Author Abstract
The paper identifies and briefly discusses the following primary responsibilities of a corporate board of directors:
- Approve and monitor the enterprise's strategy
- Approve major financial decisions
- Select the chief executive officer, evaluate the CEO and senior executive team, ensure executive succession plans
- Provide counsel and support to the CEO
- Ensure compliance
The paper argues that board members, burdened by limited time and limited information, can participate in a more effective and efficient governance process by implementing a three-part Balanced Scorecard program. The program starts with an enterprise scorecard enabling the board to become more informed about the enterprise's strategy so that it can perform better its five primary responsibilities. The board can also create a Board Scorecard, which defines its primary outcomes, board processes, and skills, information, and meeting dynamics for more effective governance. Finally, executive scorecards enable the Board to evaluate the performance of each senior executive and his or her succession plans.
Paper Information
