Yes — small companies can adopt governance standards readily and at reasonable cost, and we regard doing so as essential to their continuity and long-term success.
Although a small company may not have complex organisational structures or a large number of shareholders and employees, it still needs defined objectives and strategies, accountability and transparency, and improved management, effectiveness and business growth.
The following are some of the standards a small company can adopt:
Begin by defining roles and responsibilities between founders and employees, and setting out the chain of leadership and management clearly and intelligibly.
Establish clear, detailed policies and procedures that secure transparency and accountability and set performance and appraisal criteria — covering human resources, finance, marketing and administration — and ensure they are applied consistently.
Composed of the partners or shareholders, to help set objectives, strategies and performance indicators and monitor them periodically, take decisive resolutions and oversee executive management.
To oversee the company's day-to-day operations and implement the approved policies and procedures.
Regular financial reports from executive management, to strengthen transparency among all stakeholders.
Strengthening internal and external communication to consolidate relationships with clients, suppliers and employees.
Training employees in the principles of governance and raising awareness of its importance, to improve performance and increase efficiency and effectiveness within the organisation.
These standards, among others, can be applied to small companies to improve management, develop the business and build trust among partners, employees and clients. They must be proportionate to the company's size and requirements — neither excessive nor so burdensome that management cannot implement them.
We help companies build a governance manual and board regulations proportionate to their size and activity.
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