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DEVELOPING CORPORATE

GOVERNANCE

AT HIGHFLY LOGISTICS

SOFTWARE – BUT HOW?

Andaya, Krizzia May E.

Batario, Jiena Maica C.5BSA

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Highfy Logistics Sotware

• London!ased sotware co"#any s#ecia$izing $ogistics so$%tions

• &#erating or ' years

•(rown ra#id$y with do%!$ing headco%nt andre)en%e e)ery year

• *+ owned !y -ent%res artners/ 0+ owned1irst Stages Ca#ita$

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Highfy2s &rganizationa$

Str%ct%reTom

CEOMarketing

Head:Dominique

Truck RetailersWarehous

eOther

Markets

Finance &Administration

Head: Herert

Accounting!Finance

"eneral#er$ices!Ca%eteria

34Head6 Jose

07+ sa$es re#s.#$%s08 in

ad"inistration

9: e"#$oyee;75 in

caeteria<

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Highfy2s Board oirectors

Tom

Svensson Chair"an4 CE&

Herbert Jones

Chie1inancia$&>icer

Van Chu1irst Stages

Ca#ita$

Arno

Levin -ent%reartners

K

Ga?ndei

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(rowth s$oweddown

&nesize@tsa$$sotware

r

3et

arHigh$y D%a$i@edand technica$$ytrained sa$es

orce

&thergeogra#hica$

"arets

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Cor#orate (o)ernance at

Highfy• Board "eetings are %s%a$$y *5 ti"es a year

not "ore than

= or 0 ho%rs

•?t is not %n%s%a$ or a "e"!er to !e a!sent

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Cor#orate 1itness rogra"

• oo "%ch d%#$ication in ada#tinge>orts or c%sto"er needs

• C%sto"er did not co)er %$$ cost oadditiona$ ser)ices

• Mareting organization wanted toee# the c%sto"er in their do"ain2

• he esta!$ished co%ntryorganizations $ac s%>icient accessto 34

• H3, acco%nting, caeteria inc%rs$arge a"o%nt o eF#enses

•

• ?"#ose hiring reeze

• C$ose the caeteria

• &%tso%rce H3, acco%nand genera$ ser)ices

• e"and that s%!sidiare$y on interna$ so$%ti

• (oa$ o red%cingad"inistration costs !and 34 !y 7+

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Arno2s ro#osa$

• o%!$e the n%"!er o !oard "eetings

• ?ncrease the in)o$)e"ent o the !oard in stra#rocess

•B%i$d a ris "anage"ent syste"

• ?ntrod%ce an a%dit co""ittee

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he #ro!$e" in this case is how the Highfy2s!oard wi$$ !eco"e co""itted in the

i"#$e"entation and de)e$o#"ent o an e>ecti)ecor#orate go)ernance, chiefy on the

res#onsi!i$ities o the !oard considering the"e"!ers are #assi)e and o", the CE& and

Chair"an, "ain$y "aes the decisions !ased onhis #ersona$ interest.

Core Problem

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(%ide G%estion 7

• hat is the added )a$%e o a "orede)e$o#ed Cor#orate (o)ernance in

HighfyI

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hat is the added )a$%e o a "ore de)e$oCor#orate (o)ernance in HighfyI

• Ada#tation o changing "aret

• C$ear di)ision o res#onsi!i$ities

• rans#arency and acco%nta!i$ity

• Better decisions

• -a$%es and good cond%ct

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(%ide G%estion =

• How did the Board o irectors o Hiare against the &EC2s consens%s inres#onsi!i$ity o the !oardI hat are

need i"#ro)e"entsI hat concret"eas%res can ens%re s%ch i"#ro)e"e

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How did the Board o irectors o Highfy are agthe &EC2s consens%s in the res#onsi!i$ity o

!oardI

1o%r ;*<7+ highest and 7 $owest

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hat areas needi"#ro)e"entsI

• rinci#$e 9 3es#onsi!i$ities o the Board Section A

• he !oard o director;s<;o"< #%t their interest!eore the staeho$ders.

• Hiring reeze

•C$ose the caeteria

• red%ction o eF#enses ;34and ad"inistrati)e costs<

hat concrete "eacan ens%re s%ci"#ro)e"entsI

• he !oard sho%$d assess sit%ations air$y and they sho%$d ee# in "ind their res#

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• rinci#$e 9 3es#onsi!i$ities o the Board Section E0

• he $ac o o!ecti)einde#endent %dg"ent o the!oard "e"!ers.

hat concrete "eacan ens%re s%chi"#ro)e"entsI

• he co"#any sho%$d esta!$ish c$ear #ict%rein"aret a!o%t the #%r#ose, d%ties, res

acco%nta!i$ity

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• rinci#$e 9 3es#onsi!i$ities o the Board Section E0

• ?t was not %n%s%a$ or a"e"!er to !e a!sent in!oard "eetings.

hat concrete "eacan ens%re s%ci"#ro)e"entsI

• Set a "eeting ti"e and #$ace that is con)enient

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(%ide G%estion 0

• ? yo% were a Board Me"!er, howo%$d yo% res#ond to the #ro#osa$ o AHow wi$$ yo% dea$ with o" and con)i

hi" that yo%r reco""endationss%ggestions is the !est a$ternati)e o

HighfyI

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? yo% were a BoardMe"!er, how wo%$d yo%

res#ond to the #ro#osa$o ArnoI

• ? wi$$ support Arno2s #ro#o

rather than o"2s idea.

• Arno2s #ro#osa$6

• C$ear

• Si"#$e

• Ada#ts to the changing "a

• oes not #%t the co"#anystaeho$ders2 interest into

•o%!$e the n%"!er o"eetings

•?ncrease !oard2sin)o$)e"ent in the strategy

#rocess•B%i$d a ris "anage"entsyste"

•?ntrod%ce an a%ditco""ittee ;res#onsi!$e orris "anage"ent syste"<

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How wi$$ yo% dea$ with o"and con)ince hi" that yo%r

reco""endations

s%ggestions is the !esta$ternati)e or HighfyI

• "aret is constant$y changinis ine)ita!$e.

• ad%sts his !%siness #hi$oso#

• cannot a>ord to stic to the s#$an ro" which his !%siness

• !e wi$$ing to $earn new thing

satisy re)ihis c%sto"ers2 str%ggand

needs a$$ingco"#any

he co"#any sho%$dstart ada#ting the!%siness #$an or

strategy to thechanging !%siness

conditions

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(%ide G%estion *

hat !oard res#onsi!i$ities wereeFercised in HighfyI hat !oard

res#onsi!i$ities were o)er$ooedI S%g

at $east @)e concrete ways to addrestheseI

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hat !oard res#onsi!i$ities we

eFercised in HighfyI• rinci#$e 9 Section 5

• Me"!ers o the !oard inHighfy are high$y co"#etentand D%a$i@ed, ha)e a $ongeF#erience in "anaging the

co"#any

• rin

• it is e)idenced when the co"#any2s C1&

o" that the core)en%es and #ro@t contin%e to a$$

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hat !oard res#onsi!i$ities weeFercised in HighfyI

• rinci#$e 9 Section 9

• no iss%e raised a!o%t the"is%se o cor#orate assets

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hat !oard res#onsi!i$ities weo)er$ooedI

• rinci#$e 9 Section A

• id no tae into acco%nt theinterest o the shareho$ders,e"#$oyees and the #%!$ic good

• rin

• id not treat theshareho$ders air$y

• rinci#$e 9 Section E• So"e !oard "e"!ers a$s

confict o interests that hinder the" in "aing oinde#endent %dg"ent.

• rinci#$e 9 Section '• he co"#any does not a$so

ha)e an inde#endent a%ditco""ittee

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• rinci

• ?t was not %n%s%a$ o"e"!er to !e a!sent

!oard "eetings.

hat !oard res#onsi!i$ities weo)er$ooedI

• rinci#$e 9 Section E=

• 3o$es and res#onsi!i$ities oeach !oard "e"!er are notc$ear$y de@ned

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S%ggest at $east @)e concrete wto address theseI

• ;7< he !oard sho%$d assess sit%ations air$y and witho%t !ias and theyee# in "ind their res#onsi!i$ity to their staeho$ders

• ;=< the !oard "e"!ers "%st ha)e "ore reD%ent !oard "eetings and "e"!ers "%st !e a!$e to )oiceo%t their co""ents and s%ggestions rthe iss%es raised

• ;0< the co"#any sho%$d esta!$ish c$ear #ict%reinor"ation to the "ara!o%t the #%r#ose, d%ties, res#onsi!i$ities and acco%nta!i$ity o each

• ;*< ann%a$ !%dget and e)a$%ation o #eror"ance "%st !e done !y the

• ;5< the co"#any sho%$d ha)e an inde#endent a%dit co""ittee that wito the !oard.

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(%ide G%estion 5

• S%ggest a #$an on how Highfy "ighde)e$o# Cor#orate (o)ernance in its B

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S%ggest a #$an on how Highfy "ight de)e$o# Cor#orate (o)ernits Board.

• Modi@cation o the organization str%ct%re

• C$ear de@nition o the ro$es o the !oard and "e"!ers

•

Access to ti"e$y inor"ation• Enorce Arno2s #ro#osa$

• E)a$%ation o the !oard2s #eror"ance

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ro#osed &rganization Str%ct

Stocho$ders

Board oirectors

CE&

Mareting

r%c 3etai$e

rsareho%

se

&therMare

ts

Ad"inistration

H3 (enera$ser)ices

Caeteria

Acco%nting1inance

A%diCo""it

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