Flevy Management Insights Case Study
Board Governance Restructuring for Maritime Corporation in Competitive Landscape


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Corporate Board to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The organization faced challenges with its Corporate Board's effectiveness amid changing global trade dynamics and regulatory pressures, necessitating improvements in strategic oversight and risk management. The initiative to revamp the Board's governance structure resulted in enhanced decision-making efficiency, increased diversity, and improved risk management, highlighting the importance of aligning governance practices with corporate culture for sustained success.

Reading time: 7 minutes

Consider this scenario: The organization in question operates within the competitive maritime industry and faces challenges with its Corporate Board's effectiveness.

Despite being well-established with a significant market share, recent shifts in global trade dynamics and increased regulatory pressures have exposed limitations in the Board's strategic oversight and risk management capabilities. The organization seeks to enhance the Board's structure and processes to better navigate the complex and evolving maritime sector.



The initial observation of the company's situation suggests two primary hypotheses. Firstly, the Board may lack diversity in expertise, hindering its ability to foresee industry trends and make informed decisions. Secondly, the existing governance framework might be outdated, leading to inefficient decision-making and risk oversight.

Strategic Analysis and Execution Methodology

The organization can benefit from a systematic 5-phase approach to revamp its Corporate Board governance. This methodology aligns with industry best practices and is designed to deliver a more agile and informed Board, capable of steering the company effectively through the maritime industry's challenges.

  1. Assessment of Current Board Structure: Investigation into the current composition, roles, and responsibilities of the Board. Key activities include stakeholder interviews and benchmarking against leading practices in the industry. This phase aims to identify gaps in skills, diversity, and processes.
  2. Strategic Board Composition Planning: Based on the assessment, redefining the ideal Board composition to align with the company's strategic goals. This involves defining the mix of skills and experience needed, and proposing changes to the recruitment and succession planning processes.
  3. Revision of Governance Framework: Updating the governance policies and procedures to reflect best practices in Board operations. This includes establishing clear guidelines for Board meetings, decision-making protocols, and performance evaluations.
  4. Risk Oversight Enhancement: Strengthening the Board's capacity for risk management by developing a more robust risk oversight framework. This phase focuses on identifying key risk areas and integrating risk considerations into strategic decision-making.
  5. Board Effectiveness Monitoring: Implementing mechanisms for ongoing evaluation of Board performance, including regular Board assessments and feedback loops to ensure continuous improvement in governance.

For effective implementation, take a look at these Corporate Board best practices:

Preparing Powerful Board Papers (56-slide PowerPoint deck)
Value-Driven Boards - Frameworks, Models and Tools (53-slide PowerPoint deck and supporting Excel workbook)
Elevate - The Foundations (41-page PDF document)
Board Governance Models (25-slide PowerPoint deck)
4 Areas of Strategic Governance for New Board Members (24-slide PowerPoint deck)
View additional Corporate Board best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Corporate Board Implementation Challenges & Considerations

The Board's receptiveness to change plays a crucial role in the success of the new governance model. Resistance to restructuring and process changes can be mitigated through transparent communication and involving Board members in the transformation journey.

After implementing the new governance framework, the company is expected to see a more dynamic and responsive Board, leading to improved strategic decision-making and risk management. Enhanced Board performance can contribute to better company resilience and adaptability in the face of industry fluctuations.

Implementation challenges include aligning diverse Board member perspectives, integrating new governance practices with existing corporate culture, and maintaining momentum for change. Addressing these challenges requires a tailored change management strategy that considers the unique context of the organization.

Corporate Board KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets managed.
     – Peter Drucker

  • Board Meeting Efficiency: Measures the time to decision and the ratio of strategic to operational discussions, indicating a more strategic Board focus.
  • Board Diversity Index: Tracks diversity in expertise, gender, and background, correlating with enhanced decision-making and innovation.
  • Risk Management Maturity: Assesses the integration of risk considerations into strategic planning and operational processes.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it has been observed that Board members who engage in continuous education and industry exposure contribute significantly to the Board's strategic capabilities. According to McKinsey, Boards with members participating in ongoing learning are 1.5 times more likely to exhibit high-performance behavior.

Corporate Board Deliverables

  • Board Assessment Report (PDF)
  • Board Composition and Recruitment Plan (PowerPoint)
  • Updated Governance Framework (PDF)
  • Risk Oversight Protocol (PDF)
  • Board Performance Evaluation Toolkit (Excel)

Explore more Corporate Board deliverables

Corporate Board Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Corporate Board. These resources below were developed by management consulting firms and Corporate Board subject matter experts.

Corporate Board Case Studies

A global shipping conglomerate overhauled its Corporate Board by aligning it with a new governance framework, which led to a 20% increase in strategic initiative implementation rate.

Another case involved a maritime logistics firm that enhanced its Board's risk management capabilities, resulting in a 30% reduction in compliance-related incidents within two years.

Explore additional related case studies

Aligning Board Structure with Strategic Goals

To ensure that the Board structure aligns with the organization's strategic goals, an initial step is to conduct a thorough analysis of the current and future strategic direction of the company. This involves not only evaluating the present market conditions but also forecasting future industry trends and identifying potential areas of expansion or contraction. The Board composition should reflect a balance of skills and experiences that are directly relevant to these strategic imperatives.

Insights from BCG suggest that companies with Boards that possess a wide array of industry-relevant expertise are better positioned to navigate market changes and drive strategic initiatives. A study shows that Boards with a strong alignment to corporate strategy have a 19% higher likelihood of achieving above-average growth compared to their peers.

Integrating Board Governance with Corporate Culture

The integration of new governance practices within the existing corporate culture is a delicate process that requires careful planning and execution. The key is to ensure that any changes in governance are communicated effectively and that Board members understand the rationale behind these changes. It is also important to foster an environment of openness and adaptability, where feedback is encouraged and acted upon.

According to a report by Deloitte, companies that actively engage in culture alignment when implementing new governance practices are 2.5 times more likely to experience successful Board transformations. This emphasizes the importance of cultural considerations in the Board restructuring process.

Measuring the Effectiveness of Board Meetings

Board meeting effectiveness is a crucial indicator of the overall health of the Board's governance. To measure this, one can look at both quantitative and qualitative metrics, such as the number of strategic decisions made, the length of discussions, and the outcomes of those discussions. It is also valuable to gather feedback from Board members on the perceived effectiveness of meetings and areas for improvement.

McKinsey's research indicates that Boards that utilize structured meeting agendas and focus on strategic rather than operational issues are more effective. In fact, Boards that dedicate over 40% of their time to strategy are correlated with outperforming their peers in terms of long-term value creation.

Enhancing Board Member Engagement

Board member engagement is another critical factor for successful governance. Engaged Board members are more likely to contribute meaningfully to discussions, challenge assumptions, and bring innovative ideas to the table. To enhance engagement, it is essential to ensure that Board members feel their contributions are valued and that there is a clear understanding of the strategic impact of their roles.

A study by Spencer Stuart reveals that Boards with high levels of engagement often have clear communication channels and a strong emphasis on continued education and professional development for their members. These Boards are 1.7 times more likely to be rated as high-performing by their CEOs.

Additional Resources Relevant to Corporate Board

Here are additional best practices relevant to Corporate Board from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Enhanced Board decision-making efficiency, reducing time to decision by 20% through structured meeting agendas focused on strategic issues.
  • Increased Board Diversity Index by 35%, reflecting a broader mix of expertise, gender, and background among Board members.
  • Improved Risk Management Maturity by 25%, integrating risk considerations more effectively into strategic planning and operational processes.
  • Board Meeting Efficiency improved, with a 40% increase in the ratio of strategic to operational discussions, indicating a more strategic Board focus.
  • Board member engagement levels rose, evidenced by a 30% increase in participation in continuous education and industry exposure activities.

The initiative to revamp the Corporate Board's governance structure and processes has yielded significant improvements in decision-making efficiency, diversity, risk management, and strategic focus. The increase in the Board Diversity Index and Risk Management Maturity signifies a more robust and versatile governance body capable of navigating the complex maritime industry. The strategic shift in Board meeting discussions towards more strategic issues aligns with best practices, contributing to long-term value creation. However, the results also highlight areas for improvement. Despite the progress, integrating new governance practices with the existing corporate culture has been challenging, indicating a possible underestimation of the cultural aspects of governance transformation. Additionally, while Board member engagement has improved, ensuring consistent engagement across all members remains a challenge.

To build on the current momentum, it is recommended to further enhance the Board's strategic capabilities by focusing on continuous education and industry exposure, particularly in emerging areas relevant to the maritime sector. Additionally, a more structured approach to cultural integration should be adopted, emphasizing transparent communication and feedback mechanisms to align governance changes with the corporate culture. Finally, to address the engagement inconsistency, personalized engagement plans for each Board member could be developed, focusing on their unique contributions to the Board's strategic objectives.

Source: Board Governance Reinvention for Luxury Fashion Brand, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Digital Transformation for Logistics Support Services Company

Scenario: A mid-size logistics support services company faces operational inefficiencies and stagnant growth, prompting the board of directors to seek a digital transformation strategy.

Read Full Case Study

Operational Efficiency Strategy for a Mid-Size Forestry Company

Scenario: A mid-size forestry company specializing in sustainable timber extraction is facing a 12% decrease in operational efficiency due to outdated machinery and fragmented processes.

Read Full Case Study

Strategy Transformation for Financial Advisory Firm in Wealth Management

Scenario: A mid-size financial advisory firm specializing in wealth management is facing strategic challenges as identified by the corporate board.

Read Full Case Study

Operational Efficiency Enhancement in Aerospace

Scenario: The organization is a mid-sized aerospace components supplier grappling with escalating production costs amidst a competitive market.

Read Full Case Study

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Organizational Change Initiative in Semiconductor Industry

Scenario: A semiconductor company is facing challenges in adapting to rapid technological shifts and increasing global competition.

Read Full Case Study

Strategic PESTEL Analysis for a Maritime Shipping Company Targeting Global Expansion

Scenario: A maritime shipping company, operating primarily in the Atlantic trade lanes, faces challenges adapting to changing global trade policies, environmental regulations, and economic shifts.

Read Full Case Study

Porter's 5 Forces Analysis for Education Technology Firm

Scenario: The organization is a provider of education technology solutions in North America, facing increased competition and market pressure.

Read Full Case Study

Sustainable Fishing Strategy for Aquaculture Enterprises in Asia-Pacific

Scenario: A leading aquaculture enterprise in the Asia-Pacific region is at a crucial juncture, needing to navigate through a comprehensive change management process.

Read Full Case Study

Direct-to-Consumer Growth Strategy for Boutique Coffee Brand

Scenario: A boutique coffee brand specializing in direct-to-consumer (D2C) sales faces significant organizational change as it seeks to scale operations nationally.

Read Full Case Study

Customer Experience Transformation in Telecom

Scenario: The organization is a mid-sized telecom provider facing significant churn rates and customer dissatisfaction.

Read Full Case Study

Revenue Model Innovation for a Niche Sports League

Scenario: The organization is a regional sports league that has recently expanded its footprint, adding new teams and securing a broader audience base.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.