Great Boards Have Great Dynamics

There are “good” boards and then there are “great” boards. Increasingly, research points to the link between effective board dynamics and shareholder value. In fact, 73% of directors polled in a recent study indicated that “great” boards are a substantial component of corporate success.

So, how do you move the performance dial of your board? First of all, let’s recognize that boards are social systems—their own unique “teams.” Why is this important? According to a study by Solange Charas, “The impact of [a] board functioning as a team is an eight times greater predictor of corporate performance than individual director demographics.”

“The impact of [a] board functioning as a team is an eight times greater predictor of corporate performance than individual director demographics.”

The first step in creating any great team is getting the talent right. In the boardroom, this means a candidate should have highly developed business skills that match the organization’s needs and help drive its vision and business model. To avoid group-think and to stimulate meaningful discussions, look for potential directors with diverse ways of thinking and a wide range of career experiences.

In typical boards, the commitment to excellence usually stops at selecting highly qualified individual directors. For superior board effectiveness, however, the devil is in the dynamics—how well the board members interact and work together.

According to a New York University study, this includes the ability to “…effectively deal with differences; generate a trusting environment; create a meaningful context for discussions, deliberations, and decision-making; handle conflict and tension effectively; and enact effective leadership and non-leadership roles within the team.”


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.