World-renowned business advisor, author and board member Ram Charan recently co-authored a book, Boards That Lead: When to Take Charge, When to Partner, and When to Stay Out of the Way. In this episode of Inside America’s Boardrooms, we sit down with Charan to understand the key differentiators between a good board and a great board.
The first thing every company has to consider: The board can be a competitive advantage. It can also be a competitive disadvantage.
Charan outlines five dimensions along which boards should be evaluating their effectiveness; he then specifies how boards can ensure they’re delivering that competitive advantage.
“[First,] you need to define the criteria of an outstanding board,” said Charan. “Most people talk about the inputs the board makes. But, what [are] the outputs of [a great] board?”
Charan goes on to outline the importance of “having the right CEO at all times” and the aspects of effective succession planning. Throughout the episode, he stresses the impact that today’s boards can truly have.
“The board makes very few decisions,” said Charan. “If these decisions are great, the company will prosper. If those decisions are terrible, the company will suffer.”
Don’t miss the valuable advice from a world-class business leader and board member.