With divisional managers now responsible for day-to-day operations, the Board should refocus on policy and planning. To make that shift, what governance arrangements should the Board adopt? It should agree a Board model that clarifies its mandate, composition, participation, and transition. 1. Define the Board’s size and membership. 2. Divide policy, planning, and executive responsibilities between the Board and Executive Committee. 3. Enable outside directors to participate effectively. 4. S...
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With divisional managers now responsible for day-to-day operations, the Board should refocus on policy and planning. To make that shift, what governance arrangements should the Board adopt? It should agree a Board model that clarifies its mandate, composition, participation, and transition.
1. Define the Board’s size and membership.
2. Divide policy, planning, and executive responsibilities between the Board and Executive Committee.
3. Enable outside directors to participate effectively.
4. Set director selection and tenure principles, and adopt a transition path from the current arrangement.
