What is Corporate Governance?
Corporate Governance is the overarching structure in place to direct and manage a company. According to Best Practice Governance™, “the meaning of effective governance for an organisation is to manage the day-to-day operations, in line with the vision, strategy and planning, with integrity and in the best interests of all stakeholders.”
A well-governed organisation operates in the best long-term interests of the company. Factors which support this are appropriate board composition, transparent and honest financial reporting, fair remuneration of senior executives, stakeholder relations and communication, risk management and ethical behaviour.
GOVERN™ Model
The GOVERN model may be used to support building awareness of the current governance culture and what is needed to close the gaps to establish a best practice governance environment.. Understanding the value of these enhanced practices, along with the return on investment will refine the articulation and execution of the vision to the diverse stakeholders.
The six elements to self-asess are:
GOAL - OPPORTUNITIES - VALUE - EXECUTION - RETURN ON INVESTMENT - NEXT STEPS
GOAL
What is the goal?
e.g. to implement a culture of effective governance in the organisation,
to understand where the organisation is with regards to an effective corporate governance environment,
to enhance best practices already in place,
to discover where the gaps are and close those,
to understand the vision of the organisation and communicate that to all stakeholders,
to align the vision with the daily decisions and choices
OPPORTUNITIES
What opportunities are available?
e.g. resources, support groups, committees. What is already in place? What can be strengthened? How can the skill set composition on the board be utilised for best effect?
VALUE
What additional value will this bring to the organisation?
e.g. a better defined strategy, a more robust operational environment, an alignment of the vision with the operational reality, an alignment of values with behaviour, an elimination of overlapping tasks freeing up resources.
EXECUTION
What action will the individual take?
e.g. setting up an advisory board, managing succession planning, developing delegation skills, disbanding futile committees, setting up constructive committees, clearly outlining the allocation of roles and responsibilities.
RETURN ON INVESTMENT
How will ROI be measured?
e.g. greater stakeholder satisfaction, leaner processes, benefits of automation, less stress as roles are more clearly defined and healthy borders are put in place.
NEXT STEPS
What are the next steps?
e.g. milestones, deadlines, actions.
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