Effective governance is the cornerstone to business success and longevity. Good governance is about structuring, operating and controlling a company with a view to achieving long-term strategic goals for shareholders, creditors, employees, customers, and suppliers. In short, good governance exists to add value to a business, big or small.
Effective governance adds value in four critical business areas:
1. Purpose: defining your purpose and acting with it in mind.
2. Governance Culture: working effectively to make the right decisions at the right times.
3. Holding to Account: being aware of what's happening and how to respond.
4. Compliance: effective risk management.
What types of companies should undertake Governance Planning?
Any company that is serious about creating and developing an effective Board of Directors should have a Governance Plan. Even if your business is currently small, if your growth plans are large or you simply want to get better at guiding your business, an effective Governance Plan will remove stress and add value.
If your industry is going through times of change or family dynamics are getting in the way of the business, having a Governance Plan will help align the directors to respond to industry changes and minimise the effect family relationship issues will have on the decision making in the business.
What is involved?
You’ll attend a Governance Planning session where the key areas we'll cover include:
Agreeing how you will separate the governance functions and responsibilities from that of operations
Determining and documenting a Governance Framework Plan and Governance Action Calendar
Identifying significant opportunities and risks that need to be managed
Establishing an action plan to address critical issues and get runs on the board
Agreeing the form and frequency of your regular Board Meetings
We'll provide you with pre-work to complete prior to the Governance Planning session. This will help to maximise your outcomes and the value gained from the session.
When should we have this session?
Any time is a good time to develop a Governance Plan, even if you already have a functioning Board of Directors.
Benefits of Developing a Governance Plan
Develop a clearer company purpose
Eliminate current 'laid back' business practices to become more active and strategic
Hold management to account in implementing the Strategic Plan and delivering results on budget
Maximise shareholder value
Execute known business opportunities well
Maintain business stability through periods of high growth
Reduce the stress associated with business growth
Reduce the constraints of cashflow as you grow
Reduce the complexity of the business
Gain outside perspective and expertise on how to change the way you do business
Stay on top of industry changes
Prevent family relationship issues affecting the decision making in the business
Execute your Succession Plan
Reduce key dependency on particular family members
Ability to step back from the business and enjoy the fruits of many years of hard work
$2,500 (plus GST) for the whole process
Four hour workshop with one hour pre-work