Automation records every decision made in its implementation. Compared to when a human makes a bad decision, when something goes wrong, the audit trail has a concrete path back to the board
The word “why” is the most powerful word for any non-executive director. Hearing it used regularly signals a healthy board who is approaching their role in the right way.
A healthy board/management relationship features ideas brought to the board’s attention early in the development phase for discussion and development.
Boards can’t operate effectively unless they make decisions unanimously (no effective board operates on majority vote decisions). However unanimous decision making doesn’t mean there isn’t serious debate and discussion.
Every director brings their own experience and ideas to the table. But it’s not always easy to stand behind your perspective when it’s different from the rest of the group.
Jack Welch said, “If change is happening on the outside faster than on the inside, the end is in sight.”I’ve thought about this often over the past thirty years. As Managing Director of three technology companies, I was swamped. Every day I…
Imagine this scenario: you are seated at a board table, listening with your fellow directors to a presentation about a new idea. It’s subtle and incredibly complex.
The social philosopher Eric Hoffer once said “The beginning of thought is in disagreement – not only with others but also with ourselves.” It’s an ethos that I have followed in both politics and business.
Beyond bad luck there’s also a number of reasons why bad decisions happen. Here’s the five most common reasons why I think good directors make bad decisions.