Sunday, December 26, 2010
Harvard Business Review Post # 7: Professional Boards
“The Case for Professional Boards” (by Robert Pozen, p.51). Pozen, a senior lecturer at Harvard’s Business School, argues that despite having star-studded board members for oversight, many financial institutions went down the chute in 2008-9 and had to be rescued from insolvency. He advocates for professional board members who do board governance for a living. He argues for a typical board size to be 7 directors and wants members to have real-world expertise in the company’s business space. Finally, he strongly contends that all boards meet regularly in executive session without management present. In such meetings, board members tend to talk more candidly about what bothers them. This is critical for the organization whether a for-profit or non-profit.