Some of the most commonly heard and used words when talking in business circles these days are Corporate Culture and Corporate Governance . Recent research suggests that where Good Culture and Good Corporate Governance are found to exist in enterprises of all sizes and types , good performance usually co-exists with them .
Many Corporate Failures have also been found to be accompanied by , if not directly caused by , poor Corporate Culture and Poor Corporate Governance .
So are these 2 attributes important in an organisation such as ours — a Not for Profit Membership association ?
In this age of Digital Transformation of almost every aspect of our daily lives I would argue most certainly YES ! In fact more so than ever !
Our Chapters tell us that the 3 things they experience greatest difficulty in achieving are :
� Membership Growth
� Sponsorship Growth and
� Stakeholder Community Recognition
Whilst itSMF International is a Not for Profit ( NFP ), we are not for loss either . Ongoing losses mean that we will eventually be unable to continue as a viable entity .
I prefer the label Profit for Purpose ( PFP ) – and our purpose is to promote and facilitate the growth and recognition of the profession of Service Management in our wider community .
And for our community to grow and be able to undertake the work of promoting the profession of Service Management , our Chapters must be well governed and be of such a reputation that Service Management professionals will be clamouring to join our chapters as both
4 itSMFI Forum Focus — December 2016
Why Good Governance Makes Good Sense for Growing Good Chapters
Bruce Harvey — itSMF International Company Secretary members and volunteers .
So what makes for a Strong and Healthy Corporate Culture ?
Here are some pointers from the current thinking :
1 . Communicate , Communicate again and Communicate some more . Share your plans , your Vision , your values – share everything !
2 . And then LISTEN ! Encourage your members to share their ideas . Encourage questions and for members to share their concerns with you . COMMUNICATION IS A TWO WAY STREET . And you were born with one mouth and 2 ears so were probably meant to use them in the same proportions !
3 . Create Buy-in from your members .
Regular Communication to your members of what you are doing in your Chapter and of your plans and projects in the forthcoming 12 months to 2 years . A Strategic Plan is a good tool for assisting with this as it should lay down Actions that you propose to take to achieve your strategies and indicate the resources required and the time frame over which you propose to take to implement these plans . If you are changing the way in which you have operated
As Leaders of your Chapter , you set the tone |
from the top . Your primary responsibilities |
include : |
� |
being the Keeper of the Corporate |
Culture , |
previously ( and change is the only |
� |
Setting the Risk appetite for the Chapter , |
� |
Making sure you have the right people |
in the right posts on your leadership |
team , |
� |
Governing the Chapter for all members , |
and |
� |
Ensuring that you can meet your |
ongoing |
financial |
and |
statutory |
obligations . |
constant in our world ) then you need to help your members understand why you are proposing these changes and encourage them to come on the journey with you by changing their behaviours and adopt the new ways you are proposing .
So share your Strategic Vision with your members – if people know where you are proposing to lead them they are much more likely to follow ! And also more likely to volunteer to help you along the way .
If your members do not know where you are taking them or why you are doing the things you are doing , then they are less likely to follow you . And that would be a failure of your leadership !
An important part of Corporate Culture is also Values . itSMF has a Code of Ethics for Leaders and a Code of Ethics for Members . We also have an International Ethics Review Board available for members and Chapters can obtain guidance on matters relating to Ethics .
Our Values determine “ the way we do things around here ” and is also a strong pointer to the way in which that organisation is perceived in its market place . If your Chapter is perceived by your potential members as having a great Strategic Vision and seems to do things well , can be trusted to make decisions that serve the best interests of all stakeholders and act fairly and ethically , what do you think that might do for your Chapter ’ s Reputation , your volunteers , your Conference Attendances , your Membership Growth or your Sponsorship opportunities ?
GOOD CORPORATE GOVERNACE
So now let ’ s talk about Good Corporate Governance . As we discovered earlier , the Board ’ s role includes Growth , Change , Risk and Resource Allocation .
The 2 most important Documents for Board members are :
1 . THE CONSTITUTION & BYLAWS
These are the Bible for the Board and are in fact a contract between the Board and the members which sets down by agreement as to how the Chapter will be governed by the Board and the means by which the business of the chapter will be managed and regulated .
Key elements of any Constitution are : |
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The purpose for which the Chapter was |
created ( the Objects ) |
� |
Eligibility for Membership |
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Classes of Membership |
� |
Constitution of the Board |
� |
Constitution of and Eligibility for Board |
of Directors |
� |
Officers of The Board of Directors |
� |
Meetings of the Members of the |
Chapter |
� |
Meetings of the Board of Directors |
� |
Keeping Minutes of Meetings |
� |
Responsibilities |
of |
the |
Board |
and |
|
Directors |
|
|
|
|
� |
Managing Conflicts of Interest |
� |
Dispute Resolution |
� |
Elections of Directors |
� |
Safe |
keeping |
of |
the |
Seal |
and |
Documents including Financial matters |
and Signatories , and |
� |
Other matters |
Your Constitution and Bylaws should be on the table at every Board meeting and referred to as required to ensure that the governance of the Chapter is always in accordance with the Constitutional and Bylaws especially with regard