It’s clear that if you’re looking to generate sustainable value, the evidence from our research demands action, but where to start? What areas of corporate governance should your company focus investment on to drive the biggest returns?
Pulling directly from the research analysis found that corporate governance leaders (those in the top quartile of the CG Index) scored high in six key areas.
1 Clarity and connectivity
Understand your business model. Know how your company makes money and articulate this clearly enough to draw a direct link between it and your strategic objectives, values, risks and rewards.
2 Culture integration
Define and articulate your culture. Be clear about values and behaviours and identify the key metrics you will use to monitor success in embedding that culture into your decision making framework.
3 Board effectiveness
The composition of the board should reflect the company’s strategic priorities markets and risks. Create an environment which leverages diversity to build a broad skill set in your key decision makers.
4 Succession planning
Identify the skills you will need to deliver future strategy and take time to develop future leaders at senior management level and below. Outline how succession planning interventions are improving diversity.
5 Risk management
Anticipate and understand the principal risks to realising your strategy and purpose, provide detailed disclosure on them to your decision makers and plan the appropriate level of mitigation.
6 Internal controls
Understand your controls framework and how it operates to manage all principal risks (not just financial). Develop a system to regularly monitor the effectiveness of your controls, and maintain consistent controls across divisions.
Getting the board on board
Understanding the need to transform your approach to governance is only half the battle of course. Even identifying which key areas offer you the best opportunities for growth means little if you can’t persuade your board that governance is worth investing in. So how do you bring the business with you?
The facts
The findings of our research Getting smart about governance [ 2033 kb ]" aria-label="Download file - Getting smart about governance - Getting smart about governance [ 2033 kb ]">Getting smart about governance [ 2033 kb ] makes a compelling case for investment. Make sure you have all the information to give the clearest picture.
Expert witness
Use corporate governance experts to talk your board through how and why best practice governance can help a company create and retain value.
A clear plan
Benchmark your current governance arrangements against best practice and your peers and use the insight to develop a targeted programme that will deliver fast (and persuasive) wins.
If you’ve been paying attention it will come as no surprise that we are ideally placed to help you with all of the above.
In fact, from outlining the benefits of transforming your approach to governance to leading an effectiveness review of your board, we are ready to help you plan, sell in and deliver the change your business needs, whatever you decide to do.
What is essential is that you decide to do something. The tick-box approach to corporate governance is simply no longer viable for any business looking to accelerate growth, manage risk and remain profitable.
It’s 2019. When it comes to governance best practice ‘nice to have’ is no longer an option.
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Download our report [ 2033 kb ]
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