What draws attention in a good organization? Value, quality, price proposal? Yes. In addition, it is likely to be the purposes and values, and the way it is governed and managed.

 

Governance is the organization's main conduct and needs to be guided by ethics and clear and fair principles when dealing with shareholders and stakeholders. It must be evolutionary and respect the organization's maturity and heredity.

 

Every company has a strategy, which is not always very visible. Defining, guiding and monitoring execution are governance functions that need agents. The shareholder defines the strategic intention, and his representative, the board (of management or advisory), when it exists, must explain it, guide it and monitor it. Otherwise, the shareholder must play this role.

 

A strategic choice only generates results if someone plans and executes the actions derived from it, which is the role of management agents. The chief of these is the chief executive. The governance agent examines, evaluates and, if applicable, redirects the processes reported by managers.

 

In this interrelation, the chief executive and the chairman of the board are complementary and synergistic functions - they link management and governance. In addition to the board, the structures responsible for inspection and auditing are frequent, as well as the shareholders' meeting.

 

But governance is not just about structures. Practices and processes appropriate to the degree of maturity of the organization are required, for example, the protocols and regulations that organize the performance of agents.

 

It is decisive to have shared values; explicit purpose and clear strategy; adequate governance structures; relevant practices and processes; and active agents, with profiles compatible with their function. All in accordance with the maturity of the organization, which, thus, will be better able to honor values, fulfill purposes, deliver products and services appreciated by customers and obtain recognition for their performance.

MARCO ANTONIO F. VILLAS-BÔAS (1)

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(1) Master of Business Administration, Certified Board Member, mentor, professor and consultant.