Recently, I completed my training as a commissioner/supervisor at the Governance Academy. It was wonderful to be back in the classroom, inspired by the experienced teachers and my fellow students.
In this article, you will read about the current developments in boardrooms in the field of governance. I will also share the added value it has for me personally.
The era of the “old boys network” of older, predominantly male commissioners who had a decisive role in relation to the company’s directors is truly over. There is much more diversity on all fronts. In 2022, the law for more balance between the number of men and women at the top of the corporate world (“Diversity Law”) came into effect. The Supervisory Board or the Supervisory Board has a great deal of responsibility in the field of good governance and in the area of cooperation with the directors (executives).
What is Corporate Governance and what is good governance?
Corporate Governance is about the management of the organization and the supervision thereof. When well organized, the balance between management and supervision ensures good governance. Good governance relates to proper supervision of compliance with rules and proper behavior, and accurate and transparent accountability by stakeholders within companies (commercial) and institutions (non-profit and financial organizations).
The terms are often used within large organizations, but the principles are, of course, just as applicable to smaller organizations, foundations, and legal forms. In the increasingly professional sports world, the Code for Good Sports Governance is used for directors and supervisors.
Recent strategic developments
Good governance has increasingly become a prerequisite for long-term continuity. It offers important tools in this complex and demanding time. Rules and procedures and the legal framework remain important, but the focus has also shifted to topics such as:
• Culture and behavior;
• Long-term orientation and social awareness (e.g., environmental aspects and sustainability); and
• Digitalization (cybersecurity, AI).
Behavior and culture
What particularly appeals to me – in this time when transgressive behavior and polarization seem to be the order of the day – is that the focus on behavior and culture has become one of the most important themes in the boardroom. Supervisors play an important role in (co-)assessing the suitability of directors and fellow supervisors and adhering to the right culture. Tackling unacceptable (transgressive) behavior is thus better secured, identified, and addressed.
From the broader employer role, attention is paid to developing talent and coaching top executives on leadership and competencies and organizing counterforce (feedback as a learning tool).
In short, corporate governance plays a crucial role in the success and sustainability of a company by improving transparency, accountability, and risk management.
My added value
In recent years, I have received several invitations for a role as a supervisor. Therefore, I found it important to also strengthen my theoretical framework. In my role as a business and leadership coach, I often discuss the position and approach of directors and entrepreneurs towards their supervisors. And now, I can come even better prepared in the dynamics between directors, shareholders, and supervisors.
Finally
Would you like to help me? I would like to further expand my experience as a supervisor. Do you know of organizations looking for a commissioner or supervisor? Let me know.
And would you like to know more about this subject? These books have inspired me (Please note they are in Dutch):
• “Verdrink geen dooie eend” – Marry de Gaay Fortman.
• “Handbook of Corporate Governance” – edited by Stefan Peij
• “De Staatsbank” – Pieter Couwenbergh and Ivo Bökkerink
