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.
• 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.