The Board should redesign its composition, working relationship with the Executive Committee, and transition plan so it can focus on policy and planning rather than day-to-day operations. The October reorganization gave divisional managers full authority for day-to-day operations, while leaving policy and planning with the Board. The question now is how the Board should organize itself to carry out that role effectively. 1. Define the governance structure - Determine the Board’s optimum size ...
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The Board should redesign its composition, working relationship with the Executive Committee, and transition plan so it can focus on policy and planning rather than day-to-day operations.
The October reorganization gave divisional managers full authority for day-to-day operations, while leaving policy and planning with the Board. The question now is how the Board should organize itself to carry out that role effectively.
1. Define the governance structure
- Determine the Board’s optimum size and composition.
- Clarify the respective responsibilities and relationship of the Board and Executive Committee.
2. Strengthen Board membership
- Make outside directors effective participants.
- Establish principles for selecting directors and setting their tenure.
3. Plan the transition
- Consider alternative ways to move from the current Board and Executive Committee arrangement to the desired one.
