When everything goes smoothly, nobody seems to have much of an interest, or a concern for that matter. I would even go to say that if you are the lone wolf who is flagging an issue that quite possibly ruin that serene corporate bliss that the C-level is experiencing, guess who becomes immediately the enterprise pariah who is immediately labeled as being negative.
Live for today would be a great philosophy if there weren’t the repercussions to be felt tomorrow, and they will surely come. Now, they night not come immediately, but they surely will.
The fact is that our progress cycle has become progressive, and the circumstances leading to the uncovering of debacles such as Enron, MCI and Parmalat happen much quicker today, and the repercussions are perhaps even quicker. Can an 80 year old company lose 33% of its valuation in one day? Well, we all know the answer to that question after that of what took place with Volkswagen recently.
Nobody should ask the question whether such situations can be avoided, but the real question is HOW.
Our course tied to corporate governance starts with the preconditions that allow for a situation like this to take place to begin with. Some are obvious such as corporate values or culture, but nothing exists within a vacuum, right? The most pious organization cannot thrive in a country which does not hold these values in high esteem. Corruption is only one element. How about some elementary concepts like transparency and trustworthiness? We’re not talking about developed versus developing world here. All are guilty, they just take different forms, that’s all.
OK, so we have defined the preconditions. What’s a better way? Let’s start with who does what and who expects what. It sounds like we’re talking about various stakeholders and, guess what? They have different priorities. So, how do we manage them? Does it happen by itself, or should we think of these things ahead of time? Even better, how about thinking about them in advance, getting key stakeholders together, come up with an agreement and get everyone to sign it off. Would that be a good start? I would say so, but we’re not done yet.
Through the ages, the phrase has always been ‘trust, but verify’, so what steps are needed for verification? First, we need to clearly define what we are measuring. Then we need to define HOW we are measuring. Next, we need to see whether the metrics allow for verification….and then you need to let it run. So how does all of this work within a corporate environment, and how best to set up such mechanisms? We’ll show you how.
OK, so what we have covered so far is great, but shouldn’t we find a way to avoid the situation to begin with? This might be the most important part of this course. How do we avoid this happening? Here we will cover various elements to consider, starting with the corporate culture and then we move on to regulations. How do you set expectations with the various stakeholders? If you promise returns that are not achievable, you will get punished. The market does a great job at that, so how do you add transparency to THAT relationship.
Within this course, we present you with a framework plus ways that it fits your situation.
Find anything of interest? Then come join us!