Grow Your Business with Governance Consulting Services | Tips to Get Started

Summary

Governance consulting is an emerging field of practice that is becoming increasingly popular. The goal of governance consulting is to provide organizations with independent advice and guidance on the management of their operations, investments, and resources. Governance consultants typically have extensive experience in the field of corporate or organizational governance, and can provide customized guidance on specific issues or across the board.

The growth of governance consulting has been driven by the need for improved corporate responsibility, as well as the increasingly complex regulatory environment in which organizations must operate. Organizations are looking for governance consultants to help them identify and address areas of risk, ensure compliance with regulations, and address potential conflicts of interest. Governance consultants can also assist organizations with the development and implementation of policies, practices, and frameworks related to governance.

The services provided by governance consultants vary based on the specific needs of the organization. They may include the assessment of governance structures and processes, the development of risk management strategies, the design and implementation of governance mechanisms, and the evaluation of management systems. Governance consultants can also provide advice and assistance on organizational structure, stakeholder engagement, board governance, and executive compensation.

In addition to providing guidance and support, governance consultants can also be called upon to provide training and education. This can include providing training to senior executives, directors, and other stakeholders in the organization. These training programs can help organizations understand their duties and obligations under the law, as well as how to effectively manage their operations and resources.

Governance consulting is a growing field and is becoming increasingly important for organizations looking to maximize performance and minimize risk. Governance consultants can provide independent advice and guidance, help organizations develop policies and procedures, and provide training and education. Organizations that are seeking to improve their corporate governance should consider engaging a governance consulting firm to help them in this endeavor.
 

What is Governance Consulting?

Governance consulting is a highly specialized form of business consulting that focuses on the internal governance structure of an organization. Governance consulting is designed to help organizations maximize their organizational effectiveness, governance, compliance and risk management practices. Governance consultants provide expert advice and support to corporate boards, executive management, government and other stakeholders. Governance consulting is an important tool for businesses and organizations of all sizes and can be used to address strategic, operational, financial, regulatory and other challenges.
 

Why is Governance Consulting Important?

Today, organizations are under increasing pressure to adhere to rigorous corporate governance standards, in order to protect their shareholders, stakeholders, and customers. In order to comply with these complex requirements, businesses must have a sound inner structure and well-defined protocols in place. The right governance consultants can help ensure that businesses meet their legal and ethical obligations, while increasing their corporate efficiency.
 

What Does a Governance Consultant Do?

A governance consultant is responsible for assessing an organization's governance structure, policies, and procedures, and providing advice and support to help organizations improve their governance practices. In addition to providing guidance on how to structure an organization's governance, consultants also assess and review existing practices, and identify areas for improvement. Governance consultants also work closely with stakeholders to ensure their needs are met and that the organization is meeting all of its legal and ethical obligations.
 

What Are the Benefits of Governance Consulting?

The main benefit of consulting a governance specialist is the assurance that organizations will have a well-structured, effective, and compliant governing structure. Additionally, organizations that have taken the time to invest in governance consulting can benefit from improved decision-making, risk management, and organizational scalability. Governance consulting can also help organizations identify and address compliance issues, as well as strengthen the organization's brand, increase employee trust, and improve customer satisfaction.
 

How to Find a Governance Consultant?

When choosing a governance consultant, it's important to find a reputable firm that has experience in your industry and understands the complexities of business governance. It's also important to find a consultant with a strong knowledge of legal and ethical obligations. The ideal governance consultant should be able to provide customized guidance and advice to address the organization's specific objectives and concerns. Additionally, it's important to choose a consultant who has the resources and capabilities to support the organization's long-term objectives.

''There's a general concern for boards and directors to do the right thing in the area of corporate governance, and that, in itself, has caused more need for legal counsel,'' said Jones Day attorney Richard Koppes of San Francisco.

Questionable business practices have caused increased scrutiny of corporate pitfalls, such as chief executives running roughshod over boards of directors, excessive executive pay packages, and turf wars between managers and board members.

Jones Day, which consists of more than 2,200 lawyers in 29 locations, acts as principal outside counsel to, or provides significant legal representation for, more than half of the Fortune 500 companies.

Mr. Koppes, who serves on the boards of directors for Apria Healthcare Group and Valient Pharmaceuticals Inc. of Orange County, CA, said that his ''board members are relying more on inside and outside counsel than ever before.''

Indeed, everyone from attorneys to retired chief executives are passing themselves off as experts on cracking down on corporate malfeasance.

''About eight years ago, in terms of conferences held on corporate governance, there were 89 conferences in 1997 in 10 countries all around the world,'' said Stephen Davis, president of Davis Global Advisors Inc.

''This year, there will be 600 in nearly 50 countries,'' said Mr. Davis. His independent, privately owned consulting firm specializes in global corporate governance, with a recent list of clients that include Chase Manhattan New York and Merrill Lynch New York, London.

Governance Metrics International claims to be the world's first global corporate governance ratings agency. The New York-based company began rating U.S. companies two years ago.

Last month, GMI released its ratings of 2,588 global companies. Twenty-six companies, including Coca-Cola Co. and General Motors Corp., received scores of ''10,'' GMI's highest rating.

GMI's rating system takes into account board accountability, financial disclosure and internal controls, executive compensation, shareholder rights, ownership base and takeover provisions, plus corporate behavior and social responsibility.

''Moody's (Investors Service) and GMI are both highly sophisticated. My advice to companies is to not overreact to these grades but be aware of them and find out what's behind them,'' Mr. Koppes said.

Davis Global Advisors provides research to GMI. Subscribers to GMI are able to view a company's overall rating, section ratings and several pages of written analysis.

''Everything we use (in the scoring) is based off of publicly disclosed information. Every fact we collect about a company is sent to the company for verification,'' said Gavin Anderson, president and chief executive officer of GovernanceMetrics International.

The enactment of Sarbanes-Oxley corporate-reform legislation in 2002, which called for public companies to state whether at least one person on their audit committee is a ''financial expert,'' has helped boost the GMI ratings of U.S. companies.

''In Japan, there's no disclosure about individual executive compensation,'' said Mr. Anderson, former chairman and chief executive officer of Gavin Anderson & Company, a global corporate, financial and investor relations firm.

''When I first entered this field 18 years ago, I most certainly didn't understand it or cared about it, and that has changed,'' Mr. Koppes said.

''Most boards and directors are seriously trying to do the right thing, and that creates more work for lawyers, more need for good legal counseling in this area.''