David Pasieka – Cedarvue Partners
December 2010"
Governance Failures……
Why - Why – Why?  Management Reporting Spin  Part-Time role / Full Time Need  Forceful CEO’s  Board Skill and Experien...
Objectives Educate Provoke Thinking Practical Tools Continuous Improvement
The Corporation           Management            Advisory Board  Board of Directors    Shareholders
Key Linkages                      Shareholder   Auditor                    Board of Directors  Committees                 ...
Boards over TimeInfluence   Governance          Board of     Complexity        Directors                       Advisory   ...
Director’s Duty Fiduciary Duty- “To act in the best interests of the corporation. It is this notion that all stakeholders...
Stakeholder ViewShareholders / Public / NGO’s / Competitors / Global Markets  Employees                                   ...
Directors Functions Hire / Fire CEO Reviews & Approves the Strategic Direction of the Corporation Monitor the Performan...
Directors Tools Information:    Right amount to absorb key issues and     make informed decisions. Process    Independ...
Bright Red Line Very Passive: Rubber Stamp     Management sets and drives agenda     Packages are late or Walked in   ...
TSX Governance Guidelines    National Instrument 58-101 Board of Directors Orientation and Continuing  Education Ethica...
Building Your Board(s) Define Strategic Gap Business Experience Management Experience Directors Experience Personal A...
Board Chemistry
What’s the Motivation? Favour to CEO Status Interesting & Engaging Opportunity to Network Give Something Back Fun R...
What’s the Risk Joint & Several Liability Insolvency Liabilities:   Payments to Employees   Payments to Creditors   P...
Defending the Risk Fiduciary Duty Duty of Care Due Diligence Business Judgment Rule Indemnity Director & Officer Ins...
Key Advisory Roles “The Customer” “The Geek” “Dad” “Tight Ass” “Jerry Maguire”“Art of the Start” – Guy Kawasaki
Managing Your Board Orientation Effective Charters Meeting Management Board Materials Agenda / Minutes In Camera On...
Evaluating Participation On the Masthead Silent and Deep Personality Challenged Ethical Poison
Is It Time to Act? Do they come prepared for the meetings? Can you get your Advisors when you need them? Is to much tim...
Assessment Approaches Attendance at Meetings              “Cheap & Cheerful” For the “Good of the Board” One on One Coa...
For the “Good of the Board”Round the Table (Verbal)   What Worked / What Didn’t   Areas to Improve   Emotional Decompre...
In Summary The Corporation Directors Duty Building Boards Managing Boards Evaluating Boards
References  Corporate Governance – Carol Hansell 2003  Integrity in the Spotlight – Maureen Sabia & James Goodfellow 200...
David Pasieka!dpasieka@marsdd.com!
Entrepreneurship 101 - Governance with David Pasieka
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Entrepreneurship 101 - Governance with David Pasieka

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In this lecture, students learn the difference between a board of advisors and a board of directors and what roles they play in running a business. David will provide real-life examples of governance best practices and explore the legal requirements of different structures and the consequences of board decisions.

For more information check the event page:
http://www.marsdd.com/events/details.html?uuid=55faba8c-905e-4db9-9470-29003e038c85

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Entrepreneurship 101 - Governance with David Pasieka

  1. 1. David Pasieka – Cedarvue Partners
December 2010"
  2. 2. Governance Failures……
  3. 3. Why - Why – Why?  Management Reporting Spin  Part-Time role / Full Time Need  Forceful CEO’s  Board Skill and Experience  Unwavering Trust of Management  Unwillingness to Rock the Boat
  4. 4. Objectives Educate Provoke Thinking Practical Tools Continuous Improvement
  5. 5. The Corporation Management Advisory Board Board of Directors Shareholders
  6. 6. Key Linkages Shareholder Auditor Board of Directors Committees Management Team Advisory Board
  7. 7. Boards over TimeInfluence Governance Board of Complexity Directors Advisory Boards Stage Financing Time
  8. 8. Director’s Duty Fiduciary Duty- “To act in the best interests of the corporation. It is this notion that all stakeholders need to be considered.” Duty of Care – “To exercise the care, diligence and skill that a reasonably prudent man would exercise under comparable circumstances.”
  9. 9. Stakeholder ViewShareholders / Public / NGO’s / Competitors / Global Markets Employees Legislators Scientists / Banks / Media / Customers / Investors
  10. 10. Directors Functions Hire / Fire CEO Reviews & Approves the Strategic Direction of the Corporation Monitor the Performance of Management
  11. 11. Directors Tools Information:   Right amount to absorb key issues and make informed decisions. Process   Independence & Diligence. Ask lots of Questions. Business Judgment –  Background, Insight, Experience
  12. 12. Bright Red Line Very Passive: Rubber Stamp   Management sets and drives agenda   Packages are late or Walked in   CEO strong willed   Infrequent meetings   Board Never votes no Moderate Very Active: Micro Management   Board meets monthly, lots of Committees   Board is stronger then the CEO   Board Committee work extensive   Board Large / Executive Committee Active Brown Governance 2005
  13. 13. TSX Governance Guidelines National Instrument 58-101 Board of Directors Orientation and Continuing Education Ethical Business Conduct Nomination of Directors Compensation Other Committees beyond Audit, Comp & Nominating Assessments
  14. 14. Building Your Board(s) Define Strategic Gap Business Experience Management Experience Directors Experience Personal Attributes Ready / Willing / Able
  15. 15. Board Chemistry
  16. 16. What’s the Motivation? Favour to CEO Status Interesting & Engaging Opportunity to Network Give Something Back Fun Remuneration
  17. 17. What’s the Risk Joint & Several Liability Insolvency Liabilities:  Payments to Employees  Payments to Creditors  Payments to Government Personal Conduct
  18. 18. Defending the Risk Fiduciary Duty Duty of Care Due Diligence Business Judgment Rule Indemnity Director & Officer Insurance
  19. 19. Key Advisory Roles “The Customer” “The Geek” “Dad” “Tight Ass” “Jerry Maguire”“Art of the Start” – Guy Kawasaki
  20. 20. Managing Your Board Orientation Effective Charters Meeting Management Board Materials Agenda / Minutes In Camera Ongoing Assignments Celebrations
  21. 21. Evaluating Participation On the Masthead Silent and Deep Personality Challenged Ethical Poison
  22. 22. Is It Time to Act? Do they come prepared for the meetings? Can you get your Advisors when you need them? Is to much time being spent on trivial issues? Are all members contributing to critical discussions? Are you getting great return?
  23. 23. Assessment Approaches Attendance at Meetings “Cheap & Cheerful” For the “Good of the Board” One on One Coaching Sessions Survey - Board / Peer Performance 360 degree Feedback High Tech Interactive Third Party Observers “Expensive & Comprehensive”
  24. 24. For the “Good of the Board”Round the Table (Verbal)  What Worked / What Didn’t  Areas to Improve  Emotional DecompressSurvey 1 to 5 (Written):  Pre-materials Concise and Helpful?  Everyone prepared?  Issues covered Trivial or Important?  Discussion Focused Operational or Strategic?  Stayed on Track?  Who were the Heroes? / Who were the Foes?
  25. 25. In Summary The Corporation Directors Duty Building Boards Managing Boards Evaluating Boards
  26. 26. References  Corporate Governance – Carol Hansell 2003  Integrity in the Spotlight – Maureen Sabia & James Goodfellow 2005  National Instrument 58-101- Disclosure of Corporate Governance Practices  CICA 20 Questions Series  www.Wallstreetfollies.com  “Money for Nothing: How the Failure of Corporate Boards Is Ruining American Business and Costing Us Trillions.” – Gillespie 2008  Brown Governance
  27. 27. David Pasieka!dpasieka@marsdd.com!

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