Most organisatons do not know how well they are governed or what areas of governance to prioritise, and are paying the price.
The Governance in the Dark: White Paper draws upon research in 2021 that investigated concerns regarding poor standards of governance in many New Zealand organisations, and aimed to understand potential solutions. The research was carried out by Michael Poynter Consulting on behalf of Govn365 and identified two key issues contributing to poor standards of governance; it found that these two issues are part of a feedback loop reinforcing each other.
An organisation’s belief that governance adds little value may be bolstered by the fact that their enterprise is performing adequately, and use this as a reason not to act. Often it is not until there is some crisis or transition event that the organisation realises the need for better governance.
Further, there is a need for tools enabling organisations to update assessments and monitor governance performance on a regular basis. This means governance groups can track progress and maintain motivation and commitment to address capability gaps, reducing risk and increasing the value of the organisation.