The article employs examples from NASA (HST), Volkswagen, and Wirecard to show how boards may miss early signs of danger. The article emphasizes the importance of identifying early warning signs and taking action on these warning signs and acting on. This can be accomplished through a well-organized review procedure for boards that helps them evaluate their performance and effectiveness.
The authors emphasize the need for boards to evaluate their own performance, as well as the performance of the entire organization, to find gaps and opportunities for improvement. They also emphasize the importance of utilizing outside experts with expertise to ensure that the agenda of the board is complete.
A board room review is a test of the effectiveness of the board of directors in relation to the ideal requirements of the business. It could be a regular internal assessment utilising an affordable benchmarked tool for surveying like the ones offered by Board Surveys or a more individual external evaluation that is customized to the needs of the organisation.
It is essential that the boardroom be a space where members can freely and candidly discuss issues. They should be able to concentrate on their work without getting distracted or interrupted, and feel at ease discussing sensitive issues. A conference room that is equipped with large trestle tables and chairs, a soundproofing environment to ensure that conversations remain private, and modern technology like Bloomberg plug-ins or state-of-the-art quotation systems can be helpful. A virtual meeting room could also allow members to attend meetings at their offices, homes or even on planes, helping to make data room service the process more convenient for them and their coworkers.