Effective governance is a learned skill and is one which is improved on the job. There are seven key capabilities, or skill sets, you should focus on to improve your governance skills and become an effective leader. These are:
Start with learning what each financial report tells you about the organisation's performance. Then, learn what’s driving these numbers - the KPIs most relevant to the organisation. Understanding these allows you to become much more confident in your decision making.
It’s important to understand yourself so you can understand those around you and how you should interact with them for the best outcomes. Consider your own strengths, weaknesses, motivators, and stressors and those of others around you. Knowing this allows you to tailor your governance and communication style to individuals.
Learn to focus your time on the things that influence the long-term success of the organisation, rather than seemingly urgent, but actually unimportant, activities. Focused planning ensures you keep coming back to executing the purpose of the organisation, one of the key responsibilities of your role as a leader.
Every organisation exists to create value for others. An effective leader ‘builds enduring greatness through a paradoxical blend of personal humility and professional will’, as described by Jim Collins in his book 'Good to Great'.
To act with personal humility means to demonstrate modesty; act with calm determination; channel ambition into the organisation, not yourself; and apportion responsibility for poor performance to yourself, not others.
An effective leader manages people by giving them outcomes to achieve instead of tasks to do. This means you need to trust your team to come up with solutions and allow them to actively take responsibility for their role.
Inspire your team with the purpose of the organisation. Ensure each team member can connect everything they do to the organisation's purpose, so they understand how they contribute to the overall goals of the organisation.
See the potential in those around you and teach them what you know. Be excited by learning and sharing your knowledge with others.
Good governance isn't so much about learning a set of rules and procedures; it's about having a mindset that is always learning and developing the skills required to be an effective leader.
“Most great leaders do not start as great leaders. They grow into great leaders.” - Jim Collins
Need a hand developing your governance skills? We’re happy to share our knowledge! Get in touch!
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