By: Marianne Vaughan

Corporate governance has the power to dramatically enhance a company’s value, yet it remains a stumbling block for many business owners. Enter Andrew Usuki, whose bestselling book ‘Charged Governance: Transformative Corporate Governance Principles for Private Businesses’ demystifies this intricate subject with practical, no-nonsense strategies tailored for today’s leaders.

Leveraging his extensive background as an investment banker, manufacturing executive, and investor, Usuki delves into the complexities of five key stakeholder groups, offering insights on navigating personal challenges while mastering effective governance practices. We recently had the pleasure of sitting down with Usuki to discuss the inspiration behind his book, his journey, and what lies ahead for him.

‘Charged Governance: Transformative Corporate Governance Principles for Private Businesses’ is your first book. Why was it so important for you to write this book? 

Countless colleagues, business partners, clients, and friends over the years each faced similar stress points regarding private business corporate governance. I wanted to synthesize those stress points and share solutions in a digestible format. Sharing knowledge with others who are on the same journey is important to me. Also, corporate governance has become a lightning-rod topic; I felt it was important to contribute my opinions to the public marketplace of ideas.

In recent years corporate governance has received a lot of attention, so what are your beliefs on the goals of private business corporate governance?

I believe that long-term shareholder value creation is the principal goal for a private business. However, the means to this end should be carefully calibrated with checks and balances inside the business, and in accordance with business laws. Also, aiming corporate democracy exists between owners and decision-makers is fundamental to corporate governance, which I address in the book. Checks and balances are very important because they can help minimize questionable decisions justified as being in service of shareholder maximization which may, in reality, create unintended and sometimes catastrophic consequences. Some examples of areas where checks and balances can be helpful are director fiduciary duties, business relationships with customers and suppliers, the safety and dignity of your employees, and how you manage key parts of your business ecosystem—including your lenders, investors, and communities, etc.

Can you tell us about your freedom roadmap that you mention in the book?

The five-step journey, or freedom roadmap, is our governance “lantern”. Think of this like a lantern on a dark forest trail at night—with a lantern in hand, you end up going much farther and faster, with extraordinarily less anxiety, than if you attempted to find your way in the dark without it. We illuminate pathways through these steps: awareness, identification, remedy, prevention, and freedom.

• AWARENESS: To start, you must be aware of key corporate governance issues in a private business context.
• IDENTIFICATION: This awareness can help you uncover existing problems in your business that need immediate attention.
• REMEDY: Once existing problems are identified, you can get to work fixing them today.
• PREVENTION: After you’ve remedied existing problems, you’ll be able to calmly scan your entire business with a preventative eye and build good governance practices before problems appear. Here, quality and reliable governance become part of your DNA as a business founder.
• FREEDOM: Your journey through the first four stages helps you to arrive at the fifth and final stage. By freeing yourself from both anxieties stemming from your relationships with your constituents, and minimizing concern of potential business liabilities—which can both arise from weak corporate governance—you can now lay effective corporate governance foundations that bolster your business valuation and build a lasting legacy. There will be a generous dosage of charged corporate governance voltage flowing through your business.

What’s the profile of your typical client?

A private business with $5 million or more in growth, where the founders are shareholders who run and operate the business. We find that mature founders who welcome self-awareness about what is holding their businesses back from creating value are fun to work with. A product or service with a competitive advantage and an attractive addressable market. If there is not a strong go-to-market strategy already in place, the founders are willing to adjust going forward. Industry agnostic.

What’s it like for you to advise private businesses?

I love speaking with private business founders who emit an inner calmness. While healthy growth and earnings are extremely important, founders often face deeper anxieties dealing with corporate governance as their businesses grow. There’s a lot to be said about founders who have found freedom from those deeper anxieties and achieved a greater meaning. It takes focus to enhance corporate governance in a private business, and it does not happen overnight. 

Also, I’ve always had a tremendous passion for playing a part in helping strengthen teams and individuals. Sharing business and legal knowledge is very rewarding to me, and I believe teaching others what we’ve learned is important.

What is your favorite thing to do when it’s time for you to relax and unwind?

I love spending quality time with people who I care deeply about. This usually involves traveling to interesting places since I have important relationships across the US and globally. Also, spending time in awe-inspiring nature is a lot of fun and helps me to recharge.

‘Charged Governance: Transformative Corporate Governance Principles for Private Businesses’ can be found on Amazon.

Published by: Holy Minoza