Post by the Boardroom

Why do boards full of brilliant, accomplished people stay silent while value is destroyed in plain sight? Volkswagen. Wirecard. Theranos. More than $60 billion in value was lost, and in each case, many of the warning signs were visible long before the crisis unfolded. Last week at our Private Clubhouse in London, the Boardroom welcomed Anand Narasimhan, Shell Professor of Leadership and Governance at IMD, for a fascinating discussion on one of the most overlooked aspects of governance: boardroom dynamics. For decades, governance codes, regulations, and committee structures have sought to improve board effectiveness. Yet while these frameworks shape how boards are designed, they cannot regulate what happens once the boardroom door closes. 🔹 Who speaks? 🔹Who stays silent? 🔹Whose perspective carries weight? 🔹Whose voice gradually disappears from the conversation? Drawing on examples ranging from a media tycoon so notorious he inspired a James Bond villain, to lessons from operating rooms, aircraft cockpits, and a remarkable boardroom turnaround documented in his own case research, Anand challenged us to rethink what makes boards effective. One observation particularly resonated with our members: “In the boardroom, talk is the work. And having a seat at the table is not the same as having a voice at it.” The most effective boards are not necessarily those with the most impressive résumés around the table. They are the ones that create the conditions for constructive challenge, diverse perspectives, and courageous conversations. Because governance failures are rarely caused by a lack of intelligence. More often, they are caused by a lack of voice. A huge thank you to Anand Narasimhan and our Global Academic Partner, IMD, for an engaging and thought-provoking session. #CorporateGovernance #Boards #BoardLeadership #Leadership #BoardroomDynamics #WomenOnBoards #IMD #theBoardroom Diana Markaki - Bartholdi Micaela Lello Nicki Singh Janet Hotz Delia Fischer [she/her] Jacqueline Hess Elena Papadonikolaki