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Directors' Dilemmas

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Directors' Dilemmas

Tales from the Front Line

Kogan Page,

15 min read
10 take-aways
Audio & text

What's inside?

Board members` most common dilemmas and how to solve them – because they`re the ones who have to act in a crisis.

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

You rarely find a good advice book for directors, since publishers presumably believe that its audience would be small and that, in any case, those sitting on corporate boards ought to know what they are doing. But as the infamous debacles at Enron, Tyco, HealthSouth and other companies show, this isn’t always the case. getAbstract.com heartily recommends this book to all corporate board members, even those with long experience. Patrick Dunne provides a useful decision-making framework for resolving common problems. It is enhanced by behind-the-scenes case studies that depict a variety of difficult company decisions and how board members arrived at them - helpful for those facing similar crises. After reading this book, you will have only one dilemma left: deciding which of Dunne’s solutions to try first.

Summary

Dilemmas Defined

Dilemmas come in many forms. Some leaders equate dilemmas with disasters. To others, a dilemma is when you have to decide which of two good options is best. But when most directors use the word "dilemma," they mean, "A tricky spot with no immediately obvious conclusion and where the alternative solutions all involve some degree of pain."

Most board dilemmas have one of four sources:

  1. "Confusion over the role of the board" - The board’s job is to develop strategy, ensure that the company has the resources to execute it, monitor its implementation and, frankly, to keep company executives and themselves out of jail. The board is responsible for verifying compliance with regulations and laws.
  2. "The fact that humans are involved" - Like everyone else, directors take things personally. The interests of individual directors should be as closely aligned as possible with those of the board as a whole. If you are the board chairman, you need at least one person in your office who is not afraid to give you an unvarnished opinion.
  3. "A changed situation" - Change elevates stress, and business...

About the Author

Patrick Dunne is group communications director for the European venture capital firm 3i. He also wrote Running Board Meetings and the Non-Executive Directors’ Handbook. He is a visiting professor at Cranfield School of Management.

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