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Governance Reimagined: Organizational Design, Risk, and Value Creation

Book Description

A timely guide for companies needing to grow equity and human capital after the recent economic turmoil. Written for leaders and students of for-profit, non-profit, political, and social organizations who are looking for a way to do their work more effectively.

Most organizational leaders only partially understand the factors that affect the amount of value created by the activities of their organization and thus greatly under-deliver on the potential to achieve their objectives and serve their target audiences.

Governance Reimagined has been written to fill in the missing pieces of this puzzle. It will help put your organization on the path toward re-governing, or redesigning how it works, to unlock its hidden value. Page by page, it will show you how to generate new and better processes and improve the value of those processes by altering the external perception of their risk.

  • Addresses various issues that affect corporate value, from management and systems theory to governance science, risk management, and traditional finance

  • Reveals how to recognize internal processes and external events that affect value creation

  • Highlights how to create resilient organizations that generate greater value from their processes

  • Governance Reimagined offers corporate leaders a new way to think about value, and will help you understand some of the factors that destroy value within organizations, but most importantly how new value can be created and how missions can more ably be fulfilled.

    This is an important book for these dynamic economic times.

    Table of Contents

    1. Cover
    2. Additional Praise for Governance Reimagined
    3. Series Page
    4. Title Page
    5. Copyright
    6. Dedication
    7. Acknowledgements
    8. Introduction: RE: Governing
      1. Sources of Wealth
      2. Perceptions Matter
      3. Keep Doing What You Do...
      4. And Keep Doing it Well!
    9. Part One: Creation and Evolution: The Source(s) of Wealth
      1. Chapter 1: Understanding Value, Values, and Value Creation
        1. How Much Is that Duck in the Window?
        2. Are We Acting on Our Beliefs?
        3. Economics and the Creation of Value
        4. Only One Equation, I Promise
        5. Notes
      2. Chapter 2: Systems and Networks in Our Lives
        1. Secret Agents
        2. Systems Theory
        3. Network Theory
        4. Notes
      3. Chapter 3: The Dynamics of Self-Organizing Groups
        1. From Small, Unconnected Beginnings
        2. Hops, Skips, Jumps, and Luck
        3. Risk, Success, and Failure
        4. The Game of Evolution
        5. The Meaning for Organizations
        6. Notes
      4. Chapter 4: The Emergence of Complexity Economics
        1. Two Schools in Conflict
        2. What's Wrong with Traditional Economics?
        3. Building an Economy
        4. The Bounds of Rationality
        5. Not so Timely or Stable
        6. The Role of Networks, Evolution, and Social Interaction
        7. What's Next?
        8. Notes
    10. Part Two: Looks Matter
      1. Chapter 5: The Enterprise and Those Who Influence its Value
        1. Keystones, Value, and Systems
        2. The Organization's Social Network
        3. Customers
        4. Investors
        5. Executive Leadership, Employees, and Contract Workers
        6. Board of Directors
        7. Suppliers
        8. Creditors
        9. Regulators
        10. Analysts
        11. Retirees
        12. Case Study: Iceland and the Credit Crisis
        13. How We Look Affects Our Value
        14. Notes
      2. Chapter 6: Our Human Behavior
        1. Voices in Behavioral Economics
        2. The Value of Utility
        3. You Decide
        4. What Are the Chances of That Happening?
        5. Run for the Hills
        6. Dragging an Anchor
        7. I Could Lose How Much?
        8. And Just When Would I Get that?
        9. Everywhere, Biases
        10. I Care about You
        11. Our Evolving Thoughts
        12. Notes
      3. Chapter 7: The Human Reaction to Risk
        1. The Perception of Risk
        2. Processing Risk
        3. Quantification as a Coping Mechanism
        4. Looking to the Experts
        5. Lessons for Governing our Organizations
        6. Notes
      4. Chapter 8: Social Amplification and Tipping Points
        1. At the Threshold
        2. Getting Tipsy
        3. Walking on Air
        4. Letting Out the Air
        5. The Social Amplification of Risk
        6. Case Study: The Madoff Affair
        7. Probability and Impact Are Not Enough
        8. The Real Impact
        9. Notes
      5. Chapter 9: The Role of Trust in Networks
        1. How Do I Trust Thee? Let Me Count the Ways...
        2. Embed with Trust
        3. Trust Me and Do as I Say
        4. If Only You'd Cooperate
        5. Does Our Relationship Need to Be This Complex?
        6. I Understand that You Need More Space
        7. How Can I Ever Trust You Again?
        8. Trust and the Potential of Risk Management
        9. Trust and Value
        10. Notes
    11. Part Three: Not Everything Is Dead in the Long Run
      1. Chapter 10: Value Revisited
        1. A Random Walk across Midtown
        2. Oh, the Possibilities
        3. What's the Value of This Journey?
        4. Utility Functions
        5. Fat Tails, Utility, and Value
        6. Parallels to Organizational Life in Systems
        7. We're Positively Skewed!
        8. Note
      2. Chapter 11: The Role of Resiliency in Creating Value
        1. Resilience
        2. Brittleness
        3. Single Points of Failure
        4. The Path of a Problem
        5. Threats to the System
        6. Loss Avoidance Revisited
        7. Becoming Resilient
        8. Notes
      3. Chapter 12: The Things that Motivate People
        1. What Motivates Our Behavior within Organizations?
        2. Do Incentives Even Work?
        3. Management by Objectives
        4. Darley's Law
        5. Risk-Sensitive Foraging
        6. Free Externalities
        7. Management of the Commons
        8. Notes
    12. Part Four: The King is Dead
      1. Chapter 13: The Governance of Risk
        1. Risk and Risk Management
        2. The Profession of Risk Management
        3. Defending the Goal
        4. Problems in the Box
        5. A Regulation-Sized Goal?
        6. Stress Tests, Scenario Analysis, and ANTs
        7. Managing the Midfield
        8. Setting Up the Offense
        9. A Venture Capital View of the Organization
        10. A Portfolio View of the Enterprise
        11. Overall Governance of Our Organizations
        12. Notes
      2. Chapter 14: Networked and Distributive Governance
        1. The Role of the Board
        2. Principal-Agent Relationships
        3. Key Duties of Board Members
        4. The Carver Method
        5. Ends and Means
        6. Nested Policies
        7. Board-Chief Executive Relationship
        8. Extending the Model through Subsystems
        9. Bringing in the Network
        10. Corrupting Powers of a Unitary Board
        11. People in Our Network Who Care about Us
        12. Rolling it Out through the Organization
        13. The Impact of Governance and Transparency on Trust and Value
        14. The Integration of Networked and Distributive Models
        15. Summary
        16. Notes
      3. Chapter 15: Economic Governance
        1. Markets and/or Hierarchies
        2. Cities, Organisms, and Organizations
        3. Management of the Commons
        4. Risk Capital as Commons
        5. Bringing it Together
        6. Notes
    13. Conclusion: The Re-Governing Opportunity
    14. Glossary
    15. About the Author
    16. Index