Derek Higgs, letter to the Chancellor of the Exchequer and the Secretary of State for Trade and Industry, 20 January 2003.

"Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals..."

Sir Adrian Cadbury, 1999

"People, teamwork, leadership, enterprise, experience and skills are what really produce prosperity. There is no single formula to weld these together, and it is dangerous to encourage the belief that rules and regulations about structure will deliver success"

The Hampel Report, 2000

Better Corporate Governance

Successful corporate governance needs effective executive and board performance. This includes good working relationships between key investors, boards and executives as well as with stakeholders.

Governance is a combination of the right structure and composition, succession planning, good information, quality and timeliness of decision making including independence of non-executive directors, and getting the processes and dynamics right. Risk management is a vital aspect, but needs to be seen in balance with profitability, wealth generation and improving shareholder value.

These are tough times. There is greater pressure for boards to perform to higher standards in an environment of economic difficulties, lack of trust and continuing demise of established companies. The days of amateur governance are over.

Boards need to get their acts together to be ahead of the game and to decrease the dangers of hitting the headlines in the wrong ways. How then, can this be done?

On the one hand:

• 'tick lists' may indicate adherence to conformity, but they give little indication of how to improve actual performance
• internal reviews go deeper, but it is impossible for a board to evaluate itself objectively.

What is really needed is:

• an external evaluation of human capital and its potential to add value - as vital to successful governance as regular servicing is to an expensive car
• recognition of the human side of governance and the importance of developing it to the same level as the financial, regulatory and commercial elements of governance.

Over two decades we have shown how leadership is enhanced by the conscious application of human disciplines, knowledge and expertise. With these human aspects in place, there less risk of human failing and greater momentum for success - it is no longer advisable to take them for granted.

We have the experience, techniques and skills needed for boards and executives to become more professional in this area. We don't just assess the board then leave - instead we work with the chairman and CEO to develop the standards of thought and behaviour necessary for business requirements.

Are you a Chairman, CEO, Investor or just an interested individual director? Then find out how Convivium caould assess and upgrade human capital to the benefit of your organisation.