Erasing the “Buzzword” Stigma Let’s get the elephant out of the room before going any further: Yes, the term “company culture” has become something of a buzzword. Too many organizations bandy the term about with reckless abandon. There isn’t much thought into what it means. It’s known to be something that executives are “supposed to…
Board Members Are Living in a Fast-Paced World Board members tend to have a lot on their plate. As a director, they’re likely on the move, looking to network and make things happen for the organization. Beyond that, many members of a board are also high-ranking executives within the company. They have a hefty workload…
Chief Executive Officers who are also the chairman of their board are becoming an increasing rarity. In fact, according to the Wallstreet Journal, the percentage of S&P 500 CEOs serving in the dual role has diminished to an all-time low of 45.6%, as of 2018. Not only is that a historically low number, but it also…
Before delving deep into the benefits of having an independent director on any given board, let’s define the term. For a director to be independent, they can’t be a company employee or shareholder. Nor can they be a family member of another director. Mostly, they’re someone that’s brought in from the outside, who possesses a…
There are three consistent factors involved throughout the operations of most boards of directors: Institutional investors necessitate increased engagement There’s a growing emphasis centered around corporate sustainability Boards are expected to have a firmer grasp on a broader scope of topics, such as: Cybersecurity Human capital Company culture The impact of these various aspects necessitates…
Any board member reading this blog needs to be honest with themselves. There’s been a historical gulf separating a board of directors from its team of employees. After all, the board calls the shots. And in generations past, boards’ attitudes were rooted in the idea that employee input and satisfaction were irrelevant. All that mattered…
Implementation of artificial intelligence and automation in the boardroom – of all places – doesn’t really seem to jive with conventional wisdom. Boardrooms conjure the most significant decisions about an organization’s past, present, and future. This necessitates in-depth thought—which traditionally isn’t something that can be automated in any shape or form. Realistically, can AI be…
Going public with an organization comes with a multitude of advantages. Predominantly, it means an increase in available capital, further visibility, and access to a wealth of lucrative business partners, etc. Alternatively, going public means opening a company up to an array of risks. Of course, there’s a matter of the high price, a big…
When the board of directors of an organization signs a document with wording implicating that they are in favor of the proposed resolution, it’s called a circular motion. Companies with established procedures will utilize circular motions instead of passing a resolution at a convened board meeting. Circular motions are appropriate for routine resolutions that rouse…
The work of a board of directors is accomplished through an array of smaller groups within its sphere. Boards commonly leverage standing, ad hoc, advisory, steering, and executive committees to ensure optimal efficiency. Every board of directors needs to be diligent about assessing their committee structure. For instance, in a leaner organization, limiting the number…