In an environment of rapidly-changing technology and increasing regulation, banks and financial services firms must ensure their board members have the knowledge and insight to make complex decisions.
Companies largely seek board members with long histories of leadership experience. But in a world of rapid technological change, tech-savvy knowledge is now critical.
Traditionally, board effectiveness has been seen as having a direct correlation with governance or strategy. While these two elements are important for boards to perform, what is often overlooked is the effect of the human condition on productivity.
As shareholders put more pressure on public companies to perform, they're indirectly transforming the roles played by some boards of directors. Many of today's boards of directors are attempting to take more active and engaged interests in operations and are demanding more information from and involvement with the C-suite.
Strategic planning is unquestionably a critical initiative for the short- and long-term success of any business, no matter the size. Companies spend hours evaluating opportunities and challenges, establishing key objectives, and developing the right tactics to meet them. And yet budgeting—the detailed allocation of the organization’s most valuable resources against those objectives—often remains an entirely separate, once-a-year event.
The idea of group cohesiveness and everyone thinking alike can sound good at times, but it poses great risk in corporate governance and should be avoided.
It takes a different leadership mindset to govern an organization from the boardroom than it does to manage at the executive level.
Nearly $300 billion in capital expenditures by U.S. companies during the Great Recession hadn’t been replaced as of a year ago, according to a new study, and the hesitation of board members to open corporate pocketbooks has played a significant role in the slowdown.
The saga of Valeant Pharmaceuticals provides high theater for observers, something zesty to chew on for opportunistic investors, a potential upside for new CEO Joseph Papa—and the continuation of a self-created headache for Valeant board members.
Forming an advisory board can be a great way for a privately held small or mid-sized company—or even a public company—to tap into trends the CEO doesn’t know about, to rely on proven expertise to extend the enterprise in new ways, and even to line up potential future investors, directors or employees.