The article provides examples from NASA (HST), Volkswagen and Wirecard to illustrate how boards may miss early warning signs that lead to peril. It emphasizes the importance of not only recognizing these warning signs, but also to take action upon these signals. This can be achieved through an organized review process for boards that allows them assess their performance and effectiveness.
The authors emphasize the importance of boards assessing their own performance and that of the rest organisation to find areas for improvement. They also stress the importance of leveraging the expertise of outside consultants to ensure that the agenda of the board is complete.
A board room review is a method which examines the performance of a board of directors with respect to the ideal demands of the business. It could be an annual internal review that uses a cheap benchmarked tool for surveying such as those from Board Surveys or a more individual external evaluation that is tailored to the specific needs of the organisation.
It is important that the boardroom is an area where employees can freely and honestly. They must be able to focus on the task without being distracted or interrupted, and they should feel at ease discussing sensitive topics. A conference space with large trestle tables as well as chairs, a soundproof environment to ensure that conversations remain private, and the latest technology like Bloomberg plug-ins or state-of-the-art quotation systems can aid. A virtual meeting room can also allow members to attend meetings from their offices, homes or even from airplanes, assisting to make the process more convenient for them and their coworkers.
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