Get Your Good Governance Groove On with these Tips

The rules and practices that help you run your business fall under the premise of good governance for the most part. How you govern the company will help your business meet goals through leading by example, being open and transparent and assessing current DEI policies. Governance is an ongoing process but here are some quick and easy examples to get started.

Leading by Example

It might come as no surprise that quality governance procedures begin at the top. Leading by example is a core part of effective management at all levels. This includes department managers and supervisors, senior management, and, of course, the CEO. Any employee in a position of authority will benefit from effective leadership training courses that introduce and enhance a range of topics. These include conflict management, DEI issues, and delegation.

Risk Assessment and Management

There is risk in any business. Risk management is a core part of governance programs. Failing to recognize risk can result in the business failing to meet targets, KPIs, and growth goals. Risk in a business comes from many angles, and identifying what they are and how they can impact the company is essential. For example, employee absence poses a risk to the effective management of the company. Risk is an ongoing process that requires many iterations.

Good Governance through Transparency

The word “transparency” is thrown around a lot these days. Following COVID and economic issues, all companies strive to be more transparent. This includes some of the world’s largest. But manu fall short of the target and have even become more opaque. A survey by Transparency International found that IBM, Amazon and Apple all scored less than 3 out of 10! For your business this could mean sharing performance, revenue and gender pay data.

Decisions by Consensus

There are multiple areas of a business impacted by decisions, small and large, every day. Sometimes, these decisions aren’t the best for your company, especially if there is a single person making them. Decisions by consensus are a popular way to move forward in business these days. This could include the general staff, multiple management, and even customers. It isn’t unheard of for some sectors to convene committees with customers to make decisions.

Diversity, Equity, and Inclusion

DEI is a major topic these days. Some people are for it, and others are against it. On the surface, it feels like a shift to DEI policies is a good thing, and it is. There are pros and cons of initiating a DEI structure at your company. For example, hiring the best person for the job can take second place in checking DEI boxes. There needs to be a good balance to include a diverse segment of the workforce without sacrificing quality and vice versa, which is challenging.

Summary

Leading by example from the top down is a quick and easy way to instill good governance in your business. Many companies state they want to be more transparent but don’t follow through. You have an advantage by doing so, including making certain DEI decisions.