When Cornerstone HR is called in to support businesses after something has gone wrong, there is usually a common theme; the warning signs were there, but nothing formal was in place to properly manage them.

Whether it is the misuse of company credit cards, informal decision-making, or low-level conflict that has suddenly escalated, these are rarely isolated incidents. More often, they are the product of unclear expectations, missing controls, or issues left too long without being addressed.

Trust is essential, but it is not a control

Essential to being a business owner, director, or executive is operating on trust. This is not a bad thing as trust is the foundation of strong working relationships. However, when you are giving someone access to sensitive information, payroll data, company funds, or operational authority, that trust must be supported by structure. It is about balancing empowerment with accountability.

Governance controls matter

Governance does not have to be complex or bureaucratic. It can be as simple as:

  • Setting clear approval processes for spending;
  • Having up-to-date policies around conduct, flexible work, or IT use;
  • Creating boundaries for decision-making authority; and
  • Requiring receipts or reconciliation for expenses.

Without these basic structures, leaders are relying on individual judgement and that can become risky when the situation gets messy or emotionally charged.

Why policies are essential (and often misunderstood)

Policies are often seen as boring paperwork or something that HR ‘must have.’ Done well though, they are far more powerful as they:

  • Reduce grey areas;
  • Give managers confidence in decision-making;
  • Provide legal protection; and
  • Allow organisations to respond consistently and fairly.

Good policy is not just compliance, it is culture-setting. It says “This is how we work here, and this is what you can expect.”

Early intervention is your secret weapon

Having the right policies or systems in place is the first step. Just as important is acting early when things start to drift. The conversation that takes place at the first sign of disengagement, poor performance, or blurred boundaries can prevent months of fallout. Too often, leaders hesitate when it comes to initiating the conversation thinking:

  • “I don’t want to upset them.”
  • “I’m sure it’ll settle down.”
  • “Let’s wait and see.”

Waiting rarely works. The issue becomes bigger, the impact wider, and the solution more complicated.

What should Boards and leaders be asking right now?

  • Are our governance controls fit for purpose?
  • Are people aware of and following company policies?
  • Are expectations clear, especially around spending, conduct, and flexible work?
  • Do our managers feel equipped to have early conversations?

Strong governance and clear policy are not just about limiting risk, they are about enabling performance, confidence, and alignment. They set the conditions for people to do great work, without the chaos, guesswork, or costly missteps.

If you’re not sure where your gaps are, or where to start, we can help. Find our articles helpful? Remember to follow us on Facebook, Instagram or LinkedIn to keep up to date with our practical tips and information for business owners and managers.