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Evergreens Insights: The keys to successful governance, according to Stéphanie Damgé

In this short extract from the “Evergreens by Spuerkeess” podcast, Stéphanie Damgé, Director of the House of Entrepreneurship, talks to us about the key elements of effective governance, essential for attracting investors and guaranteeing sustainable growth. She highlights the importance of digitisation and cybersecurity, while offering practical advice for small businesses.

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Ms Damgé, when you set up a company, governance is not always the first thing you think about. In what ways is this changing and what needs to happen to ensure good governance?

It's important to ask yourself these questions and put procedures in place in good time, even as a start-up. For example, three people set up a company. Who contributes capital and how much? Who works full time? Who works part time? What are the various roles and responsibilities? How do we work? As a start-up, it is crucial to grow quickly, which means that governance needs to maintain a degree of flexibility while putting in place the right procedures and asking the right questions.

What are the key elements of good governance in attracting investors?

If you want to attract investors, you must consider governance from the outset. It's better to take this initiative in advance rather than to leave it to the new investors. Good governance involves open and transparent communication, clearly defined roles, and the involvement of all stakeholders, including employees, clients, suppliers and investors. This means that investors do not have to put in place their own governance procedures – procedures which might not be in line with the entrepreneur's vision.

How can governance evolve with digitisation and cybersecurity?

Digitisation offers tools to improve governance, such as digital signatures, which enable governance procedures to be put in place while being aware of cybersecurity and cybercrime. Data protection and compliance with GDPR are important aspects. Training plays a crucial role in raising managers’ and employees’ awareness of the risks and the safety necessary measures. It is essential to be well prepared and protected against attacks, which are becoming increasingly frequent.

What advice would you give to small businesses to improve their governance?

It is vital to find the type of governance that suits your company best and not simply copy and paste from another one. Governance must evolve continuously and keep pace with the company’s current needs.

It's important to know what you need now in terms of governance and how you're going to go about securing it. Seek dialogue, ask for help and involve your staff. Governance must provide stability and the ability to react to unforeseen events and risks, while enabling sustainable growth.

The sale of a business is often a critical moment. How does governance play a role in this process?

It is particularly important to have governance structures in place when a business is being sold. People need to work together, consensus needs to be found and others need to be involved. As a company director, you can wear many hats, but you need to be careful about any potential conflicts of interest. It is crucial to define roles clearly – through a family charter, for example – to avoid risks and ensure a smooth transition.

Governance seems to be a wide-ranging and complex subject. How can companies ensure they are on the right track?

Governance is an ongoing process. It's important to take training courses, learn from best practice and remain flexible. Companies need to work together, share ideas and experiences, and adapt to new challenges. Governance should be seen as a means of giving the company stability and equipping it to operate effectively over the long term. It is also crucial to communicate transparently and involve all stakeholders.

Regulations and legal obligations can be onerous for small businesses. How can they manage this?

Regulation requires resources that are not necessarily available to small businesses. It is important to simplify these processes and ensure that businesses can continue to operate efficiently. Digital technology can help, but you need to know how to use the tools available. It is also essential to seek dialogue and ask for help, whether from professional bodies, other organisations or consultants.

Want to find out more?

This article is a short extract from the “Evergreens by Spuerkeess” podcast hosted by Bryan Ferrari, which we invite you to listen to in order to discover all the discussions with our guests and get valuable advice from them. “Evergreens by Spuerkeess” is available on all major streaming platforms.

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