074 - Shadow Governance – Where Decisions Are Really Made

The Human Factor: Corporate Integrity Matters

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29d ago 7:15

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In this episode Sonja Stirnimann explores the concept of shadow governance, the informal influences that shape decision-making in organizations. It highlights the risks associated with unacknowledged power dynamics and the importance of transparency and trust in leadership. The discussion emphasizes the need for board members and executives to recognize and address these hidden influences to ensure integrity in governance.

Takeaways

• Shadow governance exists in the informal layer of leadership influence.

• It can be dangerous when left unchecked, leading to unchallenged decisions.

• Social capital and legacy authority are key drivers of shadow governance.

• Transparency involves understanding the informal rules of decision-making.

• Silence in meetings often masks real tensions and disagreements.

• Governance should prioritize equality of contribution over title.

• Recognizing informal influences is crucial for effective governance.

• Trusting instincts about boardroom dynamics is essential.

• The most significant risks may not be documented in formal reports.

• Engaging in open dialogues can mitigate the effects of shadow governance

IMPORTANT LINKS AND MENTIONS

The following episode might be also of interest for you:

033 – Biases in the board room

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