#GovernanceBestPractices

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Hamilton Lindley Talks About Why Corporate Governance Is Crucial in 2025

Hamilton Lindley explains why corporate governance is vital for success in 2025, highlighting key areas like risk, regulation, and leadership.

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Portfolio governance is essential for organizations seeking to manage resources efficiently, align projects with strategic goals, and mitigate risks. By implementing a structured governance framework, adopting governance best practices, and continuously assessing performance, businesses can achieve long-term success and sustainability.

[excellence-12]

Internal vs. External Board Evaluations: Pros and Cons

In today’s rapidly evolving business landscape, a strong and effective Board is more critical than ever before, for an organization’s success. But how does a Board ensure that it is performing at its best? Annual Board Evaluations are the key!

Board Evaluation Board evaluation is a process where the Board assesses its own performance with the objective of improving its effectiveness. In the process, it identifies what works well for it and what are the areas for improvement. It involves reviewing how well the Board as a collective, each Director, including the Chairperson of the Board, and each mandatory committee are performing.

When it comes to Board evaluations, companies have a choice between having them done internally or externally, with the help of a facilitator.  Let’s dive deep into the pros and cons of both kinds of Board evaluations.

Internal Board Evaluations

Internal Board evaluation simply means that the process is conducted in-house, without the aid of any external facilitator.

Pros:

Budget-friendly: Internal evaluations are peer evaluations facilitated by in-house persons, usually from the HR team or the Secretarial team. So, they are virtually free.

Comfort and Convenience: They are conducted as per the convenience of Directors, and usually take up lesser time since they involve only the answering of questionnaires by Directors.

Confidentiality: Some believe that this process is more confidential since information stays within the organization. However, this could be misplaced because those with access to the responses to such questionnaires can potentially misuse it.

Cons:

Biased Judgement: Questions could often be simpler, or those amounting to scratching the surface. The more probing questions may be kept out, depending on the comfort of Directors.

Questionnaire and documentation limitations: In-house teams may struggle to create the right set of questions, with the focus mostly being on guidance notes from SEBI and Institute of Company Secretaries of India. A fresh perspective or specialized insights, that an external expert can bring to the exercise, may potentially be missed.

Limited Expertise: In-house persons may not have the specialized knowledge or experience to make this process an improvement-oriented process. The focus of the internal team could be on postmortem of what has been done before.

Missed Opportunities: Without an outside perspective, some important issues or potential improvement areas might be overlooked.

Lack of sharing of best practices: External facilitators can share best practices being followed by other Boards, that can help improve the performance of the Board or its committees. This would get missed.

External Board Evaluations External Board evaluation means that evaluation is conducted by an External facilitator, who is specifically hired to execute the evaluation process. Ideally, such facilitators should be persons with practical boardroom experience so that the insights offered are based on practical experience.

Pros:

Unbiased exercise: The process would truly be independent.

Real Insights: External evaluators provide an unbiased review, and give a real and practical perspective.

Expertise: Experienced consulting and first-hand boardroom experience provides practical, relevant perspectives and brings best practices to the process.

Focus on improvement: The objective of such evaluations is improvement, and not ticking the box.

Credibility: External evaluations are often viewed as more credible by investors, stakeholders and Regulators.

Confidentiality: Access to honest responses to questionnaires stays with the expert, and not with the management persons.

Cons:

Expensive: External Board evaluations are generally more expensive.

Time-Intensive: It usually takes more time for such processes, since they are not restricted to questionnaires.

Some companies have also started doing a mixed approach, wherein they invite external facilitators to create the questions that can be administered to the Board. As a result, the responses to the questions can point in the direction of areas of improvement.

Conclusion

Board Evaluation is an essential practice that helps the Board do better. Both internal and external processes for Board evaluations have their advantages and disadvantages. Which one of these is best for you depends entirely on factors such as the company’s needs, budget, challenges and the level of development. Happy evaluations!

Source: https://excellenceenablers.com/internal-vs-external-board-evaluations-pros-and-cons/

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The Transformation of 340B Health – Building Momentum for Innovation Background 

340B Health, an organization advocating for hospitals and health systems serving vulnerable communities, faced a rapidly changing regulatory environment. While financially stable, the association operated in a volatile policy landscape, where government regulations could shift every two to four years. This uncertainty made long-term strategic planning challenging.  To remain competitive and…

[zeynepom3r]

Are Board Members Prepared for the Challenges of Corporate Governance? 🤔💼Hey everyone,Corporate governance is more complex than ever, and board members are under increasing pressure to balance strategic leadership, risk management, and shareholder interests. A strong board isn’t just about oversight—it’s about driving organizational success through effective decision-making, transparency, and accountability.One challenge I keep seeing is board engagement—how do we ensure board members actively contribute to company growth rather than just fulfilling a legal requirement? Many directors have expertise in their field but lack formal training in governance and risk management.I came across this Board Members & Corporate Directors Certification Program that covers governance, risk management, audit procedures, and even includes a site visit to a major company in London or Istanbul. Thought it might be useful for those looking to strengthen their board leadership skills:🔗 Board Members & Corporate Directors Certification ProgramWhat do you think makes a great board member in today’s business environment? Is governance training something more directors should prioritize? Let’s discuss!#CorporateGovernance #BoardLeadership #RiskManagement #BusinessStrategy 🚀#CorporateGovernance #BoardLeadership #RiskManagement #BusinessStrategy #GovernanceTraining #BoardMembers #DirectorsCertification #CorporateDirectors #LeadershipDevelopment #StrategicLeadership #StakeholderEngagement #AuditProcedures #Transparency #Accountability #BoardEngagement #EffectiveDecisionMaking #GovernanceBestPractices #CorporateSuccess #RiskMitigation #BoardTraining #LeadershipSkills #BusinessGovernance

[jammyandcanny]

🏢 Exploring Corporate Governance insights through a conversation between an expert and an enthusiast! Learn how effective governance drives accountability, transparency, and long-term success. 🌟📊

[zeynepom3r]

Hi everyone,

Corporate governance is becoming an increasingly critical aspect of business operations, especially as regulatory environments evolve and transparency is prioritized. I recently came across a comprehensive Corporate Governance Principles & Best Practices course that delves deep into the principles and models that define good governance worldwide. I wanted to open a discussion about how businesses are implementing these practices and how crucial they are for long-term success.

Why is Corporate Governance So Important?

Corporate governance defines the relationship between a company and its stakeholders, shaping the framework within which decisions are made. Good governance helps companies avoid risks, improves accountability, and fosters a culture of trust. The course focuses on several key areas:

Corporate Governance Models Different countries adopt distinct governance models. For example, the Shareholder Wealth Maximization (SWM) model, which is common in the U.S. and U.K., focuses primarily on shareholder interests. In contrast, countries like Germany and Japan adopt models where employees and bankers are also integral to decision-making. The course provides a comparative look at these models, exploring how each one functions and how it can be improved.

Board Structures and Committees A key part of corporate governance is how boards are structured and how committees like the Audit and Remuneration Committees function. The role of institutional investors is also critical in shaping governance strategies.

Ethical Considerations and Transparency Ethical conduct and transparency in corporate governance are fundamental. The course covers transparency requirements as outlined by global regulations such as the IFRS and provides actionable best practices for ensuring compliance.

What Does the Course Offer?

Governance Frameworks and Global Best Practices You’ll learn about various governance codes, including the OECD Corporate Governance Principles, and how to apply these internationally recognized best practices in your organization.

Stakeholder Management Corporate governance isn’t just about managing shareholder interests. The course emphasizes the importance of other stakeholders, such as employees, minority investors, and auditors, and how balancing their interests leads to better long-term performance.

Practical Implementation From selecting the right board members to creating remuneration policies that ensure fairness, this course gives practical guidance for implementing governance best practices.

Why Should You Care About Corporate Governance?

Improved Corporate Performance: A well-structured governance system helps businesses operate more efficiently, making them more resilient in challenging environments.

Enhanced Trust and Transparency: Strong corporate governance fosters trust among stakeholders, which is vital for building lasting relationships with investors and customers.

Long-Term Sustainability: Adopting corporate governance best practices ensures your organization is prepared for the future, capable of navigating regulatory changes, and achieving sustainable growth.

Questions for the Community:

How do you see the role of corporate governance evolving in the next few years? Are companies placing enough importance on governance today?

What challenges have you faced in implementing corporate governance practices in your organization? How have you overcome them?

Do you believe international governance frameworks like OECD or ICGN should become the standard across all industries?

I’d love to hear your thoughts on how corporate governance impacts your business or your work. Do you think companies should focus more on stakeholder interests rather than just shareholder wealth maximization? Let’s get a discussion going!

CorporateGovernance #GovernanceModels #BoardStructure #StakeholderManagement #Transparency #EthicalGovernance #GovernanceBestPractices #OECDPrinciples #StakeholderInterests #GovernanceFramework #ShareholderWealthMaximization #CorporateEthics #LongTermSustainability #RegulatoryCompliance #BusinessResilience #AuditCommittees #RemunerationCommittees #GlobalGovernance #CorporatePerformance #TrustInBusiness #InternationalGovernance #SustainableGrowth #GovernanceChallenges

[orgcommunity2015]

Governance Is a Journey: How APICS Built Trust, Resilience, and Growth

This post is adapted from Association 4.0 – Positioning for Success in an Era of Disruption, originally published in 2018. At the time of this interview, Abe Eshkenazi, CSCP, CPA, CAE, served—and continues to serve—as the CEO of APICS (now the Association for Supply Chain Management). While the governance landscape has evolved, the strategies and leadership insights shared here remain…

[excellence-12]

Enhancing Board Performance with Expert Evaluation & Consultancy

Effective Corporate Governance begins with a well-functioning Board. At Excellence Enablers, we specialize in Board Evaluation and Board Directors Consultancy to help organizations strengthen their governance framework. Our expert-driven evaluations identify key areas for improvement, ensuring Boards operate with transparency, accountability, and efficiency. With a structured approach, we provide actionable insights and strategic guidance to enhance Board effectiveness. Partner with Excellence Enablers to build a high-performing Board that drives sustainable success.

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Over the decades, a number of institutions and committees have attempted to define Corporate Governance. At its core, it is no more than doing the right things, in the right manner, at the right time and for the right reasons. Whenever a misdemeanour or a fraud in the corporate arena comes to public notice, questions are raised on the Corporate Governance practices in that entity. It is therefore useful to understand what constitutes the elements of good Corporate Governance, and how it can be ensured. The elements are

Avoidance of conflict of interest: Situations of conflicts of interest should be avoided. Board members must declare any existing or potential conflict at the beginning of each financial year, and must recuse themselves from discussions on any transaction where they are, or could be, conflicted.

Reduction of asymmetry of information: Asymmetry of information cannot be avoided. However, information that is not in public domain should not be misused. All the Board members should have access to accurate, relevant and timely information at all times. A situation where some Board members have access to more information than others should be avoided. This applies equally in the case of management personnel and others who “are in the know”.

Rights of shareholders and other stakeholders: A company must treat all its shareholders, and other stakeholders, fairly and equitably. Some shareholders should not get preferential treatment at the expense of others. Shareholders should be sufficiently informed about developments relating to, and decisions concerning the company.

Composition of the Board:  A successful company is led by an effective Board that conducts itself professionally. The Board should comprise a mix of Executive Directors and Non-Executive Directors, including, Independent Directors. There should also be diversity of gender, age, geography, expertise and experience on the Board. A diverse and independent Board is, more often than not, independent in thought and in action. Composition of the Board is the starting point for putting proper Corporate Governance processes in place.

Clear division of responsibilities between Board and management: There should be role clarity between the Board and the management, with the Board performing its role of superintendence, direction and control, and the management being responsible for executive action, and carrying out the instructions of the Board. The Board should ensure that it holds the management accountable for its actions.

Board and Committee meetings: In addition to being on the Board, each Director should also be on 2-3 Board level committees, so that the work of the committees is equitably distributed. Also, if some Directors are not on any committee, they will suffer from information asymmetry. The management should ensure that the agenda for the meetings is properly set, with contribution from Directors, and that agenda notes are sent well in advance. Directors on their part, should come well prepared for the meetings. The Chair should ensure that there is constructive tension in these meetings, with the Board members adequately challenging management.

Board processes: For Boards and committees to function properly, it is important for the Board members to together lay down proper Board processes. These include setting of agenda, receiving agenda papers, having an Action Taken Report, having a compliance certificate presented to it etc. The Board should also ensure that sufficient internal controls and processes, commensurate with the size of the company, are in place, and are functioning effectively.

Auditors:  Statutory auditors and Internal auditors are very important gatekeepers of governance. They have been tasked to ensure that the financials of the company, as also the processes, are efficient, and reflect a true and fair picture.

Accurate disclosures: Listed companies must ensure that they disclose information regarding all the material matters timely and accurately. Such disclosures should be correct and complete.

Compliance with law and regulations: Timely compliance with law and regulations is a non-negotiable requirement for each company. Not only the letter, but also the spirit of law should be respected.

Whistleblower mechanism: Each company must ensure that it has a well-functioning whistleblower mechanism so that any stakeholder can report any legitimate cause of concern, that could impact the company adversely.

Ultimately, the business of a company should be conducted fairly and with integrity. Other things remaining the same, a better governed company will reward stakeholders better, on a sustainable basis.

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