This PPT slide, part of the 27-slide Corporate Governance: Guide for SMEs PowerPoint presentation, outlines the evolution of governance structures within Small and Medium Enterprises (SMEs) across four distinct stages: Start-Up, Active Growth, Organizational Development, and Business Expansion. Each stage highlights key aspects of governance, decision-making, risk management, and transparency.
In the Start-Up phase, governance is characterized by a small, informal team with minimal systems in place. Decision-making is centralized, often resting solely with the founders. This autocratic leadership style limits checks and balances, as founders are deeply involved in day-to-day operations. Transparency is low, with information largely contained within the founders' knowledge.
As SMEs transition into the Active Growth stage, the governance structure begins to evolve. The organization grows, necessitating a more formal structure. Delegation of management responsibilities emerges, although the autocratic style persists. Founders start to involve key managers and advisers, which introduces some collaborative elements. However, silos can form, complicating communication between different areas of the business.
The Organizational Development stage marks a significant shift towards professionalism. Here, formal policies and procedures are established, and professional managers are brought on board. Decision-making becomes more decentralized, promoting a collaborative management style. This stage emphasizes detailing authorities and accountability, with systems becoming more automated to manage operational risks effectively.
Finally, in the Business Expansion stage, the trends from the previous stage continue. Strategic and operational decision-making becomes more institutionalized, with clear roles defined within the organization. There’s a strong focus on proactive risk management, and communication improves among management, board members, and shareholders.
This slide serves as a roadmap for understanding how governance evolves in SMEs, providing valuable insights for potential customers looking to enhance their governance frameworks.
This slide is part of the Corporate Governance: Guide for SMEs PowerPoint presentation.
MBB/Big 4 style presentation that helps identify good corporate governance practices that may fit a company, focusing primarily on the Anglo-Saxon unitary board model
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