ISO 37005:2024

Overview

ISO 37005:2024, "Governance of organizations - Developing indicators for effective governance," is ISO guidance for governing bodies on developing and using indicators that inform governance decisions. Applicable to all organizations regardless of type, size, location or purpose, the document helps boards and other governance actors design, select and apply measurable representations of decisions, activities and stakeholder expectations. Note: ISO 37005 provides guidance on indicator design and use; it does not itself set indicators of effective governance.

Key topics

• Purpose and scope: Guidance tailored primarily for governing bodies but relevant to internal and external stakeholders who assess governance information.
• Indicator concepts and structure: Definitions and taxonomy covering input indicators, output indicators, activities, processes, outcomes and impacts.
• Taxonomy of indicator types: Classification by means-to-ends (inputs → impacts) and by subjective vs objective measures to support clarity in measurement and interpretation.
• Stages of development and use: Guidance on stages-from design, selection and validation to ongoing use and review of indicators.
• Characteristics of good indicators: Emphasis on attributes such as assurability, timeliness, comparability and relevance to organizational purpose and risk appetite.
• Risk considerations: Identification of risks arising from indicator selection and use, including unintended consequences, lack of accountability, non-alignment with purpose/sustainability, information overload, and method‑vs‑purpose measurement trade-offs.
• Decision-making integration: How indicators support option appraisal and choices by governing bodies, aligning measurement with strategy, partnerships and stakeholder materiality.
• Implementation guidance: Practical steps for governing bodies to embed indicators into governance frameworks and into the monitoring of organizational outcomes and impacts.

Applications and users

Who benefits:

• Board members and governing bodies designing governance monitoring frameworks.
• Risk and compliance officers, corporate secretaries and audit committees seeking robust performance and governance metrics.
• Senior management and strategy teams who need decision-useful indicators aligned to organizational purpose.
• External stakeholders (investors, regulators, auditors, civil society) who require clearer, comparable governance information.

Practical uses:

• Selecting indicators to monitor strategic objectives and stakeholder impacts.
• Designing KPI systems that respect risk appetite and materiality.
• Avoiding common measurement pitfalls (misaligned metrics, perverse incentives).
• Enhancing transparency, assurance and decision quality in governance processes.

Related standards

• ISO 37000:2021 - Governance of organizations - Guidance (primary reference for governance principles).
• Other referenced standards for terms and processes include ISO 37301 and ISO 9000 (terminology and measurement context).

Keywords: ISO 37005, governance indicators, organizational governance, governing bodies, indicator taxonomy, indicator selection, ISO 37000, performance measurement, risk appetite.