News and Views
February 25, 2019
Posted in: WATSON Views
We are aligned – board quality and composition are at the heart of corporate governance. In our practice, we believe you get the board you create. If you put thought, time, and effort into defining your board’s needs and intentionally filling those needs, the result is an effective, value-adding team. If you leave it to members, appointing bodies, or chance, the results… vary.
Intentional board composition is all about balance – balance of skill-sets, gender, and industry knowledge, balance between new voices and old. Great boards find the right balance between skill-sets to support the future strategy and characteristics that drive effective group dynamics. Despite the obvious importance of industry knowledge, we have seen countless situations where sound, informed opinions are undermined by an ineffective style, often resulting in bad decisions that could have been avoided. Hitting the right balance of board quality and composition is key to effective governance.