The article utilizes examples from NASA (HST), Volkswagen, and Wirecard in order to demonstrate how boards can miss early signs of danger. The article stresses the importance of identifying early warning signs and acting on the warning signs. This can be achieved through a well-run review process for boards that allows them evaluate their performance and effectiveness.
The authors highlight the need for boards to examine their own performance and the performance of the rest of the organization, to find gaps and opportunities for improvement. In addition, they stress the importance of using the expertise of consultants outside to ensure that the agenda for the board is complete.
A board room review is a procedure which examines the performance of a board of directors in relation to the expectations of the business. It could be an internal evaluation with a world-class benchmarked tool, such as those from Board Surveys, or a unique external assessment that is that is tailored to the requirements and requirements of the business.
It is essential that the boardroom is a place where members can freely and honestly. They must be able to focus on their work without being distracted or interrupted, and be comfortable discussing sensitive issues. A conference room with large trestle tables and chairs, a soundproofed space to ensure conversations are private and advanced technological equipment such as Bloomberg plug-ins or state-of-the-art quotation systems can aid. A virtual meeting room allows participants to attend meetings from their offices, at home or even on the plane. This helps to make the process easier.