Building Dynamic Boards

Shital Jhunjhunwala ()
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Shital Jhunjhunwala: University of Delhi

Chapter Chapter 10 in Corporate Governance, 2023, pp 201-213 from Springer

Abstract: Abstract Building Strong and Effective Boards Every board desires and strives to be a ‘value creator’. Directors want to live up to the expectations made of them. They want to build great companies. Great companies are not just ‘tracked by history’, they ‘create history’. A far-sighted board with a strong character, a 360 degree view and the ability to do things differently becomes indispensable. This calls for a heterogeneous board in terms of personality, gender, age, race, nationality, educational and experience background to bring diversity in views, capabilities and approach. Value Creating boards are those that choose the right combination of heterogeneous directors and by correctly managing the complexities of diversity, leverage those differences to their advantage. Through a dynamic board succession plan, based on the current and future needs, most suitable members are to be selected. It is important for boards to continually evaluate how effectively they are performing their roles against the objectives and the goals they have set for themselves in each of these areas—Governance, Direction, Monitoring and Value creation. The dividing line between big, board-level decisions and day-to-day, CEO-level decisions is not always clear. Board must ensure the CEO and other managers are addressing key issues, but they should not micromanage the company.

Keywords: Board; Diversity; Heterogeneous; Board Selection; Board Evaluation; Observable Diversity; Surface-level Diversity; Personality Diversity; Age; Gender; Tenure (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-981-99-2707-4_10

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