Yes, in perceived terms. In real terms, no. The corporate structure is based on a chain of command from lower management levels to most senior. Level 0– top most level. Shareholders or founders level. The people who appoint the board of directors, who are headed by the board chairman. Often times, the founder may and can appoint himself or herself on the Board. In America, it is common. Level 1 —Board members. The people who run the business on behalf of the founder or shareholders. Ideally, shareholders appoint board members required. And on their first sitting, they elect their Chairman.…
Is cybersecurity advice valuable to a board of directors?
Of course, it is. I recently delivered a talk to the Board of Directors of a major, not for profit organization in Africa. I was surprised at their basic appreciation of the cybersecurity risk management strategy. Compared to Bank Boards, Not for Profit Boards don’t invest a lot in learning new and emerging business risks as their counterparts in financial institutions. Nevertheless, all board members need ongoing advice on cybersecurity. Competitive advantage today is through a company’s ICT infrastructure investment and optimization. Without a robust ERP system, for example, your Company is at a competitive disadvantage. However, automation comes with…
Is your board in existence as a necessary nuisance?
Once I was asked by an SME owner to help set up a board of directors. When I asked why the board was needed at the time, his answer was revealing. “I want to apply for funding. I have been informed when you have the board of directors, you stand higher chances.” A board should not merely be ceremonial. It must be progressive and value-adding. In today’s technology-driven business models of ecosystems, platforms and A ceremonial board cannot win. It is for mere window dressing – to the public and partners, the company has aboard. However, in reality, the…
Is your board effective?
No board is 100% effective. But the imperfection varies. On a scale of 1 (ineffective) to 10 (effective), what is the degree of your board imperfection? Just like no person is perfect. No board is perfect. When I joined the council of ICGU, the then Chief Executive Officer, Samuel F. Owori, invited the newly appointed members for an orientation meeting. “You need to understand what everything about ICGU so that you are able to perform your oversight role effectively”, he said. For a whole day, he told us about the background of ICGU, gave us copies of key documents about…
The tragedy of parenting
What is the predictor of success in life? Is it nurture or nature? I learned a lot from my late grandpa, who I lived with a big part of my early life. He told me many profound insights. He used to say, “education does not help the lazy.” Now I know that this meant more work is after getting that degree! He was right. To get ahead, one must put in the extra effort. Have an ambition. Wake up early. Work hard by always going the extra mile. A genius may need just one hour to cover what an average…
Can the CEO fire board members?
Short answer In many US companies, the CEO is also the Board Chairman. The person who signs on the appointment of board members is the Board chairman. When the roles of CEO and Chairman are combined, it is correct to say the CEO appoints the Board. He who appoints can terminate the board members. However, when the CEO and Chairman roles are not combined, like in most companies in Europe, the CEO may merely influence the termination of the board members but cannot terminate them easily. He has to ‘play politics’ to get the bad apples out. Regardless of the…
