Elevating Board Performance: The Significance of Director Mindset, Operating Context, and Other Behavioral and Functional Considerations

World Financial Review, p. 11, January-February 2012

5 Pages Posted: 4 Feb 2012

Multiple version iconThere are 4 versions of this paper

Date Written: January 1, 2012

Abstract

Despite considerable reforms over the past two decades, boards – particularly at financial institutions – have been criticized recently for poor stewardship.

This article argues that the lack of attention to behavioral and functional considerations – in particular, relating to director mindset, board operating context, and evolving human dynamics – has hampered the board’s effectiveness.

To reach their potential, boards and their members should: 1) think like an owner; 2) know their companies; 3) be prepared to ‘roll up their sleeves’; 4) take charge of their priorities; 5) hire a collaborative CEO; and 6) protect their authority and independence.

This article is a shortened version of the author’s Northwestern University School of Law working paper (available at http://ssrn.com/abstract=1832234).

Keywords: Board of directors, mindset and behavior, board culture, independence and authority

JEL Classification: G34, D23, D82

Suggested Citation

Wong, Simon C. Y., Elevating Board Performance: The Significance of Director Mindset, Operating Context, and Other Behavioral and Functional Considerations (January 1, 2012). World Financial Review, p. 11, January-February 2012. Available at SSRN: https://ssrn.com/abstract=1997489

Simon C. Y. Wong (Contact Author)

Northwestern University School of Law ( email )

375 E. Chicago Ave
Chicago, IL 60611
United States

London School of Economics

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://www.lse.ac.uk/collections/law/staff/simon-wong.htm

Tapestry Networks ( email )

404 Wyman St.
Suite 225
Waltham, MA 02451
United States

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