What makes for better boards?

Many boards have changed structure and composition in line with the consensus that emerged over the last 20 years that some approaches to corporate governance are indeed better than others. Yet corporate crises continue, as anyone who has lived through the financial crisis knows all too well. Simon Wong, a consultant on governance and law professor thinks that boards need to look inside at what happens in the boardroom, rather than at the shape, size or colour of boards, for the key to better government. We recently read a long version of his analysis of board dynamics, and now a short version has appeared in McKinsey Quarterly online. In it he argues: "To embed an ownership mind-set in the boardroom, companies should look for energy, a 'can do' attitude, and an independent mind when they recruit directors" So boards should ask candidates the following questions:

• How should non-executive directors be involved in the development of strategy?
  
• What type of information would you need to discharge your responsibilities effectively and how would you obtain it?
  
• In your previous board roles, in which areas did you have the greatest impact?
  
• In a group setting, when have you taken a stance against the prevailing majority view and what was the outcome?

"It's a clear warning sign when a candidate cannot mention an occasion when she or he disagreed with management," Wong argues.

Source document: The article "Boards: When best practice isn’t enough" makes interesting reading.