Boards Fail Often (more often than it seems) We are passionate advocates for strong corporate governance. We believe good governance leads to organizational health and sustainability. We get depressed when another large (frequently public) organization bites the dust or hits the skids. Whereas the press and many others seem to blame management, we frequently find [...]
Association Director Experience vs Expertise Competency based Boards engage Directors based on their specific knowledge and expertise. Traditionally, industry association Boards have engaged Directors based on their seniority, industry experience, and even location. Which is better? On competency-based Boards, the expertise of the Directors mirrors the challenges and opportunities that the association and its members [...]
Flickr Image by DonkeyHotey Forget Shark Tank. For anyone who fancies themselves as a future entrepreneurial star, studying Donald Trump (just watch the nightly news) may be all you need to learn about entrepreneurial success. Here’s why. Almost every 'successful' (valuable business leading to personal gratification) entrepreneur we’ve known over the past [...]
Boards are Smaller and Less Independent in a Private vs Public Company Statistics show that private company Boards have fewer unrelated Directors than public company Boards. This matters. The rationale that leads public company Boards to be larger and more independent also applies to private company governance. 1. Board independence. Private company boards are overwhelmingly [...]
Failed Boards are more common than people realize. Failed Boards are much more common than most people realize. Charged with the responsibility of identifying and mitigating risk; validating and overseeing strategy; and, hiring and performance managing the CEO, most organizational failures are the responsibility of the Board. From Enron to Volkswagen, Boards full of smart [...]
Expanding the Role of the Private Company Board Most private companies report having a Board of Directors. Typically, the role of these private company Boards is for the owners to meet and make decisions about the business – frequently financial decisions. Although these owner meetings are important, there are other elements of a Board’s governance [...]
Recommendations Start with why - defining the role of your private company Board will help you identify how governance can be improved. There are three reasons that private businesses have Boards: business advice business oversight make owner decisions How to think about each. There are many ways to get advice that don't require having a Board. [...]
Boardroom Metrics provides corporate governance and strategy consulting to Public, Private and Not-For-Profit organizations in the United States and Canada. The five best tips to make Board strategic planning more effective. A Board has three roles: identifying and mitigating risk, validating and overseeing the strategic plan and performance managing the CEO. Regarding the strategic plan, [...]