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Is your organization stagnating and lacking agility? Is innovation getting harder to achieve?
It may be time to review your business’ governance so that your directors are more coordinated, receive better support, and have clearly defined roles and responsibilities.
Good governance ABCDs: agility, behaviour, cooperation and diligence
No matter what type of business you run, good governance can set you on the path to growth and agility.
Companies with agile governance and effective mechanisms for taking action were able to respond more quickly when the COVID-19 crisis hit. This minimized their risk exposure and bolstered their reputations. Now that companies are looking ahead and introducing new initiatives, taking a proactive approach to risk and governance could help drive innovation and growth.
Our innovative approach is based on the ABCDs of good governance:
- Agility: Establish a more functional and agile governance vehicle;
- Behaviour: Adopt best practices to help you fulfil your role within the organization;
- Cooperation: Embrace teamwork, share roles and responsibilities, delegate authority on certain issues and promote key players;
- Diligence: Make sure your governance practices are aligned with your strategic plan, succession plan, etc.
Putting the ABCDs into practice
Reviewing and implementing a governance plan isn’t something that should be taken lightly. Here are some of the things you’ll need:
- Self-assessments, diagnostic exercises and workshops to help you collect key indicators and determine which areas need improvement;
- Training and workshops on governance best practices for managers;
- A delegation of authority matrix and policy to make sure everyone understands their roles and responsibilities;
- A skills and representation matrix to ensure your organization has the right expertise and diversity to meet its goals.
Communication is key to effective governance
Establishing mechanisms for communication between committees and groups is essential to effective governance. In addition to ensuring that everyone receives critical information, these mechanisms go a long way in boosting stakeholder engagement. Essentially, good governance is dependent on strong communications, so don’t underestimate the importance of this consideration. You may even want to bring in seasoned professionals for assistance. It’s a worthwhile investment!
Good and effective governance must take into account your organization’s strategic plan, succession plan and values. Make sure you’re on track to meeting your targets by putting the right people in the right positions and by assigning them suitable roles and responsibilities. Including external directors is sometimes valuable. They can challenge ideas in a positive sense, offering perspectives that are emotionally independent from the organization’s DNA.
Keep in mind that governance isn’t the only aspect that needs to be reviewed regularly. You should also periodically assess the processes used to validate your business strategies and priorities. While you’re busy paying attention to other things, factors such as economic conditions or government policies may change.
Agile governance will allow you to adjust your Behaviours while Cooperating and doing your due Diligence.
Good governance is essential to organizational growth. It’s as simple as ABCD!
What are the benefits?
Conducting a governance review can ensure that the head of the company isn’t isolated and that some of the burden of responsibility is taken off their shoulders. By getting a whole management team in place and ensuring that each member understands their role, you improve the company’s agility, growth prospects and long-term viability.
A governance review can also help you:
- Strengthen trust between directors;
- Create value;
- Establish common ground for incoming and outgoing leaders;
- Encourage shared decision making and delegation of authority;
- Promote innovation and renewed strategic directions;
- Manage risks;
- Prepare and implement plans;
- Communicate more effectively;
- Engage stakeholders;
- Adopt the right vehicles for your strategies.
Good governance is essential for growth and assistance programs exist to help you implement a structured and effective governance review process.
Regardless of the size of your company, our experts can help you assess your governance and align your practices with your business objectives. Contact us today!