Many supervisory boards take a one-size-fits-all approach to governance. Instead, they should remember that their primary role must be dependent on various conditions, both internally and externally. Boards have four main functions – auditing, monitoring, coaching and guidance – each with a different perspective and behavior. The roles reflect two major differences in culture board. The first type of board is mainly concerned with the interests of shareholders and other stakeholders, while … Read more »

Many supervisory boards take a one-size-fits-all approach to governance. Instead, they should remember that their primary role must be dependent on various conditions, both internally and externally. Boards have four main functions – auditing, monitoring, coaching and guidance – each with a different perspective and behavior. The roles reflect two major differences in culture board. The first type of board is mainly concerned with the interests of shareholders and the interests of other stakeholders. The focus is on external. The second type of board either monitors management activities or get active in the behavior of the organization. Here the focus is on the handling of ineffective management. The basic role types are not mutually exclusive, but they reflect different cultures board that is. Various priorities and resource allocation decision-making For a period, a board must determine what should be their dominant role, given the current conditions.
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from
Paul Strebel
Source: MIT Sloan Management Review
10 pages.
Release date: 01 December, 2004. Prod #: SMR127-PDF-ENG
Case by case Contingent Governance HBR solution

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