Governance

Governance that speeds decisions up, not down

Decide who decides, write it down once, and keep the record. Governance is not a compliance binder. It is how a company keeps making consistent calls as it grows.

Why decisions slow down as you grow

At ten people everyone is in the room. At fifty that room does not exist, and usually nothing replaced it.

Nobody knows who decides

The same question goes to three people, gets three answers, and comes back a week later still unresolved.

Decisions with no rationale

A choice is made, and six months later nobody remembers why, so the same argument happens again with the same people.

Policies nobody can find

The policy lives in an email, a document and somebody's memory, and the three do not agree with each other.

How governance works in Green Organization

  1. Name the bodies that decide

    A board, a leadership team, a committee. Each with a purpose and named members, so who approves this has an answer.

  2. Give every decision an owner and a rationale

    Record what was decided, by whom, and why. The reasoning is the part that saves you from having the argument twice.

  3. Run meetings against the record

    Agendas and outcomes attach to the body that held them, so a decision can be traced back to the room it was made in.

  4. Keep policies in one place

    One version, owned by someone, with its history intact. Not an attachment forwarded three times.

What you get

Governance bodies

Model the board, the executive team and standing committees, with members drawn from your own roster.

Decision records

Every decision carries its owner, its date and its reasoning, and stays searchable long after the meeting.

Meetings and minutes

Attach agendas and outcomes to the body that met, so the trail from discussion to decision stays continuous.

Policies with owners

A named owner for each policy, so who maintains this is never an open question.

Questions

What is corporate governance?
The system of rules and responsibilities that determines how a company makes decisions and who is accountable for them. In a large company that means a board and its committees. In a fifty-person company it means far less structure than people fear, but it does have to be written down.
When should a growing company formalize governance?
Usually earlier than it does, and more lightly than it expects. The trigger is not headcount. It is the first time an important decision gets made twice because nobody recorded it the first time.
Is this only useful if we have a board?
No. Most of the value sits one level below the board, in the leadership team and standing committees, where the majority of consequential decisions are actually made.

Make decisions once

Start with the plan that fits your size, or read how the pieces of Green Organization work together.