Listen "Should board behaviour evaluations under FRC/QCA/Wates codes and principles be substantially oral, not written?"
Episode Synopsis
In an ideal world, boards should focus on fixing the matters arising from their board evaluations. They don’t because the purpose of board evaluations of many boards, despite pleas by regulators, is to tick boxes for annual reports and/or to use them as sticks to beat colleagues.
Even organisations who pride themselves on carrying out rigorous board evaluations including on behaviour issues can miss important systemic weaknesses because of the key limitation of written board evaluations: fear of writing down, for example, the belief by most directors that the CEO, CXO or Chair is a narcissistic bully who brooks no challenge. Delete as appropriate.
The collapse of Carillion is a chilling example of the limitations of written evaluations. Its annual report in 2016 noted that its board evaluation had “confirmed that the board, each of its committees and directors continue to be highly effective’.
Even organisations who pride themselves on carrying out rigorous board evaluations including on behaviour issues can miss important systemic weaknesses because of the key limitation of written board evaluations: fear of writing down, for example, the belief by most directors that the CEO, CXO or Chair is a narcissistic bully who brooks no challenge. Delete as appropriate.
The collapse of Carillion is a chilling example of the limitations of written evaluations. Its annual report in 2016 noted that its board evaluation had “confirmed that the board, each of its committees and directors continue to be highly effective’.
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