Loud Thinking March 11, 2015 at 01:19PM
THE MANAGEMENT TIP OF THE DAY: Harvard Business Review
March 11, 2015
CEOs Need to Know How to Manage a Board
As investors have become more powerful and boards more sovereign, it has become increasingly important for CEOs to manage up. To lead your directors and investors more effectively you should know how to:
Recruit strong directors. Directors should bring business leadership to the table. When recruiting new directors, assess their capacity to think strategically about the firm, its competitive position, and what creates or destroys value at the firm. Does the candidate have a proven record of working with and leading executives at other companies?
Restructure the board. Executives need to change a board from time to time to meet shifting market needs. Those who govern a company that is growing in its home market are likely different from those who can help an enterprise go global.
Evaluate directors. Work with the board to create annual evaluations of individual members, as well as reviews for the board as a whole.
Adapted from “How CEOs Can Best Manage Their Boards” by Michael Useem.
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