Since October's reorganization gave divisional managers full authority for day-to-day operations, the Board is now expected to concentrate on policy and planning. Yet the Board has continued to spend much of its time on short-term operational matters. To redefine its role, the Board needs to resolve four questions: 1. What size and composition will let the Board do this work effectively? 2. How should responsibilities be divided between the Board and the Executive Committee? 3. How can outsid...
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Since October's reorganization gave divisional managers full authority for day-to-day operations, the Board is now expected to concentrate on policy and planning. Yet the Board has continued to spend much of its time on short-term operational matters. To redefine its role, the Board needs to resolve four questions:
1. What size and composition will let the Board do this work effectively?
2. How should responsibilities be divided between the Board and the Executive Committee?
3. How can outside directors be made effective participants?
4. What principles should govern the selection and tenure of directors?
This memorandum sets out ideas on each, together with alternative ways to move from the present arrangement to the one the Board decides on.
