Styreform

Styreform is the process by which governance bodies, typically boards of directors or equivalent steering committees, undergo reform to improve their effectiveness, accountability, and legitimacy. The term is used in Norwegian and Danish contexts, and similar concepts exist in other jurisdictions under “board reform” or “governance reform.”

Scope and actors: It can apply to private companies, public sector organizations, cooperatives, and non-profit entities. Reforms may be initiated by owners, shareholders, legislators, regulators, or senior management, and are often part of broader governance or organizational reform programs.

Common elements: Reforms often address board composition (independence, expertise, diversity), appointment and removal procedures, term limits, and board size; clarified fiduciary duties; risk management and internal controls; remuneration disclosures; regular evaluation of board performance; improved information flows; greater transparency to stakeholders; and succession planning.

Motives: The aims include strengthening accountability, reducing agency costs, improving strategic oversight, aligning with regulatory standards and international best practices, ensuring better risk oversight, and enhancing stakeholder trust.

Impact and challenges: Effects vary by organization and context. Potential benefits include better decision-making and performance, while challenges include implementation costs, organizational culture resistance, risks of superficial compliance, and the danger of reducing governance to checkbox criteria rather than genuine reform. The success of styreform depends on clear objectives, genuine stakeholder engagement, and sustained commitment to changes in both structure and process.