Strategic Intelligence for CFOs, Finance Directors, Controllers and Treasurers in Asia  | 
2010, Sep 03

Enterprise Governance: Restoring Boardroom Leadership

Enterprise Governance: Restoring Boardroom Leadership

by CIMA, 04 February 2010
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 CIMA’s paper investigates how failures in corporate leadership contributed heavily to the global financial crisis, and how boards can be more effective and challenge management confidently.

 
Findings include:
Boards need an integrated approach to effective leadership.
Directors must incorporate behavioural and structural factors.
More attention must be paid to psychological factors contributing to board performance: creating a challenge culture, succession planning and effective risk governance.
There must be rigorous, regular and systematic board evaluation. The model proposed by this report could provide a useful input to the board evaluation process.
The board’s relationship with external stakeholders, particularly shareholders, is crucial. By focusing on its own effectiveness and contributions to the long-term sustainability of the organisation, a board will serve those stakeholders.
 

 

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