Publication: Where Were the Directors?
Date
2009-02
ISSN
Published
2009-02
Author(s)
World Bank
Abstract
The credit crisis has caused a cataclysm
in corporate governance circles. Distinguished professors,
leaders of industry, regulators, legislators and blue ribbon
panels around the world are examining everything from bank
regulation to how individuals relate to society. There are
more "big ideas" floating around than ever. Most,
of course, will come into the world with a bang, only to be
forgotten equally quickly. Into this unsettled, shifting
landscape, David Beatty takes a different approach. Rather
than one big idea, Beatty proposes a series of concrete,
common-sense methods to improve the effectiveness of Boards
of Directors. These are improvements born of the current
context, but which seem timeless. Much in the same way that
a magician's trick seems obvious once you know how it
is done, Beatty's suggestions seem absolutely intuitive
once read, yet few boards now practice them. Beatty's
prescriptions divide into three parts: 1) equipping boards
with adequate expertise to deal with today's complex
issues; 2) managing the time of Directors more efficiently
so as to allow true strategic planning; and 3) bridging the
expertise chasm between Managers and Directors. Those are
all long-standing issues, what makes Beatty's advice
valuable are the specific steps he recommends to achieve them.
Citation
“World Bank. 2009. Where Were the Directors?. Private Sector Opinion; No. 12. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/8929c833-879a-5aa8-afcd-e891b7ce1819 License: CC BY-NC-ND 3.0 IGO.”