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Countries and governments are inclined to set up organizations with a special mandate that aims to drive, lead and coordinate the required preparation to deliver mega projects such as Dubai Expo 2020, FIFA World Cup Qatar 2022™, NEOM etc. Such organizations are set up with a clear vision and ultimate objective that will require to be achieved in the medium and short-term – typically within a span of 10 years. The organizations will operate under a strict mandate and timelines with high strategic and reputational risks should there be any deviation. We refer to these as ‘special-purpose organizations’.
To enable special-purpose organizations to achieve their objectives progressively, they require effective governance which instills consistent alignment with the strategic objectives, sets the tone at the top and cascades the direction of the various functions of the organization. From start to finish, effective governance ensures that the organization remains on track to achieve the end goal.
But why is governance so important when this is a special-purpose organization and investing in governance could sound secondary, as opposed to direct investment in underlying preparation?
Another point of view may emerge, does governance not just mean more bureaucracy which entails time and cost? What value can governance really deliver?
Various value drivers call for an effective governance structure for such special-purpose organizations. There is a lot at stake for the organization and the pursuit brings excitement for the organization, coupled with pressure to deliver. The fine margins between success and failure can be measured by any number of factors – economic, environmental, legal, political, social, technological etc. Reputational risk needs to be considered globally, and is especially important in the Middle East region.
There are various value drivers of which five are listed below that are sought after by special-purpose organizations to achieve effective governance for delivering mega projects:
An effective governance framework is essential to support the organization in being uniquely positioned to steadily progress towards achieving its objectives while maintaining the protection of the interests of all the stakeholders in the organization i.e. shareholders, governing bodies, employees, customers, vendors, regulators, the community etc. It will support such organizations to promote transparency and clearly articulate the division of responsibilities among different authorities.
The views and opinions expressed herein do not represent nor reflect those of Deloitte & Touche (M.E.) LLP (DME). Opinions, conclusions and other information in this blog post which have not been delivered by way of the business of Deloitte & Touche (M.E.) LLP (DME) are neither given nor endorsed by it.
Dina is the Partner leading the Risk Advisory Services in Qatar. She has over 14 years experience in strategic and operational risk with various industries. Dina has worked with various leading private and public sector organization –primarily government and pubic sector as well as financial insititutions and regulators. She has extensive experience supporting organizations on various offerings such as Internal Audit review and capacity building, Compliance and Regulatory Compliance & AML, Regulatory Inspections, Enterprise Risk Management, Internal Controls, Sustainability, Risk and Internal Control Optimization, Corporate Governance review and Development among others. Dina is also a mentor as part of Deloitte’s D-180 Mentoring program under corporate social responsibility and represents the Risk Advisory on the People and Purpose Council/ Committee. Dina holds professional certification CISA and CFE and she has completed her ISO 31000 and Harvard leadership Essentials Program in addition to her education in Computer and Computation Sciences and Business Administration. She is fluent in both English and Arabic.