Governance Focus: Independent Directors

This time, we will put the focus on corporate governance.

Corporate governance includes all of the processes which are used to execute the management function of an organization. Management is how you deal with or control the staff, resources, and daily operations of the organization. We are discussing business controls and not manipulation. Corporate governance also consists of methods by which a corporation protects the interests of its shareholders or stakeholders.

Lack of proper controls in these areas can lead to conflicts of interests, and problems of agency. Problems of agency look different in every organization; however, some of the worst of these problems turn up as fraud, embezzlement, white collar crime, pay-offs and such. The impact of these problems goes without saying. An independent director can help to ameliorate these problems.

An effective, sincere, and masterfully knowledgeable individual can be an excellent candidate for an independent director. Appoint a good candidate to an independent directorship and give them the support needed at the executive level to be effective in their role. Their unusual perspective may just provide some much needed insight to something that your company leadership was blind to.

Shine a light on this topic in your upcoming executive meetings and your team may be able to take a critical step forward. A good director will help your organization to manage change, and help the executives to stay focused on the right goals.

Your Next Challenge: To be the best you can be!

Now that you have considered these ideas, how can you put them into practice?

These insights could be your key to success!