Implementing a Corporate Governance Structure

Micro-businesses are business organizations with 0-9 employees and less than 5 million NGN (SMEDAN). They are usually owned and run by one person or a small group with family ties. The business owners make critical decisions on the mission, goals, financial, marketing, production and other management responsibilities, mostly without supervision from internal or external specialists or other stakeholders. However, developing a corporate governance system that ensures succession, supervision, accountability and transparency is paramount for a micro-business looking to scale and improve its business operation.

Below is a list of basic concepts you need to know to implement corporate governance structures in your micro-business;

1) Mission and Vision statement

2) Engaging a Board of Director or Advisor

3) Planning for Succession

4) Measuring Performance

Mission and Vision statement

  • Identify your business purpose
  • Identify your target audience
  • Identify your unique selling point
  • Craft one power statement to describe what you want to achieve (vision) and how (mission)
  • Communicate your vision and mission with stakeholders

Engaging a Board of Directors or Advisors

  • Audit the skills and influences your business needs
  • Decide on the number of people you want on the board- usually an odd number
  • Articulate the policies and procedures and processes to manage the board and ensure efficiency
  • Map your ecosystem horizontally and vertically for people who can add to your business (competence and character)
  • Craft invitation letters to prospective board members detailing your business purpose, vision and culture as well as the value(s) you expect them to bring and remuneration where applicable
  • Prepare terms of reference document for board members to sign upon acceptance
  • Measure the performance of board members and plan to change accordingly

Planning for Succession

  • Design your workplace organogram
  • Recruit young people with passion and drive
  • Create a continuous learning program
  • Actively groom an employee to stand in for another
  • Create a monthly or quarterly employee performance form

 

Measuring Performance

  • Identify business goals
  • Set SMART targets
  • Set KPIs
  • Set templates to measure and report KPIs

Let us know your thoughts about these practices in the comment section below

realri

Has one comment to “Implementing a Corporate Governance Structure”

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  1. ELLAH OMEZI - September 12, 2019 Reply

    Helpful

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