The article cites instances from NASA (HST), Volkswagen and Wirecard to illustrate how boards may miss early warning signs that can lead to danger. The article emphasizes the importance of recognizing early warning signs and then acting upon the warning signs. This can be done through an effective board review process that allows boards to assess their own performance and effectiveness.
The authors stress the importance of boards assessing their own performance and the performance of the other organisation to discover areas that could be improved. They also emphasize the importance of utilizing outside experts who have expertise to ensure that the board agenda is comprehensive.
A board room review is an assessment of the effectiveness of the board of directors as compared to the ideal needs of the business. It could be an ongoing internal assessment utilising an affordable world-class benchmarked survey tool such as the ones from Board Surveys or a more individual external evaluation that is tailored to the specific needs of the business.
It is vital that the boardroom be an area where people are able to speak freely and honestly. They must be able concentrate on the task at hand without being interrupted or distracted, and they should feel comfortable discussing sensitive topics. A conference room that has large chairs and tables that resemble trestles can be helpful. It should also have a soundproofed space to ensure that conversations are kept private. Advanced technology such as Bloomberg plug-ins or most recent quotation systems can assist. A virtual meeting room could also allow members to attend meetings from their homes, offices or even airplanes, helping to make the process more convenient for them and their coworkers.
