The dynamism and the will of a founder are at the origin of the creation of any company. However, during its development, it can free itself from the interests of its creator and thus modify its “history” by changing the conditions of exercise of power and collective decision-making.

In this perspective, sufficiently established governance must be in place to take these necessary steps and thus prove that the company is controlled in the sustainability of its corporate purpose. It then becomes the main challenge for a company that wishes to improve its professionalism and the continuity of its activities.

Importance of governance for leaders

For managers, this is an ultra-sensitive subject. This can, in fact, be perceived as reserved for large listed groups, or as a form of “bureaucracy” without direct added value for the operational development of the activity.

Faced with this feeling, our experience shows that a pragmatic and balanced approach to governance is a major driver of development. Given the diversity of businesses, its principles should be applied in a realistic manner, as there is no single model.

The role of the Board of Directors

The challenge for a manager who wants to grow his business is to accept that his intuitions and projects are challenged. The difficulty lies in the fact that growth is the result of decisions that will have to be taken on board.

Exchanging your point of view with that of your collaborators is necessary, but is it enough? Practice shows the opposite and that the “Board of Directors”, a place for exchange and debate, is a source of collective intelligence at the service of the manager/entrepreneur.

Benefits of the Board of Directors

• Enrichment of vision : Thanks to “a mirror effect” to help him in strategic choices.
• Support and availability : To break with the loneliness of the manager by offering him support when he is most often the only person responsible for making major decisions.
• Better understanding of risks : By providing complementary skills and experiences.
• Rigor in budget monitoring : Rigorous obligation in the analysis of deviations from forecasts.

Optimizing governance

To optimize his governance, the manager must mobilize to “think and choose” the framework most suited to the situation of his company. It is not an end in itself, but a way to add value and collective intelligence to analyze strategic options in depth.

A pragmatic and balanced approach to governance is a major driver of development.

Among the conditions necessary for success, three stand out in particular:

• The inability to do without discussion and agreement between the Council and the Directorate-General on how they should cooperate on an issue as essential as strategy
• The management of the strategy cannot be a simple one-off annual exercise (once a year), but an iterative joint effort carried out during each Council meeting.
• The exercise will be more difficult without the presence of independent external directors at the heart of governance. Their presence has a real impact on the behavior, culture, professionalism and maturity of the Board of Directors.

Finally, it is worth recalling that the effectiveness of a Board of Directors requires the strong involvement of the manager himself, under these conditions he will get the best out of it for himself and his company.

Written by Alain Martel