Unleashing valuable new perspectives in the boardroom
Operating an effective board
It is not uncommon for the topic of diversity to enter into boardroom and management discussions these days. Yet, there remains a gap between talking about diversity in its many facets and embedding diversity into boardroom thinking, ideas, actions and composition.
What are we missing?
We hear that question frequently when visiting with boards and management. It doesn't matter which industry or geographic region they're in, or how profitable or successful the organization they represent. The question stays fixed in the minds of board members, especially amid rising shareholder activisim.
Ultimately, a well-functioning board is built on trust among its members. Embracing diversity of thought and investing in new processes and tools could understandably be a significant effort for many organizations. However, those that initiate the process today may realize the value of more dynamic boardroom discussions, a clearer understanding of the changes underway in their business environments, and how to plan and capitalize on the people, processes, and technology that can create shareholder value.
This article first appeared in the May 2015 issue of Financier Worldwide magazine. ©2015 Financier Worldwide Ltd. All rights reserved. Reprinted with publisher's permission. www.financierworldwide.com
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A key responsibility of the board is to advise management on the development of the company’s short and long term strategic priorities, approve such strategies, and ultimately oversee the execution of the strategy. To do this effectively, boards should consider whether they have the right processes in place, as well as the right capabilities and diverse perspectives among both senior management and the board.