Non-profit organizations often grumble about the inefficiencies of the typical board-executive director governance model, but it appears that corporate boards share many of the same frustrations. In the April 2013 issue of the Harvard Business Review, Jeffery Sonnefeld, Melanie Kusin, and Elise Walton analyze the opinions of dozens of CEOs and distilled them into five pieces of advice for board members:
1. Focus on the risks that are the most crucial to the future of the enterprise.
While boards should serve to rein in the “cowboy CEO,” they often are much more timid and rein in any form or shape of risk. “Boards often lack the intestinal fortitude for the level of risk taking that healthy growth requires” and ironically, this timidity increases with organizational growth and capacity. Young organizations are more flexible, courageous, and bold. Why avoid risk? Surprisingly, it seems that boards “too often put self-interest and self-preservation ahead of shareholder interests”—translated into the non-profit world, they care more about their seats in the boardroom than they do about the audiences they are supposed to represent and serve. “You need to make sure both management and the board are always Continue reading





