The quality of governance often determines whether an organization can withstand disruption, adapt to change and remain trusted by the people it serves. While large corporations have the benefit of structured boards, policies, and advisory networks, many small and medium enterprises (SMEs), non-governmental organizations (NGOs) and startups operate informally. In many cases, boards function more as symbolic entities than strategic enablers.
The Professional Directors Program (via ICD.ph) I recently attended, emphasized that effective boards are not about prestige or procedure. They are about people. The composition of a board matters just as much as its structure. The modern board is not a table of figureheads; it is a high-functioning team tasked with strategic oversight, ethical leadership and responsible decision-making. This applies not only to conglomerates and listed firms but to every organization serious about sustainability and impact.
Many SMEs and NGOs in the Philippines still rely heavily on founder-driven leadership or a close circle of advisors. While this can create agility and strong internal trust, it may also result in blind spots, unchecked risk, or a lack of strategic challenge. Boards in these settings must move beyond loyalty and convenience and start seeking directors who bring independent thinking, relevant expertise and a commitment to mission alignment.
Startups, especially those entering regulated industries like fintech or e-commerce, will increasingly be held to higher governance standards. Investors and regulators are beginning to ask who sits on the board, not just who built the product. A well-composed board can become a startup’s secret weapon. It can guide founders through scaling pains, ethical dilemmas and strategic pivots. But this only works if the board is built intentionally.
What does that mean in practice? It means selecting board members based on what the organization needs, not who is most convenient. It means onboarding directors who can engage in strategic conversations, challenge assumptions, and help navigate uncertainty. It means instituting basic governance principles: conflict of interest declarations, independent oversight on financial decisions, performance reviews of leadership and succession planning.
None of this requires a huge budget or a complicated bureaucracy. Even small organizations can create board charters, conduct annual director evaluations, or assign committees to oversee critical areas like finance, programs, or compliance. Governance is scalable. It is not about replicating the size of big boards. It is about applying the discipline and intent that make them effective.
Having the right people on your board does not mean they know everything. It means they ask the right questions, bring diverse perspectives and uphold the values your organization stands for. Good governance begins when boards are composed with the same care and foresight that goes into choosing a business partner, hiring a chief executive officer, or launching a new service.
Whether you lead a startup looking to expand, an non-government organization scaling impact, or an SME planning succession, ask yourself: Who is in the room when the big decisions are made? If the answer is only insiders or old friends, it may be time to open the door to new voices. Good governance always starts with the right people.