ABSTRACT

Public sector organisations are often difficult to connect to or penetrate which leads to them being seeing as secretive and non-responsive. They are complex entities with various layers of management to engage multiple stakeholders to allow them to enact various issues simultaneously. The complexity often leads to difficulties in working with openness and transparency. However, the public sector operates in a political, economic and social environment that is increasingly unpredictable, multifaceted and extends beyond national borders and where organisations are required to quickly respond to changing environments. Corporate governance can destroy or create value for public sector organisations. Arguably, the major objective for public sector organisations is to have the most effective governance framework that meets the needs and circumstances of government, while at the same time complying with the organisation’s policies, procedures and governmental rules and regulations. There is a need to balance the needs to effectively deal with complexity, comply with government requirements and at the same time look outside the organisation to gain the benefits of research and new approaches to working. This chapter discusses the fundamental role of senior management strategies in which governance is applied and how their organisations foster effective relationships with their stakeholders to foster a culture of innovation.