Governance advisory

Reputation and adherence to corporate values are two of the most important factors in supporting the long term success of any company. A well-regulated and effective board is a key success element in achieving those goals along with a recognised, visible model for communicating to all stakeholders what the company is and how it pursues its business objectives.

Eric Salmon & Partners has a long history of helping boards and organisations review their procedural and behavioural effectiveness, with the aim of proposing continuous improvement to achieve excellent and sustainable governance practices. Our customised approach is based on our well-established proprietary methodological tools. The approach is agreed with our clients and takes into account the board’s requirements and characteristics and adheres to their governance code and legal duties. We analyse the whole set of governance elements thoroughly, starting from an understanding of the company’s strategic direction and assessing key factors influencing and determining board dynamics. These include culture and values, composition, leadership, flow and quality of documentation, communication and teamwork, involvement in strategy development, succession plans, risk appetite and management and committees’ effectiveness and composition.

Case study

A multinational telecommunications company was undertaking a critical transformation of its shareholding and governance model

Context

The change of shareholding and a challenging competitive landscape required a board that could make effective and cohesive decisions.

approach

Understanding the situation by interviewing key board members (chair, CEO, lead independent director, committees chairs, board secretary) and analysing selected company documents including strategic plans and board meeting reports
Preparation of a questionnaire for leading interviews with all board members, addressing the resulting critical areas and aimed at finding common ground
Execution of confidential interviews
Development of a report containing our findings, suggested areas for improvement and a feasible implementation plan
Presentation of the results to the board
Follow-on support

outcome

A set of projects was unanimously agreed:

Improvements in communication between the management and the board
More involvement of the board in the discussion of the company’s strategic plan
More efficient flow of documents to the board
Implementation of common sense actions to improve cohesion (such as informal pre-board meetings)
Proper induction programme for new board members

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