Corporate Governance: A New Approach for Building Enterprise Value

By Bill Boyar Chairman, Boyar and Miller | January 14, 2010

Valuable Senior Purpose

The starting point for effective governance is valuable senior purpose. Senior purpose is that fundamental commitment to the shared interests of investors, employees and customers. It's what customers will pay for and employees and investors will willingly provide and protect. Some refer to this as mission. Others call it vision. Whatever the name, a clear senior purpose is the cornerstone of any organization. Healthy companies will protect and advance the shared interests of the three constituents in serving the senior purpose. An unhealthy (or diseased) business will more typically sacrifice the interests of one of these important constituents. (See the discussion under Alignment below).

Without a clear commitment by all constituents to a shared senior purpose, it's difficult to govern at all, let alone effectively. Without a shared senior purpose, individual agenda overcomes creative, collaborative and cooperative decision-making.

Valuable Communication

The second important element of effective governance is valuable communication. By valuable conversation, we mean communication that is designed to produce value for the company and avoid and eliminate waste. Most organizations need tools in order to stimulate collaborative interaction. Our friends at Conversant, a Boulder, Colorado headquartered consulting practice (www.conversant.com), have developed two great tools for understanding conversation and stimulating valuable interaction: the Conversation Meter and the Intersection Model.

Conversation Meter

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Coming up in February 2018...

Social Media: Engagement is Key

There are currently 2.3 billion active users of social media networks and savvy hotel operators have incorporated social media into their marketing mix. There are a few Goliath channels on which one must have a presence (Facebook & Twitter) but there are also several newer upstart channels (Instagram, Snapchat &WeChat, for example) that merit consideration. With its 1.86 billion users, Facebook is a dominant platform where operators can drive brand awareness, facilitate bookings, offer incentives and collect sought-after reviews. Twitter's 284 million users generate 500 million tweets per day, and operators can use its platform for lead generation, building loyalty, and guest interaction. Instagram was originally a small photo-sharing site but it has blown up into a massive photo and video channel. The site can be used to post photos of the hotel property, as well as creating Instagram Stories - personal videos that disappear from the channel after 24 hours. In this regard, Instagram and Snapchat are now in direct competition. WeChat is a Chinese company whose aim is to be the App for Everything - instant messaging, social media, shopping and payment services - all in a single platform. In addition to these channels, blogging continues to be a popular method to establish leadership, enhance reputations, and engage with customers in a direct and personal way. The key to effective use of all social media is to find out where your customers are and then, to the fullest extent possible, engage with them on a personal level. This engagement is what creates a personal connection and sustains brand loyalty. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.