An independent, objective assessment of JV health and performance on behalf of shareholders and management
Where it fits
The JV Health and Performance Assessment should be part of the regular shareholder reviews of the business, focused on those issues unique to JVs.
How it works
Phase I: Gather facts about JV model, mechanics, performance, and define company-specific issues
Phase II: Conduct assessment and benchmark client-specific JV deal structure and management design choices and health indicators against global best practices and peer practices
Phase III: Develop initial set of recommended JV “upgrades” – with linkages / rationale for likely impact on short- and longer-term economics – and communicate implementation roadmap to JV management and Board
Includes:
- Performance diagnostic
- Benchmark vs. global standards
- Benchmark vs. peer JVs
- Value at stake analysis
- Performance improvement recommendations
Value to JV executives, Directors, and shareholders
Designed to improve the performance of the joint venture – and support the needs of all interested parties. The Water Street Partners team will:
- Identify where the governance system is working well and not well, and recommend enhancements
- Increase clarity and alignment on Board role and posture – i.e., appropriate level of JV autonomy
- Review delegations of power
- Provide benchmarking comparison vs. peers and best practices
- Facilitate Board discussion on whether and how the governance model should be adapted as the JV matures and changes
- Enhance overall structure and effectiveness of governance system – Board, committee, working-group composition, mandate, roles
- Conduct Director self-assessment process (on confidential basis)
- Capture hidden tensions among JV-parent companies, and recommend how to mitigate
- Serve as discussion partner to the Chair, JV CEO, and/or Lead Directors on overall governance setup and health