14 Aug 2014

Leading an organisation: Why two terms is enough

Leading an organisation: Why two terms is enough news article image

Mikkel Larsen discusses the decision by Princess Haya Bint Al Hussei to step down as President of the Fédération Equestre Internationale (FEI) after two terms of office.

Governance is usually only mentioned in the media if something goes wrong or if somebody gets close to the line of good behaviour.

This week was different. Princess Haya had made it clear that she is not standing for a third term as President of the international equestrian federation, the Fédération Equestre Internationale (FEI).

Let me first make it clear: what makes me happy is not the fact that Princess Haya, or Princess Haya Bint Al Hussein to give her full name, is stepping down as by all accounts she has been a great President.

What make me happy is that she’s standing down based on the belief in the value of something as simple as term limits.

Princess Haya was key to introducing term limits for the FEI President when first elected in 2006. She campaigned for the rules of the FEI to be changed so that a President would no longer be able to serve more than two, four-year terms.

But, she then went on to be such an inspiring President that the membership in April voted overwhelmingly in favour of scrapping the rules, in the hope that she would stay.

Haya said she was humbled by the support but that she also was “Committed to term limits, and that commitment still weighs heavily on me”.

From a governance perspective, this is a great personal decision and here at the Alliance we welcomed this.

In the Voluntary Code of Good Governance for Sport and Recreation Sector in Principle 4 (Objectivity: balanced, inclusive and skilled board) it states that a board should:

Set terms of office for board members that are limited in duration to ensure the board is refreshed regularly and a balance of continuity and fresh perspective is maintained”.

This sentence outlines why terms limits are important. You could argue that Princess Haya is doing a great job and the members want to keep her, so why shouldn’t she stay?

Well it is the fact that an organisation like the FEI should be greater than one person.

After serving eight years on any board, you are no longer independent – you are embedded in the process and the organisation, and your decisions can therefore no longer be free from organisational politics and history.

In the Sport and Recreation Alliance we encourage all members to introduce term limits. It helps every member keep their board fresh with new ideas and it ensures that no organisation is stuck with underperforming directors on their board for too long.

Read more about the Voluntary Code of Good Governance.

Read more blogs by Mikkel.

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