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Posted 2.5.15

Ineffective processes to blame for ineffective boards

Simon PeckResearch 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:  

  1. Directors share a mental concept or model of how the board should be run
  2. Process-oriented boards have fairly balanced power relationships
  3. 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.


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