The present economic crisis is exposing the weaknesses of Swiss boards, which tend to score averagely when it comes to performance, reports the Swiss
Handelszeitung. According to several recent studies, uncritical passivity and complacency are still too common among Swiss directors. Swiss boards also lag behind their European counterparts when it comes to regular board appraisals and their members often lack market expertise, note experts.
Thomas Hammer, a consultant at Egon Zehnder International, Zurich, agrees. Although the overall performance of Swiss directors is not bad, concedes Hammer, boards are only prepared for crisis if they have questioned their own effectiveness in good times. In Hammer's opinion, directors also need to question their company's talent management and succession planning, the risk scenarios in place to manage liquidity and finances and the quality of key information that they receive. A key weakness of many Swiss boards is a recruitment approach primarily based on networking. "The selection and appraisal processes must clearly become more professional," observes Hammer. He also warns against appointing too many big names to a board. "It is crucial for the board to function as a whole. That happens if the required competences are present and there is a culture characterised by debate and mutual scrutiny, as well as respect and trust. A collection of Maradonas and Beckhams is absolutely no guarantee of success," Hammer concludes.
