The article draws on examples from NASA (HST), Volkswagen and Wirecard to show how boards are prone to miss early signs of danger. It emphasizes the importance of Board Resolution Document not just not recognizing these signals but to take action upon these signals. This can be accomplished through an effective review process for boards that allows to evaluate their performance and effectiveness.
The authors emphasize the need for boards to review their own performance and the performance of the of the organization, in order to identify any gaps and opportunities to improve. They also stress the importance of utilizing outside consultants who have expertise to ensure that the board agenda is comprehensive.
A board room review is a re-evaluation of the effectiveness of the board of directors compared to the ideal requirements of the business. It could be an internal review using a low-cost benchmarked tool for surveying like the ones offered by Board Surveys or a more individual external evaluation that is tailored to the needs of the organisation.
It is vital that the boardroom be an environment where employees are able to speak openly and honestly. They must be able concentrate on their task without being distracted or interrupted and they should feel at ease when discussing sensitive issues. A conference room that is equipped with large trestle tables and chairs, a soundproof environment to ensure that conversations remain private, and modern technology like Bloomberg plug-ins, or the latest quotation systems can help. Virtual meeting rooms allow participants to attend meetings from their offices, at home or even on the plane. This makes the process more convenient.