When you think of good governance principles, do you cognitively categorize them as longstanding and static? If so, you’ve gotten part of it right. The concept of the importance of good governance has been around a long time. Yet, good governance isn’t static. It’s true that certain principles, like accountability and transparency, will always be staples of good governance. For other governance principles to be relevant, they must respond appropriately to changes in the corporate marketplace.
The changes in the marketplace over the last several decades have been evolving at a record pace. Changes in governance have been slower to catch up. The disparity in the pace between business and governance has left notable gaps in governance.
Diligent Corporation has taken candid feedback from thousands of board directors to understand where the gaps are and what was needed to fill those gaps to make governance principles strong again. Diligent quickly set itself on a course to play an active role in modernizing governance by designing innovative board management software to fill the gaps that impede progress.
Keeping up with the pace of modern business, today’s boards need lightning-fast information that travels along secure channels. Board directors need the flexibility to use digital tools confidentially and to share only what they intend to share with others at the same lightning speed. Today’s board directors also need a board management software system that is mobile-accessible. Diligent’s board management software gives board directors the right tools at their fingertips at just the right time to avoid risks and to grab onto emerging opportunities. That’s the antithesis of good governance from a modern standpoint.
What Are the Impediments to Good Governance?
There’s no question that speed is an important component of good governance. Time is of the essence in managing risks and in moving the company forward. Leaders need the capacity to gather the right information so they can ask the right questions and get decision-making underway.
Board directors need to be looking at the entire scope of the operation, which requires them to look not only at their company, but also at the industry, and at how they can move the company into the future most successfully.
Without board management software, boards lack a central place to organize data, communicate confidentially and collaborate using a secure digital platform. The lack of an appropriate board management system is an invitation to cyber risk. However, good governance doesn’t just stop in the boardroom, it extends well beyond that and should be practiced at the organizational level as well. If your board isn’t aware of how the board book is being assembled and the materials are being distributed internally, then they should. Using board management software is a start, but organizations should also be looking into the right secure file sharing software for their business.
When companies and their board directors resolve these issues, they effect better decision-making, increase transparency, and acquire insight that drives growth and longevity in today’s digital age.
How Board Management Software Fills the Gaps in Governance Processes
Diligent’s secure meeting workflow software was designed specifically for the current workflows and communication needs of corporate boards of directors. Diligent Boards and Secure File Sharing, part of the Diligent Governance Cloud work together to create a total digital environment that alleviates the dangers that have the potential to unleash devastating risks. Governance Cloud presents an ecosystem of software tools that securely digitize regular board activities like creating board books, sending email communications and sharing files. With the confidence of having secure workflows across all processes, board directors stay in the loop on important issues and work in the most efficient way.
The future of modern governance isn’t totally clear. What we do know is that it will be necessary for governance principles to adapt rapidly to new and evolving changes in the marketplace. Companies will face new degrees of complexity and regulations will become more stringent and exact in the coming years. Board management software will meet the demands in the boardroom and beyond so that boards can operate in the most efficient, cost-effective manner.
Modern Governance Is the Key to Securing Meeting Workflow
As proof that good governance leads to great performance, Diligent Institute identified that governance deficits across more than 12 public companies have cost in excess of $490 billion in value one year after the crisis. Simultaneously, good governance practices set companies on the track to outperform peers that ranked lower than them by 15%.
Deficits in governance have existed in the marketplace for decades. The digital tools and efficiency of modern governance fill the gaps that have weakened governance over time. On the whole, today’s marketplace is suffering from a lack of proper security, lack of transparency and accountability, and lack of foresight.
The right workflows will help boards deal with all the top contemporary governance issues, such as activist investors, cyber risk, regulation, diversity, global uncertainty and prosperity. Using the right workflow can improve your governance deficits and risk management practices.
The empowerment of modern leaders requires a culmination of the technology, insights and processes that support every aspect of good governance. Modern governance is the idea of bringing governance practices into the digital age.
Concluding Thoughts on Secure Communications and Modern Governance
The landscape of the corporate marketplace is continually changing its form and shape. Modern governance is the key to empowering organizations to keep pace with the rapid and continual flow of emerging and evolving issues. As Diligent’s CEO, Brian Stafford, so aptly states, “Modern governance empowers organizations to keep up with today’s fast-changing landscape and equips board members with the right information, at the right time, to mitigate risks and seize new opportunities.”
The premise of modern governance increases secure communication and collaboration between managers and boards so that they can spot risks as quickly as possible and just as quickly recognize opportunities to be a leader in a competitive field. Modern governance sets board directors on a course where processes flow so smoothly and so securely that they can focus on being the experts within their industry and provide continual, valuable knowledge and advice to their executives. Boards can reflect a sense of nimbleness and ethics when using a board management software system that keeps data accessible in a central location, where it is protected and can only be retrieved by authorized users.
Diligent Corporation aspires to continue to be active and to play a leading role in developing modern governance. Our clients – board directors, corporate secretaries, general counsel and CEOs – are our best resources for feedback on the solutions that allow companies to put a strong foot forward. Our ultimate goal is to inspire board directors to power up modern governance. Diligent Corporation will continue to be the driving force that fuels modern board business.