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No one likes boardroom surprises or drama, but as the ultimate authority in the corporation, disputes inevitably show up there. The board of directors often finds itself facing difficult decisions on complex issues that involve fairness, honesty, loyalty, and even legal concerns. In fast-growth, developing economies these can be more of a challenge. The stakes are high, egos often large, and the decisions vital for the future. Personal agendas and interests often clash with fiduciary duty. A business, legal or national crisis may drive boardroom panic without wise leadership. Legal precedents and enforcement can vary -- what was accepted, possibly even required five years ago could land you in trouble today.
Sorting out all of these tense matters is the ultimate task of the board of directors. Not only is it the final arbiter of what the corporation finds acceptable and unacceptable, but it must bring judgment, independence, and responsibility to such decisions.
They’re the dramas that arises only in the boardroom. Competing boardroom blocs… family business disputes… the sudden crisis that rattles the entire boardroom… the “know it all” director… founder squabbles. Everyone with board experience has seen such traumas arise, and also knows just how dangerous they can be. Worse, it’s often hard to tell where the lines between sound fiduciary disagreement and personal battles lie. Lawsuits, legal enforcement, and company failure are all fallout from battles inside the boardroom. What are the biggest drivers of boardroom conflict -- and what tools and techniques work best to resolve them?
Ralph Ward is an internationally-recognized speaker, writer, and advisor on the role of boards of directors, how “benchmark” boards excel, personal boardroom careers, and the future of governance. He speaks on board topics, and offers Boardroom Masterclass programs
Ward is publisher of the online newsletter Boardroom INSIDER, the worldwide source for practical, first-hand advice on better boards and directors. He also edits The Corporate Board magazine, the nation's leading corporate governance journal.
He is author of seven acclaimed books for today’s corporate boards: