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Why Informal Governance Works Until It Doesn’t

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Why informal governance works until it doesn’t: written policy says board papers circulate five days ahead, and practice quietly differs.

The symptom

Consider an organisation where board papers are supposed to circulate five days before each meeting, per written policy, and in practice are consistently sent out the day before. This has been true for long enough that nobody currently on the board remembers it being otherwise, though everyone agrees it is not how the process is meant to work.

What leaders usually conclude

The obvious conclusion is a discipline problem: whoever assembles the papers is not managing the timeline well, and the fix is either a reminder, a deadline enforced more strictly, or a different person doing the assembly.

What the evidence suggests

The situation is less settled than that conclusion assumes. It is genuinely true that the current reporting cycle makes five-day circulation difficult, because key data does not land until close to the meeting itself. It is also true that at least two comparable organisations, using a similar reporting cycle, manage to circulate on time — by drafting the narrative sections of the paper before the data arrives and integrating the numbers at the last moment, rather than waiting for the complete picture before starting to write.

Two explanations remain genuinely open at this point, and the organisation has not tested which one is correct. Either the policy is incompatible with how this particular reporting cycle actually works — in which case the honest response is to change the policy, not to keep failing to meet it — or the papers are being assembled in a sequence that could be restructured, in which case the deadline is achievable and has simply never been approached differently.

This is a specific case of a broader pattern in how informal governance degrades. What worked as an unspoken accommodation — “the papers are always a bit late, everyone knows to expect that” — becomes load-bearing without ever being examined, and it continues to work only for as long as lateness does not coincide with something that actually needed the full five days of review.

Competing explanations

Beyond the two readings already identified — structural incompatibility versus an untested sequencing fix — a third explanation is worth naming: that informal governance of this kind persists precisely because nobody has had sufficient reason to force the question. The arrangement is uncomfortable but survivable, and organisations tend to leave survivable discomfort unexamined until a specific incident — a decision made without adequate review time, a board member who did not have time to raise a material concern — makes the cost concrete rather than theoretical. Until that incident, both explanations remain equally plausible and equally unexamined, because the informal accommodation has never been expensive enough to justify testing it.

This pattern is rarely confined to a single accommodation. An organisation that has learned to tolerate one survivable gap between written governance policy and actual practice has usually developed several, because the mechanism that produces tolerance — discomfort that has not yet become costly enough to force examination — applies equally to any policy an organisation has not recently stress-tested. A board that has quietly accepted late papers for years is a plausible candidate for other quiet accommodations elsewhere in its governance calendar: pre-reads that are skipped, approvals sought after a decision has effectively already been made, committee memberships that have not been refreshed against current relevance. None of these individually looks urgent. Collectively, they describe an informal governance layer running underneath the formal one, tolerated for the same reason in every case.

A further consequence worth naming is reputational rather than operational: an organisation that has never tested whether its own stated governance timelines are achievable has, in effect, adopted a private standard lower than its published one, without formally deciding to. Should that gap ever surface externally — to a regulator, an investor, an incoming board member unfamiliar with the informal accommodation — it reads as a policy the organisation is not actually following, which is a different and more serious impression than the internal, comfortable version of the same fact.

There is also a useful distinction between accommodations that are genuinely harmless and those that only appear to be. A policy requiring five days’ circulation exists, presumably, because some material a board reviews genuinely benefits from that much lead time — a complex transaction, a contested strategic decision, a matter where a board member might reasonably want to consult outside the room before the meeting. The informal accommodation has been safe so far specifically because nothing requiring the full five days has yet coincided with the shortened cycle. That is a description of good fortune, not of a tested and validated process.

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Questions worth considering

  1. Has the constraint behind the recurring process gap actually been tested against how comparable organisations manage the same limitation?
  2. Which governance arrangement is currently surviving on an accommodation nobody has stress-tested — one that works until, on some particular occasion, it does not?

This perspective is part of Governance.

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What She Did That Nobody Wrote Down — informal governance
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Frequently Asked Questions

Not necessarily. What looks like a discipline problem can also reflect a genuine structural incompatibility between a policy and an operational reality, and the two require different responses.
One useful step is checking whether comparable organisations facing the same underlying constraint have found a workable approach — if they have, the constraint may be more solvable than assumed.
They typically persist because the shortfall has not yet coincided with a costly incident. Survivable discomfort is often left unexamined until something makes the cost concrete.
The main risk is that the accommodation is depended upon precisely at the moment it stops being adequate — for example, a genuinely contentious decision reaching the board without enough time for proper review.
It can be. An organisation that has tolerated one survivable gap between stated policy and actual practice has often developed similar, quieter accommodations elsewhere, since the same tolerance for unexamined discomfort tends to apply broadly rather than to a single policy in isolation.
The page notes that at least two comparable organisations using a similar reporting cycle do circulate papers on time. That suggests the constraint may not be unavoidable, although the page stresses that the organisation concerned has not tested which of the open explanations is correct.
It could. An organisation that has not tested whether its stated timelines are achievable has, in effect, adopted a private standard lower than its published one without formally deciding to. If that gap surfaced externally, to a regulator, investor or incoming board member, it would read as a policy not being followed.
Mainly because nothing requiring the full five days has yet coincided with the shortened cycle. The page describes that as good fortune rather than a tested and validated process, since the policy presumably exists because some material, such as a complex transaction, benefits from that much lead time.