In the early days of an organisation, informal governance feels like a strength.
Decisions are fast.
Trust is high.
Everyone knows everyone.
Processes feel unnecessary.
And for a while — it works.
But as organisations grow, the very informality that once enabled speed quietly becomes their biggest hidden risk.
The Comfort Trap of Trust-Based Governance
Most startups and SMEs don’t reject governance — they simply delay it.
Early governance often looks like:
- Verbal agreements
- Shared understanding instead of written roles
- Decisions made in meetings without records
- “We’ll remember why we decided this”
This works when teams are small and stable.
But growth changes everything.
The Invisible Moment Governance Becomes Necessary
There is a moment every organisation crosses — often without realising it.
It happens when:
- New people join who weren’t part of the early decisions
- Responsibilities start overlapping
- Decisions affect more stakeholders
- Accountability becomes unclear
- Memory replaces documentation
At this point, trust alone is no longer enough.
This moment is dangerous precisely because it’s invisible. Nothing has gone wrong yet — but the conditions for failure are quietly forming.
Why Informal Governance Breaks at Scale
1. Shared Understanding Stops Being Shared
What was once “obvious” becomes fragmented as teams expand. Different interpretations emerge — and conflict follows.
2. Accountability Becomes Blurred
Without defined roles and documented decisions:
- Problems bounce between people
- Ownership is unclear
- Responsibility becomes emotional rather than factual
This creates friction and slows execution.
3. Decisions Lose Their History
When decisions aren’t recorded:
- The “why” disappears
- Old debates resurface
- Teams repeat mistakes
- Leadership credibility weakens
Governance isn’t about control — it’s about continuity.
The Cost of Waiting Too Long
Organisations rarely pay for missing governance immediately.
They pay later — and expensively.
Common consequences include:
- Internal disputes
- Failed partnerships
- Regulatory surprises
- Investor hesitation
- Operational inefficiencies
As highlighted by the World Economic Forum, organisational resilience depends heavily on early governance foundations — not reactive fixes after problems surface.
Similarly, OECD consistently emphasises that SMEs face disproportionate risk when governance structures lag behind growth.
Governance Doesn’t Need to Be Heavy to Be Effective
One of the biggest myths around governance is that it must be:
- Legalistic
- Complex
- Expensive
- Slow
In reality, lightweight governance implemented early is far more effective than heavy frameworks imposed under pressure.
This is where modern governance platforms change the game.
How MPG Supports Growing Organisations
MPG (My Premium Governance) is designed specifically for organisations that know governance matters — but don’t want bureaucracy.
A Lightweight Governance Layer
MPG provides structure without legal overload:
- Clear documentation
- Defined responsibilities
- Traceable decisions
- Scalable processes
All without slowing teams down.
Templates + DocxChange = Scalable Governance
At the core of MPG is a practical combination:
- Ready-to-use governance templates
- DocxChange for structured document exchange, updates, and lifecycle tracking
This allows organisations to:
- Start small
- Stay consistent
- Scale governance naturally as they grow
No reinvention. No panic later.
Why MPG Matters Before Problems Appear
Most organisations look for governance tools after something breaks.
MPG exists for the moment before that happens.
It helps teams:
- Introduce clarity early
- Protect trust as teams grow
- Maintain speed and accountability
- Build confidence with partners, investors, and regulators
Governance becomes an enabler — not a reaction.
Final Thought
Informal governance isn’t wrong — it’s just temporary.
The biggest risk for growing organisations isn’t governance itself.
It’s waiting too long to introduce it.
MPG makes governance accessible, practical, and proportional — exactly when organisations need it most.
Because the best time to build governance isn’t when things go wrong.
It’s when things are going right.