Corporate governance has evolved much over the last decade driven by several events including:
- Major financial scandals in the early 2000s, which triggered the enactment of the Sarbanes–Oxley Act in 2002
- Recent credit crunch, which triggered the reshuffling of CEOs and boards of some of the most previously respected companies in the world, and increased focus on risk management, and more accountability felt by board members, who are in turn becoming more demanding of management
Despite all the changes in corporate governance, there is still room for further improvements. At PwC's Strategy&, we believe improvements can only be achieved if companies go beyond a focus on compliance and aim to embed corporate governance in the business processes and culture of the organization.
In this context, Strategy& addresses corporate governance at the shareholder, board, and management levels from the lens of capability development and cultural change through five main service areas:>
- Defining corporate governance framework
- Refocusing corporate governance on value creation
- Measuring performance and creating accountability
- Creating a complete system>
- >Creating cohesiveness among management and board members
Strategy& has extensive experience in corporate governance with government, private, and publicly listed companies/entities. We have assisted investors, board members, and executives in overcoming their corporate governance challenges and ultimately improving their performance.
Defining corporate governance framework
The core of this service area is defining the needed governance entities, their role, composition, and modus operandi based on the company ownership structure, business specificities and priorities, and related industry and competitive practices.
Strategy& builds on its significant experience in various industries and with various types of companies (e.g., portfolio centric companies, multinationals) to tailor the governance framework to the business needs while at a minimum ensuring compliance.
Refocusing corporate governance on value creation
This service area revolves around identifying specific initiatives to increase and preserve shareholder value through better governance.
This can involve improving governance process to speed decision making, developing a risk management process, developing new content for board or committee members to improve their knowledge of the business and hence their decision-making ability.
Creating a complete system
This service area involves cooperation among various areas of expertise including organization development, business processes, IT, change management, and talent management.
Strategy& ensures to develop a comprehensive operating model to ensure seamless communication and transparency with board members enabling them to make informed decisions on time.
Creating cohesiveness among management and board members
This service area focuses on two fronts. One is related to developing the executive and talent development agenda of the board and how to enact it in the company.
The second involves the development of a mechanism to strengthen the relationship among board members and key management teams. Strategy& would work with other experienced 3rd party advisors (e.g., executive coaches) to assist in developing a more cohesive relationship.