The three aspects

Behaviour, effectiveness, efficiency

Every governance dimension is rated on three aspects. They are separate because they fail separately: a board can behave well and run ineffective practices, or run effective practices that are undocumented and inconsistently applied.

01The set

What the three have in common

Each aspect asks a different question about the same dimension. Behaviour asks how the board goes about applying the principle. Effectiveness asks whether the practices it chooses achieve the principle's objective. Efficiency asks how well those practices are organised, formalised and improved. The model rates all three and does not let one stand in for another.

In a controlled group the three are asked twice: once for the controller's board and once for each controlled entity's board. That is the practical difference the draft adds, and it is the reason a single group number is not enough.

4.2Governance behaviourBehaviour is the human side of governance: whether the board has taken the principle up, understands why it matters, can describe how it applies it, compares itself with leading practice, evaluates itself and improves.Read the aspect 4.3Governance effectivenessEffectiveness asks whether the practices the board uses actually achieve what the principle is for. It is about the fit between the practice and the objective, not about how many practices there are or how well they are written down.Read the aspect 4.4Governance efficiencyEfficiency is about the machinery: whether the practices are made explicit, delegated, applied consistently and improved. The governance components are the evidence, because they put the practice into formal terms.Read the aspect

02How they combine

From three ratings to one level

Each aspect gets a level from 0 to 5 using its own descriptions. The dimension level then reflects the dominant level, with outliers recorded rather than averaged away. The aggregation rule is the arithmetic mean rounded down, and the reasons for an outlier are part of the result, not noise to be smoothed.

Report the three aspect ratings beside the dimension level. A board that sees only the combined number cannot tell whether to work on behaviour, on practice or on documentation, which are three different improvement plans.

The six-point scale The 18 dimensions The five activities