Experts from more than 70 countries around the world have prepared the ISO 37000: 2021 standard for the management of organizations, which can become the standard of good governance for organizations and businesses. The ISO 37000 standard can help a business to be sustainable and make it look more attractive to customers and contractors.
The modern realities of an open world economy pose new managerial tasks for business to ensure sustainable development and survival in a competitive environment. Business today sets goals not only for financial results, but also for managing resources, personnel, internal and external policies of the enterprise. All this forms the image of a modern company, ready for sustainable development, despite changes in the external environment, which takes care of the environment and its own personnel, adheres to the customs of modern society in foreign and domestic policies, and maintains long-term relationships with customers and contractors.
The ISO 37000 standard, collecting positive experience from more than 70 countries around the world, is a set of tools for managing organizations aimed at:
- Improved long-term value for beneficiaries or stakeholders. The organizational oversight management toolkit helps to ensure consistency between the organizational goal, strategy, business performance and the UN Sustainable -Development Goals. This package of measures will improve the creation of asset value for beneficiaries or stakeholders.
- Effective resource stewardship. Information resource management, information disclosure management, common terminology concepts, transparency in decision making, accountability and limitation of executive powers – all contribute to increasing the level of trust in the responsible management of the organization’s resources.
- Improved organizational resilience and performance. Methods of strategy adaptation, ethical leadership, effective succession planning, delegation of authority and responsibility, risk management and internal control will help the organization to remain resilient in the face of changing environmental factors and market conditions.
- Improved decision-making effectiveness. Clarity and transparency of accountability, responsibility and delegation of authority – allows you to increase the speed of decision-making, actions and results in the organization.
- Improved personnel composition and retention. The development of intangible values of the organization, such as fairness and transparency, the formation of intangible motivation of personnel, effective and ethical leadership – allow you to form a stable workforce and retain valuable employees in the organization.
- Increased investor and creditor confidence. Effective governance, oversight, holistic decision-making, transparency, sustainability management, and management confidence are factors that increase investor and lender confidence in an organization.
- Increased value of intangible assets. Reputation, public image, public trust – these are the factors contributing to the increase of the company’s value. Governance is ensured by applying principles that help the organization fulfill its organizational objectives and thereby create value for the organization and its beneficiaries and stakeholders.
The figure provides an overview of the management of organizations and the management principles and results set out in ISO 37000. These components may already exist in whole or in part within the organization. However, sometimes they need to be adapted or improved to ensure that the organization’s governance remains effective, efficient and consistent with its unique and dynamic nature and context.
The standard and its tools can be of interest to any developing company that wants to strengthen its position and enter new sales markets. Given the comprehensive principles from sustainable development to HR management and intangible assets, the implementation of the standard at the enterprise can increase the level of business development and reduce the risk of default.
ISO 37000 was developed by Technical Committee ISO / TC 309, Management of organizations (UK) and is available on the organization’s website.
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