It's not easy, but it's the way
*Per Diogo Vasconcellos
Imagine the following scenario: you're starting a new business and need to get everything organized. On the other hand, a good plan doesn't guarantee that the processes, controls, and structures will be in place; these evolve as the business matures.
Therefore, identifying the level of governance appropriate to the startup's stage is essential.
According to the Brazilian Institute of Corporate Governance (IBGC), governance is a fundamental element for every company; it determines its operations: management, incentives, and stakeholder relationships. Small or newly formed companies require some level of governance (IBGC, 2019).
Understanding the types of companies, we can see that an incumbent is already established, with its resources, structures, and market presence. Conversely, startups, typically newly created, are technology-based, and possess a high level of flexibility and agility, which differentiates them from incumbents. Compared to startups, incumbents have a more sophisticated level of governance.
For startups, the only certainty is uncertainty, especially in the early stages, and it is possible to develop a governance thesis: "An evolutionary order as a prerequisite for healthy development."
Evolutionary and adaptive governance reduces risk, helps raise funds, and builds the foundation for growth. Flexibility and adaptability are the name of the game. (IBGC, 2019), (KPMG India, 2024).
The IBGC (2019) points out a governance structure according to the startup's stage:
Returning to the title, "Order and Progress...", it is possible to affirm that, although not entirely linear, a gradual and strategic order is fundamental, maintaining focus on what is important at the moment and evolving according to the startup's stage.
It's not easy, but it's the way.
*Diogo Vasconcellos is an IT and Digital executive, Angel Investor and Startup Advisor, member of Anjos do Brasil and Leader of the Startup Committee of the Brazilian Association of Software Companies (ABES). He was elected IT Executive of the Year in Agribusiness and Related Services (IT Forum) and Outstanding Executive in Artificial Intelligence (7th Experience) in 2024. He is the author of the book "Technology Leadership in Complex Scenarios," published by Editora Brasport (2025).
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
Article originally published on the IT Forum website: https://itforum.com.br/colunas/ordem-e-progresso-sera/
References
IBGC. (2019). Corporate governance for startups & scale-ups. Brazilian Institute of Corporate Governance. www.ibgc.org.br
KPMG India. (2024). Foundations of governance: Building a solid framework for start-ups and investing partners. www.kpmg.com
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