Guest Blog | J Gadd Associates – 5 Ways Governance and EO Go Hand in Hand
Governance was once a topic that could empty a room in seconds, but things are a little different these days. Attitudes are changing, and fast.
Top line, governance is about the way an organisation is managed, at the highest level. It is also about the systems and practices in place for doing this. It is focused on direction, control and accountability.
In practical terms, governance is about having the right things in place to preserve and strengthen stakeholder and shareholder confidence. Governance is about making sure the basis for a high performing organisation is in place. Governance plays a vital role in ensuring that any organisation is aware of, and ready to respond to the ever changing external environment. Stand still and you’re quickly heading to extinction.
5 Ways Governance and EO Go Hand in Hand.
When you’re Employee Owned:
- Your shareholders are your employees. As beneficiaries they want to know about the organisation, its health, strategies and resilience. They’ll want to know the leadership are effective and acting with integrity.
- You encourage your employees to take responsibility and drive improvements in working practices, experiences and business performance, as they are the ultimate beneficiaries after all.
- Your owners are numerous, demanding and harder to avoid. They’re always looking out for the next opportunities, trends or issues that could lead to amazing legacies when correctly navigated.
- You’ll likely have a clearly defined purpose as an organisation, something that you’re able to articulate clearly and demonstrate you are delivering. Reputation is key.
- You’re part of a positive community, sharing and supporting others, offering advice and guidance willingly. That’s why so many are prepared to act as mentors and Trustees with other organisations. This independence can be the necessary catalyst for change.
One way to support good governance in your EO business is through an Independent Trustee. Having an Independent Trustee on your trust board or governance structure helps to represent the interests of employees as owners, including protecting the values of the business over the long-term and making sure that the company board and senior management team understand their accountabilities to the trust/employee owners. Find out how the EOA and partners can support you to find an Independent Trustee with the Independent Trustee Search service.
About J Gadd Associates
J Gadd Associates, are independent advisors who offer a range of employee ownership services supporting transition, governance and culture, that helps bring employee ownership to life. They have partnered with executive search experts Russam to provide an independent trustee appointment service drawing on a large pool of high calibre individuals, which you can find out more about here.