Reimagining governance: If the future had a board, purpose would be the chair

There’s growing recognition that our governance systems — in business, government and civil society — are not built for the complexity, urgency or interconnectedness of today’s world. But recognition isn’t enough. If we want economies that are more innovative, inclusive and sustainable, we must rewire how value is created — and how it’s governed.

Governance isn’t just a Boardroom issue

Governance has long been framed as risk management and regulatory hygiene. But in a world reshaped by climate shocks, AI disruption, geopolitical volatility and public distrust, that framing is obsolete. Governance must evolve — from control to contribution.

Here in Aotearoa New Zealand, we often speak of our agility, transparency and fairness. Yet many of our institutions still operate with static, siloed systems. Boards focused narrowly on short-term returns. Public agencies locked into linear planning cycles. Stakeholder engagement that’s more performative than participatory. What if we designed our organisations — companies, councils, ministries, co-ops — around a core purpose? A clear, actionable Single Organizing Idea (SOI) that unites decision-making, strategy and culture across silos. A shared north star that governs for long-term contribution, beyond quarterly compliance and political cycles.

This isn’t a utopian vision — it’s a governance design challenge. One that’s gaining traction globally, with new frameworks, metrics and standards reframing how organisations define success and legitimacy in a world that demands more.

Innovation is structural, not just technological

True innovation isn’t just about product breakthroughs or digital tools — it’s about rethinking the systems that allow innovation to flourish. That includes how boards function, how decisions are made, and how responsibility is shared.

Spencer Stuart’s Closing the Confidence Gap report makes this clear: Fewer than 1 in 4 CEOs believe their boards are providing the support they need to lead through rapid change. And while Directors believe they are offering the right mix of oversight and expertise, CEOs disagree — citing a lack of strategic partnership, contextual knowledge and space for honest, forward-looking dialogue.

In short: We have a perception gap. And it’s undermining innovation.

Give purpose a seat at the table

If we want governance to shape better futures, it must move beyond generic ESG rhetoric and into the real levers of power — charters, KPIs and reporting.

1. Board charters with purpose clauses
Purpose belongs in the board charter, alongside fiduciary and financial responsibilities. A simple clause can shift mindsets:



“The Board is responsible for ensuring that the company’s purpose acts as the guiding principle for all strategic and operational decision-making. The Board must also ensure that performance is evaluated not solely on financial outcomes, but on the company’s societal, environmental and stakeholder impact as aligned with this purpose.”

This turns purpose from a campaign into a commitment — and invites directors to steward it, not just sign it off.

2. Executive KPIs that reflect purpose
Boards have the power to reshape executive performance metrics. Tying bonuses and reviews to purpose-aligned outcomes sends a powerful signal that impact matters. It shifts incentives from short-termism to long-term contribution — exactly what our times demand.

3. Annual reporting that builds trust
Annual reports are often dense with data, yet light on meaning. Including a “Purpose in Action” section — with impact metrics, narrative context and even third-party assurance — builds stakeholder confidence and avoids purpose-washing.

In each case, the goal is the same: Turn purpose from positioning into practice.

Governance is where the future gets shaped

Yes, transforming governance is difficult. But the momentum is real. International standards are evolving, and across sectors, a new generation of leaders is demanding purpose — not as a slogan, but as a benchmark of legitimacy and progress.

New Zealand has a generational opportunity to lead here. To move from “clean and green” slogans to meaningful governance that shapes a regenerative, inclusive economy.

Because the future doesn’t just arrive. It’s governed into being.