Governance is Positive
Business governance usually conjures up images of a control checklist used to pass an audit,
or strict rules on what can and cannot be done by employees. While this is true, it casts
governance in a negative light. Business Governance is really a positive program that needs
to be presented as such. Governance is:
- Not “adherence to strict rules,” but a way that business owners can ensure they are compliant and legal
- Not “extra time-consuming steps,” but a structure that reduces unnecessary rework
- Not “reports that no one will read,” but tracking and measuring what’s really important for your success
- Not “a deputy dog out to find wrong,” but a workforce empowered to police their own
- Not “another program,” but a highly actionable plan with a solid purpose.
Keep a Governance Program Simple
Small and medium-sized businesses don’t have the luxury of a person being dedicated to managing a governance
program. This is why business governance must be thought of in simple, cost-conscious terms. Even the smallest
business can implement a low-cost governance structure that reaps big payback. Good governance allows employees
to focus on important tasks and not the mundane; and this does not cost a business anything.
Example of a Simple Governance Program
Think of good governance like creating a plan for maintaining your health. You may not know what illness could
occur, but taking on a few simple steps can reduce the risk of getting one of any number of devastating
diseases. An exercise governance plan is not just pumping some iron and calling it a day. It is a 360-degree
view of checkpoints and activities to improve your health.
| Exercise Governance Plan | Equivalent in Business Governance |
|---|---|
| Goal is to maintain a healthy body | Strategic goal |
| Weight reduction to prevent high blood pressure and low energy | Risk assessment |
| Daily workout routine | Business process |
| Incorporate cardiovascular, strength, flexibility, healthy diet | Key controls |
| Calculating body mass index, pull-ups per minute | Key Performance Indicator (KPI) |
| Slowing down when pulse spikes too high | Red flag report |
| Working with a professional trainer | Training Program |
| Wearing proper shoes and clothing | Safety program and PPE |
| Periodically taking ibuprofen to relieve minor soreness | Manager’s signature for the exception |
| Annual physical | Audit and compliance |
An exercise plan may not completely stop every disease, but it does prevent many more problems than if you
were NOT following one. The positives of a healthy lifestyle overwhelmingly outweigh the few negatives
(sore muscles and not having a bowl of ice cream every night). The same can be said for good governance.
Good Business Governance Assurance
Similarly, business governance cannot prevent every problem, but it greatly reduces most concerns. A simple
but impactful governance plan includes mechanisms that will eliminate or at least minimize your biggest
concerns. Good business governance ensures:
- Useful controls are implemented and reviewed
- A process is in place and observed
- A solid guideline is developed and followed
- Warning signs are acted upon, so serious problems can be prevented
- Employees know exactly what needs to be done and when
- Risks to your business are significantly reduced.
Turn a Business Negative into a Positive Using Governance
Governance can’t be some pie-in-the-sky theoretical exercise. Business needs something tangible to act on.
The best way to start a program is to identify a process or activity in your business that is very important
or critical to your operations. Even better, pinpoint a major headache for your employees. Then focus on
reducing the risks associated with the specific process by implementing a straightforward but robust governance
program around it. Go ahead and launch a Guvrix topic that is highly important to your business.