ARE BOARDS AND CEOS ACCOUNTABLE FOR THE RIGHT LEVEL OF WORK?
From Ivey Business Journal - May/2004
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Too many CEO's are overpaid not because their company underperforms but because they are being held accountable for work that is operational versus strategic, but paid as if they were doing this strategic work.
This article outlines the failure to establish proper accountabilities and how these should be measured. This includes accountabilities between investors and boards, boards and CEO's, and CEO's and their executive team, which leads to a capitalist system that lacks accountability to shareholders as owners.
All Boards and CEO roles are not created equal and 5 levels of CEO work & capability and 5 Levels of Board accountability and capability are identified.
When the level of capability of the Board and CEO are both below the Level of Work required by the enterprise to sustain itself, then shareholder capital is at its greatest risk in losing value in starting new business ventures, transforming existing business models and undertaking acquisitions. A new model for pay for performance linked to these Levels of Work and Accountability is described.
This article outlines the failure to establish proper accountabilities and how these should be measured. This includes accountabilities between investors and boards, boards and CEO's, and CEO's and their executive team, which leads to a capitalist system that lacks accountability to shareholders as owners.
All Boards and CEO roles are not created equal and 5 levels of CEO work & capability and 5 Levels of Board accountability and capability are identified.
When the level of capability of the Board and CEO are both below the Level of Work required by the enterprise to sustain itself, then shareholder capital is at its greatest risk in losing value in starting new business ventures, transforming existing business models and undertaking acquisitions. A new model for pay for performance linked to these Levels of Work and Accountability is described.
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