Corporate Governance – what does it all really mean!

Corporate Governance – what does it all really mean!

When the term corporate governance is used it often ushers up visions of lofty boardrooms and piles of tedious paperwork. Business leaders react to the term corporate governance by thinking of the cost and burden on their companies while many simply equate corporate governance with compliance and obeying the law.

Is this really what corporate governance is actually all about?

I do not believe it is!

I believe that corporate governance is actually about harnessing the energy and dynamism of a business idea into an appropriate, workable and flexible structure that is aligned to the promise of the business, robust enough to withstand internal and external risks yet adaptable to the changing environment both inside and outside the company.

  • Corporate governance is not a ‘one size fits all’ framework that makes every company look the same!
  • Corporate governance is not a set of ‘tick-boxes’ completed to satisfy the compliance needs of the business – internal and external!
  • Corporate governance is not a rigid bureaucracy that makes entrepreneurs avoid ‘corporates’ like the plague!
  • Corporate governance is not and should never be any of these things!

Rather corporate governance must be about;

  • Achieving strategic objectives and delivering on the organisational promise;
  • Enhancing value and performance by delegating authority responsibly throughout the company;
  • Providing people with a secure framework to make business decisions – which by default are full of risk;
  • Providing the right monitoring and accurate measurement of progress as the company moves forward into the future;
  • Appropriately reflecting the fundamental values underlying the business.

If corporate governance is about these things (and other things like this) it changes both our approach to it as well as what we intend when we implement it in our businesses. It also becomes an important priority in building businesses that are value driven, resilient and sustainable – businesses that the best people want to work for.

Make contact to find out more about implementing effective corporate governance in your business.

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