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Improving Board Effectiveness: Practical Steps

In: Disaster in the Boardroom

Author

Listed:
  • Gerry Brown
  • Randall S. Peterson

    (London Business School)

Abstract

We summarize the causes of dysfunctional boards including lack of independence, ineffective board leadership, lack of diversity, structural board problems, conformity and other behavioural problems. The solutions to these problems lie very much in the hands of the boards of directors of companies. Proposals for practical improvement include (1) improving board leadership by selecting the chairs who are able to both listen and lead, (2) improving the functioning of boards including its committees, (3) selecting highly effective independent directors and (4) strengthening board culture. We also discuss the role and importance of board evaluation. We end by addressing the collective responsibility of all boardroom stakeholders, especially the role of regulators and investors.

Suggested Citation

  • Gerry Brown & Randall S. Peterson, 2022. "Improving Board Effectiveness: Practical Steps," Springer Books, in: Disaster in the Boardroom, chapter 13, pages 207-228, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-91658-9_13
    DOI: 10.1007/978-3-030-91658-9_13
    as

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