Corporate governance

Corporate Governance

Corporate governance has evolved much over the last decade driven by several events including:

Major financial scandals in the early 2000s, which triggered the enactment of the Sarbanes–Oxley Act in 2002
Recent credit crunch, which triggered the reshuffling of CEOs and boards of some of the most previously respected companies in the world, and increased focus on risk management, and more accountability felt by board members, who are in turn becoming more demanding of management

Despite all the changes in corporate governance, there is still room for further improvements. At Booz & Company, we believe improvements can only be achieved if companies go beyond a focus on compliance and aim to embed corporate governance in the business processes and culture of the organization.

In this context, Booz & Company addresses corporate governance at the shareholder, board, and management levels from the lens of capability development and cultural change through five main service areas:

Defining corporate governance framework
Refocusing corporate governance on value creation
Measuring performance and creating accountability
Creating a complete system
Creating cohesiveness among management and board members

Booz & Company has extensive experience in corporate governance with government, private, and publicly listed companies/entities. We have assisted investors, board members, and executives in overcoming their corporate governance challenges and ultimately improving their performance.

Service Offerings

Defining corporate governance framework: The core of this service area is defining the needed governance entities, their role, composition, and modus operandi based on the company ownership structure, business specificities and priorities, and related industry and competitive practices. Booz & Company builds on its significant experience in various industries and with various types of companies (e.g., portfolio centric companies, multinationals) to tailor the governance framework to the business needs while at a minimum ensuring compliance.

Refocusing corporate governance on value creation: This service area revolves around identifying specific initiatives to increase and preserve shareholder value through better governance. This can involve improving governance process to speed decision making, developing a risk management process, developing new content for board or committee members to improve their knowledge of the business and hence their decision-making ability.

Measuring performance and creating accountability: This service area focuses on creating a robust performance management system that flows seamlessly from board down to the business and vice versa. The main emphasis is on ensuring a fair process to measure performance and a clear split of accountability across the various levels of corporate governance.

Creating a complete system: This service area involves cooperation among various areas of expertise including organization development, business processes, IT, change management, and talent management. Booz & Company ensures to develop a comprehensive operating model to ensure seamless communication and transparency with board members enabling them to make informed decisions on time.

Creating cohesiveness among management and board members: This service area focuses on two fronts. One is related to developing the executive and talent development agenda of the board and how to enact it in the company. The second involves the development of a mechanism to strengthen the relationship among board members and key management teams. Booz & Company would work with other experienced 3rd party advisors (e.g., executive coaches) to assist in developing a more cohesive relationship.

Thought Leadership

Tailored to Fit	As the Brazilian economy grows and becomes more complex, the mechanisms that represent shareholders and debt holders must become more sophisticated. Each company must take a tailored approach to corporate governance that suits its needs and ensures lasting change and the long-term sustainability of the enterprise.
Headquarters: Irrelevant or Replaceable?	For years, the prevailing wisdom has dictated a lean, mean corporate core. There's nothing wrong with this logic, but the implied premise that "bigger means bloated" is faulty.

CEO Succession 2000-2009: A Decade of Convergence and Compression	The role of the chief executive is evolving. CEOs from around the world discuss the game-changing practices that lead to success.

Boards of Prevention	Corporate directors can – and should – play a much more active role in overseeing risk and avoiding major crises.

Welcome, Stateholder	The newest corporate stakeholders — government representatives — must learn to become effective agents for reform.

Leadership Lessons and the Economic Crisis	Predictably, one result of the economic crisis is the cry for a new style of leadership. In thinking about what qualities are needed as we move forward, it’s helpful to consider where we’ve been and what the times will require from the next generation of leaders.

GCC Family Businesses Face Challenges	Family businesses in the Gulf Cooperation Council (GCC) region face the dual challenges of operating in a difficult global economic environment and managing the transition of the business to a third generation of family control. In order to survive, grow, and take their places among the many family-run firms that have achieved enduring success in the global economy, firms must tame the "restless entrepreneur" syndrome, and develop and enact a long-term strategy to manage both the family and the business.