Governance is ensuring that an organisation is consistent, accountable, transparent, equitable and responsive in its policies and decision-making processes.
All organisations, whether big or small, corporate or not for profit, can benefit from good governance. In larger companies, corporate governance advice may be delivered through a board of directors or advisory board, who uphold the processes and ensure the company is run well: “above board”.
In smaller organisations, formal procedures such as regular director’s meetings or recording significant business decisions can often be overlooked. It can be extremely helpful to seek the advice of an external governance expert to provide an objective perspective and instil guidelines for accountable, transparent decision-making processes.
An organisation that seeks to improve governance can in turn improve several key organisational areas, including growth and strategic planning, risk management, ethics, succession planning and exit strategizing. Because governance focuses on the strategic processes and not the day-to-day decisions, it can be extremely useful in providing organisations with independent judgement, outside experience and a new perspective on issues.
What is an Advisory Board?
An advisory board provides guidance and thought leadership outside of, and separate to, a formal board structure. The role of an advisory board is to provide advice without making decisions. It has no authority to govern – decisions must be made by the board of directors. To set up an effective advisory board, company directors provide a clear written agreement defining its terms of reference, including objectives, purpose and activities.
To learn more about how to improve governance, we offer a free, no-obligation consultation. For a governance expert who understands how and why good governance is so important to organisations, contact us today. Our Auckland offices are located in Henderson (head office), Auckland CBD, Kumeu and Helensville.