Board Governance: Bridging the Board Director-Employee Gap
Sometimes, it can feel like a company’s board of directors and employees are working for two different organizations. The Forbes Human Resources Council stated that the stratification and division between the board and the rank-and-file is a potential problem, as it can harm directors’ abilities to deliver effective board governance and guide companies effectively. (July 6, Albrecht)
Boards across industries have made recent moves to assert more independent oversight, striving to keep their companies on the right path. However, this process becomes less useful if directors are out of touch with the day-to-day operations of the business. When companies and their boards don’t interact, there is a greater chance of strategic misalignment.
Today’s technological innovations can help the process of communication and information exchange. For instance, giving board directors access to dashboards on company performance ensures that they have up-to-the-moment insights on the firm, and can use this data as a starting point for greater engagement.
When directors aren’t in contact with employees, they can develop an “untouchable” image. They are essentially an outside force in such a scenario, making it hard to envision strategically aligning their goals with those of on-the-ground leaders. Restoring this connection – or setting it up for the first time – is critical.
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