Revisiting Governance Frameworks in Uncertain Times
Uncertainty is the new normal. Tariffs, economic instability, and geopolitical shifts are creating waves that boards and executives must navigate. In times like these, leaders need to ensure their governance frameworks and processes are fit for purpose.
When the pace of change accelerates, governance must be streamlined. Boards should focus on critical issues and eliminate anything that does not add value. This means reassessing governance structures, decision-making processes, and reporting requirements to reduce wasted effort and ensure clarity.
Where to Start? Reassess and Refocus
A well-functioning governance framework ensures directors and executives spend their time on strategic priorities. Leaders should take a fresh look at their governance model and ask:
Are we focusing on the right issues?
Are we duplicating efforts?
Is our decision-making process robust, efficient and clear?
Here are two key areas that often need reassessment:
1. Committee Work
Committees play a crucial role in governance, but they can also become redundant and overly bureaucratic or lead to inconsistent approaches. This becomes especially apparent when critical topics are being discussed at the board and in multiple committees.
Do all committees have a clear mandate and purpose?
Are some committee discussions duplicating board-level conversations?
How are we aligning our decisions and approach across the board and committees?
Revisiting committee charters, meeting agendas and committee activity can build transparency and free up valuable time for directors and management.
2. Board Reporting
The volume of information flowing to boards has grown significantly. More reports do not necessarily lead to better decisions.
Are directors getting the right information at the right time?
How robust in our scenario planning?
Could board materials be more focused on strategic issues rather than operational details?
Are meetings structured to prioritize critical discussions?
Simplifying board materials, reducing unnecessary reports, enhancing scenario planning and structuring agendas around decision-making and high-value topics can improve efficiency.
The Outcome: More Focus, Less Waste
By reassessing governance frameworks and processes, leaders can reduce inefficiencies and ensure governance efforts are focused where they matter most. Streamlining governance doesn’t mean reducing oversight—it means making oversight more effective.
Uncertainty demands agility. Now is the time to ensure governance is helping, not hindering, the organization’s ability to adapt and thrive.