Values-Based Governance Disciplines – A Three-Legged Stool
The term "management", which refers to the Board of Directors, officers, and non-official manager, the jurisdiction and responsibility forManagement and monitoring of events and activities.
The governance disciplines of trust, strategy and structure to determine the relationships between employees, customers, suppliers, regulators, competitors, and constituencies to adopt, amend and productive value. The management team must be able to demonstrate that they can adopt to change, both of which cause the situation or to react, depending on the opportunities and conditions.
Stewardship, Strategy and Structure
Stewardship is theResponsibility for the performance of a company and the delivery of value constituencies. The responsibility includes ensuring that the enterpriship (entrepreneurship, leadership and management) skills of individual employees are deployed correctly. If so, are innovative ideas into value changed, directions are set so that others will follow effectively, can be used and resources to achieve effective results.
Strategy is the positive positioning of aCompanies in the market to deliver value over time. It begins with the formation of values and principles, mission, vision and value proposition, and ends with the value provided. The results are only as good as the underlying assumptions.
Values form the basis for the behavior within the organization because it establishes a system of beliefs of the management that the expectations for the individual to establish positions and priorities, describe and provide a framework for decision making.As a consequence, the governance disciplines must be values-based, because if management doesn’t live the values, nobody else will.
Strategy establishes the direction for competitive, collaborative and cooperative advantage, and performance excellence.
Competitive advantage is about the position and posture that offers constituencies better value than competitors. Causing change affects competitors, but being able to respond to change caused by competitors is essential to Sustainability. Collaborative advantage is about the relationship between suppliers, customers or colleagues, as a partnership with a common mission and operate according to the mutual benefit. Cooperative advantage is about the relationship between suppliers, customers or colleagues as an association with a similar mission, but regardless of the mutual value.
Performance Excellence means doing the right things, then things do well.
Structure is theConsequence of the strategy, and defines the business model – the Enabler of the relations between the infrastructure of the company, products and / or services, markets and constituencies provide the value. The infrastructure consists of processes, functions, facilities and equipment. Products and / or services over the infrastructure to ship the external and internal customers.
Planning and policy development, deployment and performance measurement
The values-basedGovernance disciplines through the business process model into effect. This model defines three processes: planning and policy development, deployment and performance measurement. The use of macro-process is divided into research and development, sales and production of micro-processes. All activities that deserve and to add value assumed by this model.
Development, improvement and maintenance plans and strategies, first during a company reached base withstrategic priorities and objectives, and then on a tactical basis of function. Functional plans include business development, operations, finance, human resources and information technology.
Deployment activities include research and development, sales and production. Research and development activities are project-oriented with a finite beginning and end. Sales and production are either permanent or project-oriented oriented, depending on the type of product and / orservices offered.
For example, the sales and production activities of food service companies are constantly oriented, while the project-oriented activities are an aircraft manufacturer, varied from any negotiated agreement.
Means working constantly, constantly occurring, but not necessarily permanent. For example, operators of food service establishments must maintain standards and offer exciting new menu items from time to time to keep their sales volume. However,Contract manufacturers have phased out to drum up new business before the current contract, otherwise it can output to a screeching halt. Sales in food services establishments can be seasonal and can fluctuate with consumer confidence, which impacts on staffing. However, once booked orders, should produce workloads remain relatively stable.
Performance measurement processes need both financial and non-financial measures to address. Sales, costs and expenses, profits,Cash flows and financial returns associated exchange rates are based on measurements of the quantities of input and volume of production. Financial performance should be evaluated not in terms of, financial measures, such as market share and market penetration with the product, employee and customer satisfaction, quality, time-to-market, cycle time and utilization of production facilities.
Full compliance with laws and regulations is an essential criterion, and should be measured, otherwise valuesmeaningless.
Control mechanism
To proclaim the values of the company, the idea of trust and integrity, the administration has the responsibility to behave accordingly. Such conduct is also to be prepared to disclose fully to satisfy both and unsatisfactory performance and results.
Actual performance is planned by a feedback loop that provides timely actionable information, compared, so that can better anticipate problems, and solutions implementedAdvice. It is difficult, "the true face" if something goes wrong, but early prevention is better than cure.
An internal audit should be an independent assessment of the effectiveness of processes in medium to large companies offer directly to the governance function. These assessments should also external to the tests.
If management disciplines are routinely used, the processes consistently according to the plans and measures with independentaudits, then the investors have a control mechanism in place. This mechanism ensures that the affairs of the enterprise are being taken care of and its assets are protected.
The values-based governance disciplines of stewardship, strategy, and structure provide a three-legged stool upon which the investors can “rest assured.”
Leveraging values-based governance disciplines is an enterpriship competency.
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