StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The High-Performance Board - Essay Example

Cite this document
Summary
The paper "The High-Performance Board" discusses that the traditional model has a passive board that requires minimal participation from the board whose main job was to approve management decisions. The CEO has discretion and the board has limited accountability…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful
The High-Performance Board
Read Text Preview

Extract of sample "The High-Performance Board"

With the right mindset, the boards focus on purpose, resources, and effectiveness through self-assessments, conducting, and acting. It requires rigorous introspection and the pitfall of implementation is the lack of knowledge about what to asses and how to apply results. The right role requires board member engagement. 

The certifying board model focuses on credibility to shareholders ensuring that the business is managed properly and CEO meets requirements. The engaged board is likened to a CEO’s partner that constantly provides insight, advice, and support on key decisions and actively defines roles and boundaries. The intervening board asserts its presence and is deeply involved in key decisions through intense meetings. The operating board decides what the management implements and is usually characterized by start-ups where executives still need more management experience. The right work requires the boards to potentially participate in dozens of distinct areas although the focus may be on legal areas such as counseling senior management, evaluating the CEO, and ensuring effective audits, among others. Ideally, the working board must also be able to provide support to directors who need help, whom to retain for the next term as well as those to release. Committees may also help them stay in focus and concentrate on specific issues. The right people on the board require competence as a group and as individuals, but in reality, capabilities mismatch expectations.

The right agenda requires the need for the board to discuss them thoroughly through annual off-site meetings beyond the regular ones where they mingle with the management and employees to gain insight as well as get fruitful results. Right information should not be too much or too little but enough to provide exact and necessary information that they need to know and discuss.  The right culture engages the board with candor and willingness to challenge as it reflects the social and work dynamics of a performing team (Nadler, 2004).

The Principles of Good Governance and The Seven Practices

Lawrence and Weber (year) prescribed five principles of good governance for the board through a selection of outside directors to fill the majority of positions, conducting open elections for members of the board, appointing an independent lead director or chairman of the board and holding regular meetings without the CEO present, align director compensation with corporate performance, and evaluate the board's performance regularly. The overlap between the lists of Nadler and Lawrence and Weber is that Lawrence and Weber’s list encompassed Nadler’s right mindset. Nadler’s is more encompassing, extensive, and specific while Lawrence and Weber’s were traditional at most.

Executive Pay and the Principles of Board Practices

Through the right people method, Nadler’s practices may eliminate those who are performing questionably, thus maintaining performers that may be threatened by the competition. In addition, transparency and equity are also promoted to determine that it is not only senior management or executives that monopolize compensation but must be distributed equally to all members of the organization as one component should be determined as important as the others. This will help distribute compensation from the executives down to the rank and file (Martinelli, 2011).

Board Performance and Application to Disney

One of the bigger problems of Walt Disney may be its large operation in terms of products and services, locations, and employment. It is one of the world’s top entertainment multinational companies that has also diverted into real property development with its theme parks. Governance is a major challenge for MNCs like Walt Disney. The board may provide coherence through this limited body by being immersed in the challenges and existing work cultures in the MNC. But first, its board also needs to determine that the right people are in it. Walt Disney may reform its board through an assessment of the roles of the board directors, determine the right people to retain, elect, and release, and a need to adopt the right agenda through extended discussion and insight-gathering of the corporate culture to determine needs, expectations, and implementation of changes or developments. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Governance Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Governance Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/business/1433657-governance
(Governance Essay Example | Topics and Well Written Essays - 750 Words)
Governance Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/business/1433657-governance.
“Governance Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1433657-governance.
  • Cited: 0 times

CHECK THESE SAMPLES OF The High-Performance Board

Quality & Supply Chain Management

Quality & Supply Chain Management Author Course grade Institution 14th December 2011 Introduction A bill of material shows a list of materials, intermediates, sub- assemblies, components, sub- components, the quantities and parts of each required to manufacture or make the end product.... ... ... ...
20 Pages (5000 words) Assignment

Organizational Governance Analysis

he governing body of an organization is made up of the board of governors, the management, the internal auditors, and the external auditors.... The board of governors's responsible that setting a governing and managing tone at the top.... The paper "Organizational Governance Analysis" discusses that the governance of an organization determines the degree of success the organization can achieve....
9 Pages (2250 words) Essay

Laredo I.S.D. School Board

school board agenda and viewing the meeting video, it became apparent that the function of school boards in the United States are influenced by a variety of factors including fiduciary and personal responsibility as well as public accountability for a broad range of political, socio-economic and environmental circumstances in the community.... Actions are driven by several key elements including: individual board members, specific school governance methodology; the values and perspectives of the community; and relationships between individual school staff members, the superintendent, and the school board members (Dykes 1965)....
4 Pages (1000 words) Essay

A Positive Impact of Diversity amongst the Board Members on the Organizational Performance

The board of directors remains accountable to the shareholders and other interest groups who are associated in respect of functions of the business.... The paper 'A Positive Impact of Diversity amongst the board Members on the Organizational Performance' is a thrilling example of human resources case study.... The board of directors is appointed on behalf of the shareholders for handling the day-to-day operations of a company.... The board of directors remains accountable to the shareholders and other interest groups....
11 Pages (2750 words) Case Study

Role of Boards in Family Firms

According to the agency theory, an external board is needed to control the actions and decisions of firm managers in order to create shareholders' wealth.... he board of Directors plays an important role in developing behavior and instilling some values of good governance in the management of family firms.... Incorporate governance, there are three parties involved: managers, owners, and the board of directors.... The board of directors intermediates between the other parties in order to protect the interests of shareholders and deal with agency problems that may arise....
11 Pages (2750 words) Literature review

Measuring Board Performance in the UK

The paper ''Measuring board Performance in the UK'' is a great example of Management report.... The paper ''Measuring board Performance in the UK'' is a great example of Management report.... The paper ''Measuring board Performance in the UK'' is a great example of Management report....
11 Pages (2750 words) Report

The Relationship between Board Diversity, Accountability, and Company Performances

The paper "The Relationship between board Diversity, Accountability, and Company Performances" is an outstanding example of a literature review on finance and accounting.... The role of the corporate governance framework is guiding a company in its strategies, monitoring management, and maintaining board accountability to its shareholders.... The paper "The Relationship between board Diversity, Accountability, and Company Performances" is an outstanding example of a literature review on finance and accounting....
12 Pages (3000 words) Literature review

Women on Corporate Boards and Firm Financial Performance - Norway

On the same note, Bjarnadóttir (2013) argues that firms with more than two women on their board of management have higher chances of higher Return on Equity compared to those firms with one or no women in their board of management.... Regression and correlation analyses show that board diversity has an influence on a firm's financial performance (Erhardt, et al....
11 Pages (2750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us