Executive Under Pressure: When Corporate Governance Becomes a Risk to Business Performance
- psimi4
- Dec 9, 2025
- 2 min read
When governance becomes an issue, performance is already under strain
In many SMEs and mid-sized companies, corporate governance is not viewed as a performance lever, but rather as a secondary concern. Yet it is often where the first vulnerabilities appear.
Delayed decisions, unclear trade-offs, latent tensions within the executive committee... When these signals persist, they inevitably begin to affect day-to-day operations. The CEO or managing director then finds themselves under constant pressure, caught between operational urgency, shareholder expectations and teams in need of clear direction.
Growing complexity without adequate governance
As companies grow, their nature inevitably changes. Organisations become more complex, responsibilities more fragmented, and financial and human challenges more demanding. Yet governance structures often remain based on initial models designed for a much simpler organisation.
This mismatch creates friction. Decision-making slows down, becomes less transparent and, at times, contradictory. Ultimately, the company’s ability to execute effectively is weakened.
The early warning signs of failing governance
A governance crisis does not necessarily manifest itself through open conflict. More often, it reveals itself through a loss of alignment.
The executive committee no longer fulfils its role, middle management lacks direction, and the CEO becomes increasingly isolated in decision-making.
This situation is particularly risky because it develops gradually — until it becomes the norm.
Why recruitment is not always the right answer
In response to these challenges, hiring a new executive or senior manager may appear to be an obvious solution. However, in an unstable context, recruitment carries significant risks. The time required, uncertainty around role fit, and integration challenges can delay — or even worsen — the situation.
In some cases, the company does not need an additional profile, but rather a temporary rebalancing of its governance.
The Interim Manager as a stabilising solution
This is precisely where an Interim Manager can play a decisive role. Thanks to their neutrality, experience and operational authority, they are able to restore clear decision-making processes, streamline communication and re-establish a coherent governance framework.
Their intervention allows the CEO to step out of isolation, regain perspective and prepare the next phase with confidence — whether that involves recruitment, transformation or succession planning.
Common challenges across all sectors
Whether it involves industrial trade-offs, the management of complex projects in construction, alignment between head office and store networks in retail, or managing growth in the cosmetics sector, governance challenges cut across all industries.
What differs is the form they take — not their impact on performance.
Conclusion
Weak governance is rarely an isolated issue. More often, it is the symptom of a company that has evolved faster than its decision-making and leadership structures. Acting early helps prevent these vulnerabilities from escalating into a full-blown crisis.
TOPS Ressources supports SME and mid-sized company leaders in securing their governance and restoring effective decision-making dynamics, through experienced Interim Managers.
To discover how our Interim Managers can transform your challenges into opportunities, please contact us.
TOPS Resources, Interim Management in Executive Committee roles: CEO, CFO, HR Director, Supply Chain Manager, Transformation Director, Sales Director...
