G O V E R N A N C E

One of the most significant safeguards for responsibility and duty of care for corporate or civil organisations is the system of governance. Baked into the success and sustainability of the leadership of any organisation should be a system that sets the parameters and direction for behaviour and accountability.

All, if not most of us, are aware of at least one occasion where the system of governance has been completely undermined or trampled on. Large corporations have imploded, senior leaders unceremoniously removed from their positions, in the worse case being criminally investigated and sometimes prosecuted. All of which can be avoided if directors take their governance duties seriously.

The purpose of organisational governance is to ensure practices and policies are in place to reduce conflict of interests, give clarity about the roles and responsibilities of those leading the organisation and, ultimately, be a guide for organisational decision-making on both internal and external matters.

I have had the opportunity of seeing governance up close and personal. In various board roles as a chair, executive and non-executive director. As a trustee on a charity and also as a school governor. Whilst the nuance of these roles are somewhat different, the rules and intention are similar. There is a basic duty of care to make sure you do things ethically, legally and with the intent that those you are serving can have confidence in your ability to stay and keep those you work with accountable.

Governance is just as important as strategy and culture in ensuring an organisation operates healthily. For those fortunate enough to find themselves in a role that carries governance responsibilities, remember that it is a custodial role to be taken seriously but one that can also be very rewarding. We need more governance, not just to prevent scandals but so that the positive examples of how we serve all our customers become the norm, no matter what size our organisations.