Today’s business environment , where everything is in play, the possibilities, vulnerabilities and uncertainties make for an increasingly dynamic environment and clearly require more of sitting directors. A 21st century mindset that fits and can produce “deep smarts” is what I would like to propose in this blog. With that in mind, I recently read a list for 2015 governance focus points posted on the Harvard Law School Forum. From the items described for boards, I was most interested in the impact of shareholder activism on board decisions. Here are a few ideas to consider around the idea of a modern boardroom:
· To what degree does your CEO look to the past verses the future when presenting to the board?
· Do you get a solid impression that your CEO is listening – entertaining viewpoints especially opposing ones, from the board?
· Who are the sources, formal or informal that your CEO goes to for information at “the scene of action” per the company strategy or key risks?
Part of the reason why CEO and board relations intrigue me, is the fact that shareholders seem to be gaining in their efforts to influence the boardroom. While this may, in some cases, produce positive results for the company, it may come at the expense of other values that are central to the sustainability of healthy corporations. In other words, if directors put more time and attention to one of the most ambiguous aspects of their role, CEO and board relations, it may bring increased clarity when shareholders present concerns.
· To what degree does your CEO look to the past verses the future when presenting to the board?
· Do you get a solid impression that your CEO is listening – entertaining viewpoints especially opposing ones, from the board?
· Who are the sources, formal or informal that your CEO goes to for information at “the scene of action” per the company strategy or key risks?
Part of the reason why CEO and board relations intrigue me, is the fact that shareholders seem to be gaining in their efforts to influence the boardroom. While this may, in some cases, produce positive results for the company, it may come at the expense of other values that are central to the sustainability of healthy corporations. In other words, if directors put more time and attention to one of the most ambiguous aspects of their role, CEO and board relations, it may bring increased clarity when shareholders present concerns.