BI for December..
CORPORATE BOARDS AND
THE “POWER TOOL” SYNDROME
Why is it that the more we try to improve
and regulate corporate boards, the less effective they seem to
become? In the December issue of online monthly Boardroom INSIDER,
editor and boardroom commentator Ralph Ward goes in search of answers to
In Western economies, Ward writes, there are
curious parallels between the “improvements” made to corporate
governance, and those regulators and courts have compelled for
potentially-dangerous home power tools. In both cases, growing layers of
“safety devices, disclaimers, warnings, shields and protections have
actually made them clumsier, less reliable, and more dangerous
Indeed, Ward writes, in both fields, most
regulation seems implemented less to improve the product than “to
decrease liability once you either lop off your thumb, or have a corporate
He concludes that the board of directors in
today’s large corporation “is a modest historical business artifact” that
“may need to be completely overhauled to meet modern fiduciary
realities,” and notes several possibilities.
Also in the December Boardroom
What to do (and what not to do) when interviewing for a board seat.
Six keys for writing your board’s ethics policy.
Q&A: How can we fight back on “board book overload?”
... is now available as an e-book for $7.99. Order it today from Amazon.com.
Boardroom INSIDER is the monthly online newsletter for better boards and better directors. Learm more at the:
Ralph D. Ward is an internationally-recognized writer and commentator on the role of boards of directors, the secrets of how benchmark boards excel, corporate scandals and reforms, and the future of governance worldwide.