Corporate governance seems to mean something different to each person. This section describes my definitions.
The governance ecosystem is comprised of: the board, management, shareholders, other stake holders, third parties, and society. All components of the ecosystem interact with all other components. The board and management must understand and plan to manage the ecosystem as it exists today and the future. The assumptions regarding the future governance ecosystem are key … Continue reading What is the corporate governance ecosystem?
Overview What are values, morals, and ethics? How are they used? How do they impact company value growth and preservation? What role should they play in hiring, promotions, and terminations? How do you understand your company’s position? What are values, morals, and ethics? People often use these terms interchangeably. The concepts are different, which can … Continue reading Why are values, morals, and ethics important?
The management team relationships, and roles of the CEO/founder(s), shareholders, investors, and board of directors rapidly change in a successfully scaling startup. Who makes what decisions is rapidly changing. A lack of clarity and common understanding of who makes what decisions and is accountable for what results can cause confusion, and slow down or prevent … Continue reading Why is governance essential for successfully scaling startups?
Overview How are your board of directors and governance competitively differentiated? Compliance governance focuses on the documents and processes to meet legal and regulatory requirements, and other standards. Value growth and preservation governance focuses on having the right people making decisions with a high impact on value growth and preservation. The board should discuss the … Continue reading What is public company governance?
Overview Private equity governance is driven by value growth, not just compliance. There’s a 100% focus on realizing major growth in shareholder value, either in the short or long-term. Transformation of the board or C-Suite may be required. Shareholders make decisions which are often made by the board of a public company. e.g. CEO appointment … Continue reading What is different about private equity governance?
What is family governance? Some wealthy families are emotionally bound together by a commonly understood legacy as well as shared vision, identity, values, and purpose. Based on these factors, the family also manages its philanthropy together as well as its wealth. Every wealthy family is different and some have no emotional or financial ties. What … Continue reading What is different about family governance?
What is the value of a for-profit advisory board? Advisory boards have a major impact on sales and productivity, comparing the three years after an advisory board vs the three years before an advisory board: sales growth of 67% vs 23% and productivity growth of 6% vs 3%.1 What is an advisory board? A group … Continue reading What is the value of a for-profit advisory board?
Directors face five challenges in making decisions: #1 Have the directors agreed upon which decisions are most critical, and agreed upon the criteria for selecting those decisions? Is the criterion: what has the greatest impact on long-term value creation and preservation? Are the critical decisions: setting the strategy; hiring/terminating CEO; approving CEOs strategic implementation plan; … Continue reading What are the decision-making challenges faced by directors? (V2)
A private company is often governed by a shareholders agreement. How can the shareholders agreement focus the owners, board and management on growing value? Before starting on the shareholders agreement, there must be a common understanding of objectives. The shareholders may have different objectives. The purpose of negotiation is to minimize any conflicting objectives and … Continue reading How can the shareholders agreement focus everyone on value?