Why Leadership, Strategy and Governance are important
The ongoing survival of an organisation is reliant on its ability to meet a client’s need using a business model that allows for the organisation to resource its operations and future development. It sounds easy, however as an organisation grows and more and more people are employed how do you achieve this? How do you ensure that everyone is operating from the same page.
Many people, myself included, will answer with having mission and a strategy. That is part of the answer. I would argue that you need good leadership, a SMART strategy and good governance. All three will increase the likelihood that the organisation will succeed into the future. Without any one of them it will be a struggle for the organisation to complete.
Good leadership focuses on the people and the reason for why the organisation exists. The role of a good leader is to three fold. Firstly the role of a good leader is to develop the right team. Secondly the role of the leader is to ensure that everyone has an understanding of the vision, mission and values of the organisation and their part in achieving the mission. Thirdly the role of the leader to to bring the team together to achieve more than they would as individuals. Good leadership provides the who and the why of the organisation.
A SMART strategy is one that is specific, measurable, attainable, relevant and time bound. The strategy should consider the vision, mission and values of the organisations, the environment that the organisation operates in, the target client base, other stakeholders in the market and also the organisational strengths and weaknesses. A SMART strategy will provides the what, the when and the where of the organisation.
Once an organisation has the why, the who, the what, the when and the where organised, it is time to consider the governance. Governance is a word that gets thrown around alot these days, however it is really about monitoring, tracking and review. It is a group of systems and processes that are in place to ensure that the organisation is tracking in accordance with its strategy. It provides the opportunity to review what is happening and if necessary can trigger a review of the strategy in accordance to changes internally or in the marketplace.
All in all, good leadership, SMART strategy and good governance are all important for the ongoing success of an organisation. If there is an absence of one or more of these three key areas then the organisation is going to struggle. The organisation may struggle to find its way if leadership is lacking. If strategy is lacking then the organisation may be doing what it has always done and missing out on key opportunities in the marketplace or worst it may not be meeting the ever changing needs of its clients. Without governance there is no checks on whether the team, organisation and resources are doing what they should be doing.
I hope that your organisation has all three in place and if you are the business owner then I encourage you to build and organisation with good leadership, SMART strategy and good governance. When you do it is more likely that the culture of the organisation will be focused on the organisational mission and the clients of the organisation.
This article was originally published on LinkedIn on the 22 January 2016.