Boards Becoming ‘Invisible’ May Lead to Governance Failures
What is the ideal role of a corporate board in determining a company’s direction? According to many leaders today, the answer to that question involves getting out of the way and making a minimal impact. According to IT Pro Portal contributor Alister Esam, this “invisible” approach could be having serious unintended consequences for overall governance. (May 31, Esam)
Esam’s company polled U.K. professionals and found 39 percent unable to name the members of their own companies’ boards. This level of unfamiliarity shows how far corporate leadership can go from rank-and-file employees. In the same study, 31 percent of respondents confessed they couldn’t identify their organizations’ mission or value.
By getting out of the way, boards of directors could be missing a chance to impart corporate culture and instill a sense of purpose in their employees. Workers who find themselves with no connection to their board members could end up second-guessing decisions from the top or displaying little loyalty – it’s hard to have faith in leaders who don’t make an impression.
Transparency between the upper levels of companies and their everyday team members is a must for organizations that want to centralize around principles or mission statements. A breakdown in communication could lead to greater dysfunction.
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