Outcomes over outputs: Reframing governance for measurable impact

FOR TOO long, governance has been reduced to the production of paperwork, compliance checklists and board reports.

- NQOBANI MZiZI

Many boards take comfort in approving strategies, signing off policies and publishing annual reports as if these activities, in and of themselves, are proof of effectiveness. Yet an uncomfortable truth remains: outputs alone do not guarantee that governance is working.

The real test of governance lies not in the number of policies approved or reports filed, but in whether those actions translate into meaningful and measurable impact. In other words, governance maturity is not about outputs but about outcomes.

King IV reminds us that governance must deliver four intended outcomes: an ethical culture, good performance, effective control and legitimacy. These are the benchmarks against which boards should ultimately be judged.

Outputs are easy to count. They are tangible, auditable and can be neatly presented in a board pack or annual report. A board can demonstrate that it held 10 meetings in a year, approved a sustainability policy and complied with reporting requirements. These are outputs, the deliverables that mark activity. But activity is not the same as impact. When boards mistake outputs for outcomes, they create the illusion of governance effectiveness.

South Africa's State-Owned Enterprises (SOEs) offer sobering illustrations. Many can demonstrate outputs in the form of strategic plans, governance frameworks and glossy annual reports. Yet, in too many cases, the outcomes, such as reliable service delivery, financial sustainability and public confidence, remain elusive. The public is left with reports but without results. This is the danger of the output trap: mistaking paper compliance for genuine governance performance.

Outcomes shift the conversation from activity to impact. They are the difference governance makes in the lives of stakeholders, the resilience of organisations and the value created for society.