Governance Evolution and Future Trends
Hanrick Curran were pleased to partner with Amplifi Governance and TCB Solutions to bring author and international guest speaker Peter Crow to Brisbane. Peter delivered an energetic account of the role and practical considerations family and private business owners should contemplate to derive value creation from their Board. Peter travels globally, advising, writing and speaking on corporate governance and strategic management with advisers and boards of family and private business intent on realising the potential of their company. In 2012, he commenced his Doctorate and his thesis, Understanding corporate governance, strategic management and firm performance: As evidenced from the boardroom, should be published later in 2016.
During the events held in Brisbane on 19 May 2016 Peter shared three key inputs crucial for a Board:
- Strategy; and
which when implemented effectively drive Performance and Value Creation.
Alex Fraser, Director of Hanrick Curran Corporate Finance and experienced adviser to Hanrick Curran clients on Corporate Governance of family and private business, was invited to participate during the event on the expert panel.
Alex revealed, in his 30 years of corporate advisory experience, that the most effective multigenerational family businesses have several common traits.
- They are clear on the vision or purpose of the family business, which cuts to the heart of why the business exists to give clear direction for future strategy
- They have a strong set of values that underpin the behaviours and culture within the organisation
- They have an engaged board who bring strategic competence to the role
- They have a management team who have clarity of their roles and responsibilities
Clear signs to a business owner of a need to investigate improved corporate governance practices include the presence of one or more of the following:
- a business with multi-generational family member involvement that lacks an agreed transition plan
- a growing business with multiple growth strategies competing for resources
- duplication of responsibility and/or avoidance of key responsibility areas due to the skill sets of the current shareholder/management team.
As highlighted by Peter Crow and evidenced in his research findings, strong Corporate Governance overseen and implemented by a competent Board will drive improved business performance. If you would like to explore how to improve the Corporate Governance practices in your business please speak with your usual Hanrick Curran adviser or contact Alex Fraser on 07 3218 3900.