Is Your Board Functioning Well?

I’m Chuck Recorr. In my day job, I’m a managing director at Merrill Lynch — I’ve been there for 47 years.

Every board is configured a little differently because every organization is a little different. So in some organizations, the board is more engaged. In some, the organization is running really smooth, and the board is a little less engaged.

The board should know what’s going on in the organization. The board should be asking important questions. The board shouldn’t be running the organization. If they want to run the organization, they can apply for the job.  

First and foremost, I think the better boards are congenial before and after the meeting, but in the meeting there is positive constructive tension. What I mean by that is, I want people there to express points of view, and I want people to challenge the points of view. Don’t challenge the individual, but challenge the point of view they expressed.

It takes a pretty strong board to be able to bring persons onto the board who will challenge their thinking.

See more from the People Matter series here.