|
Board counsel can offer early warning Handelszeitung
Creating an open and critical working climate is the major challenge facing today’s boards, writes Mark Hoenig, a consultant at Egon Zehnder International, Zurich, in the Swiss business weekly Handelszeitung. To achieve such an environment companies need to appoint a diverse board of members with experience in different areas, he adds. The temptation, however, is to appoint big name directors, violating the principle of “competence above prominence,” warns Hoenig. In view of the recent financial meltdown the board’s primary task is to examine risks and worst case scenarios in business areas that contribute significantly to the bottom line, he explains. When business is booming asking awkward questions can make everyone uncomfortable and may even be considered inappropriate. That is where board expertise comes in, notes Hoenig. Top leaders need to listen to the board’s wise counsel and transform it into strong decisions, without blocking growth, Hoenig concludes.
|