Standards of Governance- The ISO 37000:2021 Governance Standard.

Here we go again, another standard? Yes! another standard, another playbook and why, you might ask? Because life, work, purpose and generally anything that is expected to go on into perpetuity is all about #kaizen – continuous improvement.

The ISO 37000:2021 may have been one of the good things that came out of #covid as its final draft was approved in 2021 by all 164 #ISO Members, of which #Kenya is one of the 40 or so member states in Africa. To be able to compete effectively in the global space, Kenya has in its citizen’s best interests adopted various global standards and practices such as the ISO standards and the 37000:2021 is no exception.

For context, a standard like this is a guideline on internationally recognised best practices as it is developed with the input of international subject matter experts. As a guideline, the ISO37000:2021 can be considered for adoption by any organisation as its level of hierarchy sits below international conventions and treaties, local laws (such as the Constitution and the Companies Act 2015), mandatory regulation (such as any applicable corporate governance regulations for your organisation dependent on its sector), and any industry codes such as the CMA Code of Corporate Governance for listed Companies or the Mwongozo Code for State Corporations. The ISO37000: 2021 supplements and enhances all these in order to elevate an organisation’s level of governance to compete globally- think local, act global.

So what is different about this standard? Having come after various member states laws, regulations and codes, has taken the view that organisations need to have #purpose beyond profit and act ethically and sustainably in these #vuca (volatile, uncertain, complex and ambiguous) times. The primary principle in ISO 37000:2021 is Purpose, underpinned by foundational principles which include: value generation, strategy, accountability and oversight.

These principles are then executed through the following enablers:
1.Stakeholder engagement- identifying, managing and prioritising relationships
2. Leadership- having ethical and value based leadership and providing an enabling organisational culture
3. Data and decisions- reflecting ethical, responsible and data collection, storage and management practices
4. Risk governance- setting a tone from the top on identifying, monitoring and mitigating risk
5. Social responsibility- making decisions with the community and society in mind
6. Viability and performance over time- Organisations should consider themselves as generation builders and hold a long term view in decision making

In summary, the intention of the ISO 37000:2021 is to encourage effective performance, ethical behaviour and responsible stewardship.

Allow Akira Consult to do a governance review and ensure that your organisation is ISO 37000:2021 aligned. Speak to us today and let is help you think global as you act local.