The New DNA of Corporate Governance

With Janet Langford Kelly From Directorship magazine - March 2005

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Corporate governance is about long-term wealth creation for shareholders and broader society, not statutory compliance.

This article outlines the 5 Levels of CEO Work and accountability and the implications for Board Directors and meaningful board processes in fulfilling their "strategic duty" to shareholders. This includes processes for establishing 3 to 5 year or longer CEO accountabilities, CEO performance evaluation, designing / approving CEO pay for performance, and effective CEO succession planning and talent management.

A case study shows how one Board addressed the mis-alignment between the Level of CEO Work, Level of CEO Capability and the Level of CEO Pay. Boards that fail to demonstrate a "good faith" attempt to apply the above meaningful processes may find themselves outside the protection of the Business Judgment Rule, lose indemnification, D&O insurance coverage and be personally liable for loss to shareholders if challenged.

Major organizations and consulting firms that provide Requisite Organization-based services

A global association of academics, managers, and consultants that focuses on spreading RO implementation practices and encouraging their use
Dr. Gerry Kraines, the firms principal, combines Harry Levinson's leadership frameworks with Elliott Jaques's Requisite Organization. He worked closely with Jaques over many years, has trained more managers in these methods than anyone else in the field, and has developed a comprehensive RO-based software for client firms.
Former RO-experienced CEO, Ron Harding, provides coaching to CEOs of start-ups and small and medium-size companies that are exploring their own use of RO concepts.  His role is limited, temporary and coordinated with the RO-based consultant working with the organization
Founded by Gillian Stamp, one of Jaques's colleagues at Brunel, the firm modified Jaques;s work-levels, developed the Career Path Appreciation method, and has grown to several hundred certified assessors in aligned consulting firms world-wide recently expanding to include organization design