Boards Need the Courage to Challenge Management


Dow Jones Institutional News | October 11, 2016

The Dow Jones Institutional News article, “Boards Need the Courage to Challenge Management,” cited findings from the firm’s research.

Boardroom courage knows no borders. Directors in a dozen countries ranked "courage to do the right thing for the right reasons" as the most important way for them to foster board effectiveness and company performance. The finding comes from a survey of 369 directors of big public companies. The behavior that directors ranked second? Willingness "to constructively challenge management, when appropriate," reports recruiters Russell Reynolds Associates, which did the poll. Its study also said an effective board chairman "was the single biggest differentiator between the most and least effective boards." But some regional differences emerged. American directors were 8% less likely than the global average to cross the line from management oversight into operations.

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Boards Need the Courage to Challenge Management