Regular meetings
Schedule regular check-ins, whether weekly, monthly or quarterly, to discuss
financial performance and upcoming needs.
Transparent communication
Share all relevant information openly and promptly – including business plans,
financial documents, potential business or property purchases or sales, and
any other significant changes in your business.
The Role of Effective Governance in Business Success.
“Like an ostrich with its head in the sand, avoiding challenges may offer temporary solace, but it won’t propel you forward. In fact, the only direction burying your head in the sand leads is backward, where problems fester and potential remains untapped.”
When numerous directors are involved in decision-making processes, decision paralysis can often set in, hindering progress and creating inefficiencies. At times, real-life examples of businesses we have worked with here at The Engine Limited illustrates the need for streamlining decision-making for the long-term success of a business:
1. The Engine had to take action by separating two directors over a period of 2-3 months who harboured mutual animosity for six years. Their personal conflict impeded productive decision-making and impeded the company’s growth potential. What a waste of 6 years!
2. It became necessary for family members with a conflict of interest at the board table to step down and make way for unbiased decision-making. Their continued presence was undermining the business’s strategic direction and overall success. Results – damage & a broken family!
3. In some cases, directors may have differing exit strategy expectations, leading to conflicting decisions and confusion about the company’s future direction. Aligning these expectations is crucial for maintaining a cohesive and purposeful business strategy. Litigation resulted to recover losses for stakeholders who had been hamstrung with business growth!
4. Businesses can face challenges when directors operate more as managers, lacking clear leadership and strategic vision. This can result in a lack of guidance, decision paralysis, and difficulty in driving the company towards its goals effectively. The ship was rudderless!
In times of turbulence or disruption, having experienced leadership and a clear decision-making framework is essential for navigating uncertainties and challenges. A well-defined governance structure, clear roles and responsibilities, effective communication, and a focus on strategic direction are all key components that can help businesses overcome decision paralysis and drive sustainable growth. Making informed decisions, fostering collaboration, and prioritising the company’s interests above personal agendas are crucial steps towards ensuring the long-term success and prosperity of the business.
– Catherine Cooke
Founder and Leading Business Advisor
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Housing affordability continues to present a key challenge in New Zealand, where we face some of the world’s most unaffordable housing. This issue is exacerbated by an inconsistent regulatory system across New Zealand that can increase the costs of home construction. Recognising that many dwellings have a section that could be utilised, the previous Government introduced building consent exemptions for certain building work under 30 square metres. However, the same resource consent restrictions still apply.
