What is the role of adaptive leadership and how to adopt good Governance in the company?

In this article, we will reveal the importance of adaptive leadership and how to adopt a good Governance structure in your company in practice.

Nowadays, it is increasingly common to hear the phrase “we need more leaders and fewer managers.” What is the difference between a manager and a leader in a company?

More than a position of authority, a leader is someone responsible for communicating a clear vision of goals, strategy and direction to their team, aligning individual skills and efforts with organizational objectives.

In addition to guiding the team, he is a natural facilitator of talent development and growth, providing feedback and creating opportunities for each team member to identify and improve their flaws and develop their skills.

The ability to listen to the team's needs and guide them in aligning objectives, but also to know how to act in resolving conflicts, promotes a collaborative and inclusive work environment. This player's skills are crucial to having a motivated, cohesive and productive team.

As the current corporate scenario is volatile, given the unprecedented technological development, the digital acceleration of companies, fierce competition and the growing diversity in the workforce, adaptive leadership emerges as a vital response in a company that wants to be sustainable.

Recognized for its flexible nature, adaptive leadership promotes continuous learning , innovation and resilience, forces that empower and move teams to readjust to rapid changes and internal and external threats.

This mindset and approach help managers lead in a dynamic context, cultivating crucial skills such as empathy, active listening and, consequently, agile and assertive decision-making in pressure environments.

This positive climate fosters organizational health, but also strengthens teams’ autonomy and sense of belonging, which is essential for talent retention. One of the greatest successes of Adaptive Leadership lies in its ability to develop new leaders.

With an organizational structure that promotes adaptive leadership and robust Governance, the company is halfway to success.

Corporate Governance provides companies with a structure and guidelines for more effective decision-making processes, taking into account the interests of shareholders, employees, customers and other stakeholders, thus making them better prepared to face uncertainties, unforeseen events and market crises.

The results are surprising but real:

• They improved financial performance, increasing efficiency, productivity and competitiveness in the market;
• They attract investors, increasing their market value and reducing the cost of capital;
• They identify risks and conflicts of interest more quickly;
• They strengthen company reputation and image, inspiring more trust and credibility among stakeholders;
• They promote social and environmental sustainability and compliance with laws;
• A company that knows how to adopt good Governance practices stands out from the rest, with professional, transparent and sustainable management.

But how do we achieve this good corporate governance in practice?

In addition to a holistic and receptive approach to change, the company must follow the following steps:

• Define the ethical standards that define the company's identity: What principles will guide the company's conduct, such as justice, mutual respect, integrity and honesty;
• Board roles and structure: it is essential that the board has well-defined guidelines and criteria for independence, diversity and expertise;
• Information transparency: Promote transparency through the disclosure of financial and non-financial information about companies' performance to interested parties;
• Accountability and control: Have a functional, regular performance feedback system with audits to oversee and hold executives and board members accountable for their decisions and actions.

After understanding these steps, the next step will be to ensure the effective implementation in the company. In addition to formal procedures, good governance requires a culture that values ​​ethical behavior, accountability, and the involvement of all stakeholders. How?

Encourage your company's leaders to lead by example and demonstrate the values ​​you communicate, such as integrity, fairness and transparency in their actions and decisions.

Promote open communication so employees and stakeholders feel they can voice concerns, provide feedback, and even report misconduct without fear of retaliation.

Recognize and reward employees who exemplify the company's values ​​and demonstrate commitment to adopting good corporate governance practices. IVENS can help you embed these principles into your organization's culture.

With the aim of accelerating the sustainable growth of companies, we help countless companies and their leaders respond to future strategic challenges on a daily basis, investing in their Governance models with solid management and leadership practices that create added value for the company.

Be the next company to take the leap in transforming its Governance structure!