This month, the world’s been given its first ever global standard on great governance.
Thanks to the International Standards Board, we’ve got ISO 37000:2021. This is a big deal for directors, governance geeks (yep!) and those who run a board’s processes and paperwork. We’ve now got something to measure any board against, anywhere in the world.
What I like about it so far is that the standard is very down to earth. It applies equally to owner-operators as it does to more privileged boardrooms. I really liked this bit, which applies to so many SMEs across Aotearoa New Zealand:
“…an individual can be required to fulfil both governance and management responsibilities … it is important for that person to be able to distinguish when they are fulfilling the different responsibilities and act and behave accordingly.”
Exactly! I spend a lot of time helping business owners to work out which hat they are wearing, and when – and training them how to act as a director more often.
A few more gems that Kiwi directors might find useful:
- Directors “… should continuously improve their competency …”
- “… improving capability, together with regular reviews of governance practices, should ensure a continually improving governance environment.”
- The Board “ … should ensure that the organisation’s reason for existence is clearly defined as an organisational purpose.”
- “Organisations need to generate value which represents something of worth to its stakeholders.”