reviews as both a health check and a future-planning exercise. They help organisations understand not only how they are operating now, but whether their governance systems are equipped to support where they want to go next.

What Is a Governance Review?

A governance review is a structured assessment of an organisation’s governance framework, decision-making systems, leadership structures, accountability mechanisms, and operational oversight processes.

The purpose of a governance review is to identify strengths, gaps, risks, inefficiencies, and opportunities for improvement across the organisation’s governance environment.

Importantly, governance reviews are not only relevant when something has gone wrong. In fact, the strongest organisations undertake governance reviews proactively as part of continuous improvement and strategic growth.

Governance structures that worked effectively for a small organisation may no longer suit a growing organisation, a changing funding environment, a more complex stakeholder landscape, or increasing operational demands.

Good governance needs to evolve alongside the organisation itself.

Governance Reviews Should Assess Structure and Clarity

One of the first things a governance review should examine is whether organisational roles, responsibilities, and decision-making authority are clear.

Many organisations experience governance challenges because responsibilities have become blurred over time. Boards may drift into operational management, leadership teams may lack delegated authority, committees may duplicate work, or staff may be unclear about reporting structures and accountability.

A governance review should assess whether there is clarity around:

• Board and leadership responsibilities

• Delegations and decision-making authority

• Committee structures and purpose

• Reporting lines and accountability

• Roles between governance and operations

• Strategic oversight responsibilities

• Risk ownership and management

  
  

Without this clarity, organisations can become reactive, inefficient, and vulnerable to internal conflict or governance risk.

Strategic Alignment Is a Critical Part of Governance

One of the biggest misconceptions about governance is that it exists separately from strategy. In reality, governance and strategy are deeply interconnected.

Strong governance creates the framework that supports strategic decision-making and organisational direction. A governance review should therefore assess whether governance structures are aligned with the organisation’s broader strategic goals, vision, and operating environment.

This includes reviewing whether:

• Strategic priorities are clearly understood

• Decision-making processes support long-term thinking

• Governance structures enable adaptability and growth

• Stakeholder engagement informs strategic direction

• Risk management aligns with organisational priorities

• Reporting supports informed decision-making

  
  

At Wander, we often approach governance through a systems-thinking lens because governance does not operate in isolation. It influences culture, leadership, communication, operations, engagement, and organisational performance.

Policies and Compliance Matter, But Governance Is Bigger Than Compliance

Policies, procedures, constitutions, and legislative obligations are important parts of governance and absolutely need to be reviewed. However, governance reviews should not stop at compliance alone.

An organisation can technically meet compliance requirements while still experiencing poor communication, unclear leadership, ineffective decision-making, stakeholder tension, or operational inefficiencies.

Good governance is not just about whether policies exist. It is about whether governance systems are actually helping the organisation function effectively.

This is particularly important for local governments, community organisations, incorporated associations, regional development organisations, and not-for-profits, where governance environments are often complex and involve multiple stakeholders, funding obligations, and competing priorities.

Stakeholder Engagement and Governance Are Closely Connected

Governance reviews should also consider how stakeholder engagement and communication are embedded within organisational processes.

Across regional, rural, and remote Western Australia, organisations are increasingly expected to demonstrate transparency, accountability, and meaningful engagement with communities, stakeholders, funding bodies, Traditional Owners, industry groups, and partners.

Strong governance helps organisations navigate these relationships effectively.

A governance review may therefore assess:

• Communication and reporting processes

• Stakeholder engagement frameworks

• Transparency and accountability mechanisms

• Community confidence and trust

• Consultation and decision-making pathways

• Conflict management processes

This is particularly important in place-based and community-focused work, where governance quality can significantly influence project outcomes, stakeholder relationships, and long-term organisational credibility.

Governance Reviews Should Be Practical and Future-Focused

One of the biggest mistakes organisations make is treating governance reviews as purely theoretical or compliance-driven exercises.

A good governance review should produce practical, achievable recommendations that strengthen the organisation’s ability to operate sustainably and strategically into the future.

This may involve refining governance structures, clarifying delegations, improving reporting systems, strengthening stakeholder engagement processes, updating policies, redefining committee roles, improving board effectiveness, or aligning governance frameworks with organisational growth.

Governance should create clarity and confidence, not unnecessary complexity.

At Wander, we believe governance works best when it is practical, proportionate, and aligned with the realities of the organisation and community it supports. Strong governance should enable organisations to make better decisions, build trust, manage risk effectively, and operate with greater confidence and direction.

Because ultimately, governance is not just about oversight.

It is about creating the structure, accountability, and strategic clarity that allows organisations and communities to thrive.