Tax Checklist
2020 - Tax Checklist
To assist in completing your tax return, we have a checklist that will help you with what you need to provide us. Find out more
Virtual Tour
- Virtual Tour
Take a tour and explore our office Find out more

The 7 key governance capabilities


Effective governance is a learned skill and is one which is improved on the job.  There are seven key capabilities, or skill sets, you should focus on to improve your governance skills and become an effective director.  There are:

  1. Understanding financial information and Key Performance Indicators (KPIs).  Start with learning what each financial report tells you about the business's performance.  Then, learn what's driving these numbers - the KPIs most relevant to the company.  Understanding these allows you to become much more confident in your decision making.
  2. Understanding yourself and others.  It is important to understand yourself so you can understand those around you and how you should interact with them for the best outcomes.  Consider your own strengths, weaknesses, motivators, and stressors and those of others around you.  Knowing this allows you to tailor your governance and communication style to individuals.
  3. Focused planning.  Learn to focus your time on the things that influence the long-term success of the company, rather than seemingly urgent, but actually unimportant, activities.  Focused planning ensures you keep coming back to executing the purpose of the business, one of the key responsibilities of your role as a director.
  4. Directing, in service of others.  Every business exists to create value for others.  An effective director 'builds enduring greatness through a paradoxical blend of personal humility and professional will', as described by Jim Collins in his book 'Good to Great'.  To act with personal humility means to demonstrate modesty; act with calm determination; channel ambition into the company, not yourself; and apportion responsibility for poor performance to yourself, not others.
  5. Managing, to ensure performance outcomes.  An effective leader manages people by giving them outcomes to achieve instead of tasks to do.  This means you need to trust your team to come up with solutions and allow them to actively take responsibility for their role.
  6. Leading.  Inspire your team with the purpose of the business.  Ensure each team member can connect everything they do to the business's purpose, so they understand how they contribute to the overall goals of the business.
  7. Teaching.  See the potential in those around you and teach them what you know.  Be excited by learning and sharing your knowledge with others.

Good governance isn't so much about learning a set of rules and procedures; it is about having a mindset that is always learning and developing the skills required to be an effective leader.

"Most great leaders do not start as great leaders.  They grow into great leaders." - Jim Collins.

Need a hand developing your governance skills?  We are happy to share our knowledge!  Get in touch.

Back to Articles & Guides 

Sign Newsletter
What our clients say...
  • "I've known Ross for many years and his team continues to deliver good, wholesome country service" - Read more
    - Kym Westcott, Paleo Cafe
  • "Maclean Partners are very knowledgeable accountants who are always attentive and keen to learn more about how to improve our business. John and his team offer sound advice about tax and general accounting, as well as helping structure and manage the financial aspects of the business to our advantage". - Read more
    - Tony Pascoe, NQ Foot and Ankle
  • "We've worked so hard over the past 10 years to get the business to where it is and sometimes you can't see the forest from the trees. Thanks to the Maclean Partners and the 90 Day Business Challenge, I found each module so helpful and the self-paced online aspect combined with the face to face coaching and workshops worked really well for us. - Read more
    - Nelly Evans,Powdercoat Select
  • "Nelly (my wife) told me she had signed up for some business training and I told her it was a waste of time and money. I wasn't interested in doing it at all because both our businesses are firing on all cylinders, but to show her support, I went along to the first workshop and I was impressed. Nelly and I have been doing a lot of talking, but we realised that we never had the right mindset to take action. - Read more
    - Glenn Evans, The Fencing Factory
Logo Logo Logo Logo Logo Logo