Saturday, May 16, 2009

Directors Who Don't Deliver


I sit on a board with two members who, for the past year, have said and done little. Both were just reelected unanimously with the sup­port of the nominating com­mittee. What’s your take?

So, two seat-warmers on your board were just reelected unanimously, you say? Doesn’t that mean you voted for them too? If so, don’t worry. You’re not the only director in history to endure an ineffective or oth­erwise dysfunctional peer. Not to slam boards; on the whole, they add real value. But boards frequently toler­ate troublesome performance from one or two of their own. It’s simply too time-consum­ing or impolitic to eradicate. And that is why too many boards, in both the public and private sectors, don’t make the contribution they should.

To be clear, we’re not talk­ing about board behavior that is criminal. With a few fa­mous exceptions, boards will remove anyone who breaks the law. No, we’re referring to boardroom behaviors that are perfectly legal but perfectly destructive as well.

See full Article.