GOOD GOVERNANCE
Walking the talk
Dr. Harsha Cabral
Q: How should award winning organisations look to maintain the high standards that led to their recognition?
A: This is an ongoing assessment. If an award winning organisation wins an award one year and doesn’t do so over the next five years, it indicates that something is amiss. Once you reach that pinnacle, you must sustain your position.
The key lies in preserving the recognition that has been earned – particularly in keeping employees and unions satisfied.
This can be challenging in the public sector while mechanisms are in place in the private sector to ensure this. But with a capable management team and competent board, improvements can be made. Not all employees are inefficient and with proper guidance, they can excel.
Upholding discipline and good governance is the cornerstone of success, and even public sector organisations can be transformed into having a significant impact. Taking care of your employees especially during challenging times requires effective leadership.
Q: What is the long-term impact of winning awards on an organisation’s financials?
A: This demonstrates a consistent growth pattern. There can be no regression, which poses a challenge for companies – even though the past few years have been financially demanding for all organisations.
With proper management, skills and astute financial controls, we can anticipate positive outcomes provided there is stability in the political landscape as well.
Singapore sets a good example for discipline in corporations, and the private and public sectors. We frequently discuss governance but often, it remains merely talk without implementation – it’s crucial for this commitment to be universal. If it leads to profits, then everyone stands to benefit and that’s the essence of awards.
Q: And likewise, in what ways do awards impact a company’s or brand’s credentials?
A: It unquestionably boosts brand value. The expansion of your brand’s value has a profound impact on the entire organisation. The brand image must be consistently maintained and upheld, as it invariably resides with the consumer and in turn, reflects your credentials.
Brand value should be assessed – and a mechanism be in place for valuing a brand. The top 20 brands in Sri Lanka are evident and if one occupies the seventh position, it should strive to break into the top three. If there’s any regression, then something is seriously amiss.
Brand value and appeal are closely linked to good governance, performance, expenses and the advertising budget.
Over the past few years, several organisations have had to cut back on advertising. Now that we’re emerging from these constraints, a business’ presence must be prominently felt. In most cases, a brand is recognised by its logo. Building such a level of image and brand reputation takes time, and one blemish can tarnish it.
Therefore, organisations must be vigilant in protecting their image and boards bear this responsibility. Depending on brand value, the corresponding share value also increases. Maintaining this is of paramount importance.
Performance is as crucial as financials – if it is weak, you don’t make the first cut and a company can’t be considered good if it isn’t performing well.
Q: How should award winners manage the expectations that come with being an award-winning organisation?
A: Organisations must maintain a pristine track record without any blemishes. It takes between 30 and 40 years to build a strong reputation but this can be tarnished in a mere two to three minutes. Therefore, strict compliance both internally and externally is crucial.
It’s also important to instil this sense of responsibility within employees and even more crucial to sustain it thereafter. To begin with, employees should take pride in being part of the business and assume ownership of these accolades.
In the past, it was customary to consider an individual’s family background when getting married because it provided a sense of security and assurance. Similarly, while financial stability is essential, corporate conduct is equally paramount.
