What is really meant by Governance?
There are many words that specialists use that don’t necessarily mean a lot. One of them is governance. What does it really mean.
If you’re expecting a lot of jargon to be used then the best thing to do is to navigate away from the post as there really won’t be much of it at all.
Governance is all about being able to check that what is actually happening inside your business is working properly.
Misconception Number 1
One common misconception is that working properly means you are get what you want out of it.
What it really means is that the business itself is getting what it needs to get to be the most effective for you.
Does that turn things around a bit? Good, it’s meant to.
Misconception Number 2
Another common misconception is that governance is just about the money side of things.
Yes, of course the amount of money bought into your business and circulating through it is important, but it is not the be all and end all.
Governance means that the right things are being done by the right people. Activities that happen in the business are controlled.
The outcomes from those activities are known and can be measured.
Misconception Number 3
A third common misconception is “I don’t need to worry about all of the if’s and but’s of what might happen.”
Surely the last 18 months have now proved that this is so far from the truth it’s unbelievable. This also then looks at how to react should things could go wrong, or risk management.
For the smallest businesses you do not need pages and pages of rules etc. but you should need to know what to do if your workplace is flooded, or catches fire. These are the worst of the “if’s and but’s”, but they do still need to be considered.
Misconception Number 4
The last misconception to highlight, at the moment at least, is “as long as I’ve got cash in the bank, I’m OK”.
While it is true that having cash in the bank can suggest a healthy position, it isn’t the whole story. Good governance means that you have the right things happening in your business so that you know the amount of cash in your account also reflects what is going on throughout your business.
So, the question to answer here is, have you got a grip on what is going on in your business? Are you paying your bills as swiftly as you are chasing the money you are owed? Have you made sure that the quality of your products (if you are a manufacturer) are being maintained?
So, What is Good Governance All About?
Here is the one piece of jargon for this article. Good governance provides you with a framework within which your business can thrive.
It’s not just about having desktop manuals, it’s not just about having killer marketing strategies, it’s not just about getting the money in and it not just about making and maintaining great personal relationships.
It’s about how everything fits together and that you know where things do, and do not, work properly. Then you have to know what to do in each situation. How to correct things. How to celebrate things. How to encourage good things time after time.
Based on my previous blogs, this one is quite light on detail. Please look through the other blogs here: Blog Archives – Eye Bray Limited
The information you want may well be here. Some of what I provide is very detailed.