Directorship Vs Governance

A summary of the differences between Directorship and the Anglo American version of Corporate Governance:    

 

 

 

DIRECTORSHIP

 

CORPORATE GOVERNANCE

(Anglo/American Model)

DEFINITION

The ways that Boards create Value in Corporations

A recent academic paper cited 22 different definitions of Corporate Governance.

My definition of the Anglo/American model:

The ways that shareholders pursue their agenda's and self interest in the Corporation through the Boardroom

 

IN WHOSE INTERESTS SHOULD THE CORPORATION BE RUN

 

OBJECTIVE

The Corporation in its own right

Maximize the Corporation's strength, resilience and endurance through Trade

Shareholders

Maximize Shareholder Value

 

PERSPECTIVE

Commercial Capitalism

Corporate Sovereignty 

Business Model

Democratic Capitalism 

Shareholder sovereignty

Financial Model

 

FOCUS

Assets, Promises and Trade

Commercialization of the Corporation

Monitor without an agenda - for information/feedback to determine right strategic/tactical mechanics (see below)

Risk, Accountability and Control

Financialization of the Corporation

Monitor with an agenda - agency costs

 

TEAM

EXTERNAL RELATIONSHIPS

Directorship Team (Directors + Managers + others)

Trading Partners

(Members/Directors/State/Internal/External)

Board ( Directors)

Stakeholders

 

PRACTICE

Individual Board Plan

Algorithmic mechanics:

Strategic Mechanics:

Situation > Mode > Directorship Team

Tactical Mechanics

Mode > Directorship Team > Task > Action > Types of Behavior

Best Practice

Arithmetic inferential inputs:

Board Structure + Board Composition + Board Process +/- Behavioral Types +/- Board Capital

 

COMPETITIVE

ADVANTAGE

Based on Board Plan and Commercialization

+

Talent, Teamwork and Leadership

Based on Talent, Teamwork and Leadership

+

Improvisation

 

OUTPUT DELIVERABLE

Strength (S), Resilience (R) and Endurance (E)

 

 

 

Shareholder Value (total return to shareholders dividends + share price appreciation)

 

Note this is an updated version of an earlier summary.