Corporate Governance in Smaller Companies

I am doing some collaborative work with a group of talented individuals applying Corporate Governance to the work I am already conducting on Strategic Technology Product Analysis and Planning.

Many smaller companies do not have a Corporate Governance Policy, yet it is an overarching view and definition of what the business really is, how it will operate and ultimately how successful it will be.

There are five Golden Rules of Corporate Governance:

  • Ethics: a clearly ethical basis to the business
  • Align Business Goals: appropriate goals, arrived at through the creation of a suitable stakeholder decision making model
  • Strategic management: an effective strategy process which incorporates stakeholder value
  • Organisation: an organisation suitably structured to effect good corporate governance
  • Reporting: reporting systems structured to provide transparency and accountability

What is really important is that management actually takes the time to think. To think about each of these rules, to believe in them and to enact them. It is far easier for investors to understand a business and how it will operate if these rules are adopted and conscientiously applied.

Equally important is how these rules are documented and how they are kept alive. One very useful tool is a Mindmap. This can be used to not only help define the corporate governance policy but also to use it as a dashboard to monitor it on an ongoing basis. It is important to have a holistic view of the business. Each part of the Corporate Governance Map can be drilled down into to provide more detail as required, to see where any issues are.

One of our specialist services is to map out Corporate Governance for you and with you, to put in place procedures to keep this a current and useful management tool.

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