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Steps towards Better Corporate Governance

Ever wondered how some organisations score above average return on their invested capital and assets or have a reputation that places them ahead of others in relation to how employees or clients see them? Well, a key ingredient of the recipe for improved strategic leadership and management to deliver these types of outcomes isn’t as complicated as it may seem. Central to great performance is good corporate governance.

What is Corporate Governance?

Corporate governance is a well-designed framework of rules and practices that enable Executive teams to direct and control their organisation. Embracing thoughtful corporate control practices in an organisation ensures transparency and efficiency in its operations and helps enhance the delivery of efficient and effective outcomes.

Well-constructed corporate governance also helps to identify and manage key legal, financial and reputational risks.

Improving Corporate Governance – Working ‘on the business’

Many organisations fall into the trap of only focusing on the day to day pressures of completing work and delivering services. Without spending time working ‘on the business’ and how it can improve can often lead to results that aren’t as good as they could be. If you want the public image of your organisation to be positive and robust, you need to build a spend time working on how the business operates, how its governed, which will pay dividends in areas such as realising a healthy and balanced workplace culture.

With that said, here a few basic steps to improving your corporate management and internal control and avoid massive organisational disasters.

  • Choosing Executive Teams Carefully:

    The Executive has a significant role to play in direction and control of the organisation. Take time to elect team members who have a complimentary breadth and depth of aptitude and industry knowledge to assist in formulation and adoption of company’s strategic direction.

  • Monitoring Organisational Performance:

    Evaluating performance of the organisation is a vital function that helps the Executive manage operations at different levels and attain set direction objectives.

  • Ensuring Timely Information:

    Timely information results in operational excellence and consistent decision making. The Executive needs to have strategic processes and policies to help ensure adequate, accurate and timely information.

  • Actively Manage Risk:

    Ensure that the Executive engage in risk management regularly. Identifying all kinds of potential risks including financial risks, security threats and compliance risks before they harm your organisation and its assets. The senior team needs to build a comprehensive risk management strategy to keep things in control and prevent any loss and negative impacts.

  • Ensuring Timely Information:

    Timely information results in operational excellence and consistent decision making. The Executive needs to have strategic processes and policies to help ensure adequate, accurate and timely information.

  • Evaluating Executive Performance:

    The Executive must carefully analyse and assess their own performance and operations on a regular basis to make sure they are guiding the organisation in the right direction. A self-evaluation process can be conducted to identify own strengths and weaknesses and use what’s learned through the evaluation to help build up a continually improving corporate governance framework.