This book was written for people who want succinct briefing on managing value-led organisations. The author feels that he will have achieved his objective if dog-eared copies of the book are found in the briefcases of board members, managers of third sector organisations, national and local government managers and funders of the third sector, and academics studying management and social policy.

So just what is a third sector organisation? Currently, Mike Hudson avers, a college of further education, grant-maintained or independent school is, while a local education authority is not, being part of the public sector.

Yet the ethos that drives the third sector organisation is familiar to us all; they are value-led, with primary objectives that are social rather than economic. They are “not-for-profit”, and thus include charities, religious organisations, arts and community projects, trade unions and associations, and other voluntary organisations.

The third sector is driven by the desire to improve the world and those involved in them believe in the creation of a fairer, more caring and better-educated world. The boundaries between public, private and third sector are fuzzy and the similarities are growing.

Mike Hudson sets the historical perspective and identifies the distinguishing factors that complicate the management of third sector organisations.

Excellent chapters on “creating boards” and “making boards govern” will be valuable to anyone concerned about the roles and relationships of governors and staff within a school environment.

It is the best exposition I have read of the distinction between governance and management. “Governance is ultimately concerned with providing insight, wisdom, and good judgment. Boards have to find ways of providing this which move beyond setting abstract policies that are full of good intentions but of little practical use.”

The concept of the lifecycle of a board from foundation to maturity helps us to understand the process of governing evolution. “A crisis jerks it out of complacency”; “board papers become thicker”; “accused by staff of meddling in detail”; “meetings ritualised and membership stagnating” are just a few of the pithy illustrations that some of may recognise.

There are interesting and useful caveats about the function of committees, task groups and advisory panels, which may find sympathetic readers among school governors and managers alike. The language is clear and the examples illuminating. “The examination results were excellent but were the children well educated?”

The central section of the book deals with the management of strategies and their implementation, within the policies prescribed by the board. This section skims over the bewildering plethora of ideas that have been developed by management gurus to “help” us to manage more effectively.

Mike Hudson focuses on the three concepts - mission, objective and strategy - combining to form the notion of strategic management. The difference between mission and mission statement is highlighted; the importance of the latter minimised with stress on matching beliefs with strategy in order to improve effectiveness.

Day-to-day dilemmas are acknowledged and explored. Headteachers and principals might enjoy the suggestion that chief executives should review their leadership skills, based on a process developed by an American consultant, Richard Lynch. They might also like to match themselves against Mike Hudson’s list of good habits, starting with “praise staff for their achievements”.

I found this book fascinating. Many educationalists work with voluntary and charitable groups as well as quangos and would find relevance within the wide range of examples that are an enjoyable feature of this book.

It is a pleasure to read a book in which jargon does not proliferate; a book which translates complex concepts into practical advice whilst recognising the individuality of every organisation.

My copy has become well thumbed already. It falls open at page 36: “Because measuring performance is difficult, it is easy to forget to celebrate success. ”

* Angela Perlmutter is head of Sir James Smith’s Community School, Cornwall