Directors & Boards has published an insightful piece on board composition by Dr. Keith D. Dorsey, Managing Partner and U.S. Practice Leader for CEO & Board Services at Boyden
Board members are responsible for ensuring their board can fulfill its duty of care to the organization. When the board does not have the full range of human capital it needs to do that, results can range from disastrous missteps to organizational death.
For directors to fulfill their duty of care, they must:
- Engage in ongoing self-examination to identify human capital redundancies, gaps, and misalignments between the board and organizational stakeholders.
- Take swift action to close gaps and address misalignments.
Directors accept substantial legal and ethical responsibilities when they accept a position on a board, and these responsibilities are assumed collectively. This means that knowing, trusting, and working well with one’s fellow directors is of prime importance. However, the search for a new director rarely, if ever, extends beyond the existing directors’ networks. Filling open seats with “known” individuals may create a sense of safety – but that can be a false and dangerous illusion.
Continue reading at Directors & Boards here.