SMEs are increasingly looking to structure their operations in order to gain efficiency and credibility with investors.

Unlike large companies, they have to deal with more limited resources and structures that are often less formalized.

Many still remain organized according to a classical hierarchical model, inherited from the past, where power is centralized and communication is top-down.

However, a transformation is beginning: more and more companies are moving towards participatory governance.

This approach is based on the sharing of decisions, cooperation and the involvement of teams. It promotes a more inclusive dynamic, where everyone can contribute to strategic thinking.

But How to implement this type of participatory governance in an SME? What benefits can we expect from it?

This report explores the principles, benefits, and key steps to adopt a more collaborative model, illustrated by concrete examples.

But in concrete terms, what is participatory governance?

In the context of SMEs, it is a mode of operation where each actor — employee, volunteer, partner or customer — can take part in the definition and implementation of strategic guidelines.

This approach is based on values of transparency, inclusion and co-construction.

It invites dialogue, promotes the emergence of new ideas and reinforces the legitimacy of decisions taken.

At first glance, this more horizontal governance may seem complex, even ancillary, especially in human-sized structures.

However, the facts are there: tensions at work, malaise, discrimination or even burn-out illustrate the need to rethink our organizational models.

It is becoming urgent to imagine more humane and fairer management methods.

Participatory governance also meets concrete expectations in the field. The numbers speak for themselves:

• 66% of young professionals prefer companies where the word is shared and decisions are collective (Deloitte, 2023).
• 90% of employees say that more transparent governance would boost their engagement (Harvard Business Review, 2023).

Establishing shared governance means, above all, relying on solid principles, which promote authentic and constructive involvement of all parties concerned.

Inclusion: opening the door to all voices

Inclusion isn't just about inviting people around the table: it requires guarantee a real place for each actor involved in a project or a decision.

Regardless of their status, skill level, or resources, everyone must be able to express themselves, contribute and influence choices.

This means dealing with a wealth of profiles, integrating varied and independent perspectives, and creating a framework where everyone can participate equally, without fear of being sidelined or ignored.

Transparency: building trust on clarity

Open governance is based on transparency.

That means share information in a legible manner, explain the objectives pursued, detail the modalities of participation and make decisions understandable and traceable.

This clarity creates a climate of trust, makes it possible to judge the relevance of exchanges and guarantees the integrity of the steps taken.

Deliberation: promoting a constructive dialogue

Participation is not limited to the expression of opinions: it makes perfect sense in a deliberative process, where ideas are confronted in a spirit of listening, respect and argumentation.

The objective is not necessarily unanimity, but ratheremergence of shared solutions, built on the basis of the diversity of experiences and knowledge.

This dialogue engages everyone to take their share of responsibility in decisions and their implementation.

Continuous evaluation: governance that learns as it goes

To remain relevant, governance must be able to question itself.

This involves a continuous evaluation of the actions taken, the analysis of the results, the listening of feedback and the adjustment of the processes.

This ability to adapt is the sign of collective intelligence in motion, a desire for constant improvement and a commitment to a more vibrant democracy.

‍What if governance became a real motivator for your SME?

Discover how shared governance can become a sustainable driver of success for your business.

Why adopt participatory governance in an SME?

Involving employees more in strategic decisions can profoundly transform the dynamics and performance of a company.

More relevant decisions thanks to collective intelligence

Implementing participatory governance within an SME makes it possible to rely on a diversity of points of view from teams, partners or even users.

This wealth of insights rooted in the daily life of the company makes it possible toguide strategic choices in a finer and more realistic way.

By integrating this knowledge of the field, CEOs reduce the risk of errors or decisions that are disconnected from operational realities.

Such a governance revolution is particularly appropriate to ensure sustainability strategy within a family business, since it thus opens up to other points of view.

A strong lever for employee engagement

Involving employees in the company's guidelines reinforces their sense of usefulness and recognition.

When everyone feels listened to and can contribute actively, the attachment to the company naturally grows.

This results in a better talent retention, a peaceful internal climate and a strengthened collective dynamic, where cooperation takes precedence over tensions.

A more vibrant culture of innovation

Encouraging the active participation of employees creates a fertile ground for innovation.

By stimulating the exchange of ideas and collective creativity, the company is better able to design original solutions, to rethink its offers or to improve its operating methods.

This approach, based on collective intelligence, makes it possible tocontinuously adapt the organization to market developments and customer expectations.

So it's a powerful development lever for any start-up or SME.

A positive signal to stakeholders

Finally, more open and inclusive governance strengthens the credibility of the company externally.

Customers, partners, investors or institutions perceive this posture as a guarantee of transparency, ethics and responsibility.

It can become a real asset in building a solid brand image, the obtaining of CSR labels, or in the context of tenders where societal criteria are gaining more and more weight.

Setting up participatory governance: concrete instructions and methodical approach

Moving from a traditional governance system to a more collaborative dynamic does not happen on a whim or overnight.

It is a real transformation that requires patience, method and above all a sincere commitment to changing decision-making habits.

Announcing more transparency or participation is not enough: it is necessary to build a solid framework, gradually with appropriate tools and a real change in mentalities within the company.

Here are the main steps to take this turn without falling into the classic pitfalls.

Step 1: Understand the current mindset of the organization

Before starting, it is crucial to draw up a An accurate portrait of corporate culture.

This involves an analysis of the decision-making practices in place, the expectations expressed (or not) by employees, and the room for manoeuvre available.

This diagnostic phase helps to identify potential blockages, areas of resistance, but also the levers on which to rely.

It also makes it possible to draw the outlines of the areas where participation will have a real impact, and to avoid purely decorative approaches.

Step 2: Introduce participation in small steps

Changing the mode of governance cannot be improvised. It is best to go in stages, experimenting on a small scale first. The objective is to test, adjust, learn.

• Establishing think tanks: dedicated to targeted themes such as well-being at work, the evolution of internal practices or innovation.
• Start pilot projects with a logic of codecision: here, the aim is to entrust a small group with concrete choices to make, within a well-defined framework.
• Learning from each experiment: At the end of each phase, feedback is essential to understand what worked, what blocked, and how to refine the next steps.

Good to know: By starting small, you gain mastery. We test the mechanisms, measure their effectiveness, and create the conditions for wider, more fluid and better accepted adoption throughout the organization.

Step 3: adopt tools that promote collaboration

Establishing shared governance without solid technical support is like building a house without foundations.

For everyone to be really involved and for decisions to be legible and monitored, it is essential to put in place tools that support transparency and facilitate exchanges.

Promoting transparency through the right supports

For each team member to understand, contribute, and follow strategic directions, information must flow freely, without silos. Some tools are particularly useful:

• Notion : this collaborative space serves as a living memory for the organization. It can centralize decisions, internal processes or budget data in a way that is clear and accessible to everyone.
• Decidim : this open source platform is designed for participatory democracy. It allows members of an organization to propose ideas, debate, co-build projects and vote on important decisions, in a logic of collective involvement.

Organizing collective decision-making

To involve everyone in major decisions, it is possible to rely on tools such as Google Forms or Decidim, which allow you to survey teams and seek consensus.

In addition, in order to simplify co-construction, there are solutions for organizing online or face-to-face workshops allowing everyone to contribute their ideas and participate in the drafting of action plans, thus strengthening collective adherence.

To remember: the right tools not only serve to organize tasks: they make possible a clear and harmonious distribution of power, avoiding misunderstandings and bottlenecks.

Step 4: Establish a tailored governance framework

If the experimentation phases have been positive, it becomes essential to structure this dynamic by establishing a governance policy adapted to the organization.

This involves several key steps for management:

• Specify the purposes of the participatory process: it is important to define what we are trying to achieve: is it about improving strategic decisions? To strengthen internal cohesion? To respect ethical or social values? This clarification is the starting point.
• Define the places and tools for participation: it is necessary to design a system adapted to the specific context of the company — according to its size, sector of activity and culture. For example, an SME could set up working groups dedicated to certain essential topics, such as strategy, finance or risk management.
• Set clear and shared rules of the game: in order for everyone to know where to place themselves, it is necessary to determine from the outset the modalities of operation, in particular the level of involvement expected, the roles of each and the type of hierarchy envisaged (participatory, consultative hierarchy, etc.).

Effective governance is based as much on values as on structure.

By setting a clear framework, we give teams the means to be involved in a sustainable way, without confusion or disorganization.

Step 5: promote solid financial transparency

Financial transparency is one of the essential foundations of effective corporate governance.

To reinforce this dimension, SMEs have every interest in provide comprehensive and accessible financial information on a regular basis, in particular in the form of quarterly and annual reports.

These documents should include key items such as the balance sheet, income statement, and cash flow.

At the same time, calling on recognized independent auditors makes it possible to validate the accuracy of these financial data.

This practice increases the confidence of investors, partners and other stakeholders, by attesting to the seriousness and integrity of the company.

Step 6: Implement rigorous risk management

For an SME to evolve peacefully, it must be in a position toanticipate threats that may compromise its activities.

This involves drawing up a risk map, a strategic tool that makes it possible to identify the main vulnerabilities of the company and to measure their potential impact.

This visualization helps to better understand where fragile areas are located, whether operational, financial, technological or regulatory.

But this exercise should not be frozen in time. The economic environment is constantly changing, as are the risk factors.

It is therefore crucial to conduct regular evaluations in order to adjust the map according to new challenges, market changes or lived experiences.

This periodic review allows the company to remain responsive and to better prepare for the unexpected.

Once risks have been identified, it is essential to develop appropriate responses.

This may involve, among other things, diversifying supply sources, taking out insurance covering critical risks, or even providing business continuity systems in the event of a crisis.

Step 7: Ensuring shareholder participation and protection

Involving shareholders in the company's strategic choices contributes to establishing more open and participatory governance.

This is reflected in particular in thefrequent organization of general meetings, where every voice can be expressed, as well as through the establishment of transparent and easily accessible voting mechanisms.

Ensuring that minority shareholders are treated fairly is just as fundamental.

Allowing them to make their views heard and defend their interests is essential to maintaining a relationship of trust, guaranteeing a balance of power, and fostering a climate of shared responsibility within the organization.

Step 8: integrate ethics and compliance at the heart of practices

For a company to evolve in a sustainable manner, it must base its actions on solid ethical principles.

This involves broadcasting a clear code of conduct, applicable to all without exception.

This framework should serve as a constant reference point for decisions and interactions, by fostering a culture based on probity and responsibility.

But adopting rules is not enough.

However, each employee, from the field to the management authorities, must understand their spirit and know how to apply them in practice.

For that, regular training sessions are a must.

They make it possible to harmonize the understanding of ethical issues and legal requirements, and to make compliance a lever of trust and sustainable performance.

Step 9: support skills development in a shared governance model

Many organizations fail in their transition to a more collaborative mode of governance, not because of a lack of will, but because of a lack of appropriate training.

Establishing horizontal governance in fact implies developing new practices and know-how, both individual and collective.

Here are the skills to be developed in companies with this development project:

• Learning to decide together without falling into immobility: you have to know how to combine efficiency and collective intelligence.
• Adopting self-organization, developing autonomy and responsibility at all levels, without permanent supervision.
• Know how to manage disagreements in a constructive manner, by promoting dialogue and the search for lasting compromises.

And a few training ideas to implement:

• Training in codecision methods: it is useful to introduce approaches such as sociocracy, holacracy or participatory democracy, which offer concrete tools for structuring participation.
• Support managers in their evolution of posture: in a shared model, the manager is no longer a classical conductor, but becomes a facilitator. It is crucial to support them in this transformation.

Step 10: ensure constant monitoring of the implementation of governance

Establishing collaborative governance is not enough: it is still necessary to regularly check its effectiveness and evolution.

The CEO must set up a structured monitoring system, making it possible to see in concrete terms the effects of collective participation on the internal dynamics of the company.

It goes through regular balance sheets based on indicators that are both numerical (engagement rate, project performance) and qualitative (social climate, quality of exchanges, employee perception).

This continuous assessment process makes it possible to adapt practices based on feedback from the field and to make governance evolve in line with the needs of the organization.

The objective? Remain aligned with the values of transparency, inclusion, and collective effectiveness.

Inspiring cases: SMEs that dared to take a participatory approach

Here are some concrete examples of companies that have successfully adopted shared governance:

• Noma workshop (France, craft sector): this custom furniture design and manufacturing company has begun its transition to a shared mode of governance by establishing decision-making circles. Each circle is responsible for one area (production, customer relationships, innovation) and operates according to the principle of consent, where decisions are only made if no member has a major objection. This model has allowed a strong increase in employee skills, increased accountability and increased responsiveness to market needs.
• French agricultural cooperation: each strategic decision is discussed collectively there. General meetings are held regularly, where each member has equal voting rights. This promotes a real sense of belonging and a strong involvement in the success of the structure.
• Easi (Belgium): this Belgian company in the IT sector has bet on employee shareholding. By gradually involving its employees in capital, it has fostered a culture of strong commitment. Today, a significant part of the company is in the hands of employees, who participate actively in decisions and in the long-term vision.
• Svenska Solkraft (Sweden): specialized in green energies, this SME has set up an internal digital platform where employees can propose project ideas, vote for those that seem the most promising to them and discuss them collectively. An innovative way to unleash creativity while strengthening the power of teams to act.

What if really involving your teams in governance bodies became your best asset?

Discover how shared governance can foster trust and make your SME grow differently.