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One of the challenges of owning a medium-sized company is that
it truly can be lonely at the top. Yet the majority of closely-held
companies have not adopted effective Business Governance mechanisms.
Frequently, even in subsidiaries of public companies, or companies
owned by buyout or private equity funds, that have attempted to
organize a board of directors or an advisory board, there are significant
deficiencies in the business governance mechanisms. There are many
reasons for this, however the effect is to deprive the CEO and principal
owners of the input that they require to improve future results.
Effective Business Governance involves assembling
a trusted advisory team, which will participate in the periodic
evaluation of a company's strategic positioning, the strength of
its management team, and the quality of its operating results. It
also involves periodic evaluation of business reinvestment risks
or opportunities, successions management plans, owner wealth transfer
plans and exit strategies.
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Nurturing quality
input
to maximize the effective
utlilization of a company's
entire resource base.
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Most companies, also, do not generate annual value
growth progress reports that isolate management's annual value growth
creation contributions. Such reports are often critically needed
to facilitate compensation structuring for key employees. They help
establish and more clearly define the basis for a value-based pay
system, which is often a key link for improving future business
performance.
Source's professional staff is experienced with helping
companies develop Business Governance mechanisms. We can also participate
on governing boards, or provide vital input to a governing board.
We have considerable experience assisting with management
team development, leadership mentoring and development, and business
succession management planning. In certain circumstances, our experienced
managing directors have actually provided interim CEO, COO or CFO
services for client companies for periods of up to three years.
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