A board of directors – or any governing body – has responsibilities that must be fulfilled. These aren't simply to the laws of Botswana, but also to universally acclaimed best business practices. And these responsibilities apply equally to boards whether large and small. With the help of our corporate governance specialists, you'll be well-placed to meet all of these responsibilities.
As is the case with audit, it is a good idea to voluntarily accept corporate governance practices. After all, why wait for these ideals to be forced on you by the Botswana Accountancy Oversight Authority (BAOA)? It makes sense to get ahead of the game and take the initiative. But how to get started? By calling upon RSM's expert corporate governance specialists for help and advice.
Who can benefit from our corporate governance and business coaching services?
In the first instance, there's no excuse to ignore corporate governance practices if your shares are publicly traded. The same applies if you operate in the banking or insurance sectors – or if you are a public interest entity (PIE). This is where two of the four BAOA criteria are met:
- Turnover of P 200 million or more
- Employees being 200 or more
- Liabilities of P 50 million or more
- Total assets of P 150 million or more
This is important because this puts you under BAOA corporate oversight. Once this happens, it means your corporate governance practices will be subjected to quality assurance. And it's this scenario in which our highly skilled specialists can add the most value to your organisation.
King 3 and King 4 corporate governance practices explained
The King 3 Corporate Governance Code is widely practised in Botswana. Now, some companies have moved to King 4.
With the King 3 Code, there are 75 specific requirements to consider for inclusion – or omission. When a decision is made not to implement, the reason must be specified in writing. As a result, King 3 is a "Rule Based Code" that imposes a "Do or Explain" requirement for all 75 rules.
On the other hand, King 4 is a principle-based Code that contains 16 key principles built around from four components: strategy, policy, oversight, and accountability. The components are then applied to four outcomes: leadership, performance, quality, and legitimacy.
In comparison to King 3, King 4 calls for "Do AND explain".
For all Botswana PIEs, King 3 must be satisfied as a minimum in accordance with BAOA rules.
Moving from entrepreneurship to corporate citizenship
No matter the size or type of ownership of your business, corporate governance matters. This is because value comes from separating ownership and management – even if it's concentrated in one group of people. It provides the much-needed direction and accountability in terms of your policies and procedures. And this is something that any business needs.
Employees and business owners should be clear about their strategies. Corporate oversight is a function that's different from investment and management. So, it should be independent of any investment or management functions. And, as a business owner, you should also be a leader – with the legitimacy and freedom to focus on quality and performance.
Our team can help your corporate citizenship efforts as you become a more socially responsible business. We can help you instil the behaviours expected of you by all other stakeholders – be they employees, the Government, local communities, customers, or suppliers. RSM prides itself in going the extra mile to support all our clients with adopting good governance practices.
The development of entrepreneurship
Business coaching and mentoring
Most entrepreneurs know what their business does (or what it should do). Unfortunately, many don't know how to build a business so that it can run independently of them. By being a part of their business, they make many key decisions by themselves. The risk is that most of the time, this practice slows things down. As a result, it restricts the growth of the business.
This may not be a big secret. Yet, the question is: "Do you get time to be reminded of having to detach yourself from your business?". In most cases, the answer is no. This is when it can be so beneficial to use business coaching and mentoring services. And that's what RSM can offer – the chance for entrepreneurs to grow and to help their business do so too.
With RSM's business coaching services, you "dream big, start small but do now". Being a coach means we'll carry out monthly (if not fortnightly) consultancy. This is to ensure you're following the pre-set growth plan that you built with us. You'll need our experts to visit you periodically too. It means we can take you from A to B, while you take those persistent efforts.
You are a superb entrepreneur not because you know what you know, but because you do what you do. You perform, implement, and execute what you know. And with our business mentoring services, RSM can drive you and your business to success.
Business restructure plans and business model canvas
RSM uses a business coaching framework so that we don't lose the thread. If you're a steady, established company, it's called the 6M framework – or the 6 Capital approach: Men, Materials, Management, Market, Money, and Machines.
But what if you're a start-up or a growing business? For this, we use a Business Model Canvas. The areas covered by this include:
- Customer Segment
- Value Proposition
- Customer Channel
- Customer Relations
- Revenue Stream on the revenue or returns side
- Key Partners
- Key Activities
- Key Resources
- Cost Structure on the other hand for investment or expense side.
It's carried out over a period of time with your involvement in order to lift your business to the next level. And it's an assignment that can form part of a business coaching process too.
Business valuation services
Our business valuation specialists provide invaluable support in placing an accurate value on a business or its shares. Under IFRS, you'll need fair values of investments to prepare compliant financial statements. You'll also require a fair market value of your business in order to sell.
We know you don't like us dropping your valuation report, however. So, if you're selling, we'll walk you through the whole process until you get the cheque in your hand.
Talk to us about your corporate governance needs
- Download our printer-friendly corporate governance brochure (.pdf)