Effective governance is more than a compliance exercise; it is the foundation of legitimacy, resilience and impact for organisations striving to address global challenges. As expectations from stakeholders, donors and partners rise, organisations must demonstrate not only transparency and accountability but also strategic agility and ethical leadership.
SRI Executive’s 2026 Governance Effectiveness Benchmarking Report, released on 21 January 2026, offers a timely lens on how governance is evolving across NGOs, multilateral bodies, academic institutions, foundations and mission-led private organisations. Drawing on data from 44 organisations, the benchmark highlights where boards are strong, and where the gap between intent and execution is holding performance back.
What we found: the intent–reality gap
At a glance, organisations across the global development sector perform strongly in Ethics and Integrity, with 36 out of 44 organisations (82%) scoring 3 or higher on this dimension (on a scale of 1–4: Initial, Developing, Established, Leading). Similar results are seen for Strategy and Stakeholder Engagement, with 30 out of 44 organisations (68%) scoring 3 or higher on both.
Conversely, Board Effectiveness and Agility are underpowered in too many organisations. The data shows that 25 out of 44 organisations (57%) scored 2 or below for Board Effectiveness, and 22 out of 44 organisations (50%) scored 2 or below for Agility. The message is clear: boards are not failing for lack of values or vision; they are faltering because the routines, dashboards and decision cadences that turn strategic intent into measurable outcomes are not consistently embedded. When half the sector cannot respond nimbly to a crisis, and many boards lack clarity on their own effectiveness, you do not have a strategy problem. You have an execution problem.
Why governance matters – now more than ever
Amid a convergence of geopolitical shocks, tightening and conditional funding, accelerating climate impacts and rising scrutiny around transparency, governance systems are under unprecedented pressure to adapt. Our study shows that boards are highly engaged in shaping strategy and ensuring decisions are anchored in mission and values. However, while strategic planning is often robust, monitoring and measuring impact can lag—particularly where oversight focuses primarily on financial indicators, rather than balanced, outcomes-led performance.
Leading organisations are closing this gap by embedding strategy reviews into regular board agendas, linking priorities to measurable indicators and connecting strategy, risk and culture through clear board-level rhythms. In a volatile environment, episodic governance is a liability; boards need the data, cadence and culture to see signals early and act with confidence.
The SRI Governance Effectiveness Maturity (GEM) Index: seven dimensions that matter
The GEM Index assesses organisations across seven dimensions and provides a practical roadmap for improvement. Organisations are rated from Level 1 (Initial) to Level 4 (Leading), with most falling between Level 2 (Developing) and Level 3 (Established).
- Strategy Oversight: How strategy is set and prioritised, who is involved and how effectively it drives outcomes and learning.
- Risk Integration: The clarity of risk roles, policies and frameworks; the definition of risk appetite; and the extent to which risk is embedded proactively in board and management decision-making.
- Policy Implementation: The presence, implementation and assurance of core policies; the feedback loops that turn principles into practice; and how learning is captured.
- Stakeholder Engagement: How stakeholders are identified, consulted and engaged; whether engagement is ad hoc, transactional, structured or genuinely inclusive and trust-based.
- Board Effectiveness: The clarity of composition, roles, responsibilities and accountabilities; the quality of induction and evaluation; and how board impact is measured and improved.
- Ethics and Culture: The presence and enforcement of ethical standards and codes of conduct; how integrity is modelled from the top and embedded in culture and decision-making.
- Agility: How governance responds to changing circumstances, crises and emerging challenges; whether the system is rigid, reactive or embedded, adaptive and innovation-driven.
Key trends shaping governance
- Strategy oversight
Boards consistently emphasise the importance of strategy, and effective governance mechanisms anchor decisions in mission and values. However, oversight between strategy cycles is often inconsistent. Best practice includes co-development with management, structured review cadences (for example, quarterly strategy performance reviews with clear KPIs and learning loops) and linking priorities to measurable outcomes. Agile organisations use inclusive consultation and frequent reviews to stay responsive.
- Risk integration
Risk is central to board oversight, yet many organisations still operate reactively. More mature boards embed risk into decision-making and clarify ownership at board and executive levels. Practices such as risk registers, committee-led oversight and the Three Lines of Defence model are gaining traction, alongside clearer risk appetites and thresholds.
- Policy implementation (and accountability)
Policies are widespread, but translation into practice is uneven. Structured reporting, board dashboards, clear escalation pathways and independent assurance help move organisations beyond compliance to meaningful oversight. Culture matters: proportionate disclosure and radical transparency during crises build trust with stakeholders and funders alike.
- Stakeholder engagement
Engagement is frequently consultative rather than co-creative. Representation of youth and marginalised groups remains limited, though systematic stakeholder mapping and formal channels for dialogue are emerging. Organisations that excel treat communities and partners as co-creators, establishing continuous feedback mechanisms that inform decisions and accountability.
- Board effectiveness
Professionalisation is accelerating through competency-based recruitment, induction and structured evaluations. Persistent challenges include diversity of thought and background, succession planning and balancing technical expertise with lived experience. Effective boards invest in continuous development, chair coaching and purposeful renewal—treating evaluation as a learning opportunity rather than a tick-box exercise.
- Ethics and culture
Codes of conduct and safeguarding policies are standard, but cultural embedding and enforcement can lag. Leading organisations operationalise integrity through standing ethics committees, independent reporting channels, scenario-based training and transparent deliberation and outcomes when issues arise.
- Agility
Few organisations have formal mechanisms for adaptive governance. Scenario planning, mid-cycle reviews, rapid escalation and decision protocols, and the smart use of digital tools (including AI-enabled board packs and horizon scanning) distinguish agile organisations. These practices enable boards to respond quickly to shocks while maintaining strategic focus and ethical guardrails.
Sector benchmarks and performance
Performance varies by organisation type:
- Academic and research institutions: Balanced performance, with strengths in ethics and stakeholder engagement, but lower scores in risk and agility.
- Foundations: Consistent across most dimensions, with board effectiveness and agility common development areas.
- Private sector (mission-led): Strong in strategy and ethics; moderate in engagement and board effectiveness; room to improve transparency and adaptability.
- NGOs: Often strong in stakeholder engagement and ethics; board effectiveness and agility are weaker on average.
- Multilaterals: Robust in strategy, risk and ethics; board effectiveness and agility remain areas for growth given complex mandates and governance models.
Looking forward
The evidence indicates that governance in the global development sector is at a critical inflexion point. Organisations must move beyond compliance to embrace adaptive, ethical and strategically agile leadership. Foundational structures are largely in place; the challenge is translating them into consistent practice.
Progress is evident in strategy development, risk awareness and the professionalisation of boards. Yet gaps remain in monitoring, embedding risk and ensuring transparency and accountability. Stakeholder engagement, ethics and agility require deeper cultural shifts.
In brief:
- Execution is the maturity gap: policies exist, but practice, measurement and learning must follow.
- Agility and integrity differentiate leaders: scenario planning, mid-cycle reviews and lived ethics underpin trust and performance.
- Independent perspective accelerates improvement: objective diagnostics and peer benchmarks reduce risk and build confidence.
Organisations with strong governance maturity view governance as a dynamic capability-continually investing in improvement and prioritising adaptability, trust and diverse perspectives. By evolving governance from a compliance-driven function to a strategic enabler, organisations can anchor legitimacy, drive impact, and thrive in an increasingly complex global environment.
To explore the findings and benchmarks in full, download the 2026 Governance Effectiveness Benchmarking Report (Download the report). To discuss a governance maturity diagnostic, board review or implementation support, please contact our Governance Advisory team (Governance advisory).