Essential to a good results governance program are field visits. By field is meant the set of places where business occurs, whether store if retailer, factory if industry, customers and competitors. Physical presence, an owner’s eye, allows us to identify inconsistencies between the stories that numbers and reports tell and reality as well as to anticipate risks and identify opportunities. In case of the finer options of governance training you will have the best support now.
Value the budget routine
The budgeting routine is a unique opportunity to have a frank discussion about the state of the business, its actual revenue-generating capacity, and to evaluate the management team for their knowledge and their ability to identify and understand business risk mitigation. Establishing a performance governance routine is the first step towards ensuring performance and accountability.
Corporate governance is widely addressed in business. This is thanks to the conduct that this practice gives to all matters related to the high level and management processes of the organization. Thinking about the importance of this subject, today we brought this post explaining what it is, what are the advantages and how to adhere to the strategy? Want to know more about the principles of this practice? Keep reading.
What is corporate governance?
This strategy is an organizational scheme that aims to run, track and expand companies. Her secret is how to do it: it is about managing relationships between businesses, partners, management, boards of directors, and supervisory bodies such as audits and so on.
The idea is to execute some values, making them the basis for an action cycle. How to strike a balance between the important personas those cited and the more relevant decision-making in the company using the 4 pillars of corporate governance:
- Equity: from the possible differences, all parties should be considered equally use cooperative negotiation
- Accountability: agents are fully responsible for actions and omissions performed
- Transparency: keep information clear and accessible, positive or negative
- Responsibility: Generally linked to social and environmental issues, it aims to place the company in a sustainable context even to keep it competitive, healthy and linked to market trends.
These principles are guiding, because from them must draw attitudes, thus creating a strategic plan to be followed. Planning is nurtured through efficient communication. Therefore, make good decisions about the channel and periodicity as needed.
What are the advantages of implementing it?
The adoption of corporate governance begins to take effect as soon as it is on the agenda. The issue of transparency about accounting information and negotiations by itself already adds a climate of trust regarding the relationship between partners, for example.
Measuring actual actions and results facilitates the perception of business opportunities and contributes to the company to have competitive advantages. Remember that round management aligns business processes. This means efficiency, cost-cutting, high quality and investment in what really pays off.
Review the mappings and processes
Regarding all resources and capital: what are the current production schemes? How is the hierarchy? How do internal processes get organized? And the information recorded, they pass from one area to another? Review all these paths. It is important that the structure of the company be passed on so that ownership becomes organized, fluid and easily assimilated.