MANAGEMENT TIPS

 

BUILD A BOARD THAT CHALLENGES YOUR THINKING

An effective board should challenge the forces shaping decision-making at your company—not reinforce them. Yet many boards are designed around the preferences of founders, CEOs, or investors. Even strong boards can become less effective as a company evolves. To ensure yours remains an effective counterbalance, focus on four elements. Clarify its purpose. Define what your board is responsible for and whose interests it serves. Its mandate should reflect your company’s ownership structure and most pressing governance challenges. Map the capabilities you need. Build a team whose collective expertise addresses your company’s weaknesses. Prioritize independent judgment over impressive résumés or personal connections. Design better processes. Give directors access to information beyond management’s presentations. Structure meetings around consequential decisions and make room for dissent. Regularly evaluate whether the board is fulfilling its purpose. Choose the right chair. Select someone who can establish boundaries and encourage productive debate. Effective chairs exercise restraint, drawing out different perspectives rather than dominating discussions. They ensure that assumptions are challenged and alternatives are considered before decisions are made.  Excerpt from Havard business review on management.