Governance - Which Way Will You Go?

In today's complex world, the structure of your corporate governance is critical.  How your board of directors, officers, and trustees provide checks and balances is extremely important to the success of your company.  If you do not think this is true, remember the Enron and WorldCom disasters.  These examples of poor governance forced the passage of Sarbanes-Oxley.  This act was our governments reaction to help prevent the financial disaster that the employees of Enron and WorldCom experienced.

What direction is your company headed?  Have you given thought to your corporate governance structure? If all of your governance is centered in one person, you may want to change this.  The decision making process will always get better results in a group versus an individual.  You may want to consider adding non-family members or non-officers to your governance structure.  Even better, bring in outside experience from areas that can add value to your company.

Letting go of the reins can be scary, but mixing up your governance structure can restart the growth of a company and spread the burden of corporate success.

Flickr photo by Delares (Eliud Martinez)

Comments

[Shirley Poertner]

Victor--the points you make about corporate governance also ring true when I work with executives and their leadership structure. Being too top-down in decision making or too many similar skill-sets on the bench can spell trouble. An excellent reminder you've provided here! Shirley