Corporate governance broadly refers to mechanisms, processes and relations by which corporations are controlled and directed.
Documents released since 1990 that define how companies are controlled and directed: the Cadbury Report (UK, 1992), the Principles of Corporate Governance (OECD, 1999, 2004 and 2015), the Sarbanes-Oxley Act of 2002 (SOX) (US, 2002), the UK Corporate Governance Code 2014, the UK Stewardship Code 2012, the New King Code South Africa 2016 (draft), the Dodd Frank Act USA.
Stop searching for the single right solution! In a dynamic world only one single question is really important: where is value created?
We live in a VUCA world: Volatile, Uncertain, Complex and in times Ambiguous. The rules of doing business are changing. We no longer own, we share. New business is born from what we call nowadays the WEconomy. For funding new business we skip the bank and go directly to our launching customers. New technology, globalization and ever changing customer needs pave the way for new business models. Business models that disrupt whole industries. Every home can be a hotel with Airbnb, every car can be a cab with Uber. A board should be on top of how these dynamics create opportunities in their business. Disrupt before you are being disrupted.
Innovating your strategy and business model starts with a common understanding of your current situation. You need to know your starting point before you can move forward. Constantly understanding what is happening in the world around you and the ability of your organization to adjust to your context determines your success.
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