Dr Judith MacCormick
Governance Advisor; Chair; Director; Partner
December 7, 2025
We often talk about good governance in terms of manuals, checklists, and committees. This is the Tangible side – the means to compliance.
But the real challenge, as Dr MacCormick asserts, lies in a critical paradox: Effective governance is not about the existence of tools, but the Intangible reality of Enacted Behaviours (when nobody is looking).
If your board focuses purely on compliance, governance becomes bureaucratic overhead – the antithesis of innovation. When the board’s mindset and actions align with the mission, it transforms into a powerful catalyst for growth.
Introducing Minimal Viable Governance (MVG)
MVG is a pragmatic framework that shifts the board’s focus from unwieldy manuals to high-impact, strategic decision-making. Inspired by the MVP concept, MVG is about implementing only the value-adding processes necessary for sustainable growth.
The MVG Core Tenets
- Simplicity: Implement only key governance processes that add value; avoid unnecessary complexity.
- Flexibility: Adapt frameworks to changing circumstances and support autonomy.
- Proportionate Investment: Scale governance investment to the size and stage of the enterprise.
- Value Focus: Align all governance activities to mitigate critical risk and add strategic value.
- Empowerment: Encourage self-governance by empowering teams to own processes and decisions.
The 4 Foundations of Enacted Governance
The board must consistently practice four key behaviours to ensure a strong, purpose-led organisational culture emerges:
I. SET: Purpose, Values, and Strategy (The Guiding “Why”)
This is the fundamental foundation. Directors must own and share a clear understanding of the ‘why’. This includes:
- Routinely evaluating the organisation’s fundamental purpose and values.
- Setting and adjusting the risk appetite in alignment with strategy, encouraging necessary risk-taking.
- Acting as sense makers, bringing a helicopter perspective across the competitive landscape.
II. SHAPE: Systems and Processes (Formalising the “How”)
Tangible tools must be custom-made to support the purpose.
- Board Pack: Utilise a single-page summary (Vision, Values, Strategic Pillars) as the front-page focus for all meeting discussions and decisions.
- Innovation: Ensure risk management systems focus on mitigating risk AND leveraging the opportunities they highlight.
- Talent: Explicitly align executive remuneration with the organisation’s priorities and values.
III. MONITOR: Reporting and Communication (Ensuring “What” is Happening)
Effective decision-making requires quality insights, not quantity.
- Insights over Data: Demand concise, data-powered insights. Frame reports around Strategic Performance Indicators (SPIs) – outcomes important to all key stakeholders- not just operational KPIs.
- Independent Verification: Obtain comfort from multiple sources independent of management (e.g., walking the floor, reading social media).
- Risk: Respectfully ask for “show me, don’t just tell me” comfort that risks are being effectively managed.
IV. MODEL: Tone from the Top (Living the “Who”)
This is the most critical driver of cultural value. The board sets the tone through demonstrated actions.
- Live the Values: Directors must live the values inside and outside the boardroom and challenge ‘shadow values.’
- Constructive Tension: Role model ‘learn-it-all’s not ‘know-it-all’s by asking curious, challenging questions that build trust.
- Resilience: Be adaptable and willing to consider non-traditional collaborations.
The Strategic Imperative
When these four MVG foundations align, they create a strong, purpose-led organisational culture. This is why governance shifts from a cost centre to a Value Generator.
The goal is to move the board’s maturity from Ad Hoc (compliance-dominated, low-trust) to Leading/Generative, where it functions as a collective intelligence system – proactively sensing emerging risks and opportunities.
The shift from compliance-driven to purpose-led governance defines the Enlightened Board. By adopting the MVG mindset, your organisation enables tangible tools, driven by the right intentions and behaviours, to unlock strategic, sustainable value.