Boards That Lead

10.

Staying Out of the Way

For all the advantage it brings, the increasing leadership by the governing board in major company decisions can create seriously adverse repercussions. Directors who wander too far into day-to-day operations where they have little expertise but strong opinions do an enterprise little good and can cause real damage.

Yet as boards have evolved from rubber-stamping to monitoring and now to leading, so the boundary between directing and managing is shifting too. Yes, a too-nosy board can gum up the works, but directors who bring to the table relevant expertise and prudent judgment on issues of strategy, market, risk, and beyond can provide vital insight that the executive team would not otherwise readily obtain. Finding ...