do you overcome widespread skepticism and give your
stakeholders the confidence they need to commit more
of their resources, faster?
Governance Lifecycle Model (GLM) Assessment Tool
(see details below)
your "governance style" helping or hindering
your company's strategic performance?
Enabled governance of an organization enhances its
perceived value to sources of funding.
Organizations, whether public, private, for profit or not-for-profit
depend on investors or donors for funding, who must attain
sufficient confidence in the requesting organization's value
proposition prior to entrusting them with their money.
Inappropriate use of such funds has adversely affected the
capacity of many organizations to continue to contribute
to the economy and society. In some cases, their demise
has caused considerable loss, pain and suffering to many
stakeholders. Increased regulations (such as Sarbanes-Oxley
legislation in the United States) have been a typical societal
response, but have too often fallen short of their promise
to rebuild sufficient confidence in organizational governance.
Other, industry-initiated approaches to building trust have
generally been reactive, tactical responses, aimed at suppressing
highly visible scandals. However, despite numerous attempts,
a comprehensive and unified approach to building and maintaining
stakeholder trust continues to be elusive.
Trust Enablement explicitly and strategically addresses
stakeholders' trust requirements and reduces reliance on
regulations and other tactical responses to a broader confidence
problem by providing comprehensive and balanced communications
systems that build and maintain trust between those who
provide money and those who use it. Trust Enablement
also reduces reliance on personal and subjective sources
of trust with systems that allow reliance decisions to be
based on more objective, systematized criteria.
Trust Enablement performance is measured by the ability
of an organization to efficiently secure required financial
resources. Trust Enabled organizations have a broader
base of financial support, raise funds faster, and raise
larger amounts per transaction.
We help develop corporate Trust Enabling
governance practices that document and implement board and
management decision-making about the scope and nature of
trust enhancement programs designed to bridge confidence
gaps between the organization and its stakeholders.
Governance Lifecycle Model (GLM) Assessment Tool
It measures how effectively
a corporate "governance style" supports the
company's strategic priorities. The tool is based on research
discussed in Alex Todd's recent article "Corporate
Governance Best Practices: One size does not fit all".
The research identified the corporate governance practices
associated with superior strategic performance, namely
that corporations with "management-controlled"
boards enjoy faster sales growth, corporations
with "sovereign boards" exhibit superior
profitability, corporations with "management-influenced
boards" distribute more cash to shareholders,
and corporations with "trusted boards" are rewarded
with higher valuations.
Guidelines and Standards (benefits)
We define Trust Enabling Policy, Guideline and Standards
recommendations for entire organizations or individual
define processes to achieve specific Trust Enablement
objectives, in compliance with Trust Enabling Policies
that both establish required levels of trust and maintain
Courseware Development and Awareness Training
We develop custom
courseware to train staff about their organization's Trust
Enabling Policies, Guidelines, Standards and/or Processes.
This is usually the first implementation step for an organization.
Governance and Firm Performance
"ABSTRACT: We create a broad measure of corporate
governance, Gov-Score, based on a new dataset provided
by Institutional Shareholder Services... We show
that good governance, as measured using executive
and director compensation, is most highly
associated with good performance."
-- and capitalism -- are at a crossroads. Newspaper
headlines today suggest a gathering crisis, one
of performance, values, and confidence. It's time
for CEOs to rally around a new set of
business truths. It's time for an agenda that
restores faith in business, trust in business leaders,
and hope in the future." From "Memo
to: CEOs": Robert Simons, Henry Mintzberg,
and Kunal Basul.
Find a longer draft of this memo on the Web at http://web.mit.edu/smr/issue/2002/fall/7/
majority of members believe 40% or more of their
companys market capitalization is represented
by brand/reputation.... The three types of stakeholders
that members are most likely to perceive as having
the greatest influence on corporate reputation/integrity
are senior management, customers, and employees.",
according to the "January
2004 Voice of the Leaders Survey of members of the
World Economic Forum".
Center for Not-For-Profit Law
attention in the nonprofit sector has turned
to self-regulation. Both to avoid future
major scandals and to avoid onerous legislation.
Self-regulation through improving board governance
is on the rise.
Yet it is a sysipyan task with many difficulties.
Sector-wide codes of conduct, codes of ethics,
standards, principles of good practice all have
garnered attention in the 1990s. Some have drawn
media attention, but they have no persistence."
O. Bothwell on "Trends In Self-Regulation And
Transparency Of Nonprofits In The U.S.", for
The International Journal of Not-for-Profit Law
- Volume 2, Issue 3.