Andy Hill’s Post

Some useful insight on B-Corps. We have over 2,000 B-Corps in the UK, and growing quickly. Approximately 1% of UK law firms are B-Corp Certified but this, quite rightly, will grow quickly too. While amazing, it’s not to be underestimated on duration, cost and commitment. It took us longer than we expected. Some insight shared here on our experience and views:-

CEOs and business owners - no, you don't have to. BUT! If you're reading this, you probably have read my previous posts about how private companies, and not only listed corporations, can also profit from #ESG implementation to open new revenue streams, increase profitability, attract and keep the best employees and become investor-friendly. Today, I'm talking about the advantages of implementing the third component of #ESG - Governance. Governance concerns company’s internal procedures, systems and practices to make decisions and to manage its operations, comply with law (e.g., consumer protection) and meet the needs of the external stakeholders. Company’s board often have a decisive role in shaping, advising and overseeing the company’s Governance. At the end of the day, it’s about the trust that all the stakeholders may have in the company’s way of doing business and making decision that may affect them. > Opening new revenue streams and reducing costs. The McKinsey report I mentioned in my previous post estimates that government intervention may put at risk up to a third of the company’s profit. Bad Governance certainly attracts government focus for inspection and sometimes to prosecution. But the positive corporate Governance helps companies to be invited to public / government tenders and public/private cooperation projects that are closed to “bad” corporate players. > Attract and keep the best employees. Employees live their professional lives each day within the decision processes that company applies. The employees feel the possible discrepancies between the official talk and the reality. All this sums up how employees feel themselves and how motivated they are to be part of the company. They also share their feelings with the outside world, including the potential candidates for open company roles. > Become investor-friendly. During the due diligence process, if it wasn’t already a public knowledge, any Governance issue will either scare potential investors away from the company or at least create an increased risk for them and the associated value discount for their funding offer. Bad Governance may invite corporate raiders, which always costs at least a lot of money to the shareholders. In some cases, even existing investors may decide to sell off their shares if they don’t trust the company’s Governance. On the other hand, the positive feedback about company’s sound Governance on behalf of the independent board members to potential investors will re-insure them in their investment motives. So, just as with Environmental and Social sustainability, healthy Governance offers companies competitive advantage that translates into shareholders' returns. In my next post, I will describe how the three components of the #ESG are interconnected in their impact on the company’s performance. Stay tuned. Your advisory or company board is your first best source of support in the effective #ESG implementation. #NED #nonexecutivedirector

How parallel governance systems supports generational transitions.

From Crisis to Comeback: The Long Road to Rebuilding Corporate Trust The value of trust in business cannot be overstated. Companies with high levels of trust tend to demonstrate materially higher levels of total shareholder return—as BCG’s Trust Index, which measures ongoing stakeholder confidence in businesses, has found. Yet it is harder than ever for companies to sustain trust. In recent years, many businesses have seen their stakeholders—customers, employees, investors, supply chain members, regulators, and neighbors—lose confidence in them. Our analysis reveals that almost 30% of large companies have experienced a major crisis or scandal in which peoples’ trust in them abruptly dropped. In nearly all these cases, recovery has been slow and difficult. A breach of trust can be corrosive to a company’s revenues, its culture, and its future success. Many businesses never regain their former standing unless corrective and sustained actions are taken. How, then, can business leaders avoid the deterioration of trust in their companies? And if trust does decline, is there a systematic path for actively regaining or repairing it? FYI Tony Jaques Elliot S. Schreiber, Ph.D. https://lnkd.in/dmuZNhzN

For corporations especially startups, the overall percentage of corporate failure versus success varies but it's frequently mentioned that around 70% to 90% of startups and small businesses eventually fail or collapse, this includes those that close down, are acquired, or significantly change their business model and only about 10% to 30% of businesses survive and succeed in the long term. here are some of the reasons why corporations Collapse: 1- Poor Corporate Governance: weak governance practices, including lack of oversight, poor risk management, or conflicts of interest, can lead to unethical behavior, financial irregularities, and ultimately a corporate failure, to mitigate this companies must consider and establish clear ethical guidelines and effective policy. 2-Loss of Key Talent: Losing top executives, skilled employees, or crucial teams can cripple a corporation, especially if it leads to a loss of institutional knowledge or disrupts ongoing projects, some of these can help mitigate the impact of losing key talent and ensure continuity within the organization can be (employee development, engagement, and knowledge transfer). 3- Pricing and Cost Issues: Incorrect pricing strategies, whether too high or too low, can deter customers or fail to cover costs, leading to financial instability and significant loss these issues can be obvious in startups where there is no clear vision and transparency, some approaches can help maintain profitability and competitiveness while managing costs effectively such as (Pricing demand on market demand and cost analysis). 4- Insufficient Cash Flow Management: Even profitable companies can fail if they don’t manage their cash flow properly. Insufficient liquidity to cover operational expenses can lead to insolvency, one of the best solutions is regular and stable cash forecasting. 5- Operational Inefficiencies: Inefficient operations, such as outdated processes, poor supply chain management, or wasteful practices, can affect profit margins and make a company uncompetitive. 6- Market Changes: Changes in the market, such as shifts in consumer behavior, new regulations, or disruptive technologies, can render a company’s business model obsolete if it fails to adapt, hence companies and employees should always be willing to adapt quickly with new changes.   7- Reputation Damage: Corporations can fail if they suffer significant reputational damage due to poor customer service, product failures, or other negative publicity, leading to a loss of customer trust and market share. To ensure long-term success, businesses must understand and address key factors and critical challenges such as poor governance, loss of key talent, and market changes, effective strategies include implementing strong ethical practices, optimizing operations, and adapting quickly to changing conditions.

🔑 Are you ready to unlock the true value of your consulting business? Technical, financial, and environmental consultancy firms are prime targets for acquisitions, so standing out is essential. A noteworthy trend in 2023 was the surge in strategic M&A within the consulting sector. Firms are not just expanding; they're strategically positioning themselves by entering new markets or enhancing their presence in existing ones. But what catches a potential buyer's eye first? Revenue and profitability. 💡 To scale and boost valuation, firms need more than a strong sales and marketing team. They must leverage technology for seamless customer service and maintain a diversified revenue stream. Growth should never compromise the quality of service to existing clients. Balancing expansion with operational efficiency ensures a satisfied, loyal client base. Ready to boost your consulting firm's valuation? At Vivero, we understand the complexities of running a business. That's why our mission is to work with clients to maximise their business potential. From growth and transformation to funding and selling, we simplify the whole process. If that sounds like the solution to a lot of business headaches, then be sure to get in touch with us. https://lnkd.in/ehsE8wwG #Consultancy #MergersAndAcquisitions #BusinessStrategy

🔑 Are you ready to unlock the true value of your consulting business? Technical, financial, and environmental consultancy firms are prime targets for acquisitions, so standing out is essential. A noteworthy trend in 2023 was the surge in strategic M&A within the consulting sector. Firms are not just expanding; they're strategically positioning themselves by entering new markets or enhancing their presence in existing ones. But what catches a potential buyer's eye first? Revenue and profitability. 💡 To scale and boost valuation, firms need more than a strong sales and marketing team. They must leverage technology for seamless customer service and maintain a diversified revenue stream. Growth should never compromise the quality of service to existing clients. Balancing expansion with operational efficiency ensures a satisfied, loyal client base. Ready to boost your consulting firm's valuation? At Vivero, we understand the complexities of running a business. That's why our mission is to work with clients to maximise their business potential. From growth and transformation to funding and selling, we simplify the whole process. If that sounds like the solution to a lot of business headaches, then be sure to get in touch with us. https://lnkd.in/ehsE8wwG #Consultancy #MergersAndAcquisitions #BusinessStrategy

From AGN International member firm RVKS And Associates, Chartered Accountants, a new article on the many effective strategies that #accounting firms (and, by extension, organizations across industries) can leverage to achieve sustainable growth.

Ready to explore why companies opt to remain private? 🏢💼 Delve into the strategic considerations and advantages that lead businesses to choose private ownership over going public. From maintaining control and flexibility to avoiding regulatory scrutiny and short-term pressures, learn about the factors influencing this decision. Explore case studies and insights from successful private companies, as well as the potential drawbacks and challenges of staying private. Let's celebrate the diversity of corporate strategies and the autonomy that private ownership affords in today's business landscape! #PrivateOwnership #CorporateStrategy #BusinessSuccess 🏢💼 https://lnkd.in/dxPXE-x5

Owners as Strategists Dominant owners, be they founders, families, private equity, governments, or financial investors, have a decisive influence on firm strategy. But our understanding of this influence is rather limited. We look forward to an excellent group of speakers, such as Ruth V. Aguilera, Joseph Mahoney, Colin Mayer, Leandro S. Pongeluppe, JW Stoelhorst, and Anita McGahan, with whom we will be discussing the role of owners for firm strategy.   This year’s topic is “Owners as Stakeholders”. Owners have a special standing among all other stakeholders. Owners are claimants to the firm’s residual profit, and it has been argued, thus, that owners rightly retain residual control and the right to set the strategy of the firm. The landscape of corporate governance is, however, undergoing continuous evolution. While owner primacy has dominated corporate governance for the past decades, more and more scholars and practitioners claim that the central problem in corporate governance today is to enable a team effort of various stakeholders and to overcome collective action problems. From a team production perspective we may thus ask whether the superior position of shareholders is justified.   At our upcoming online conference, taking place November 21, we will discuss this fundamental and related questions. Looking forward to seeing you there:  September 6 – Submission deadline September 20 – Notification of authors September 27 – Conference registration deadline November 21 – Conference A special thank you to my fabulous co-organizers; Christine Scheef, Paola Taricco, Mario Daniele Amore, Carlo Salvato; AIDAF-EY Chair in Strategic Management in Family Business, KMU-HSG | Institut für KMU und Unternehmertum All details here: https://lnkd.in/d3csuVSx