Max Franchitto’s Post

Directors who have served on the boards of both public and private companies agree—and add that the behavior of the board is one key element in driving superior operational performance. Among the 20 chairmen or CEOs we recently interviewed as part of a study in the United Kingdom,1 most said that PE boards were significantly more effective than were those of their public counterparts. The results are not comprehensive, nor do they fully reflect the wide diversity of public- and private-company boards. Nevertheless, our findings raise some important issues for public boards and their chairmen.

Numerous studies show that board members believe that it is time for at least one of individuals on their board to depart. Adam J. Epstein shares the most important reason to look at the composition of your #board - #value creation. It is business. #boardcomposition #governance #boardeffectiveness

How many people should be on my company's board? I get asked this question a lot! There are a number of key things to think about when designing the corporate governance regime of an SME and the working through the size of a board. Some Key Considerations Include: - Quality is key. When it comes to board composition, finding the right balance between nice people and valuable people is key. It's essential to have a group of individuals who bring diverse skill sets and perspectives to the table but who will fundamentally add value to the position. There is no use having a group of nice people on the board who give no value. You are better to have 1 or 2 who deliver outsized value! - What are your needs and goals? The board composition will depend a lot on the needs and goals of the organisation. A smaller board might work wonders if you're seeking agility and swift decision-making whilst a larger board may provide stability and a broader range of expertise. - Where are you going? What is your North Star? If it is to list on the ASX then it may be beneficial to have an experienced listed director join the board. If you are planning to run an enduring privately held company it may be best to shape the board with people who have experience in that space. If you are looking at a private equity exit then find directors who have experience dealing with private equity. Remember aim for a board that includes members with various backgrounds, experiences, and expertise which all add value. SME and founder lead businesses should not be sucked into having a board which is nice but adds no value. Get the right people for the right purpose at the right time. #SMEBoardSize #BusinessSuccess #corporategovernance #corporateadvisory #corporatelaw #sme

D-8 before Sabine Matheson and I will present the Case Study "Leading with transparency, regaining influence and impact as a minority co-shareholder" at the FBN Global Summit 2023 ! Read the pitch : Several years after their merger with another big legal publisher, the result of which was the Lefebvre-Sarrut Group, European leader in legal, tax and regulatory knowledge, the Sarrut family, now a minority shareholder, realised they were facing new and different challenges.   Sabine Matheson, granddaughter of the founders of “Les Editions Legislatives” and Vice-President of the Board of the group, thought it was time to act, for the sake of the family asset, family dynamics, and the business itself. Thanks to her transparent leadership, a new path was taken, involving all major stakeholders: the Sarrut family, the Sarrut holding and its administrators, the majority co-shareholder, and the board and leaders of the firm. This new, more efficient governance resulted in a clearer vision, raison d’être, and strategy. Great Key learnings ahead ! ✨ ELBConseil supported Sarrut in its process of defining a vision and raison d'être with the shareholders, writing a family charter and doing the evaluation of the board. ✨ #FBN #governance #transparency #leadership #coconstruction #fun

Claire Madden talks to Management Today and explains how you can ensure your non-executive directors are bringing value. #privateequity #alternativeinvestments

On board effectiveness, Séverine Neervoort asks about the balance for boards between managing risk and encouraging the seizing of opportunity. Liselotte Hägertz Engstam 🌏♦️ says she sees part of her role as driving the business forward; "boards needs to engage as much on the guiding and development side of the company as the supervision side of the company". Investors should ask as much about opportunities as risks, Liselotte says. She expands on how far the board is equipped to have that conversation. The more you move into a fast-moving area, all directors need to have the capability to ask "where do you see the opportunities for your business?" as much as where the risks are, she says. Understanding the risks of a business in the medium to long-term is really important, says Junichiro Sano, with a need for a skills matrix and skills maturity to be well aligned. Wilhelm H Mohn says there are "observables" that help to understand the fundamentals of a business, but it's important to be in dialogue with a board - what do you as Chair when you see board members who are not working well? How do you deal with non-performing directors? https://lnkd.in/djgjGzrH #ICGN2024 #conference #governance #corpgov #stewardship #sustainability #investors #assetmanagers #assetowners #resilience #boards

I very much enjoyed my chat with Douglas Noll on Authority Magazine on my perspective on why corporate boards sometimes misfire. Being able to balance short-term goals with the long term vision for the company is what differentiates a great board from a mediocre one. A good board should leverage its experience and know-how to help the execs to decide on the right short term bets. Board members should use these same skills to help the execs see and understand potential sustainable long term plays — as well as identifying possible pitfalls ahead.| https://lnkd.in/ehUpDPin

📚 Recap from Group T292 of The Men's Book Breakfast ~ The MBB on "How Boards Work" by Dr. Dambisa Moyo: In our session moderated by Nicholas Mbugua (MSc,CPA,CAMS,ACCPA), we delved into Chapter 1, exploring the critical role of boards in shaping a company's long-term strategy. Here are the key takeaways: 1. Introduction: The chapter underscores the board's pivotal responsibility in navigating the complex landscape of business, balancing short-term demands with long-term vision amidst regulatory, economic, and market dynamics. 2. Historical Perspective: Acknowledging enduring companies throughout history, the chapter highlights stalwarts like Barclays and JP Morgan Chase, emphasizing the importance of strategic resilience over centuries. 3. Board Duties: We discussed the legal and fiduciary duties of board directors, including the duty of care and loyalty, essential for safeguarding stakeholders' interests and ensuring informed decision-making. 4. Structural Variances: Contrasting board structures across regions, we examined the one-tier system in the US versus the two-tier system in Europe, each offering unique advantages in governance and oversight. 5. Role of Board Chair: We explored the pivotal role of the board chair in fostering collaboration, resolving conflicts, and serving as a bridge between the board and management, subject to rigorous scrutiny and accountability. 6. Navigating Uncertainty: Drawing from real-world examples like Boeing's challenges with the 737 Max, we discussed the board's role in managing crises, anticipating external shocks, and adapting strategies amidst uncertainty. 7. Strategic Decision-Making: The chapter emphasized the importance of robust strategic planning, encompassing short-term and medium-term goals while considering macroeconomic trends and micro-level factors like revenue recognition and capital allocation. 8. Preparing for Change: Boards must remain proactive in assessing strategic missteps and contemplating the company's survival, including strategic trade-offs like mergers or acquisitions, with careful consideration of valuation and long-term implications. In conclusion, the chapter underscores the board's pivotal role in ensuring the company's resilience and success across diverse environments, emphasizing the continuous evaluation of risks and strategic trade-offs to steer the company toward sustained growth. In our next session as we delve deeper into "How Boards Work" by Dr. Dambisa Moyo Moyo. #BookClub #BoardGovernance #Strategy #Leadership

Having an effective and committed board of directors can be a major competitive advantage when implementing strategy and growth plans. With the full support of our team, we can assist boards with the crucial responsibilities and decisions needed to secure stable growth across the business. #WhelanAccountancy #Cork #BusinessPlanning #BusinessDevelopment

Exit planning is good strategic planning. Even if you aren't currently thinking about exiting your business, you should be thinking about what's next.