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The following is an extended excerpt from my book, The CFO’s Guide to Good Corporate Governance.  The paperback version of the book is available at CreateSpace and Amazon. E-versions are available on ITunes and Amazon. If you find the content on my website useful, I would sure appreciate you picking up a copy. If you

In my last post, I walked through the implications of running a company without corporate governance. Assuming good corporate governance is beneficial, this post trims it down to three essential practices. Together, these three practices will improve decision making, while creating clear accountability.  The three suggestions are delegation of authority, budgeting and monthly reports. 

Without corporate governance in place, most companies will eventually go bust. In the interim, shareholder value will slowly (sometimes quickly) erode through waste and a series of suboptimal decisions.

The single hardest obstacle for me as a consultant is getting the management team to buy in to the importance of good corporate governance. I wish I could hang a mirror in from of them that shows what might have been had they done things differently.

My belief is that good corporate governance improves company performance and results in better shareholder returns. Shareholder returns come from cash flows, comprised of inflows and outflows. A lack of corporate governance usually leads to higher than necessary cash outflows through poor capital allocation and general waste.

It has been an exciting past few week as my new book, The CFO’s Guide to Good Corporate Governance, finally crossed the finish line. It is now for sale on CreateSpace, an Amazon sister company and Amazon.com and ITunes. An E-version for Kindle will be out very soon. I also have a pdf version that