Governance Thoughts

 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.

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

·      10. Results matter over the long haul, and results require investment. Understand what success looks like and what would define success. Need metrics for accountability.

·      11. Crisis Management is best done before a Crisis.

·      12. 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.