Most corporate boards continue to struggle with the challenges of underperformance, which, among other things, frequently leads to managerial change, asset and financial restructurings, mergers, shareholder activism, a change of control, the sale of the company, or even outright failure. So what are the warning signs of underperformance? Can failure within the context of director responsibilities and influence be predicted and prevented?
During this one-hour discussion, prominent Alberta Chairman, Director and business leader, Mac Van Wielingen, will expand on his article “The Evolving Role of the Corporate Board: Governance Strategy and the Imperative of Performance” which is featured in the inaugural issue of the Conference Board’s Stewardship Review.
Mac argues that far too often governance focuses on a compliance-based role, where boards are concerned only with the structures and processes used to minimize the adverse impacts of management and director self-interest. Although this form of governance is essential in creating legitimacy, companies cannot rely on compliance-based governance alone to effectively sustain superior performance within an organization. Mac argues that in order to be truly transformative, corporate governance needs to expand its focus in the direction of performance.
Mac will outline three forms of governance—social-based, strategy-based, and performance-based—that, when implemented, will reshape your board’s engagement and drive effective performance and results. This comprehensive view of governance has the potential to significantly enhance the role of the board to the benefit of stakeholders and society.