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Captive Board Decision-Making Primer
by John Salisbury, President
Captive.com, LLC
November 8, 2006: The November 2006 issue
of the Harvard Business
Review features a best practice article "How Well-Run Boards Make
Decisions" by Michael Useem. Author Useem suggests the following guidelines
to determine which decisions should go to a board:
- Create an annual calendar that specifies major subjects
for review by the directors.
- Prepare committee job descriptiions that define the
decisions for which each board committe is responsible.
- Use a decision protocol to identify which decisions
should be brought to the Board of Directors
- Send "strategic" decisions to the board.
- Take to the board of decisions that touch on a company`s
core values, even if those decisions are modest in impact.
- Research and review the decision options before approving
a plan of action.
- Subdivide large strategic decisions into small, sequential
ones.
- Remain engage in secondary decision that flow from
primary strategic decisions.
- Sustain ongoing dialogue between the CEO and the nonececutive
chair or lead director.
- Request and evaluate explanations and assumptions for
proposed executive decisions.
Individual copies of Harvard Business
Review articles can be purchased by clicking here.
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