Tools for Agribusiness Governance

Governance Matrix

What do owners of Agribusinesses want from governance?

Tricker’s Model 1986

• Clarify and confirm the business purpose and direction
• Assist and support making “big decisions”
• Direct and monitor operations
• Identify and manage key risks

Family Business Roles & Governance

Aronoff and Ward 1996

1. Family that work in the business and have ownership
2. Family that work in the business and don’t have ownership
3. Family that don’t work in the business and have ownership
4. Non-family that work in the business and have ownership
5. Non-family that work in the business and don’t have ownership
6. Family members that don’t work in the business and don’t have ownership
7. Non-family that don’t work in the business and have ownership

Roles & Functions in Agribusiness

Operations & Management are the areas of an agribusiness where owners tend to spend most of their time. Governance deals with clarifying the purpose & direction, makes the “big decisions”, monitors and holds management accountable for performance, and ensures risks are identified & managed. Effective governance requires the owners to provider clear guidance on their intentions and expectations of outcomes they require from their ownership in the business.

The Formation of Good Governance

Copyright Peter Allen, BTSL 2015

When Purpose (Why) inspires the How and What of governance, Good Governance can be birthed. The What of governance cannot bring about a Safe Zone, nor can it be the Purpose.The likelihood of Good Governance is very small if there is neither a clear purpose nor a Safe Zone.

Governance Team Workplan