BEYOND ............................... GOVERNANCE ..................................................... Creating Corporate Value through Performance, Conformance and Responsibility MARTIN FAHY JEREMY ROCHE ANASTASIA WEINER BEYOND GOVERNANCE ................................................ BEYOND ............................... GOVERNANCE ..................................................... Creating Corporate Value through Performance, Conformance and Responsibility MARTIN FAHY JEREMY ROCHE ANASTASIA WEINER Publishedin2005by JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester, WestSussexPO198SQ,England Telephone(+44)1243779777 Email(forordersandcustomerserviceenquiries):[email protected] VisitourHomePageonwww.wiley.com Copyrightu2004MartinFahy,JeremyRocheandAnastasiaWeiner AllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystemor transmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording, scanningorotherwise,exceptunderthetermsoftheCopyright,DesignsandPatentsAct1988or underthetermsofalicenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourt Road,LondonW1T4LP,UK,withoutthepermissioninwritingofthePublisher.Requeststo thePublishershouldbeaddressedtothePermissionsDepartment,JohnWiley&SonsLtd,The Atrium,SouthernGate,Chichester,WestSussexPO198SQ,England,oremailedto [email protected],orfaxedto(+44)1243770620. Designationsusedbycompaniestodistinguishtheirproductsareoftenclaimedastrademarks.All brandnamesandproductnamesusedinthisbookaretradenames,servicemarks,trademarksor registeredtrademarksoftheirrespectiveowners.ThePublisherisnotassociatedwithanyproduct orvendormentionedinthisbook. Thispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregardtothe subjectmattercovered.ItissoldontheunderstandingthatthePublisherisnotengagedin renderingprofessionalservices.Ifprofessionaladviceorotherexpertassistanceisrequired,the servicesofacompetentprofessionalshouldbesought. OtherWileyEditorialOffices JohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USA Jossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USA Wiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,Germany JohnWiley&SonsAustraliaLtd,33ParkRoad,Milton,Queensland4064,Australia JohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore 129809 JohnWiley&SonsCanadaLtd,22WorcesterRoad,Etobicoke,Ontario,CanadaM9W1L1 Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprint maynotbeavailableinelectronicbooks. BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN0-470-01151-3 TypesetbyDobbieTypesettingLtd,Tavistock,Devon PrintedandboundinGreatBritainbyAntonyRoweLtd,Chippenham,Wiltshire Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestry inwhichatleasttwotreesareplantedforeachoneusedforpaperproduction. Martin Fahy To my daughters Meadhbh and Emeline. Jeremy Roche To my wife Edel, and children Adam and Matthew for their ever-loving support and understanding. Anastasia Weiner To all of you who have helped me get here. You know who you are. CONTENTS ......................... Foreword xiii Preface xvii Acknowledgements xxi 1 Introduction: Enterprise Governance 1 Enterprise Governance – a new framework 2 The importance of people and culture 10 It is all about flawless execution 11 How this book supports flawless execution 12 Resources 13 Notes 13 PART I Performance 15 2 Developing Strategy 17 The importance of strategy 17 Understanding strategy 17 Managing for value: strategies for results 18 The ‘Managing for value’-based approach to the strategy process 20