“It all sounds very nice; but at the end of the day it is all about putting food on the table.” The gentleman next to me had just put me in my place – or had he merely challenged me? A recently retired entrepreneur, he did not think very highly of my high-and-mighty views on the benefits of the systematic approach to decision-making I call governance - and as for my views on the need for corporate leaders to understand and define the essential mission of their enterprise, as well as the risk parameters and values by which decisions might be benchmarked … Well, I hardly dare guess what he thought of that.
This, however, is the challenge. This chance meeting on the eve of our October issue, where we are trying to bring life to these topics for the small and medium sized enterprise, merely emphasised the need to continue our efforts to spread knowledge, and to share learning across all industries, irrespective of size. This is the mission of this Journal, and - we believe - the core value that we represent to our readership.
The gentleman believed he had no need for my “intellectual theories”. Perhaps he didn’t. I feel certain that he built and ran his enterprise on a deep sense of purpose – but I doubt one as simple as “putting food on the table”. There are many ways a man of his apparent skills and ability could have achieved that. However he made a choice, committed himself to a path – surely with a certain aspiration, conscious or not. He undoubtedly felt in control of the events around him. Possibly he had colleagues and friends who offered him advice and informed him of new ideas – it’s only natural after all. Equally, he spoke with the conviction and certitude of a man who knew right from wrong; a man not without a sense of personal values. From his dress, it appears he succeeded well enough in “putting food on the table.”
Yet, I ask myself, could this man have achieved more? He showed me a mind closed to exploring the benefits of alternative ways; he seemed self-assured to the point where to challenge him felt rude; in his determination to procure food for his family, there was a hint of willingness to do whatever it takes to get it on the table. Therein lies a danger.
The fact is, all who are engaged in decision-making follow a governance process. This can range from the informal kitchen table discussion to the formal boardroom debate of a global, listed company. That process can be more or less systematic, but mostly concern an evaluation of relevant facts against consideration of the desired outcome. To believe that governance is something only for the “big players” is to miss an opportunity. If putting food on the table is indeed the objective, then one might do well to think about the menu, and the quality of what is to appear on your plate.
The first articles in this issue try to address the questions of i) what role governance can play in keeping the SME on its road to success, ii) of how to contend with the conflicting interests of stakeholders in the form of majority and minority shareholders, and iii) the need, and the means of smaller organisations to keep track of, and to stay in compliance with the ever tighter web of regulations that surround them.
We are also excited to follow up discussions initiated in our last June double issue with a fascinating, and personal telling of the path leading to corruption, as well as a practical look at what constitutes effectiveness in the assessment of a whistleblower programme. Last, yet not least, we include a topical introduction to the soon-to-be implemented privacy regulations impacting all organisations – Important subjects unconstrained by size: large or small.
Will my table companion ever read this editorial and reflect on our meeting? I suspect not; he is not a subscriber.