Improving the perception of the company secretary

The company secretary (CoSec) is an integral part of the business, acting as governance watchdog and trusted adviser to the board. However, the breadth of the role is sometimes not fully understood within an organisation. This low profile could be due to the inherent nature of the role: that of discretion, trust and the “keeper of secrets”.

The role of the company secretary can be widely misunderstood within some organisations. Many see company secretarial teams as solely providing governance and compliance support which doesn’t truly represent their involvement within other projects at a strategic level.

Improving the perception of the company secretary is key to allowing these teams to add more value to businesses and gain credit for contributing to broader governance; however, in many cases, several challenges prevent this such as:

• Overwhelming workloads and limited resources
• A general misunderstanding of the CoSec role
• Too much focus on low-level admin tasks and not enough time for strategic objectives

How to evolve the skills of company secretaries for business success

Developing a company secretarial team’s skills can be beneficial in resolving some of the challenges they face.

Identify key stakeholders and build relationships

CoSec teams should integrate themselves into the business and build relationships to ensure that the wider business understands and values the role. It's also important that CoSecs act as facilitators, making governance structures robust, practical and easy to navigate.

Stay close to the board and committees

To improve strategic skills and step away from simply focusing on low-level admin tasks, all team members should attend board and committee meetings to take advantage of learning opportunities. More senior members of the CoSec team should already have strong relationships with the chair of the board and committees, and with key executive roles such as the CEO, CFO and investor relations. Being in the boardroom allows for first-hand observation of strategic discussions and planning, enabling CoSecs to develop their decision-making skills and do more than just take the minutes. Being able to engage with and be trusted by senior leaders provides an overarching view of an organisation.

Rotate roles and accelerate learning

Switching up roles and responsibilities within the company secretariat can significantly foster strategic engagement, developing the skills individuals need to contribute effectively to company-wide strategies. This approach also facilitates interactions with different colleagues, enriching company secretaries’ professional networks and enabling them to demonstrate their skills to stakeholders, whilst mapping stakeholders to understand their needs.

Alongside role rotation and shadowing, it's important that senior team members encourage learning and development among junior members to enhance their strategic decision-making capabilities and drive innovation to allow CoSec team members to take on larger roles outside of their daily tasks.

If you can add value, say yes

Outside of core responsibilities, the company secretariat can take on additional responsibilities for developmental opportunities. CoSecs should agree to take on projects outside of their core remit, but only those to which they can bring real value, demonstrating their usefulness within the larger business.

Improving the perception of company secretaries

Improving the understanding of the CoSec role is important to help add further value to the business.

Provide frequent regulatory updates

By providing regulatory and governance updates to the board and wider business along with insights on how these will materially impact the business, the perception of CoSecs will improve as their expertise and understanding of key areas will be more valued by stakeholders.

Present the CoSec function to other parts of the business

Carrying out “roadshows” to other parts of the business to present what the CoSec function does could positively change perceptions. CoSec teams should act as business partners and enablers to help the business achieve its strategic objectives.

Use KPIs to demonstrate value

While it can be difficult to use metrics to show the qualitative value of the CoSec, when demonstrating quantitative value, it may be worth applying KPIs to measure the effectiveness of the CoSec function. These results can then be directly shared with stakeholders, improving perceptions of the CoSec’s business-wide value.

Creating operating models to deal with workloads

One of the main issues is that the CoSec often has too much to do and not enough time to do it all. Establishing ways to help effectively deal with workloads, such as conducting a review of the team’s structure and remit, and establishing target operating models offer a good solution to this.

Embrace technology

Given the nature of the company secretary role, there is immense strain on these teams, and limited resources means it can be challenging for CoSecs to find the time for extra projects. With labour costs on the rise, and technology costs falling, there are opportunities to invest in technology and automate standard processes to save CoSec teams time and money.

CoSec teams can use AI for simple tasks, improving efficiency and freeing up more time to pursue additional assignments. However, to avoid overspending on technology and various services from multiple providers, investing in technology-based skill sets may be wiser. Furthermore, not all CoSec practices can be automated, meaning selectivity is crucial when implementing technology to boost processes. Focus on key manual pain points that can be simplified and enhanced with technology.

Outsource support

When in-house skills fall short or capacity is stretched thin, outsourcing to third-party CoSec providers can be a great solution to help CoSec teams maintain good governance. Third-party providers can offer ad-hoc project support through to fully outsourced solutions, providing expert advice and support. By developing effective hybrid models where a provider’s technology and infrastructure are leveraged, businesses can respond effectively when needed. To get outsourcing right, it’s important to discern the critical stages at which external support is necessary, focusing more on what activities can be outsourced rather than the timings of outsourcing.

Enhance your entity governance with Computershare

Computershare's governance and company secretarial experts bring insight into best practices and provide high-quality interim and outsourced support for CoSec teams. Our experts work with you and act as an extension of your existing team, covering all governance and compliance bases while assessing and improving processes to help you work as effectively as possible.

Alongside support for the company secretariat, Computershare can assist with your broader governance and compliance needs. Supported by insightful entity technology, Computershare Entity Solutions helps you mitigate risks, control costs, and stay ahead of change.

To learn more about how we can assist with all your entity compliance and governance needs, get in touch.