Chapter 4
Second Law: Govern the Collaboration
TO REALIZE THE PROMISE OF JOINT VALUE, YOUR FIRM must ensure effective governance of each business combination. The value potential can easily be destroyed by poor governance. Worse, poor governance can also hurt the value of each party, such as when a joint-venture breakup ruins reputations or when time is lost sinking money into badly managed acquisitions. In other words, the first and second laws need to work together. In addition, the governance law affects the way value is shared—an aspect addressed by the third law. Good governance, therefore, is pivotal to your remix strategy.
The term governance here means something different from board-of-directors policies and corporate bylaws. Governance ...
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