By Y. Argüden
Targeting the constitution, tactics, and behaviors for a board of administrators to make sure reliable governance, this booklet examines the behavioral points of governance corresponding to find out how to evaluation and technique details supplied to the board, the way to significantly query with out de-motivating and the way to supply counsel with out interfering with administration.
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Extra resources for Boardroom Secrets: Corporate Governance for Quality of Life
One of the traps of groupthink is underestimating not only experts but also competitors. Boards that assume that experts do not assess subjects as well as they do may fall prey to selective listening and thus the inability to evaluate risk properly. The illusion of invulnerability may cause a board to underestimate the competition. Not being able to understand the basis of a competitor’s moves not only obscures the weaknesses of one’s position, but also may cause delays in taking remedies. Another pitfall of groupthink is not taking into account facts that do not agree with one’s own intellectual models.
Each member of a functioning board needs to consider each other member as a peer with respect to their seniority and experience in order to work as an effective team, but at the same time members need to be able to bring different perspectives and be willing to challenge the management and other board members, so as to avoid groupthink. For example, a board whose members are all financially oriented may be less willing to challenge the management about other areas and prone to miss operational, political, or reputational risks.
As our dependence on global resources increases, we need to be aware of the need to have our governance systems and attitudes gain a global dimension as well. Throughout the world, religions are notable for their longevity as institutions. The level of transparency and accountability that is being faced by the corporations seeking longevity parallels some key principles of religions, such as assuming responsibility for one’s actions regardless of the existence of a witness; or the impossibility of escaping from the day of reckoning.
Boardroom Secrets: Corporate Governance for Quality of Life by Y. Argüden