The annual report of the Further Education Funding Council chief inspector says governors “continue to serve their colleges well” and have a “proper understanding of the division of responsibility between themselves and college managers”.

It also refers to an issue replacing codes of conduct as flavour of the month - the need for governing bodies to monitor their own performance. Easier said than done.

Governors often say their performance should only be judged against their college’s success. If the college meets its targets and gives effective service to students while remaining solvent, surely the governors are doing their job.

True. But there is more. Some things they do may be judged separately from rest of the college. Nor does it follow that inspection grades for governance and management necessarily reflect those for the curriculum and other areas.

Private business is also increasingly interested in the performance of company boards. The latest Institute of Directors (IoD) report, “Good Practice for Directors: Standards for the Board”, offers much to colleges.

The IoD guidelines aim to “help boards improve their own performance and through this the success of their company”. They say an effective board must: * Drive the business forward while keeping prudent control; * Know enough to answer for the company’s actions, yet retain an objective, longer-term view; * Be sensitive to short-term local issues but informed about broad trends and competition; * Be commercial while acting responsibly towards employees, business partners and society.

Colleges might add a fifth to the IoD list: recognise that while the college is part of a national system, it must respond primarily to local educational needs.

Boards should seek constantly to improve their performance, particularly in a crisis, the report says. Most colleges will one day face a big problem, often financial. At such times the independence and personal qualities of the board make a vital contribution. It requires its members to be able to communicate their ideas cogently and scrutinise the executive, while having the interests of the college at heart.

Experience of working in many colleges shows that a successful governing body is one with a constructive partnership between the chair and chief executive whose skills and experience are complementary. The FEFC is aware of possible problems here and is to examine the balance of power.

The board must be balanced, says the IoD report. It may have “brilliant individuals and yet be ineffective”. Boards must work as a team, having members with strategic perception, analytical understanding and communication skills. They must get results through determination, risk-taking and business sense.

Open selection and systematic appointment of members is essential. Lord Nolan’s Committee on Standards in Public Life makes much of this.

Efficient culture and climate of board meetings give every governor maximum opportunity to use their knowledge and experience. A good, simple test of team spirit is to see whether members occasionally laugh during meetings.

There has to be common purpose, accepting the college’s overall mission and direction. Full support must be given to democratic board decisions even by individuals who have argued against them.

Each individual’s role and responsibilities must be clearly defined and understood, to ensure maximum efficiency, claims the report. An understanding of the distinction between the roles of governors and managers is also needed; each must know what to expect of the others.

Governors might find it helpful to set annual targets and measure their success in achieving them. Decisions must be communicated well: displaying minutes of meetings in the college library might fulfil statutory obligations, but is this sufficient? Several governing bodies produce annual reports and hold annual meetings.

Governors need to know enough about the work of the college to enable them to make effective decisions while not knowing so much that they lose their freshness of approach. A governing body which rates highly on these is indeed doing well and can be proud of its achievements.

John Graystone is chief executive of the Association for Colleges, Eastern Region