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The Jacoby Consulting Group Blog

Welcome to the Jacoby Consulting Group blog.
You will immediately notice that this blog covers a wide range of themes - in fact, whatever takes my fancy or whatever I feel strongly about that is current or topical. Although themes may relate to business, corporate or organisational issues (i.e. the core talents of JCG), they also cover issues on which JCG also feels warranted to comment, such as social issues, my books, other peoples' books and so on. You need to know that comments are moderated - not to stifle disagreement - but rather to eliminate obnoxious or incendiary comments. If a reader wishes to pursue any specific theme in more detail, specifically in relation to corporate, business or organisational issues, or in relation to my books, then the reader is invited to send an off-line email with a request. A prompt response is promised. I hope you enjoy this blog - sometimes informed, sometimes amused and sometimes empassioned. Welcome and enjoy.
JJJ

20 May 2010


How much should a Board be involved in management?

Like most things, it depends! Much depends on one's definition of "involved".


If one is a director of a listed company, and has been appointed to that position because of one's particular expertise (eg. legal, financial, IT, etc) then it is inevitable that one will "be involved" with management in order to provide suitable oversight and guidance, from one's board position.

If a director sits on a sub-committee, then it is inevitable that there will be "involvement" with staff in order to carry out the duties of that committee.

Where the company is not listed, it is pervasive that the roles of shareholder / director / manager are carried out by the same person/people. Director's "involvement" therefore cannot be avoided.

I suppose the key distinction needs to be made (for a listed entity) between communicating and interacting with staff versus directing their activity. If a director instructs a staff member to act, without going through the CEO, then the CEO is undermined, the staff member may be conflicted about priority and obligation, but more importantly, the director loses his/her ability to provide robust independent oversight, thus defeating the very purpose of his/her appointment as a director.

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