As a founder of your company, you may be wondering what exactly constitutes good corporate governance and what principles it is based on. There are many different approaches and guidelines that approach the topic sometimes scientifically and sometimes in a practice-oriented manner. However, corporate management brings with it different challenges for the executives than for a person who has just founded a company. We don’t want to burden you with complicated details, but rather the most important aspects of corporate management in this guide bring closer. In addition, you can find out here what else plays a role in the areas of corporate governance and management and what thoughts you should make as a founder.
In strategic corporate management, the focus is always firmly on the future, it is about the possible development of the company. Although human resource consultants and professionals play their role, goals define these plans which are supposed to be implemented.
Planning products: How is the company’s product range composed? Strategic planning determines what should be offered to customers in the future and what may still be missing in the portfolio.
Define orientation: Whether your company wants to work purely for profit or is more oriented towards ecological or social values plays a major role: The answer to this question helps to define a brand essence and to stand out from the competition.
Formulate visions: You can determine now where your company should be in the future. The implementation is the responsibility of the operational business, but these goals are formulated in the first place in the strategic corporate management.
Exploring the market: Even if things are going well, that doesn’t mean that it will always stay that way. One eye should therefore always be on the market in order to identify opportunities and risks at an early stage and, if possible, to adjust the strategic direction accordingly.
In order to be able to check compliance with the goals, clearly defined periods of time must be assigned to them. It is common to define short, medium, and long-term goals. A long-term goal would be to open up a new market (in a particular country or region). In the medium term, the first steps could then be taken to achieve this goal. In the short term, however, an on-site visit might take place to assess the local conditions.
Operational corporate management deals with the internal structure of a company and the question of how to achieve the strategic goals. Basically, you can imagine the whole thing as huge project management: You need the right resources (employees and physical capital) and people who understand how to use them perfectly. In addition to good organization, change also plays a role: in order not to stand still, a healthy amount of further development is always necessary – in the form of investments, for example.
This is what operational management takes care of:
Employees: The staff is the most important asset of your company. How many employees do you need and which skills should they have? Do you also need temporary workers to bridge seasonal bottlenecks?
Distribution of tasks: who does what in your company? That has to be determined. Otherwise, to put it bluntly, the porters in the accounting department and the programmers in the sales department are sitting. The operational management of the company also makes decisions about the correct deployment of employees.
Process optimization: The fact that everyone knows what to do is not so bad after all. But now it’s still a matter of ensuring that the whole thing works efficiently and quickly. Controlling the complex processes in a company in such a way that everything meshes smoothly like clockwork is definitely a challenge. Decision-making paths should be as short and uncomplicated as possible in order to be able to react flexibly to problems and unforeseeable events.
Location: Of course, this is already specified in the business plan before the company even opens its doors. But when it comes to opening additional branches or expanding into other markets, the choice of a suitable location is extremely important. Whether a business idea is successful for you depends not least on where exactly you want to implement it.
In addition to the points mentioned above, leadership is often also included in management. Managing a company also means having leadership skills on a social level – or hiring a person who has them and can use them profitably for the company. After all, an ace in strategic corporate management does not necessarily have to be able to deal with people exceptionally well.
So that there is no frustration in the workforce, it is important not only to view your employees strategically and operationally as a resource but also to deal with them on a social level.
This works best with the following tips:
Internalize company goals: Of course, ideally, you want to have a team that shares your company’s vision with you. If you work at the grassroots with the same passion as at the top, you can be sure that everyone really pulls together, for the benefit of the company. However, it requires certain social skills in corporate management to ensure that the network of information is accessible to everyone. If you just want to do your job indifferently, you either have to be convinced of the company’s goals – or, if in doubt, leave.
Keeping motivation high: How do you make sure that your employees are motivated to come to work and don’t want to leave after five minutes? By creating an appropriate working environment on the one hand, but also by gathering sufficient leadership quality in the teams and management levels on the other. The employees want to be valued for their work. And with a fair, honest and responsible boss, it is much easier to work.
Define corporate values: In this case, this means that the company has a kind of guideline for dealing with one another – also known as the “corporate culture”. If all employees share these values, wonderful team chemistry can develop.
Ensure transparency: Employees like nothing less than the feeling of not knowing what is going on in the company. This can quickly lead to an unfounded fear that your own job is in danger. To create transparency and inform employees about important decisions and changes. In this way, you give them the feeling of being an important part of the company.