The Co-op's current troubles is a classic case of how bad governance can cripple an organisation says Tesse Akpeki.

The ongoing governance saga at the Co-op indicates the success of any trustee board rests with the quality and experience of board members appointed to join the board.

According to Lord Myners, the group’s senior independent director charged with overhauling the boardroom, the Co-op has been undermined by "reckless" deal making, "shocking" levels of debt and governance standards far worse than even the banks before the credit crunch.

 "I have observed the bad governance of the banks, but this is on an altogether worse level. The rate of deterioration has increased over the last half dozen years because of the recklessness of the strategy being pursued and supported by the board."

This damaging critique highlights the importance of the transparency, consistency and strength of recruitment processes.  Equally important are effective governance structures and the ability to hold the executive to account and to appoint as well as support an able chief executive.  

Formal mechanisms and the development of an organisational culture that promotes ongoing monitoring and improvement are vital.  

Topical debates about ethics and democratic structures surface here. Myners said his proposals would make the group more democratic by involving its currently- ignored wider membership while making sure people with business experience were in charge of commercial decisions.

There is no doubt that board reforms must address capacity, capability and competence, but leaving cultural and behavioural perspectives out of any governance review would be a big mistake.