Today, on 30th November, a Regional Leadership Forum took place in Utena, where speakers discussed public management, public services and communication topics. During the first – managerial – part it was aimed to review the managerial challenges that arise in aiming for effective management in municipalities and the agencies and enterprises they control. In the Forum Governance Coordination Centre was represented and the experience in good corporate governance shared by Vidas Danielius.
Good governance topic in Regional Leadership Forum
During his speech Good Governance Uses for Municipality Owned Enterprise Effectiveness, he led the participants through the changes that happened in State Owned Enterprise governance during the last 8 years, pointing out the most significant elements, that allow the companies to attain such satisfactory results as we have now.
The major element which allowed the turnaround of SOEs’ results was the decision for the government to measure the results of the enterprises and provide them with financial and non-financial targets. Citing Peter Drucker, If you can’t measure it, you can’t improve it. Thus, the first step towards the good governance in municipalities is the evaluation of the MOEs results, which on its own accord allows the next steps in improving the governance. In the execution of this primary principle Governance Coordination Centre is set to assist, as already during the next year the Centre will prepare the MOE performance report, covering the results of all MOEs in Lithuania.
Municipalities and their enterprises were invited to cooperate, and it was promised to share the experience of the GCC in implementing the good governance principles in MOEs: providing the primary financial and non-financial targets, expectations, raising the quality of strategic planning and achievement of the set targets.