Growing Your Business

October 2, 2006

If China can (finally) accept the role of a Board of Directors, you should too.


So, you started a company, you recruited a Board of Directors, and you hold your meetings quarterly. But are you really using the talent that assembles at your Board meetings?

As a CEO, and a frequent participant in Board meetings, I have found that it is relatively simple for a competent Chairperson to orchestrate a meeting to collect all of the "Yes" votes they want. Manipulating the schedule, centering the discussion, and not pursuing dissenting ideas are just a few methods I have seen used to pursue the Chairperson's agenda.

Take a look at this website run by a company which is majority owned by the Chinese Government: China Netcom. Notice that (like me) you probably cannot pronounce most of the names on the list of Board Members. Except perhaps, the lone American, John Lawson Thornton. In a recent meeting reported by the Wall Street Journal, Mr. Thorton disagreed with a decision by Chairman Zhang Chunjiang. The result was not the expected veto, but rather Mr. Zhang accepted the dissention, and reversed his position. Further, China Netcom took steps to adopt measures to ensure that its Board would have the power to lead the company, and not simple agree with the Chairman.

Mr. Thorton was clearly not a token member of the China Netcom board. Mature and efficient companies tend to look for dissention, discuss decisions, and most importantly, listen to every member of the Board. Do the same, it will translate into profits. Yes, it will lengthen your Board meetings, and perhaps raise the temperature from time to time, but these are worthwhile trade-offs for a more successful business.

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