Boards at Work

"Improving managerial judgment is the new frontier for boards."

"Effective boards have broken the power continuum. They believe that both the CEO and the board should be exerting influence and having input in creating shareholder value."

"More than any other committee, the executive committee tends to lead to or reinforce a two-tier power structure that is a major drag on board dynamics."

"Boards need, first and foremost, people who are keen business people who can cut through complexity."

"Boards at work insist on getting the information they need. They invest the time to learn about the key trends in the industry, no matter how fast-changing or complex. They become intellectually engaged in the toughest issues management faces."

"Boards at work know what shareholders think of the company all the time. They insist on getting balanced, clear, filter-free information about what shareholders are concerned about."

"Directors should insist that the CEO periodically explain his or her major decisions, appointments of people, past performance, and the external environment. During these sessions, the watchword is dialogue, not monologue."

"The board must choose the CEO, but not in isolation. Rather, that decision is part of an organization wide effort to identify and develop talent."

"Continuous improvement of the board is a simple extension of continuous improvement principles applied elsewhere in the organization. It is typically driven by some form of board self-evaluation."