So, when implementing Corporate Governance, it is indicated that you do not try to implement all practices at once, but start with small steps. So try to understand which points can bring the most business value right now and start with them. Along with that, try to bring culture back to the organization to this practice so that everyone can gradually adopt this thinking and help in the next steps of its implementation. For the governance training you will need the best steps now.
Define a hierarchy
Establishing a hierarchy may sound authoritative, but in the sense of corporate governance, it is not. Hierarchy is important because each employee needs to know clearly to whom to respond. After all, it is very common that in growing companies, employees perform more than one type of function at the same time, receiving various demands. This can hurt many aspects of the business. So, place an order in the house so as not to compromise the ability of each employee to deliver and to strengthen business leaders. In addition, the positions should be aligned with the degree of responsibility that the person has in the business. Therefore, defining a hierarchy that is clear also helps in decision making.
Have an advisory board
Every entrepreneur or business leader needs to have the figure of a mentor. Because the mentor questions, suggests, corrects and makes this professional think about his decisions so that he always takes the best possible path. When we talk about a company and its board, such mentoring may come through an advisory board.
This body is usually made up of professionals with a larger work background and different job profiles. Therefore, it is very likely that they have already experienced similar challenges, providing complete guidance for the business to make the best decisions possible.
Be aware that an advisory board can consist of 3 to 5 trusted people who are willing to help, providing guidance for your day-to-day challenges. It is important that the company defines in its governance code how often it meets with this body during the year.
Keep track and record everything
Holding regular follow-up meetings is also a great way to stimulate corporate governance culture. Whether the meeting is between partners, teams or even new projects, it is important that in these meetings the activities are followed, always with the company’s guidelines in mind. If necessary, develop new action plans that are consistent with the business objectives and goals during these meetings. It may seem like a waste of time, but this is a great way to maintain administrative control of your business and especially to track its progress. In addition, be sure to document these meetings, as this information may be helpful in the future, whether to capture investment or accountability to the company’s Board of Directors, among other occasions.
Governance is synonymous with government. Governance is related to direction, authority, accountability, transparency, and participation. Corporate Governance is often seen with the structure and relationships that determine corporate direction and performance.
The largest pension fund in the US defines corporate governance as the relationship between the various participants in corporate governance and performance. The American Management Association defines corporate governance as the way capital providers make managers generate profits, make sure they do not misuse capital by investing in bad projects, and how shareholders and creditors monitor them.