Why might newer firms have big problems?

We all know the particular susceptibility of newly formed entities to fail. 

Lack of funding is often cited as a major reason for new firm failure.  There is of course a panoply of reasons ranging from:

• under-researched, 
• insufficient customer engagement, 
• over-burdened founding entrepreneurs, 
• under-appreciating risk, 
• not getting investor insights.

Underlying all of that, is likely to be:

• skimpy governance – which causes potential investors to doubt the firm has a strong grip on direction.

Forbes Magazine, nearly a decade ago, asked directors to remedy the lack of ‘deep dialogue’ with customers.   Nowadays, the expectation is having ‘dialog’ with many more stakeholders, than customers.  

Keeping track of stakeholders, requires governance.   

Keeping track of skill sets, keeping them current and building on them – is also best achieved through governance. 

How does governance help?

• identifies risks that can emerge to bite
• Suggests mitigations to deal with risk  
• organised and prepared
• clarifies vision 
• scenario-testing
• self-reflection 

While consultancy and advisers add professionalism to the exercise, there is significant merit in all boards (directors) sitting down to engage with governance themselves.

You know your firm best. 

You are more capable than you know – of keeping watch on your governance, with the power tools in Board Originator.

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