You’ve been an established Board of Directors (BOD) up to now, you’re reforming or want to replace people who’ve left. Whatever the starting situation: It sometimes happens that a particular person who used to draw your attention to things is suddenly gone.
The Board of Directors (BOD) does more than just administrate.
Here’s a new trend I’ve observed: Companies having to train the entire Board of Directors (BOD) before they can read and understand an annual financial statement. That makes me wonder what’s going wrong.
Regardless of how excellent specialists are within their own areas, that is often not enough to be able to handle the ever more complex requirements coming from regulators and legislation.
Whatever company size we’re talking about: The Board of Directors (BOD) needs fundamental, current competencies in finance, risk and communication.
It’s my expectation that a Board of Directors (BOD) will search out these competencies if it doesn’t already have them – also for the sake of its own reputation. As a complete committee. Certainly in the knowledge that an individual member of the Board of Directors (BOD) cannot be expected to cover everything alone – that would be an illusion.
Between planned, target and actual
The Board of Directors (BOD) steers, regulates, decides. That’s a lot of responsibility requiring a considerable foundation of central know-how – and that in very complex fields.