The article draws on examples from NASA (HST), Volkswagen and Wirecard in order to show how boards can miss early signs of danger. The article stresses the importance of identifying early warning signs and taking action on them. This can be accomplished by an organized board review process that allows boards to evaluate their own performance and effectiveness.
The authors emphasize the importance of boards assessing their own performance and the performance of their counterparts to identify areas for improvement. They also stress the importance of utilizing outside consultants with expertise to ensure that the agenda of the board is thorough.
A board room review is an evaluation of the effectiveness of the board of directors when compared to the ideal needs of the business. It could be an internal review using a top benchmarked tool such as the ones from Board Surveys, or a custom external evaluation that is that is tailored to the requirements and requirements of the company.
It is important that the boardroom is an area where members are able to communicate freely and honestly. They must be able to focus on the task at hand without being distracted or interrupted and they should be at ease discussing sensitive issues. A conference space with large chairs and tables with trestle designs can be helpful. It should also be an environment that is soundproofed so that important link – boardroom review conversations are kept confidential. Advanced technology such as Bloomberg plug-ins or modern quotation systems will help. A virtual meeting room could allow participants to attend meetings from their offices, homes or even airplanes, helping to facilitate the process for them and their coworkers.