Boards That Deliver
Chapter One
The Three Phases of
a Board's Evolution
Boards of directors have undergone a rapid transformation since
the Sarbanes-Oxley Act of 2002. The shift in power between the
CEO and the board is perceptible. Directors are taking their responsibilities
seriously, speaking up, and taking action. It's a positive
trend and an exciting time for boards.
But the evolving relationship between the CEO and the board
has yet to find the right equilibrium in most cases. It's important
that boards become active, but there is danger in letting the pendulum
swing too far. Astute directors and CEOs sense the tension.
They recognize that just as past practices have failed them, recent
attempts to make the board a true competitive advantage are not
always hitting the mark.
Here's one example. In the spring of 2003, a CEO approached
me at a conference. "Something's gnawing at me," he said.
"What do you mean?" I asked, with some surprise. "I saw your
latest earnings report and it looks like you're really delivering." ... read full excerpt from Boards That Deliver: Advancing Corporate Governance from Compliance to Competitive Advantage ebook
