In order to avoid another Enron, WorldCom, or Tyco, company directors
have assumed a bold and independent role in the boardroom, monitoring
the actions and day-to-day operations of the CEO. This dramatic shift
has created a new dynamic, one that requires careful negotiation from
both parties to get the job done. Giving directors, executives,
investors, and stakeholders the tools to make this relationship work,
William M. Klepper describes the best techniques for building a
productive partnership and establishing a plan of action for a variety
of businesses and settings.
Klepper, an executive educator, has worked with AT&T, Bausch & Lomb,
Johnson & Johnson, Sony, Sun Microsystems, and a host of other
corporations. He knows what makes a healthy partnership between a board
and its CEO and the consequences of a bad fit. In this book, he details
the eight practices of successful executives, such as facilitating
innovation, motivating change, and developing leadership skills, and he
explains what directors need to evaluate, such as working style, social
behavior, and the handling of stress, before they commit to hiring a
CEO.
The most critical element is the social contract, in which directors and
their CEOs agree to be transparent, continually reassess their company's
risk, maintain core company values, and make a commitment to their
stakeholders. These include employees, shareholders, customers, and the
community. In this essential volume, Klepper encourages directors to
embrace their independence, and he teaches executives to value tough
love.
