“The new Independent member has asked for a lot of background material about the company, our shareholders, suppliers, accounts receivable, contracts, payables, risks, issues and opportunities, personnel files, incentive plans – the list was long and the more I provided the more information I was requested to deliver.”
Really good insight from my friend and relatively new blogger Dave Pasieka. Dave knows a ton about governance and running businesses.
No question strong governance depends on the kind of depth and effort that Dave describes here. And with training, more Boards and Directors are demanding it. What’s a challenge, especially in smaller companies is being disciplined and organized enough to provide it. Finding the time to balance governance demands with day to day operating priorities can become a real challenge, especially for smaller company CEO’s. My experience in dealing with this is that having the right help makes life a lot easier – a management team that’s also well versed in the objectives and processes of good governance, and someone in particular – usually the CFO – who spearheads much of the information gathering, pre-meeting set-up and post-meeting follow-up.
Understanding, supporting and fulfilling the needs of good governance is important for the CEO. Doing it all is impossible.