NACD Directorship 2020: Dynamics and Culture in the Boardroom
What are some elements that make an effective board? They include the right culture and a mix of directors with the right expertise and experience.
A robust boardroom culture should enable effective board members to ask the difficult questions and exercise healthy skepticism. Certain board members may have specific experience and expertise or “inside” information about specific topics and subjects. If the culture is closed and disconnected, that information may not be appropriately shared with other board members. It’s important that all board members have the information they need to effectively do their jobs.
And then there’s leadership. The right culture, shaped by leadership, can help deal with asymmetric information in the boardroom.