Ineffective processes to blame for ineffective boards
Posted 2.5.15Simon Peck and Bernard Bailey's research on board process reveals that process is the only thing that ultimately matters in making constructive board decisions.
Research conducted by Simon Peck, associate professor of Design & Innovation, and Bernard Bailey, PhD '12 and current adjunct professor at Weatherhead, analyzes board governance structures and their underlying processes for decision making. Their research suggests that all boards use one of two basic styles--either politically oriented decision-making or collaborative, process-oriented decision-making.
"Political boards hide information, Bailey found, and tend not to discuss the best options. They also divide board members, which reduces respect and trust, which in turn hurts decisions," writes Tony Chapelle, Senior Reporter for Agenda, where the article on board processes first appeared.
Peck and Bailey identify three factors that process-oriented boards tend to have in common:
- Directors share a mental concept or model of how the board should be run
- Process-oriented boards have fairly balanced power relationships
- Chairman facilitates discussion, understanding and diversity of opinion effectively while also building a relationship with the CEO
Read the full article, "Ineffective Processes to Blame for Ineffective Boards," by Tony Chapelle, which details more of the results of Bailey and Peck's research, published February 2, 2015 in Agenda.