Entries by admin

Why Empowerment Has Never Been More Important

Traditional governance models of command and control are no longer effective. Recognising this, organisations are increasingly empowering their employees to make decisions autonomously. Empowerment and agile innovation are no longer confined to startups, but are finding their way more and more into mature organisations. New ways of working pioneered by companies like Google and Netflix […]

Exciting new development in governance!

It’s not often you see a new development in corporate governance that is truly exciting! Well, I just have – it is fantastic to see the new Whole of Organisation Governance Guidelines published by the Governance Institute of Australia. As far as I know this is the first time there has been clear guidance about how […]

Governance

It was fantastic to present on Management Governance at the Governance Institute of Australia’s Corporate Governance Forum in Sydney on 6 June 2015.  I really enjoyed talking with people afterward about this critical topic that is increasingly important for more and more organisations.  You can download the slides here: Management Governance Slides Governance Institute Forum

Management Governance: The New Frontier

Peter Day and I really enjoyed presenting at the Governance Institute of Australia National Conference last week.  Our topic was: Management Governance: The New Frontier.  We argued that boards have a fundamental role in determining how the management of the organisation should be governed.  The board is responsible for ensuring the framework by which management is governed […]

Are your delegated authorities causing headaches?

We asked this question recently through an electronic data mailout to the members of a leading professional association.  The response was an overwhelming “YES!” In a perfect world, everyone in an organisation would clearly understands what they can and can’t do, and what policies apply to any decision they make.  It seems from the many responses […]

Operational Risk Examples

As well as posing risk for directors, weak delegated authorities also increase operational risk.  For example: A fast moving consumer goods company had difficulty controlling the rebates and discounts offered to customers by sales representatives.  The sales representatives did not want to comply with the limits on trade spend and frequently offered terms outside of […]

Reputation Risk Examples

There are many examples of directors suffering reputational damage due to bad decisions by management.  A well-known example is the harm suffered by NAB and its then directors as a result of foreign currency trading problems.  In its review of the matter, APRA identified the lack of clarity of authority limits as a key factor […]

So what if the delegated authorities are not clear?

If an organisation’s delegated authorities are not clear to all decision-makers, they will not be followed.  In those circumstances there is little or no control over decision-making and as a result: it is difficult for the organisation’s directors to gain assurance that the system of decision-making and accountability is adequate and working properly.  This increases […]

Why We Exist

When everyone understands what they can and can’t do, and how decisions are made, people are empowered and accountable.  They make better decisions, and the organisation is more productive and better protected. We help clients to achieve this through delegated authorities that are clear, accessible and easy. AuthoritiesOnline™ software was designed specifically for this purpose.  With […]