In the prevailing economic
scenario, it is imperative that businesses find ways to stand out, stiffen
their operations, and increase their profits while keeping their expenses at a
minimum. To accomplish all this a Good Corporate governance
is the need of the hour. An experienced consultant allows businesses to
flourish in a more diverse way, rather than simply following the same old
conformist methods of business.
Corporate Governance
possess skills that are required for businesses to grow. Company’s Board of
Directors has members with diversified expertise and experience. They are the
actual 'on-ground' consultants any organisation can have, that bring a
substantial amount of value on the table. Being an integral part of the
organization, consultants provide firms with specialized expertise, identify
the problems and provide the businesses the required consultancy support. They
not necessarily bring in the “outside” perspective that clients most often seek
but surely bring ‘’out of the box’’ ideas.
To have great judgment, wisdom is
essential, not the hard-core domain expertise. Members of the Board may lack in
domain know-how but they should be familiar with the domain’s structure and its
functionalities. Board of members’ both wisdom and judgment are generally the
result of lots of experience in tough situations, some failure, and strong
intelligence. They understand the
industry well and suggest measures accordingly for the overall wellbeing of the
business. They have as much relevant context as possible in order to offer
actionable and on-point advice. While providing support in analyzing and
dealing with the company’s existing problems, they also offer a wide variety of
solutions to fulfill the functional and technical objectives of the business.
As the board is a decision-making
body hence they have their say in each and every policy and strategy
formulation. From extending financial and legal support, board members are also
being accountable for the overall administration of the organization. Board members
with solid judgment help in navigating through difficult situations.
It is important to have members
from different horizons not just only consultants. While consultants and
advisors may help the Board to refine strategy, it is for the management to
originate strategy and for the Board to refine it.
Hence it is really essential that
board members have the experience and gravitas required for good judgment. A
highly experienced team of board members can craft a competitive advantage for
firms in the corporate scenario. For more information: http://www.excellenceenablers.com/governance-audit.html
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