The new ISO 37000 Standard for governance of organisations discusses the purpose of good governance. The Standard encourages the executive within an organisation to consider its purpose for existence. This might be defined in some sort of founding statement.
Organisations may start out with one set of founding principles, but after periods of growth these intentions may be totally at odds with the original plans.
A set of organisational values should be defined and communicated both within the organisation and externally.
The rationale for such activities is necessary to ensure that the organisation delivers its outputs in alignment with its purpose for being in business. If this is not compatible, then the organisation should revisit the founding documents and assess the purpose and direction of the operation.
The organisational purpose should be defined. This enables clarity for stakeholders and interested parties with regards how expectations may be monitored.
In clarifying the purpose of the enterprise, stakeholders have a clear reference point to assess performance and achievement of objectives.
Organisational values should be clearly established and clarified.
The value that the enterprise plans to bring about should also be established and monitored.
Finally, by defining the purpose of the organisation stakeholders can effectively monitor value and objectives set over a period.
Defining the organisation’s purpose should require careful examination of:
•Existing founding documents
• Consultation with stakeholders
• Reviewing threats to the operation
• Enterprise opportunities and associated risks
The new ISO 37000 Standard is formatted around eleven good principles of governance. This model can provide sound guidance for an organisation seeking to both benchmark its governance arrangements and plans for improvements.
For further information and to book your ISO 37000 survey please contact: Marcus J Allen at Thamer James Ltd. Email: [email protected]
Marcus has twenty years’ experience in delivering Governance, Risk and Compliance solutions to over two hundred organisations within the UK. Marcus holds the respected Diploma in Governance, Risk and Compliance from the International Compliance Association and holds a master’s degree in Management Learning & Change from the University of Bristol.
Marcus is a Fellow of the Institute of Consultants and Fellow of the Chartered Management Institute. In addition, Marcus is a member of BSI Committee G/1 Governance.