The Untapped Potential of Corporate Governance in Engineering and Construction: 2018 FMI/CIRT Corporate Governance Study
With the economy in full swing, the Great Recession long behind us, and future opportunities for engineering and construction (E&C) firms often outstripping the business’s ability to bring resources to bear on those new projects, it is easy to lose sight of the critical role that effective corporate governance plays in the long-term health of any organization. By aligning the actions of management with the interests of shareholders, a high-performing board of directors provides a reliable rudder for executive leadership strategies and tactics, while advancing the best interests of all stakeholders.
The rise of corporate governance as a business priority has been well-documented, with boards of directors serving as the cornerstone for these efforts. Working with the CEO and other organizational leaders, boards provide support and direction that ultimately help drive corporate success.
The purpose of this study was to explore industry-specific practices around governance processes and the degree to which these resulted in board efficacy. More specifically, we investigated an array of factors: leadership and demographic composition of corporate boards, director training and development methods, and key focus areas of E&C boards. In all instances, a fundamental question was forefront in the minds of the FMI research team: What are the factors that support great governance?
