Board Director Dilemmas Pushing Senior Management
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Throughout my tenure as a board director, I’ve faced numerous board-dilemmas that have required tough choices and personal sacrifices. One such challenge was when I was asked to consider a major merger with a competitor that could bring major cost savings but also eliminate some of our current business operations. The decision required me to take a nuanced view of both potential benefits and potential risks. I took some difficult steps to understand the strategic issues at stake in the merger, and considered whether it was the right course for
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– How the company’s senior management has evolved over the years: In the early 1980s, the company was a pioneer in creating a new type of board for a corporation. Senior management’s primary concern was making sure the boards of directors were fully informed and had all the tools to manage effectively. The company’s board of directors comprised four “board directors”, each of whom had one seat on the board, and up to ten senior management representatives. The board directors were responsible for directing the corporation
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[Insert your own here — insert any opening statement you wish to make to the reader.] [Insert 20-30 sentences of your financial analysis: 1. Board Dilemmas Pushing Senior Management Financial Analysis: ● High operating costs – $5,000,000 per year ● Declining revenue – $40,000,000 in 5 years ● Reduced staff – 40% – 50% ● High
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I’ve seen it first-hand in my work as a board director, the constant struggle between the board’s goals and the company’s interests. At times, the board can have the best of intentions and execute well on its own; often, however, it’s forced to play a role in the company’s struggles. Sometimes, the board will try to dictate changes that are in the best interest of the company, and sometimes it will let go of the “right thing” to keep the rest of the company on track. Both
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A well-run company has a Board of Directors. Someone may not fit in that structure; hence, we recommend to remove them. site here Some directors do not make strategic decision that can help the company to grow or compete with competition. Often, directors are in favour of maintaining the current management structure. Others may become so obsessed with the past that they forget the present and the future. The Board needs to be more dynamic to drive the company forward. Board Directors should be accountable for driving company growth. If directors fail to do