Wharton Rio 2006

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• Wharton Rio 2006

Managing Change in Organizations. Some Latin
American Experiences
Agosto / 2006
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• Corporate Governance, a significant
• change in large Brazilians companies.
• Why ?
• How it happened ?
• Key learning points
• Whats coming ?

A perspective lecture of Luiz Fernando Giorgi
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Corporate Governance, a significant change in
large Brazilians companies.

• Typical companies that faced those changes
• Large and familiar companies or groups
• High degree of concentration ( Power and Capital
  )
• Competing globally ( Outside or inside )
• Capital intensive oriented

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Corporate Governance, a significant change in
large Brazilians companies.

• Why ?
• Competitiveness to survive in a global marketing
• Heavy resources demand for growth investments
• Few options for financing in Brazil ( High cost
  )
• New generations exerting pressure for
  transitions

Increasing awareness about change needs
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Corporate Governance, a significant change in
large Brazilians companies.

• How it happened ?
• I Distinction between business governance
  and
• business management.
• II Strategy refresh and new governance models.
• III Stock Mkt, option for growth financing and
  owners
• liquidity. ( IPOs and secondary offers )
• IV New partners, means new management culture
• Transparency
• Duties / Equity treatment
• Performance

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Corporate Governance, a significant change in
large Brazilians companies.

• Key learning points ?
• I - Family / Owners alignment about expectations
  and future changes
• is the first step.
• II - A professional team should develop a
  strategic and inspiring
• business case for stakeholders.
• III - The implementation must be gradually but
  consistent during the years.
• IV - Seek for best governance and management
  practices, but not
• trough away your culture learning's. (
  Corporate Identity is important )
• V - Do not over or under estimate the market
  willingness and wisdom.
• VI Evaluate periodically the keys indicators to
  different stakeholders

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Corporate Governance, a significant change in
large Brazilians companies.

• Whats coming ? ( some thoughts questions )
• I - How consistent and sustainable are those
  changes ?
• Mkt stocks improving rules, versus transparency
  and ethics companies values
• II - Stock pulverization for global competition
• limits for capital control ( families and
  management deals )
• lack of identity
• III - Global competition, is the unique and
  inevitable track to follow ?
• IV - The environment and internal culture being
  created by global companies, are not motivating
  and retaining the new talent generations.

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Corporate Governance, a significant change in
large Brazilians companies.

• There is no doubt about the contribution and
  benefits
• that changes in Corporate Governance promoted to
• Brazilians companies competitiveness.
• The challenge is How those changes can be
  sustainable, and also create attractiveness to
  new generations?

Thank you !