WHAT IS THE VISION FOR YOUR BUSINESS?
Do you aim only to play within your local little town?Or nationally?Internationally?The greater your goals for your operation, the more important it is to consider corporate governance.Corporate governance should not be seen as a “maybe”, or a “when I get there” thing. Often, it will determine whether you get there at all. Choosing to ignore corporate governance is a choice you make at your own peril.
Governance has a direct impact on the sustainability, longevity and agility that your business requires to create the legacy envisioned by its founders.
Whether you are a small business with two staff members, a medium privately-owned business or a large corporate, governance transcends sectors and industries.
Correctly approached and implemented, it helps to guide managers in achieving the competitive advantage and legacy in this ever challenging and highly competitive business environment.
You might think that governance is reserved only for big business, or that it didn’t work for international giants such as Enron or Arthur Anderson. You might be interested to know that governance is also a performance-enhancement tool and can effectively boost your company’s performance if implemented correctly.
We, the founders of our businesses, will not live forever. Our major dream is to see our businesses become successful. We should bear in mind the words of John C Maxwell, who said that “without succession there is no success”.
It is from this perspective that I highly recommend that you implement, at some level, a succession plan. Start with something as simple as a will which states who the business (or the equity in the business) belongs to when you are no longer around, or fit enough, to manage the dealings of the business.
Then, move to the idea of corporate governance itself. Have you read the King Report on Corporate Governance or an international equivalent? What could its implications be for your business as it grows? Start to talk to peers and colleagues about governance issues and make it a part of your expanded business vision. If you’re as successful as you aim to be, you can’t get your hand on this wheel soon enough.
