Given Sirdar is focused on the growth and development of small and medium enterprises through the implementation of enterprise governance, I was pleased last week to see the launch of http://firstboards.iod.org.nz
An initiative of the New Zealand Institute of Directors, the website is dedicated to the development of governance among the “engine room of the New Zealand economy,” or, in other words, small and medium enterprises. Not too long ago, the concept of implementing enterprise governance in small and medium enterprises was considered somewhat ‘foreign’ and unnecessary. However it is increasingly becoming recognised that without enterprise governance, small and medium enterprises hit a glass ceiling and do not achieve, what we call in Sirdar, extreme business success.
Sirdar has been well aware of the practical challenges implementing governance in the SME sector has. Including the reluctance of business owners to take this ‘step into the unknown.’ As well as this we have recognised the unique ways in which you need to introduce and implement governance principles in the SME environment.
The key issue continues to be business owners recognising they need to wear different hats in order to succeed. Firstboards.iog.org.nz acknowledges this issue by stating that “this concept of wearing different [hats] is part of our everyday vocabulary. Nowhere is it more relevant than for owners/directors of SMEs who have to wear at least two; those of operational manager and strategic thinker.” Although, at Sirdar we refer to a minimum of three hats – those of shareholder, director and manager, all being separate and distinct in any business.
Ultimately, our congratulations goes to the New Zealand Institute of Directors for this key step forward in the support of developing governance in the SME sector. I entirely agree with them when they state that “When practiced well, governance, the focus of a board, pays a dividend in promoting higher performance and adding value to the business”.
May this only lead to a wider understanding in the SME sector globally of the power of enterprise governance in achieving sustained growth and increased shareholder wealth.
