ISO37000: An international benchmark for good governance

ISO, the International Organisation for Standardisation, dates back to 1946 when delegates from 25 countries met to create a standardised benchmark with which to measure specific subjects. In 2021, they released ISO37000; developed by industry experts and trusted voices in over 70 countries to provide globally accepted guidance for governing bodies on how to best meet their responsibilities in leading organisations towards their purpose.

ISO 37000 gives guidance on the governance of organisations, providing the standard regardless of an organisation’s type, size, location, structure or purpose. It can help set the tone for an optimal business culture if an organisation uses its key principles to guide its performance. And perhaps the best part about the ISO 37000 standard for governance is that it doesn’t add any additional red tape or regulations, it is designed to help businesses rather than hinder them.

Why does the guidance matter?

You can think of it as a formula that describes the best way of doing something, in this case, the best way to govern an organisation. It is directed at governing bodies and groups but the entire team can benefit from it, especially those that support in managing the organisation’s outcomes such as the executive team. It can help to give them clarity, alongside other key stakeholders like employees, customers and suppliers, who will benefit from a more aligned strategy and better risk management.

Those that apply this guidance will be more likely to run a high-functioning organisation that delivers for stakeholders, excels at linking strategy back to purpose, confers with the right people and promotes a culture of trust and good repute.

With an uncertain economic future, some recent challenging times and plenty of change afoot, the operating model of boards is set for a refresh with many boards seeking to address changing expectations from both their employees and customers alike. At Govn365, we are seeing a trend of businesses and their boards taking a more long-term approach, seeking new information and viewpoints, and proactively managing risk to prepare their organisations for the future. This is where good governance comes into play.

How does it link to Govn365?

Govn365 is a digital tool designed to review, assess and improve organisational governance, and much like the ISO 37000 standard, the Govn365 platform adheres to core principles with which to measure governance. The Govn365 platform was created by governance experts who already adhered to the same core principles that have now been introduced as the international standard. However, since its release, the team has completed training in the ISO37000 standard to ensure all elements of the platform align. You will see its core principles are reflected in the platform with a focus on purpose, value generation, strategy, oversight and accountability.

ISO 37000 Primary Principle

• Purpose

ISO 37000 Foundational Principles

• Value Generation
• Strategy
• Oversight
• Accountability

ISO 37000 Enabling Principles

• Viability and performance over time
• Stakeholder Engagement
• Leadership
• Data and Decisions
• Risk Governance
• Social Responsibility

The remaining enabling principles are all vital components of the Govn365 tool and its use to help businesses clarify their true strategy so they can achieve their vision.

Both Govn365 and ISO 37000 have the same ultimate purpose, to provide the governing bodies of organisations with the tools they need to perform effectively while behaving ethically and responsibly.

If your organisation needs help with governance and setting direction to deliver on stakeholder expectations, reach out to the Govn365 team who are trained in the ISO 37000 standard to help your organisation reach its goals.

- Govn365