The 5 Principles Of Self-Governance For Executives And Business Owners (2025)

Carlos Hoyos is Senior Global Executive Coach and Business Advisor at Elite Leader Institute.

"I delegate, but my team just doesn’t take responsibility!"

That was the frustration of a business owner who recently sought my guidance. Production delays, inefficiencies and an overreliance on his intervention were slowing down the company. Despite his delegating tasks, his team wasn’t stepping up. He blamed them for not taking ownership—yet he hadn’t established the structure for them to succeed.

Our exchange went something like this:

Business Owner: "I hired good people, and I delegate, but they don’t own the work. I can’t step away for a second without something going wrong."

Me: "Are you governing or just handing off work and hoping for the best?"

Business Owner: "I expect them to figure it out."

Me: "That’s not governance. That’s wishful thinking. Leadership isn’t just about delegation—it’s about installing governance so execution happens without your intervention."

This is a common challenge for business owners and executives who struggle to step out of daily operations. The problem isn’t a lack of capable people—it’s the absence of governance. Leaders expect their teams to self-organize, but without personal discipline in leadership, they create dependency instead of autonomy.

Governance starts at the leadership level. It's built on five key principles: accountability, integrity, transparency, equity and sustainability. These principles define how leaders create clarity, structure and ownership in their organizations. Without them, leadership remains reactive and organizations remain dependent.

The Five Pillars Of Self-Governance

Before leaders demand governance at the organizational level, they must first apply it to themselves: installing systems, setting clear expectations and ensuring leadership operates beyond individual effort. Below, I'll outline the five pillars of governance and how leaders can move in this direction, illustrated by dialogues condensed from sessions with real clients.

1. Accountability: Owning The System, Not Just The Results

Many business owners assume that assigning tasks creates accountability. They expect employees to take ownership without clearly defining responsibilities, tracking progress or reinforcing expectations.

Me: "Do your people have a structured way to track their responsibilities, or are they just reacting to issues as they come?"

Business Owner: "They should know their jobs."

Me: "Governance means making it impossible to ignore expectations. No clarity, no accountability."

Leaders who fail to establish accountability find themselves constantly putting out fires rather than focusing on long-term strategy. Without structured accountability mechanisms, the leader remains the default firefighter—stuck in an endless cycle of crisis management.

Governance demands a structured approach to accountability:

• Clearly defined roles and responsibilities for every team member

• Performance metrics that are consistently measured and reviewed

• A culture of ownership, where individuals take responsibility for results, not just tasks

Without personal accountability, leaders will always find themselves solving problems instead of building sustainable execution.

2. Integrity: Leading With Consistency

Integrity doesn't just mean ethical decision-making—it means ensuring leadership's actions align with the systems they create.

Me: "When something goes wrong, do you look at why the system failed, or do you jump in and fix it yourself?"

Business Owner: [pauses] "I usually just fix it."

Me: "Then you’re reinforcing dependence, not governance."

Leaders who lack integrity in governance often make exceptions, allowing certain team members to bypass processes or avoid accountability. Over time, this creates a culture where people expect leadership to step in and fix problems rather than taking proactive responsibility.

Governance requires a disciplined approach to decision-making, delegation and follow-through:

• Are expectations enforced consistently?

• Do leadership actions reinforce stability?

• Would decisions withstand external scrutiny?

If leadership lacks consistency, teams will follow that instability.

3. Transparency: Making Expectations Unavoidable

Executives often assume that because they understand the vision, their teams do, too. However, unspoken priorities lead to misalignment.

Me: "If I ask your team what your biggest priorities are, will they all say the same thing?"

Business Owner: "Probably not."

Me: "Then you don’t have governance. Governance means priorities are clear without constant reminders."

Transparency ensures that everyone in the organization understands expectations, processes and priorities.

• Are company goals and expectations communicated consistently?

• Do employees have access to critical decision-making information?

• Does the culture encourage questions and feedback?

When transparency is weak, execution becomes fragmented, and employees default to waiting for instructions instead of taking action.

4. Equity: Distributing Leadership, Not Just Work

Delegation without governance results in uneven responsibility distribution.

Me: "Do you delegate based on who’s best for the job or who’s easiest to assign it to?"

Business Owner: "I pick the fastest solution."

Me: "That’s not governance—that’s firefighting."

Many business owners unknowingly centralize decision-making, unintentionally limiting the development of their teams. This creates bottlenecks, where employees hesitate to act without approval.

Governance requires a fair and structured approach to distributing responsibility:

• Are responsibilities distributed to develop future leaders?

• Are promotions based on merit or convenience?

• Is the leadership structure built to scale or create dependency?

When equity is not valued, organizations struggle with retention, engagement and long-term growth.

5. Sustainability: Future-Proofing Leadership And Operations

The true test of governance is whether an organization can sustain execution without dependency on specific leaders.

Me: "If you stepped away for a month, would the business operate at the same level?"

Business Owner: [laughs] "Not a chance."

Me: "Then you’re managing, not governing."

Sustainable leadership ensures that execution continues beyond individual presence. Governance must be designed to reduce dependency, reinforce systems and guarantee long-term stability:

• Can the company run effectively without key leaders?

• Are processes and succession plans documented?

• Will leadership sustain performance beyond current executives?

When sustainability in governance is ignored, businesses remain reactive and leadership becomes indispensable instead of strategic.

Governance Starts With Leadership

Executives often focus on governance structures, but governance must begin with leadership to be truly effective. Leadership should:

• Model accountability before enforcing it.

• Maintain integrity to ensure alignment.

• Make transparency clear and consistent.

• Ensure equity by distributing leadership responsibility fairly.

• Build sustainability to reduce dependency.

Governance isn’t about policies—it’s about leadership discipline.

Are you leading with governance or just hoping for the best?

Forbes Coaches Council is an invitation-only community for leading business and career coaches. Do I qualify?

The 5 Principles Of Self-Governance For Executives And Business Owners (2025)

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Velia Krajcik

Last Updated:

Views: 6416

Rating: 4.3 / 5 (74 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Velia Krajcik

Birthday: 1996-07-27

Address: 520 Balistreri Mount, South Armand, OR 60528

Phone: +466880739437

Job: Future Retail Associate

Hobby: Polo, Scouting, Worldbuilding, Cosplaying, Photography, Rowing, Nordic skating

Introduction: My name is Velia Krajcik, I am a handsome, clean, lucky, gleaming, magnificent, proud, glorious person who loves writing and wants to share my knowledge and understanding with you.