Governance That Endures

I have been thinking about Governance a lot of late. Not just for the companies I work with as a board member for profit and non, nor just for my own company, Modern Group, Ltd. Rather, I have been thinking about the connection between good governance, impact, stakeholders, and best practices as a director or Chair.

Good governance at the fundamental level is the same for the public and private, for-profit, and non-profit sectors.

Here are some of my observations and scar tissue.

• Integrity and Duty to Loyalty for all stakeholders. Understand you are on a retainer, not a per-meeting fee.
• Stakeholders include Employees, Employees’ Families, Alumni, Customers, Suppliers, Vendors, Community, and Shareholders.
• Understanding the business and customer set. Where a firm’s products fit and serve the customers’ needs. Now and in the future. Be curious.
• Obligation to do your homework and grow your awareness of both customers and products.
• You are both a coach and a referee for Management and Shareholders.
• Strategy, Radar, Accountability, and Integrity are 24/7 attributes for a board member. And management. Look out and understand what is coming, is it a threat or an opportunity? Companies evolve or die.
• Truth-tellers and fact-based conversations are the norm.
• Coach, counsel, cut as necessary, both talent, services, and products as they measure up to the markets and customers’ needs.
• The board’s role is to bridge the shareholders and the CEO by getting consensus from shareholders and accountability for the CEO.
• Results matter over the long haul, and results require investment. Understand what success looks like and what would define success. Need metrics for accountability.
• Crisis Management is best done before a Crisis.
• Understand that some of the board’s best work is done between meetings.
• 20% or more of any strategy will need to be adjusted as facts change in the market.
• Finally, the real skill is not only getting out on a limb but getting back to the trunk when the limb breaks. Risk with a plan is how a business or organization grows.
• “To go fast, go alone, but to go far, go together.” Good governance is the ultimate “together”.

We all want to go far.

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