How poor leadership hurts business

NAIROBI: Over the past few weeks, I have keenly followed the conversation around certain institutions that have been in the public eye, and for all the wrong reasons. Two things come to mind: One, it is becoming increasingly obvious that there are certain governance failures that are too big to ignore and that sadly, organisations cannot be trusted to self-monitor from the inside; second, and this is more distressing, if left unchecked, these institutions run the risk of complete obliteration.

Lest I run the risk of appearing to be casting governance as simplistic, I must state it is neither easy nor straightforward. But for all the effort it takes to implement policies and frameworks, not just on paper but as a practice and culture, the rewards are building a sustainable organisation that transcends time. In fact, the specific aspects of good governance, those revolving around the functions of the board in relation to risk management, planning and execution of strategy require constant evaluation and innovation.