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 |  |  |  |  |  |  |  | | | Many highly successful companies, started and run by entrepreneurs, evolve not primarily in terms of governance structures (even though the necessary elements may be there – MOI, the Board, compliance), but rather as a result of the entrepreneur/ founder’s vision and leadership. The structure of many companies is in practice an expression of the founder’s style of leadership, rather than the founder’s style of leadership being focussed in and expressed through the structure (and the MOI). In this situation ambiguities and contradictions can occur in the company structure.
This obviously need not affect the company’s performance because with charismatic leadership structure and performance are intertwined. Structures, however, need to be sufficiently concrete to provide the resilience necessary for the company growth when the founder is no longer at the helm.
Our concern as corporate consultants is this: that companies not only identify new leadership (succession planning), but that they ensure that the corporate structure has been clearly defined and set in place to ensure the survival of the founder’s legacy.
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The structure of your company, the effectiveness of the Board as the governing body, the roles and responsibilities of key officers of the company: these are issues which directly impact the governance and corporate administration of your company.
We advise our clients continually to re-evaluate (and where necessary to re-define) their corporate structure; to ask questions such as ―
- Do I have an effective and accountable Board?
- Do the key players know what is expected of them?
- Are there appropriate procedures in place for healthy corporate administration?
- Is the company structured for dynamic growth as well as for dynamic problem-solving?
- Is the company’s structure sound enough to survive the retirement of the key players?
- Has there been appropriate succession planning?
In our role as governance consultants, we assess company structures for clients, reporting back, making recommendations, and where necessary assisting in the implementation of sound company structure.
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