How to ensure proper governance when scaling a business

By Sophie Spells, Head of Legal, Data and Compliance at RCK Partners.

As businesses grow, they encounter increased complexity and risk, and attract greater scrutiny from stakeholders. In this environment governance, which is defined as the system of policies, processes, and structures that direct and control an organisation, shifts from being a strategic advantage to a necessity.

However, governance is much more than how it is typically defined. It’s the framework that guides how decisions are made, how risks are managed, and how accountability is upheld. Without it, regulatory failures, reputational damage, and internal inefficiencies can all threaten the success of a business.

When I joined RCK Partners as Head of Legal, Data and Compliance, one of my first priorities was to evaluate the current practices and governance within the business and ensure we had in place a clear governance plan for the future. Through this plan I sought, not only to protect the business as it scaled, but also empower our people, strengthen trust with clients, and support long-term growth.

In this article I outline five essential pillars of effective governance which I have used when scaling RCK and which I believe can be applied to any organisation preparing to do the same.
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1. Start with a transparent, company-wide review

Governance always starts with transparency. Performing an early governance review during the initial stages of development is crucial in comprehending the intricacy of the existing controls, risk mitigation approaches, and legislative compliance frameworks. This review should be business-wide and must evaluate everything from data protection and financial reporting, to health and safety protocols and employees' grievance mechanisms.

Having conducted this review, a full plan can be drafted outlining what is working well and where there is room for improvement. Writing this plan will enable teams to establish key steps to take to ensure governance is at the heart of their practices. Without this baseline, it’s difficult to begin to move forwards, or to track progress across the business over time.
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2. Use ISO 37000 as a baseline

Approaching governance for the first time can be a daunting task. Every organisation will do it differently, but there’s ample resources on the best ways to embed good governance into a business, with one being the ISO 37000. It’s an international standard that outlines principles of good governance, including ethical leadership, accountability, and risk oversight.

Reading the ISO 37000 offers an excellent baseline when learning to effectively manage the governance of an organisation.
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3. Educate and empower your people

Although in my role I define and set the governance standards, it is the responsibility of everyone in the business to uphold these standards.

To ensure that everyone understands their responsibilities and company standards, it is essential that every employee completes mandatory onboarding training on governance practices, followed by regular refresher courses. For example, finance staff should receive training on audit procedures, while HR must be knowledgeable about employment law and diversity policies.

When people understand why governance matters, they’re more likely to raise issues early, suggest improvements, and make decisions that align with our values. I find that integrating governance procedures into progression plans and KPIs ensures that it keeps individuals within the organisation invested in this.
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4. Bring in non-executive oversight

It’s also important to remember that implementing good governance practices is not something you have to do on your own. Non-Executive Directors (NEDs) are legally responsible for the governance of a firm. They offer impartial oversight, strengthen accountability, and bring strategic and regulatory expertise.

At RCK Partners we’ve appointed two NEDs, Lord Philip Hammond and Lord Iain McNicol, who sit outside of the daily running of the business. Their oversight adds valuable objectivity and strengthens our governance as we grow.
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5. Make governance an ongoing process

Once the review has been conducted, the findings have been processed, and the plans are in place, it’s important to be continuously monitoring to ensure the newly established processes are working as effectively as possible. Regular check-ins conducted as audits are essential to evaluate pacing to KPIs.

These act as an opportunity to evaluate if the KPIs are still fit for the purpose, reveal blind spots or new areas of interest and to reinforce accountability.

Final thoughts

There’s often a misconception that governance slows down innovation or adds bureaucracy. In reality, it does the opposite. A clear governance framework gives leaders the confidence to act boldly, knowing risks are managed. It reassures clients and investors that the business is run responsibly, and it creates a more transparent, inclusive culture where people feel empowered and protected.

Good governance is often invisible when things go well, but it’s always the foundation for sustainable growth. As businesses scale, investing in the right governance systems, culture, and people is not just smart, it’s essential.

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