Corporate governance is necessary for the effective and careful management of an enterprise or an organization that can deliver long-term success.
Corporate governance refers to a company’s mechanisms and control structures that may influence senior management decision-making. It commonly focuses on the pattern of corporate ownership and the extent to which the shareholders, as the owners of the company, exercise power over management decision-making.
Effective governance involves supervising the management of an organization and managing risks. This is done for the business to be managed with integrity and with due regard to the interests of all stakeholders. It embraces regulation, structure, good practice, and board ability.
Our board leadership training will help to optimize the effectiveness of your board and drive corporate success. We shall cover the following topics:
Board Effectiveness and Functions – Perspectives
This session aims to evaluate the effectiveness of the existing governance model of the organization and the role of the different governing bodies. During the sessions, we focus on the following;
- The Governance structure and its mandate
- Specific roles of the board
- Relationship between the Board, stakeholders, and Administration
- Understanding service- above self (Is it about financial gains or voluntary commitment)
Strategic Plan Development
Under this session, we focus efforts on empowering the board members on key areas including:
- What is strategy?
- Introduction to thought leadership
- Elements of the strategy process and a strategic plan
- Strategic analysis in a Medical Facility context. Internal/ external environmental analysis tools with the application of the following frameworks – SWOT, PESTLE, and Porters 5 Forces
- Strategic choice – key growth strategy models
- The Strategic plan – pulling it together; SMART objectives
Finance and the Board
This session will explore the internal financial controls that essential checks and procedures that the board members can effectively use. These may include but are not limited to;
- Meet the legal duties to safeguard the organization’s assets
- Administer the organization’s finances and assets in such a way that identifies and mitigates the risk.
- Quality Assurance(QA) of financial reporting as well as preparing timely and relevant financial information.
In the case of NGOs, this session further delves into how your organization needs to work on being less dependant on donations and more oriented to obtain revenues from services provided to the stakeholders. We discuss the strategy your organization should apply to have a stronger financial platform:
- More revenue based
- Less based on donations
Does the BoD see any reasons for the organization-administration to work harder on cost-control/ operational efficiency?
Risk Management Practices
In this session, we explore checks of Policies, Procedures, and awareness of institutional risks (both internal and external).
Whereas the board does not take on a direct role in managing risks, it is involved in risk oversight. The session empowers the board to effectively play this role without becoming directly involved in managing risk. We, therefore, delve into;
- Ensuring policies and procedures around risk are consistent with the organization’s strategy and risk appetite.
- Following up on management’s implementation of risk management policies and procedures.
- Following up to be assured that risk management policies and procedures function as they are intended.
- Taking steps to foster risk awareness.
- Encourage an organizational culture of risk adjusting awareness.
Management Dynamics and Concept of Groupthink
Every company is vulnerable to falling into groupthink. This session will explore the concept of Groupthink as a fundamental concept that has the potential to impair the functioning of the board.
As Irving Janis (1972) described Groupthink as “a psychological drive for consensus at any cost that suppresses dissent and appraisal of alternatives in cohesive decision-making groups” which in turn may lead to “incredibly gross miscalculation about both the practical and moral consequences of their decisions”
This vice has the potential to harm the strategic direction of your organization. As such, HEC has the expertise to train the board in this concept of groupthink and group dynamics.
Resource Mobilization and Advocacy Role of The Board
This component of the training recognizes the board as core drivers of the organization; they set direction and work towards the advancement of the mission and vision of the organization.
It informs the incumbents that while they are not mandated to engage in resource mobilization, they can act as catalysts for resource mobilization and fuel growth.
Why Your Organization Needs Corporate Governance Training
Good corporate governance can foster a culture of integrity and leads to a positive performing and sustainable business.
Good governance signals to the market that an organization is well managed and that the interests of management are aligned with other stakeholders. Learn Key Components of Effective Board Practice Including:
- Leadership: you should know that every company should have an effective board that is collectively responsible for the long-term success of the company.
- Effectiveness: your board should have the appropriate balance of skills, experience, independence, and knowledge of the company to enable them to carry out their duties effectively.
- Accountability: your board of directors should present a fair, balanced, and understandable assessment of the company’s position and prospects
- Remuneration: did you know that executive directors’ remuneration should aim to promote the long-term success of the company and performance-related elements should be transparent?
- Relations with shareholders: there should be regular dialogue with shareholders based on the mutual understanding of objectives for the organization.
What will you achieve?
By the end of the Training, Board Members & Other Participants will….
- Ensure a balanced, competent, and diverse Board
- Review your Board composition regularlyto identify any shortcomings and make timely improvements.
- Build solid foundations for oversight. They will Establish, monitor, and evaluate the roles and responsibilities of the Board and management.
- Prioritize risk management by Establishing effective risk management and internal control framework and periodically review its effectiveness.
- Ensure integrity in corporate reportingincluding safeguards such as conducting external audits of the business.
- Provide timely and balanced information by being transparent to key stakeholders both in the good and bad times to promote stakeholder confidence
- Treat shareholders equitablyand respect their rights.
- Ensure adequate disclosuresaround related parties’ transactions and the director’s other interests.
Good corporate governance is about effectively supervising the management of a company to uphold the company’s integrity. This can help you to achieve more open and rigorous procedures and ensure legal compliance. Good Corporate Governance can promote good relations with stakeholders, including shareholders and employees.
In modern times, corporate governance has evolved to reflect changing stakeholder priorities. Most recently, concerns have been about executive pay and a lack of diversity on boards and in top leadership teams.
By attending this training, we help you tackle emerging problems with workforce and people management issues sexual harassment and poor working practices which have not received sufficient attention in the past.