Frequently asked questions

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community.

Responsibility for corporate governance typically falls on several key teams, depending on the size, type of organization (e.g., SME, Family owned, Nonprofit, Public), and jurisdiction (e.g., country, industry). However, the four most important entities include the Board of Directors, the Executive Management Team, Shareholders, and specialized Committees.

There are many reasons SMEs could consider professionalizing their corporate governance practices. For example, solid corporate governance can lead to enhanced decision-making, robust risk-management, regulatory compliance, access to capital, reputation, and trust.

Although implementing good governance practices can come with costs, the long-term benefits often outweigh these initial expenses. Governance frameworks can be scaled to fit the size and resources of the business. SMEs do not need to adopt the same extensive structures as large corporations. You can start with basic practices and gradually expand as the business grows.

Business transformation refers to a comprehensive, often radical, change in the way an organization operates. It can involve restructuring the business model, adopting new technologies, entering new markets, or significantly altering processes and strategies. Organizational development is a continuous, systematic process aimed at improving an organization's effectiveness and capacity to change. It focuses on developing the people, processes, and culture within the organization.

When an SME is experiencing rapid growth or planning to expand, external expertise can provide strategies to manage this growth effectively, ensuring the structure and processes are scalable. Other reasons may include strategic planning, innovation and creativity, performance improvement, leadership development, or culture transformation.

Organizational culture refers to the collective values, beliefs, attitudes, and behaviors that characterize an organization. It shapes how employees interact, make decisions, and perceive their roles within the company. It is often described as "the way things are done around here."

Organizational culture can be measured by observing which behaviors and skills are valued and rewarded. For example, when team leaders are appointed based on their level of technical skills, you can infer that technical skills are rewarded, and other skills – such as leadership and relationship skills – are not. When meetings start and end on time, you can infer that being punctual and respecting deadlines is valued. 

A strong organizational culture can enhance employee engagement, improve performance, and help attract and retain talent.  Many successful organizations, however, do not have a strong organizational culture or may even have several distinct and different cultures within the same organization. Conversely, a misaligned culture can lead to dissatisfaction, low morale, and high turnover. 

Organizational culture can and should be changed when skills and behaviors in the current organization no longer support strategic ambitions. The most effective and efficient methods for change depend on the level of change required, the leadership competencies, and the performance management system. 

Competencies - made up of skills, knowledge, and experience - can and should be developed throughout a person’s lifetime. Which competencies are developed and how will depend on the needs and resources of the person, the department, and the organization. In theory, almost all competencies can be developed and improved. In practice, they can be developed when the person is willing to make the effort, engages in deliberate learning and practice, and receives appropriate feedback.

There are many types of “good” leadership, and every organization can determine which competencies their leaders should possess.  This definition can change over time and may be different between departments and functions. However, because leadership is a set of competencies, leadership can be learned and developed.

Team development is a broad, continuous process focused on enhancing the team's ability to work together effectively over time. It involves several stages and activities designed to improve team dynamics, skills, and performance. Team building refers to specific activities and exercises aimed at improving interpersonal relationships, communication, and cohesion among team members. These activities are often short-term and designed to foster trust, collaboration, and a sense of camaraderie.

It is too early to know how different types of AI technology and applications will impact specific industries and jobs. However, it is very likely that human intelligence will be more important in a future where AI is successfully deployed. The reason is that we will need ever more competent humans to understand, interpret, and implement what AI delivers.

This term refers to information that does not have a physical form you can touch. Unlike tangible assets (e.g., machinery or buildings), intangible assets include things like human capital, digital information, intellectual property, and brand reputation.

Intangible data can be measured and made visible in context. Data regarding performance, quality, leadership skills, collaboration, and client satisfaction all have concrete and measurable markers, but their quantification depends on the type of product, service, and strategy.

The value of intangible assets can be substantial and often surpasses the value of tangible assets. They are crucial for valuation and decision-making in the modern, digital economy, where most organizations provide services with few tangible and many intangible assets.

Human beings are uniquely designed for change and many individuals thrive in challenging and stimulating environments. Some people, however, do not like change, and many do not like changes they perceive as harmful or that eliminate privileges.  Emphasizing the benefits and providing reassurance can make transitions smoother.

Personality refers to the unique set of characteristics, traits, behaviors, and thought patterns that describe how individuals see themselves at any given moment of time. Personality tests allow people to describe the way they see themselves based on a model. The relationship between personality and behavior or personality and performance are weak or absent. 

Personality changes and develops throughout a person’s lifetime, and some people will have more profound changes in personality than others. For example, individuals who work and live in many different settings and those who are actively engaging in self-development and growth will experience more changes. Recent research also suggests that language and culture have profound influence on personality.

No, personality and competencies are measured using different methods. Personality cannot be observed or has low inter-rater reliability. Personality is therefore measured using subjective information and self-reported tests. Competencies can be objectively measured and described by relevant persons (e.g., managers, colleagues, clients). Competencies are therefore measured using relevant work situations, observations, and structured interviews.