What can privately owned agencies learn from PWC’s recent disaster?
I mean, hopefully you’re not selling state secrets. But beyond that.
One of the major recommendations in the August report was to adopt the ASX Corporate Governance Principles and Recommendations. Despite the size of PWC, they hadn’t adopted the same standards of governance as ASX listed companies, since they’re not a listed company – they’re a partnership.
Similarly, it’s pretty rare to hear about privately held agencies adopting any sort of governance standards. It’s just not on the radar (at least until it comes time to sell, or something goes really wrong).
Good governance is about more than ‘making my life as a founder more difficult’. It’s about how you drive performance and accountability through the organisation. It’s the framework, beyond the founder as an individual, that’s set up to ensure the business achieves its mission.
For many smaller agencies, an independent board might not make sense. A more informal independent board – an advisory board – could be a good option instead. A group to regularly meet with, seek advice or feedback from, and pull you out of the weeds to focus on the big picture. You’re under no obligation to take on the advice or recommendations, but you have a wise council at your disposal.
Getting this structure in place early will go a long way to ensure you’re creating a business that functions well and performs as you want it to – whether or not you remain in the business every day.
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