DESCRIPTION

The role of the company board has been challenged in the last decade as it has become ever more apparent that the passive board with little or no interest in company performance, is problematic for the company at all levels (legal, professional, and strategic). Derived from this supposedly new role of the board is if there is a difference, perhaps to a crucial level, between the natural focus and management styles of board and management? Furthermore what role is the professional board expected to have concerning operational and strategic decisions? Extending the role of the board with advisory boards, professional networks and consultants challenges the interaction between the board and the management further.

SPECIFIC ISSUES AND KNOWLEDGE NEEDED TO MAKE DECISIONS

• The amount  of interference from the professional board with daily operations, thereby creating confusion throughout the organization
• The professional board evaluates management skills to a greater degree than other boards
• The management’s focus on investments, operations, etc. differs from that of the board
• The experience and  knowledge of the board on the market and business culture of the company is limited creating possible hazardous decisions
• There are cultural differences between the management and the board, either due to their educational/professional approaches or because of differences in geography/origin