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.