A Fresh Perspective on Governance

If I said “Governance and board oversight failure” – you’d most likely say “Steinhoff, VBS Mutual Bank, the Nigerian oil and gas sector, Volkswagen” (to pick just a few).?

It’s only ever the major failures that make headlines. Eventually an investigation is launched and perhaps several years later, some sort of slap on the wrist is handed out to individuals who have long since moved on and are now hiding in plain sight somewhere else.?

Here’s the kicker: You don’t have to be a behemoth multi-national, a listed entity or even have a board to have governance or oversight failures. It can (and does) happen to even the smallest business, no matter the stage of its maturity.?

Can it be avoided? Simple answer: YES.?

Here are a few perspectives to consider.?

Make Informed Decisions?

The purpose of governance is not to decide whether a decision is good or bad. Rather, it’s about ensuring that an informed decision was made given the information available at the time.?

Informed decisions are made when the information is interrogated thoroughly, so learn the ability to ask great questions, and insist that those providing the information have considered multiple angles – not just from a financial perspective but also from brand, reputational and impact (people and planet) perspectives.?

Be comfortable being the one in the boardroom with a contrarian point of view. Dare to think differently!?

Remember that as a director, you have a fiduciary responsibility towards the company and, failing which, you can be held liable in your personal capacity. Ordinarily you would not make decisions that could land you in hot water (at least I hope so anyway) so make sure that you apply the same logic in the boardroom too.?

SurThrival is about Balance?

Good governance is about balancing legal and regulatory requirements and compliance with what works for your business.?

No business has ever thrived by being encumbered by red tape, bureaucracy, and compliance requirements, and too many have failed to survive as a result of overlooking, disregarding or ignoring their regulatory and legal responsibilities.?

SurThrival is all about mastering all the dynamic parts that go into the business of doing business.?

Governance is not Linear or Binary?

Look no further than the world of sport (he says as a proud Springbok rugby supporter and world champions for 1918 consecutive days) and you will find a great example of how a team striving for a continuous competitive edge is pushing the boundaries of governance (the rules of the game) to the limit. So much so, that the rule makers are constantly having to consider making changes to their governance structure.?

Yes, there will always be a clear set of rules governing the game but at the same time it demonstrates that pushing the boundaries is not breaking the rules and that instead of being at effect of the rules, you can determine how they are applied.?

Understanding that governance is not only about compliance and risk management, but that it’s also about vision, direction, empowerment and being proactive is the difference between being world champions or the silver medallists.?

The Board as your Strategic Partner?

Independence is a factor of composition and not distance.?

Your board should not be perceived as some mythical group bestowed with impressive titles who meet in a secret location from time to time. Instead, fostering a culture of collaboration, open dialogue and engagement between executives and individual board members should be encouraged – from strategic planning to being a sounding board, from coaching to advising and anything else in between.?

Board members who simply show up for meetings and collect a fee for doing so are a burden rather than a benefit.?

Governance is a Journey, not a Destination?

In conclusion, a commitment to continuous learning fosters a more agile governance approach. Boards and directors who stay informed of industry trends, regulatory changes, and best practices are empowered and equipped to address emerging challenges will create lasting value for all stakeholders.?

Governance is not a one-time endeavour but a continuous journey. Boards must stay informed about industry trends, regulatory changes, and best practices. Engaging in ongoing education and training can empower board members to fulfil their roles effectively. This commitment to life-long learning fosters a more agile governance approach and ensures that the board remains equipped to address emerging challenges.