The article employs examples from NASA (HST), Volkswagen and Wirecard to show how boards may miss early warning signs of danger. It emphasizes the importance of not just recognizing these warning signs, but also to take action upon these signals. This can be accomplished by an effective board review process, which helps boards evaluate their own effectiveness and performance.
The authors emphasize the need for boards to review their own performance and the performance of the of the organization, to find gaps and opportunities to improve. In addition, they emphasise the importance of using the expertise of outside consultants to ensure that the agenda for the board is comprehensive.
A board room review is a re-evaluation of the effectiveness of the board of directors compared to the ideal requirements for the business. It could be a regular internal review that uses a cheap benchmarked tool for surveying like the ones offered by Board Surveys or a more unique external evaluation that is tailored to the needs of the company.
It is crucial that the board room is an area where people are able to speak freely and honestly. They should be able to focus on the task at hand without being distracted or interrupted, and they should feel at ease discussing sensitive issues. A conference room that is equipped with large trestle tables as well as chairs, a soundproofed space to ensure conversations are private and a high-tech equipment like Bloomberg plug-ins, or https://grbestpractices.org/boardpaq-review/ the latest quotation systems can be helpful. A virtual meeting space can allow participants to attend meetings from their homes, offices or even planes, helping to make the process more convenient for them and their colleagues.
