Contemporary governance and local public spending bodies

This paper draws on recent research conducted by the authors to examine the nature of board/executive relations in three different kinds of Local Public Spending Body (LPSB). Big variations are noted, between and within sectors, in the way in which boards organize themselves and the degree of power they have in relation to executives. In all organizations studied the executive played a crucial role both in managing day-to-day operations and in setting the organization's strategic direction. Chief executives exercised considerable influence over the recruitment of board members and the maintenance of consensual relations between board and executive. The dilemma of the voluntary board member with limited time and a lack of inside knowledge of the organization he/she is accountable for is examined. It is argued that the most effective boards contain members with a strong sense of their own legitimacy and enjoy a membership with a diverse range of interests and experiences. It is suggested that such models might combine the merits of greater democratic responsiveness and enhanced organizational effectiveness.