Governing for performance

A BASIC tenet of any company is that it should deliver returns to its shareholders and other stakeholders. To facilitate this mission, the shareholders appoint a board of directors to ensure that the company delivers value within the rules of the game set by the government and society. In turn, the board hires a management team to deliver the results.

That is the essence of board governance.

Yet, for various reasons, many boards fail to satisfy their shareholders and stakeholders. In other words, they fail to perform in their governance responsibility.

For most companies around the world, good corporate governance is a work in progress. In my view, boards can be more effective if, from…