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Our tried-and-tested governance advisory framework has seen us successfully transform numerous disparate leadership groups into an effective, fully functional board.
One of the board’s most important roles is to empower the CEO and Executive team to think and act long- term. That is investing in talent, driving innovation, and taking the long view on corporate performance. Of course, the short-term cannot be ignored! There is a genuine need for short-term stewardship, but it should not distract from the key strategic focusing on the long term.
The challenge face by boards is how to help the company align near-term activities and results with long-term value creation. Indeed, major investors (such as BlackRock, Vanguard, State Street, and others) have made clear their expectations for companies to focus on long-term value creation and the factors driving it. Factors such as strategy and risk, talent, investment in research and development, culture and incentives, and, more recently, environmental, social, and governance (ESG) issues, particularly climate change and diversity. These issue, in particular ESG, are squarely in the sights of not only investors, but also of employees, customers, and the communities that organisations interact with.
We help boards better understand these issue so they can help management widen its aperture to understand how the company’s strategy and operations impact all of its key stakeholders and drive long-term performance.
Our Governance Advisory adds value to boards by helping them understand whether existing governance reflects good practice.
Our Governance Advisory Framework
Governance reporting and disclosure is inconsistent across different sizes of business and across different sectors. Additionally, there are too many failures taking place across all sectors without a clear understanding of why the governance systems and processes were not able to mitigate, detect or prevent them.
At Lumorus, we have identified nine elements which research and practice tell us are essential for good governance. These apply to whatever type of organisation being governed. These nine elements will transform a team of diverse people with a range of skills, experiences and knowledge into a highly effective governing board.
International best practice is combined with the successful diagnostic process and methodology that we have established through reviews of hundreds of private and public sector companies and voluntary sector organisations.
The Governance Competency Framework is conducted across 9 distinct yet inter-related areas and uses a combination of methods to ensure that all key aspects of governance are examined in detail leading to a Governance Action Plan (GAP).
Over 200 competencies are assessed to equip your board and its stakeholders the assurance that the right governance structures and processes are in place.
The recommendations that results from using the governance competency framework reinforce the value of good governance in your organisation and provide a strong mandate for developing a robust governance programme or for ongoing improvements.
A Modern Governance Framework
Governance modernisation is relevant when a significant change event has occurred which means that the current governance structures are no longer fit for purpose.
The key questions the board need to answer then are:
We can facilitate the design and implementation of sessions which support value creation, reframing and modernising practices and procedures.
These sessions helps boards and executive teams gain a thorough understanding of the expectations and challenges in building and maintaining a cohesive board and Management team. Addresses the effectiveness of the board and its contribution to the overall success of the organisation. Review and validate the organisations direction and ensure alignment exists and addresses critical questions required for organisational clarity.
The methodologies and activities we use are always embedded into the discussion of critical and relevant business issues, so they never feel theoretical or ‘touchy-feely.’
We create a playbook with a clear roadmap for leading the organisation going forward and to ensure a successful transformation and identify any necessary changes to create alignment throughout the organisation.
We deliver a range of initiatives including governance programmes, frameworks, board effectiveness reviews, organisational health checks, strategy away days and leadership development & training.
Our range of services will support the evolution and development of governance programme, strategies and initiatives to ensure your company is both compliant and accountable and to embed good governance in the DNA of your business.