Recent headlines have criticized the Susan G. Komen foundation, Chesapeake Energy, Parkland Hospital in Dallas and HP, among others for poor governance. The Wall Street firms that broke the financial system were guilty, in part, of poor oversight at the Board level.
Joining host, Dennis McCuistion, are:
- Richard Leblanc, PhD: Co-author of Inside the Boardroom and an Associate Professor at York University in Toronto, Canada
- Robert J. Kueppers: Deputy CEO of Regulation & Public Policy,Vice Chairman, Deloitte, LLC
Since Dodd Frank and Sarbanes- Oxley, board members play a critical role in the success of their organizations. Yet, what constitutes a “good” board member?
Dr. Leblanc, an award winning teacher and researcher says, he or she is one who oversees management and the interest of shareholders; oversees financial statements and risk, sets the strategy for the organization and assures compensation is appropriate.
Bob Kueppers, cited by Directorship Magazine, as one of the top 100 most influential professionals in corporate governance, believes there are three activities that should take up most of a director’s time, energy and talent. The activities include: the strategy of the organization and where it is headed, making sure the right person is in charge, and how risk relates to strategy and how the organization can see what’s coming. He emphasizes that oversight is different from managing the business.
Too often strategy is under-emphasized at the expense of risk and compliance. They advise growth, innovation and competitiveness, a true creation of shareholder value- with a #1 value that of strategy and succession planning. Today, 39% of US companies do not have an immediate successor for their CEO! Another area that must be looked at is diversity. Too few boards represent their constituents and culture, with a challenge in the US and not Canada of too few women represented.
Good board members have skill sets and behaviors that include being a good communicator, listening, leadership and integrity. The softer skills- working as a team- are important. And- surprise, company CEO’s do not necessarily make the best directors, as they often have a dominant style and are overstretched!
What is important and critical is good governance, meetings called with plenty of notice, preparation, agendas and information so the best decisions can be made. Good board members are chosen and cultivated. Yet, while behaviors can really change board dynamics, there is no one right way or magic bullet.
Tune in for some surprising insights on what makes for a good board member and compare your organization’s (nonprofit or for profit) governance and board member success.
Thank you again for joining us. As always, we are talking about things that matter… with people who care.
Niki Nicastro McCuistion, CSP
Executive Producer/ Producer
Management Analyst, Speaker, Consultant
2014 – 1.27.2013