The effective corporate Board of the company makes sound and collective decision about the company progress. The strategic objectives over the company are to support the team matters through appropriate management and optimal operational performance. In order to improve the board evaluation process and its decision-making process, it is necessary to conduct an evaluation program in the organization. The committee performs its maximum capabilities for the long term and sustainable business growth and success (Aksu & Espahbodi, 2015). In the business development corporate governance as a best code and practice that increases and emphasize the need for effective evaluation of decisions in the organization. A well-conducted evaluation plan for the committee and board member helps the board to improve the capabilities of the business, increase the long term and sustainable values of the company, and improve crucial conditions for the continued success and growth of the company. The best practices of Corporate governance emphasize on the evaluation of effective decisions in an organization and recommend new periodic as well as an externally facilitated mechanism to improve the performance of board (Hiemann & Reichelstein, 2012). The present work is about performance evaluation of board members in the Lanchester software solutions. The analysis includes details about the next generation board evaluation product and assessment of board practices. According to this work, it is important to identify the critical gaps between the responsibilities and decision taken by members about the appointment of the CEO. The work emphasizes the low-performance areas for the betterment, developing solutions, and management of desired strategic objectives within Lanchester software solutions. The goal of present work is to evaluate board composition structures, the corporate governance structure of Lanchester Software Solution, and to measure the effectiveness of board composition to achieve the objectives and goals of the company. In the end, the assignment provides a recommendation to improve the strategies and to enhance the goals of the company.

Evaluation of board composition structure of Lanchester Software Solution

In the present case, David initiated his own business the basis of his idea to facilitate the users as a business analyst in the Software Solution company.  At the beginning of the business, Lanchester Software Solution was getting more and more success therefore in the growing business some of the interested Board members invested. According to this Lee own 20% shares of the company, Sara owns 14% shares of the company, the cousin of Sara, John owns 15% shares of the company. Besides all the shareholders, the biggest shareholder in the company was David with 51% shares of the company (Verriest, Gaeremynck, & Thornton, 2013). The business was growing rapidly, therefore, it was necessary to introduce a CEO to have an effective decision in the Lanchester Software Solution company. All the members were agreeing to hire experienced and qualified CEO for the company. For this purpose, a lot of interviews were conducted to find the appropriately qualified and skilled CEO for the company. After having a lot of interviews and discussions with the applicants David decided to appoint his own brother at the position of CEO. The main reason was to bypass the interview sections. Initially, all the members were satisfied with the performance of Andy. After some time, they observed that Andy was only following David and his decisions were biased. For the success of the company or the business, it is necessary to have all the members on the same platform with the decision-making process (Verriest, Gaeremynck, & Thornton, 2013). The present report identifies the fiduciary responsibilities and areas of critical gaps in the board of directors of Lanchester software company. The process considers time for paying attention towards the high impact areas, the low performance of newly appointed CEO and management support to achieve the desired as well as strategic objectives of the company. In the present case, it is important to improve and identify the performance issues. The patriotic performance improvements are required to improve the success rate of the company. The Board members can determine different steps that can impact positively on the growth of the company and it depends upon an effective improvement plan created by the board members. All the board members and management team must follow-up and execute the improvement plan. The detailed analysis of developmental objectives and it is even say taken by Andy is essentially required (Verriest, Gaeremynck, & Thornton, 2013). According to the board composition structure of Lanchester Software Solution, it is obvious that the board is assessed by a single body and the evaluation process of the company is based on the basic analysis of investment and decision. The core issue among all the shareholders is the managerial power approach of Andy. The problem between managers and shareholders is becoming hazardous. The standard model used by the company depends upon the compensation decision of all Board members. The approach is to have aligned preferences of all Board members. The optimal compensation contract between all the approaches and decisions of the committee increases the risk for the management friendly environment. Based on the performance of Andy, Sarah withdrawal her share from the company. In such type of cases, the compensation decision is required by the incumbent board in the favor of the CEO. The uninformed replacement is required to be perfectly aligned with the interest of the company (Aksu & Espahbodi, 2015).

Analysis of the corporate governance structure of Lanchester software solution and a possible challenge faced in the organization

The analysis of the corporate governance structure depends upon a large number of unobservable and observable factors. Originally the corporate governance is required to work according to the goals and objectives of the company and they must behave in order to foster that trust of shareholders and investors. Some of the key aims of corporate governance depend upon the confidence of shareholders in the business. It is important to run the business under a legal standard without violation of regulations for written rules of the company. The CEO of the company must have transparency in the decision-making process. While in the present situation the CEO is taking his decision under the influence of David. The supervisory and board of directors are facing issues related to efficient corporation and management of the company (Ferri & Gˆx, 2018). 

It is important to ensure the shareholders that the company is geared towards short term and long-term goals. The key principle of corporate governance depends upon a wide range of factors including the stock exchange, regulators and the industry. The independent leadership in the company lead to higher progress and satisfaction of all the shareholders.  The independent judgment is also important for the interest of the company and shareholders. One of the fundamental objectives of corporate governance in the Lanchester software solution company is to organize and develop transparent business practices (Verriest, Gaeremynck, & Thornton, 2013). The solid structure of the organization must deal with the effective and transparent decision of the company.  Another aspect of having transparency in the company is to provide easy to understand information about the financial reports and policies of corporate governance. The company must consult with different categories of stakeholders to identify there concerned about the project and company. The principle of inclusion in corporate governance typically deals with the environmental and social responsibility of the company (Hiemann & Reichelstein, 2012). Corporate citizenship must compel with the values of the company in society. All the board members are legally responsible for the development of a framework that protects stakeholders and shareholders interest. The operational management in the present case is operating differently from the strategic direction of the company. The active participation of all the board members is essentially required to approve major decisions taken by the CEO (Bizfluent. com, 2018).

The effectiveness of the board composition in achieving company goals and objectives

The collective power of all the shareholders can improve daily operational management and they can take legal actions if the CEO is not working according to the requirements. The failure of regulation could expose the company. The implementation of the corporate governance code in the institutions and companies must be under the guideline. One of the main issues faced by the Lanchester software solution company is the impact of well-intentioned people in the policy making process (Verriest, Gaeremynck, & Thornton, 2013). If the CEO of is not providing information to the shareholders will in the appropriate way it could lead to the issue of disclosure in the company.  For instance, in such type of situation that a company might defy shareholder wishes by the underperforming director. Due to poor governance, stakeholders accountable for the decision-making process. The conflict of interest in the shareholders can influence the financial interest of the company.  Such type of conflict of interest erodes the belief of shareholders in the potential of the business (Bizfluent. com, 2018). The controversy of interest of shareholder is required to be removed or viewed under the higher managerial power. Despite the fundamental importance of the empirical compensation and the consequences of the poor governance it is required to have perfect alignment of preferences with the compensation contracts in the company. The CEO must have deliberate and independent decision after having discussion with the board members (Verriest, Gaeremynck, & Thornton, 2013).

Recommendation

On the basis of present work, the company is provided with the recommendations to improve the customer satisfaction and board of members. These recommendations are listed below to improve the performance of the company.

1.      The board members can introduce policy and rules according to their interest in the business. At the operational level, the resistant manager can provide good corporate governance (Verriest, Gaeremynck, & Thornton, 2013).

2.      The corporate governance can export violation of rules by leaving the business for shares as Sarah did. The clear enforcement mechanism must be applied by the corporate governance to have consistent check and balance against all the actions of executive staff.

3.      The board of governance must create sustainable value for having short-term performance benefits. After some specific period of time, the re-election of all the directors is important so the members can serve the company with their critical expertise (Bizfluent. com, 2018).

Conclusion

  The current model of corporate governance in Lancaster Software Solution company is positioned squarely between the management and all the shareholders. The authority flows from the shareholders towards account management for the implementation of reforms. The company is ethically obliged to satisfy all the shareholders and to protect their interest in the business. The authority’s laws make all the shareholders accountable for their progress and their decisions in the Lanchester Software Solution company. The decision of the CEO for the performance of the company must be sustainable for all the shareholders.

References

Aksu, M., & Espahbodi, H. (2015). The Impact of IFRS Adoption and Corporate Governance Principles on Transparency and Disclosure: The Case of Borsa Istanbul. Emerging Markets Finance and Trade, 426(05), 1013-1028.

Bizfluent. com. (2018, 07 31). Corporate Governance Issues & Challenges. Retrieved from bizfluent.com: https://bizfluent.com/info-7863014-corporate-governance-issues-challenges.html

Ferri, F., & Gˆx, R. F. (2018). Executive Compensation, Corporate Governance, and Say on Pay. Foundations and trends in accounting, 12(01), 1-103.

Hiemann, M., & Reichelstein, S. (2012). Transfer Pricing in Multinational Corporations: Transfer Pricing in Multinational Corporations:. Transfer Pricing in Multinational Corporation, 01(01), 01-16.

Verriest, A., Gaeremynck, A., & Thornton, D. (2013). The Impact of Corporaten Governance on IFRS Adoption choices. European Accounting Review, 22(01), 39-77.