Effective Governance


Propelled by shareholder pressures, battered by economic realities, and faced with a rapidly evolving environment of regulation, public scrutiny, and calls for accountability, today’s boards of directors and CEOs face greater challenges than ever to build value and inspire confidence for the long-term. In every industry and in every corner of the world, corporate boards of directors work to make their corporate governance practices more effective and enhance their role in delivering better overall company performance and value.

At Masters-Rudnick & Associates, we believe that the key to effective corporate governance lies in the practical – and, for each company, unique – integration of three key interlocking elements – law, implementation, and interpersonal dynamics. Transcending narrow legal definitions and the mechanics of compliance, we take a decidedly practical approach to help our clients effectively integrate these three elements in a way that increases the effectiveness of the CEO, the board, and the corporate enterprise.

LEGAL:

The law places the ultimate responsibility for the corporation’s management and governance in the board’s hands, but increased regulation and changing parameters of fiduciary duty provide increased challenges to boards.

OPERATIONAL:

Boards must put into practice the law’s requirements in an effective and efficient manner, grounded in the realities of the business world in which they operate. They must develop and maintain—through full board action and board committee establishment—a system of delegation of authority, understanding of the business environment, and processes for oversight and monitoring of company management – but that don’t cross the line between monitoring and meddling.

HUMAN DYNAMICS:

The relationships among board members as well as with management are key determinants in creating a constructive working dynamic.  Today these relationships are complicated by the increased diversity of backgrounds and experiences among directors.  This increased diversity of perspective is admirable and can lead to better decision making,  However, it can also complicate communication and lead to misunderstandings that undermine collaborative decision-making in a collegial environment.

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Taking into account the legal requirements, operational needs, and particular human dynamics that characterize each of our clients, we help CEOs, boards and corporate staffs develop effective governance practices and procedures.  Serving as trusted and confidential advisors, we provide our clients with the tools, knowledge and resources they need to translate effective governance into exceptional corporate performance.

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