Organisational Governance
Compiled by Sohail Moughal
18 Spetember 2008

In any organisation, the governance system is composed of a governing body or the governing board, some senior leaders or managers, and stakeholders. The stakeholders could be employees, customers, shareholders, financiers, suppliers, partners, or the community the organisation operates in.

According to long standing research program of The World Bank, the quality of governance was measured in over 200 countries and with the help of over 40 worldwide organisations a set of six indicators of good governance were established, lised as below:

a. Voice & Accountability,
b. Political Stability and Lack of Violence,
c. Government effectiveness,
d. Regulatory Quality,
e. Rule of Law, and
f. Control of Corruption

While the above listed indicators were selected to measure the quality of governance in a country, same can be used in the corporate or organisational setting. In an organisational/ corporate setting I would suggest the following course of action to establish good organisational governance;

1.Facilitate and monitor the establishment of the appropriate corporate legal structure for the organization.




2.Facilitate organizational governance structure and maintain proper corporate record-keeping of strategic decisions.


3.Lead the integration of the corporate mission statement into all aspects of the organization’s culture.


4.Lead development of the organization’s strategic plan and its implementation.

The purpose of a Strategic Plan is to develop long range objectives and strategies. An objective is a specific and measurable statement that describes what needs to be achieved.

5.Establish, communicate, implement and monitor production and compensation standards for senior management and middle management.


6.Implement and/or support organization leadership management of staff conduct and performance expectations or programs.


7.Foster the growth and development of leaders as knowledgeable, participative stakeholders.


8.Encourage and lead participation in advocacy endeavors at local, state and national levels