CORPORATE GOVERNANCE;Hard Facts: Soft BehavioursWhy balance beats regulation A tick-the-box approach to governance won't guarantee top corporate performance - what's needed is an approach that balances hard solutions with soft behaviours, say Booz Allen Hamilton researchers

Governance fixes many firms are rushing to institutionalise may be naively counterproductive. The drive to more tightly regulate the membership and functions of corporate boards is already encouraging companies to view governance as a legal challenge rather than a way to improve performance. Governance begins inside the boardroom among directors. The combination of soft and hard solutions can turn governance from a vague concept into a means of delivering organisational resilience, robustness and continuously improved corporate governance. Experience suggests the following best practices can and should cross borders: 1. Select the right directors. 2. Train them continually. 3. Give them the right information. 4. Balance the power of the CEO and the directors. 5. Nurture a culture of collegial questioning. 6. Gain from directors and adequate commitment of time. 7. Measure and improve.