The Savvy Director Blog

With this kickoff 2024 edition of The Savvy Director, we’re highlighting boardroom trends that governance experts have been writing about lately.

If you’re like me, you’ll find that some resonate, others not so much. Hopefully, this will give you a running start as you consider which trends apply to your board, and which can be set aside for the time being.

I have a hunch you’ll find some interesting trends that could be tweaked to adapt to your board’s...

We all believe that groups make better decisions than individuals. There’s power in numbers, isn’t there? Otherwise, a board of directors might just as well consist of one person.

But is it true? Do groups really make better decisions?

How do groups go about making decisions, anyway? More importantly, how should they be making decisions to improve the odds of achieving the best outcome?

And what is the boardroom reality when it comes to decision-making? Do boards really make...

 

I came across an excellent opinion piece written by Ram Charan, a world-renowned business advisor, author, and speaker who has spent the past 35 years working with many top companies, CEOs, and boards. He’s known for cutting through the complexity of running an organization in today’s fast changing environment to uncover the core problem that needs solving.

Ram Charan’s article in the newsletter Corporate Board Member Briefing, is about the five lessons a board can...

Recently, I had the opportunity to hear author Brian Hayward speak about his new book, The Great Chair: A Window on Effective Board Leadership. I was particularly struck by Brian’s comments on the topic of trust in the boardroom, and how it links to the ability to influence others.

Brian’s book is all about board chairs, and why they are more important than ever for effective governance, so his writing reflects the importance of trust in the board chair’s relationship to...

In board governance, the issue of conflict of interest never goes away. The thing is, for some reason it’s way easier to spot someone else’s conflict of interest than it is to spot your own.

As a director faced with a board decision, the need to be free of conflict of interest arises from your fiduciary duty – your duty to govern in the long-term best interests of the organization. A conflict of interest occurs when you have interests that could influence the way you act or...

I’m sure you’ve seen it happen. The board decides to hold an in camera session – or as it’s known in the US, an executive session - clearing the boardroom of all staff.

Outside the closed door, staff perceive it as a signal that something ominous is about to happen. They start to speculate about what’s going on. Is the CEO in trouble? Has something scandalous occurred? Is the company threatened?

Inside the boardroom, the questions are less earth-shaking. How...

Here at DirectorPrep, we create practical tools for board directors who choose a growth mindset. That means we want to collaborate with directors, like you, who choose to believe they can develop their abilities, brains, and talent every time they read their board papers, take a course, read an article, or engage in a discussion with fellow board members about a current dilemma or opportunity.

As directors, when we choose to see if there’s something we can learn today, it’s an...

“There’s increased pressure from...

Have you noticed that even a board made up of individual creative thinkers can prefer the status quo over change? If you’ve noticed this tendency, what you’re seeing is status quo bias – just another cognitive bias that affects our decision-making.

You know the saying, “If it ain’t broke, don’t fix it.” In other words, if things are working, we’re content to keep them that way. Simply put, status quo bias negatively affects our ability to make...

Robert’s Rules of Order? I’m not a big fan of Robert’s Rules. Who is this guy Robert anyway? Who made him king?

Okay, you’re right, my tongue is planted firmly in cheek. Boards do need to have a way of conducting their meetings and making group decisions. Robert’s Rules provide that framework.

That said, an overly strict adherence to the parliamentary procedures outlined in Robert’s Rules of Order can really be a buzzkill at board meetings. I’ve seen...