Organizations, whether public or private, small or large, should aim as their main goal, better governance.
Almost all people think this statement is true. But their question is what is governance and how do we achieve it? In this article, you will find out the concept of Governance and how to use it properly.
Origin of governance
Let’s start by establishing the origin of governance. It is actually a new word and concept that was introduced into the public discourse in the late 80s. Scandals, such as Enron, have given force to the concept of governance and market regulators have placed guidelines to supervise certain organizations, especially the public (the private company listed on the stock market). The Sarbanes-Oxley act of 2002 is an example.
As a fairly new concept, it arouses a keen interest, but at the same time, some confusion. It is credited with important virtues while blamed for certain faults.
The concept of Governance
But what is the concept of governance? It is a definition of exercise that seems elusive. Being new, it covers and touches many points.
The Institute on Governance states that “the exercise of governance is necessary as people come together for a particular purpose.” Governance literature offers several definitions, most of which are based on three dimensions: authority, decision-making, and meetings.
The Institute’s approach to the governance of Canada is: who has the power, who makes the decisions, how the stakeholders are heard.
Their conclusion of this exercise is definitely interesting because it targets this definition as Governance is the way society and the groups within it come together to make decisions.
Is it for us?
The basic definition outlined above indicates that governance is applied in a society. This society can be a nation, a government corporation, a private (publicly traded) corporation, a private SME as well as a non-profit corporation, or any association with an organizational structure. One can easily come to the conclusion that it is for all organizations.
Any societal group should consider how it could improve its governance to improve its decisions.
Developing an approach where information is solicited from the participants, shared with decision-makers, can be a feasible exercise with a collaborative and inclusive approach.
The definition of governance, as noted earlier, is still young but has a long history. This past is mainly the perception that the members of the board of directors, should only work for the shareholders.
The aim of their decisions was to maximize the value of the shareholders, often to the detriment of other stakeholders. But is this the only way to do it?
In an interview, the President of a Canadian Bank indicated that his responsibility is to ensure the good of the bank’s stakeholders – shareholders, employees, and the government – and not necessarily in that order. Governance coverage now covers more than just shareholders. Administrators need to combine the goals of other groups to ensure the application of good governance.
To achieve this, one must have a strategy that involves all stakeholders and it is the role of the administrator assisted by directors to establish it.
To improve our governance, we must involve these three groups: administrators, directors, and employees.
Together we always know more than alone. Involving the whole organization in a collaborative approach will enable you to achieve a higher level of governance.
The board needs to set an example with a structured practice of planning meetings with informed decision-making.
This good practice, if promoted throughout the organization, will provide good governance. Through good governance, it follows that it will produce quality information and decisions from employees, which flows to management and provides the Board with the best information for them to make the best decisions.
Implement good governance
It is through a structured, but simple, approach in planning, executing, and monitoring meetings and decisions that good governance can materialize.
The meeting is central to the operations of any organization. Starting with the board of directors, the management committees then follow their teams. Planning with documentation of your meeting will allow you to get the right data to the right stakeholder and at the right time so as to make better decisions.
Beenote and Governance
Beenote is the first web governance solution for meeting management for boards, executive committees, and their teams.
Offered to maximize the value of meetings, a central process for organizations, Beeboard will facilitate the application of corporate governance. From agenda planning, approval, collaborative execution, decision-making, and follow-ups to corporate calendars, Beenote will provide you with a complete view of your organization in its meetings