It is vital for businesses to have strong framework around the checks and balances (governance) to monitor performance, to ensure strong systems and processes are in place and being adhered to. Also, that the balance of power is in place for leaders to have some level of regulation, to make sure they are putting the needs of the business ahead of their own personal interests.
This is where strong governance can provide great value to a business. Each businesses governance system is vital, it is more powerful than the Chairperson, the CEO, or the senior management team. It directs and provides a framework for leaders to work within – as opposed to the other way around which may lead to self interest rather than business success.
The groups that provide governance to a business need to ensure their roles within that group are clear, they don’t need to be friends, but they do need to be respected colleagues and work in alignment for the greater good of the business.
It is vital that those responsible for governance have access to the necessary information to make sound decisions in the best interests of the business and they must be trusted to manage that information effectively and safely. Those responsible for governance oversee strategy, risk, financial performance and legal framework, and as a result of this their decision making and influence is critical, so long as they take their responsibility seriously and aren’t merely ticking boxes.
They may not do the actual work, which the management team need to take ownership of, but the governance structure must ensure that any activity within its business is responsible and there is a framework to manage those checks and balances effectively.
There is a huge amount of information on good governance available however if you wish to hear more from us, please contact:
The HR Guy
M: 021 543 510