The article uses examples from NASA (HST), Volkswagen, and Wirecard to show how boards can miss the early signs of danger. The article emphasizes the importance of recognizing early warning signs and implementing the warning signs. This can be done through an organized board review process that helps boards assess their own performance and effectiveness.
The authors stress the need for boards to look Board Resolution Document at their own performance, as well as the performance of the rest of the organisation, to identify gaps and opportunities to improve. They also stress the importance of using outside consultants with expertise to ensure that the agenda of the board is complete.
A board room review is an exercise that examines the effectiveness of the board of directors in relation to the expectations of the business. It could be an ongoing internal evaluation using a cost-effective world-class benchmarked survey tool such as those from Board Surveys or a more specific external assessment that is customized to the requirements of the company.
It is vital that the board room is an area where the members can speak freely and honestly. They should be able to focus on their task without being distracted or interrupted and they should be at ease discussing sensitive subjects. A conference space with large chairs and tables with trestle designs can be helpful. It should also feature an environment that is soundproofed to ensure that conversations remain private. Modern technology like Bloomberg plug-ins or most current quotation systems can assist. A virtual meeting room could also permit members to attend meetings from their workplaces, homes or even on planes, helping to facilitate the process for them and their coworkers.